Major Media Companies and Changing Demands - Essay Example

An Analysis of The Major Media Companies Coping With the Changing Demands of People and Time Introduction The power of the media to spread information from any part of the world has caused the emergence of many media companies, offering services that promise to satisfy one’s need for pleasure, convenience and information. It is a dominating industry nowadays earning billions from its provided services in the field of television, radio and advertising. Whatever goes out in the media is seen by the public that creates either a positive or negative effect. This is something that makes the media unique from the other industries; the spreading of information that are seen or heard by people makes them eager to know more about it that then leads to the purchasing or subscription of that product or service. People who work in this type of industry are often linked with issues that deal with deception and public manipulation. The release of information is so quick that it tends to become viral affecting people of all ages. Whatever medium that may be whether it is radio, television or print, finding a market is not at all hard since people are always intrigued with what is happening around the world. Media Companies Media Companies earn money basically through the widespread of information. Almost in every household there is a presence of mass media through its mediums like the television, newspapers, magazines, computers or even cellular phones. Clearly this shows the attachment of the following mediums to the people’s everyday lives. The thing that is common between the media companies and other types of businesses is that they spend money to create or buy products that will eventually let them earn profit. Many people will gain benefit from it including those who are seeking jobs and hoping to work in media companies. A lot of risks are present when a media company releases something new to the public. There is for example rejection, people’s lack of interests to the advertised product or services, the spreading of the wrong information that may lead to law suits or the issues that might be thrown by the competitors to try to damage the leading companies’ reputation. A lot of controversies are thrown to the media industry, despite of this it continues to prosper. This is certainly because of its main asset which is information. There may be some negative issues but that does not mean that all media companies are up for no good and are just eager to earn. Some companies are committed to give what is due to the public. Top Media Companies in the US and Canada The following are among the top media companies in the United States and Canada, offering products and services such as pay television channels, online and print publications, websites, advertisements, and radio programs through its radio stations. There is no question why after all the struggles they have undergone through the years, these companies are now tougher to face new challenges that may come their way. American Media, Inc. American Media Inc. (AMI) is a leading magazine and tabloid newspaper publisher in the US with its Chairman and CEO David Pecker. It reaches up to 54 million of America’s men and woman a month having an over-all circulation of 6.8 million and about 10 million visitors on its online publication with a hundred views per month (“About Us”). The topics covered by their publications are those that the Americans are obsessed with, mostly on gossips and good health. It also offers sales and marketing services that enable them to have an even distribution of their periodicals on different supermarkets in areas of the US and Canada (“American Media Inc. Company Profile”). Last November 17, 2010 the company filed for Chapter 11 Bankruptcy which according to the United States Court is allowable only to corporations and partnerships who at time of debt, cannot actually pay the creditor due to the small amount of assets that the company owns (“Reorganization Under the Bankruptcy Code”). The company’s total asset is at $68 million with total liabilities of $1.23 billion (Brinkmann). A number of motions aside from the main petition were also handed by AMI that concern the employee’s benefits, non interruption of customer programs, and a normal payment process not letting a debtor-in-possession financing (Fell). The company was successful at reorganizing its assets that has led to its recovery early this year. AMI’s latest strategy is the creation of its 360º marketing program concept that promotes consumer involvement and a guarantee of return on advertisers’ investments. This makes them the first company to offer advertisers with editorial, print, digital, mobile and events combined in one package. This provides their clients with customized, solutions based marketing programs. Its new subsidiary, Distribution Services (DSI), a sales and merchandising in-store marketing company, handles the production and circulation, sales and marketing for the small time publishers, another business unit that generates income for the company (“About Us”). After its quick recovery from bankruptcy, AMI has maintained its high profile reputation gaining the highest return on sales among the US top ten consumer publishers. Astral Media Inc. A leading name in the Canadian media industry founded by Ian Greenberg, Astral Media Inc. reaches people through a wide variety of media properties that it is offering that includes, television, radio, out-of- home advertising, and digital media. It has 21 television channels and 83 licensed radio stations making it the largest broadcaster in both radio and television. Its out-of-home advertising consists of nearly 8,000 faces branched in key locations of Quebec, Ontario and the British Colombia. Astral’s digital services comprise of over a hundred websites with views reaching up to 3 million a month from customers (“About Astral”). An increase in Astral Media’s revenue has been reported recently. In the provided online copy of Astral’s management discussion and analysis for the periods ended February 28, 2011 and 2010, it has reported a 7% increase in revenue for the first quarter. The $14.4 million and $30.8 million increase in revenues came from the high rate of advertising revenues from its three business units, and the consistent increase of its subscription revenues mostly from its pay televisions. Its newly launched product feature Astral mix combines all the company’s expertise into one, making campaign and television advertisements effective and pleasing to the viewer’s eyes. Some of popular advertisements under Astral Mix are those of Clean & Clear, Burger King and Cadburry (“Astral Media Inc.”). Last year the launching of the company’s new corporate profile was held, presenting cultural evolution and its expansion in Canada. Its headquarters was transferred to the new Maison building in the heart of downtown Montreal (“History”). Astral continues to seek new ways to get in touch with the customers by creating unique methods of advertisements, having lists of channels fit for someone’s interests and radio programs that are in line with the current trends. Scripps Network Interactive Scripps Network Interactive is a media developer of home and lifestyle content in television and the internet. It’s Chairman and CEO is Kenneth Lowe while the President and COO is John Lansing. The company believes in the effectiveness of their eight core values that includes diversity through the emphasis given to open corporate culture, clarity in communication, integrity that is achieved through credibility and honesty, compassion/support, shared responsibility, work/life balance, openness and humor (“Core Values”). In the news release as of May 5, 2011 by Scripps Networks Interactive on its first quarter financial results, has showed an increase of 14% on the consolidated revenues, 12 % on advertising revenues and 6.3% on affiliate fee revenue. The increase was brought by the favorable reaction of people towards their Lifestyle Media business segment (2). The company is particular with diversity. The difference in race or ethnicity is taken as an advantage by the firm. They hire people from different backgrounds who are dedicated enough to collaborate with all the other members of the team, through this the company’s vision is met which is to “embrace diversity through inclusion.” It positively affects their attitude towards work and on how they act in the marketplace (“Diversity at Scripps”). Scripps has two intersecting segments, first is the Lifestyle Media, under which are the category television networks like HGTV, Food Network and Travel Channel, the network branded websites, and the interactive businesses that are offering products related to the food and shelter category. The second one is the Interactive Services, offering transactional-based internet businesses linked with the popular online shopping services in the US. Scripps’ brands are sold in more than 170 countries around the world (“About Scripps Network”). The interactive strategy used by Scripps Network Interactive allows them to attract people who are spending most of the time in the internet--offering online shopping thru websites that people from all over the world often access. The Business of Media “The business of media is unique. Unlike other industries, the media deal in ideas, information and culture. They inform and entertain us, influencing how we understand ourselves and our world, as well as how we spend our leisure time” (Croteau and Hoynes 1). Most of people’s leisure times are spent on reading newspapers, watching television shows or surfing the internet that benefit the media based companies. All the other businesses rely on the media to advertise their product; this gives them the opportunity to gain more profits as compared to the other industries. The mass media has helped companies in the promotion and advertisement of their products. It is not something that will create a negative effect, in fact it aids in the fast spreading of ideas. Through the years, however, the complexities in the advertising methods and techniques have led to consumerism that has transformed some luxuries into necessities (Shah). Media Companies are influential enough to persuade people, doing less effort to promote a certain product, program or service. They are accountable to the public as to whatever it is that they are promoting or advertising. The image of a media company whether good or bad is an effect of their services. Their responsibilities are not limited only to the public, but it is also their job to ensure that the demands of their clients, like the companies who have entrusted the advertisement of their products, services or campaign to them, are met. What Separates Media Companies from other Business Enterprises It is both credibility and honesty that are equally important to the media companies. Although these may also be important to the other types of businesses, in media companies they serve as the core of their business. Like in the case of News Corporation for example. As a media company that is dedicated to creating top of the line news, sports and entertainment programs around the world, it is their full responsibility to ensure that all the programs are informative and true, that viewers from all walks of life who are paying for it are enjoying and learning from what the company has given them. Most especially with the news programs like Fox news, finding sources that are credible enough for the news to become believable is crucial. Other media companies are focused mainly on nonfiction information. One is, Discovery Communications, the world’s number one nonfiction media that operates in 210 countries. Discovery Channel is a popular channel under them. The subjects tackled mostly deal with Science and General Knowledge. In cases where information is the focal point of the programs that are shown, it has to be well researched and proper evidence must be seen by the viewers. Still this has something to do with credibility and honesty. Therefore, there really is a difference between media companies and the other commercial enterprises. The huge responsibility of media companies towards the dissemination of information makes it completely unique from all the others. The bottom line of everything is to do business observing proper ethical behaviors, thus maintaining integrity and at the same time earning profit. Works Cited “About Astral.” www.astral.com. Astral Media, 2011. Web. 9 May 2011. . “American Media, Inc. Company Profile.” biz.yahoo.com. Yahoo Inc. 2011. Web. 6 May 2011. . “About Scripps Network.” www.scrippsnetwork.com. Scripps Networks Interactive, 2011. Web. 9 May 2011. . “About Us.” www.americanmediainc.com. American Media Inc., 2011. Web. 6 May 2011. . “Astral Media Inc. Management Discussions and Analysis for the periods ended February 28, 2011 and 2010.” www.astral.com. Astral Media Inc., 14 April 2011. Web. 9 May 2011. . Brinkman, Paul. “American Media Bankcruptcy: $1.2B in debt.” www.bizjournals.com. American City Business Journals Incorporated, 22 Nov. 2010. Web. 6 May 2011. . “Core Values.” www.scrippsnetworks.com. Scripps Networks Ineractive, 2011. Web. 9 May 2011. . Croteau, David, and Hoynes William. The Business of Media: Corporate Media And The Public Interest. US: Pine Forge Press. “Diversity at Scripps.” www.scrippsnetworks. Scripps Networks Interactive, 2011. Web. 9 May 2011. . Fell, Jason. “AMI Officialy Files for Chapter 11.” www.foliomag.com. Red 7 Media LLC, 17 Nov. 2010. Web. 6 May 2011. . “History.” www.astral.com. Astral Media Inc., 2011. Web. 10 May 2011. . “Scripps Networks Interactive report Double-Digit Revenue Growth For First Quarter Financial Results.” pressreleases.sninetwork.com. Scripps Networks Interactive, 5 May 2011. Web. 6 May 2011. . Shah, Anup. “Media and Advertising.” www.globalissues.org. Global Issues, 26 Jan. 2008. Web. 9 May 2011. . United States Courts. Reorganization Under the Bankruptcy Code. Administrative Office of the U.S. Courts. 2011. Web. 9 May 2011. . Read More