The Role of Neo-Liberalism in the Contemporary Media Industry - Case Study Example

Running Header: Importance of Neo-Liberalism in Understanding Contemporary Media Industry Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission: Introduction Neo-liberalism is a phrase that can aid in understanding contemporary media industry since it has been responsible of major changes that have taken place in the industry. Initially, media industry was fully regulated by the government such that each country had its own local media managed and controlled by the government. However, the introduction of neo-liberalism policy in 1980s resulted to deregulation of a number of cultural industries in most parts of the world, media being one f them. This deregulation in media came hand in hand with re-regulation where more rules were brought in to control the media industry (Deuze, 2009). However, these rules were highly promoting privatization and commercialization of media industry. As a result media industry expanded into global level, giving the firms the ability to compete in the global market. The industry was highly used in advertisement and promotion of globalization. Beside of these advantages, neo-liberalism also came hand in hand with promotion of political corruption as many politicians adopted the capitalization nature of working. In this regard, there have been emerging a number of critics trying to challenge the neo-liberalism policy as a way of fighting corruption in the government. This paper focuses on evaluating the role of neo-liberalism in contemporary media industry. Neo-liberalism Impacts Contemporary Media Industries Neo-Liberalism Neo-liberalism is a term used to refer to the nee kinds of political-economic supremacy premised on the market relations extensions. The most usual neo-liberalism conceptualization involves perceiving neo-liberalism as policy framework which is denoted by a change from Keynesian welfarism to political schema favouring the comparatively unfettered markets operation. This markets renewed emphasis is understood to be related directly to capital globalization. According to Larner, 2000, (p.6), the new kinds of globalized financial systems and product relations are pushing the governments to dump their commitment to the state welfare. Instead of developing policies to enhance a comprehensive social welfare and full employment system, governments are currently centred on improving international competitiveness and economic efficiency. Consequently, the world is experiencing the new market provisioning emphasis of formerly public services and goods The neo-liberalism change of policy agenda is attributed to the capturing of main political actors and institutions by a specific political ideology. This ideology is understood to be based on five values which include minimal government, laisez faire, market security, freedom of choice, and the individual. The above values strengthen the new economic institution that along with a novel stressing on managerialism, it contains the neo-liberal intellectual which has the basis to challenge Keynesian welfarism and give the privatization and deregulation theoretical impetus (Larner, 2000, p. 7). Neo-liberalism, according to (Thorsen & Lie, 2006, p.14), is a loosely distinguished political briefs that most prototypically and prominently involve the conviction that the only state legitimate purpose is to protect people, and commercial liberty and strong rights to private property. It also integrates the idea that market mechanisms that are freely adopted are the most suitable manner of organizing services and goods exchange. New Liberalism and Media Just like all other cultural industries, neo-liberalism brought about deregulation in the media industry. However, media industry did not enjoy full deregulation. The government brought in new regulations that govern business operations in the media industry. Therefore neo-liberalism in the media industry can be said to have experienced re-regulation (Global issues, 2010). In this re-regulation, the government promoted privatization and commercialization of the industry, but protected personal rights to individual productions. Some of these re-regulations that govern the industry include government regulation and legislation on music, film and publishing industries in countries such as Germany, the UK, Australia, and the USA. The laws that governs these industries include guarantee and restriction of press right to give information regarding state matters, obscenity, libel, copyright, competition, concerning ownership, and mass regulations and law (Hemondhalgh 2008, p.111). Therefore the freedom of expression and of competition in the industry is highly limited by the government where no one can consider steal the other producer copyright or de-campaigning another producer in the market. However, this re-regulation did not hinder the growth of media industry to global level. Media companies can easily broadcast materials from different part of world with a high level of diversity. Media have grown to be more famous globally due to advertisement (Curran & Morley, 2006). Advertisements play a major role in demonstrating the effect of neo-liberalism in the media industry since it has enhanced globalization The Role of Advertising in Linking Neo-Liberalism with Media Industries The best technique of understanding how closely the international commercial system of media is connected to the neoliberal international capitalist economy is to regard the advertising role. According to (McChesney, 2001, p.6 ), advertising is a business cost incurred by big enterprises in the economy. The media commercial system is the necessary business transmission belt to market the large firms' products in the entire world. Actually, media system has played a major role in enhancing globalization. According to McChesney an enormous world spending on advertisement becomes a huge contributor of the media firms' earnings or revenue. Spending on Ad has increases by bounds and leaps in the last decade, as TV has been exposed to commercial utilization, and it is expanding at over two times the GDP growth rate in most countries. The world advertising industry consolidation is just as distinct as the world media industry, and the two are very much associated. Neo-Liberalism as a Political Theory More than an economic theory, neo-liberalism is a political theory. This is because the theory hypothesizes that business society power proceeds more effectually when there is democracy of representative, however only when it is ineffectual and weak polity exemplified by high depoliticisation levels, particularly among the working class and poor. This explains why the commercial media system existence is so essential to the neoliberal project, since it is especially brilliant at creating the exact kind of fake political culture which allows business domination to continue without the use of police state or experiencing effectual popular resistance (McChesney, 2001p.14) Depolarization Leading to Exploitation, Inequality, and the Bankruptcy of Capitalist Politics Neo-liberalization promoted privatization which goes hand in hand with capitalisation. According to Easterling (2003), capitalization has highly depolarized the society especial economically. In this case those that are powerful remain powerful by using their power to rob those who have little. Capitalists ensure that they have set market rules and thus ensuring that they are always benefiting more than others in the society. This high power has enabled them to remain exploitive of the others and thus denying them equal opportunities of growth and expansion. As a result, the neo-liberalism has played a great role in widening the equality gap in the society. It has also played a great part in promoting bankruptcy especially since the capitalist defines the market rule and hence the interest rates for any given loan (Easterling, 2003). Changes that have Taken Place in the Contemporary Media Industry Most Major Media Companies are now Under Neo-Liberal Policy Before 1990s and 1980s, national systems of media were characterized by locally owned newspaper, television and radio industries. There were main books, music, TV shows, and films import, and these market were inclined to be dominated by the US founded films. However, domestic commercial interests together with a state-affiliated service of broadcasting, prevailed in the media system. This changed very rapidly, such that world commercial-media market has been created in last few years. In this regard, to be able to understand media as it is today and as it will be in future, one must begin by understanding the international system and then consider variations at the local and international level (McChesney, 2001p. 4). Deregulation and Privatization of Media Industries Initially, media operations were part of the cultural activities regulated by the government. The government at this intervened in media and other cultural markets in three different ways. The three governmental area of intervention are interactively known as policy. They include by use of legislate, regulate and subsidise. However, there has been a great change in the cultural industry in the past 20 years. The policy changes with advance cultural industries consequences since 1980 have happened in telecommunication and broadcasting industries. The neo-liberalism ideology started taking place in 1970s where the close regulation and public ownership were presented as the major contributors to economic downturn. This resulted to change of regulatory and privatization programmes in cultural related industries. The deregulation created a huge impact in the cultural industries since the idea of being free from the government interference created anxieties regarding freedom of political and personal expression. However, the media and communication industry did not experience total deregulation but re-regulation where new and more favourable laws were imposed. These laws, which were introduced in 1990s and 1980s, highly promote privatization (Hemondhalgh, 2008, p.110). After media deregulation started in major countries such as Britain and the United States, it was followed by international measures such as World Trade Organization (WTO) formation and the North America Free Trade (NAFTA), all structured to clear the sales and investment ground by multinational corporations in global and regional market. This built the bases for the development of the world media system by conglomerates aforementioned (McChesney, 2001p.5). The enactment of the deregulation and then the re-regulation law promoted privatization in the media industry. This resulted to emergency of a huge number of media companies in the world working locally and internationally and focusing on diverse media from diverse places. This also resulted to increase of the competition in the media industry with most companies trying to be as diverse as possible to remain competitive. Neo-Liberalism Lead to Widespread Government Corruption Deregulation and privatization reduced the government size and increased capitalization in all countries that embrace neo-liberalism. This has resulted to exponential growth to a number of industries that had a good foundation. However, it also reduced the government share of the assets that it requires to manage as compared to before (Brown & Cloke, 2005). However, the private governance among the most essential aspects of economy has resulted to a number of crises in different economies. One of these aspects includes corruption in the government as the private companies try to manipulate laws formation in a country to have rules that would favour their businesses. This has resulted to extensive growth of corruption in the government than it was experienced before (Evans & Sewell, 2011, p.24). As a result, most critics are coming up to fight neo-liberalism and its effect in the society. According to the critics, the adoption of capitalist economy has encouraged the need for corruption since most capitalists wish to manipulate the law makers to create laws that are favourable to them but not to all the citizens of the country. In this regard, the feel that neo-liberalism should be abolished (McChesney, 1999). Conclusion The contemporary media industry has over years changed at a great extent. The Impacts of neo-liberal policies have created major effect in the media industry resulting to a number of changes. At international level issues that include privatization, deregulation, and public funding reduction were all introduced by neo-liberalism. In this regard, it is essential to understand that the word neo-liberalism so as to understand the contemporary media industry fully. According to McChesney, liberalism refers to a number of international policies which advocate for business power of all social affairs with reduced countervailing force. This neo-liberalism resulted to a number of changes in various cultural industries media being one of them. Neo-liberalism introduced privatization and deregulation, an aspect that resulted to the policy controlling a huge part of the industry. In addition, advertising also place a great part in connecting neo-liberalism policies with media industry. Neo-liberalism has steadily resulted to extensive corruption in the government and a lot of anti neo-liberal political movements have overtime started to emerge to make the issue of media a part of their political platform. Neo-liberalism is current a huge part of contemporary industry of media. References Brown, E & Cloke, J, 2005, ' Neoliberal reform, governance and corruption in central America: Exploring the Nicaraguan case,' Political Geography. [online]Available at : < http://www.academia.edu/225882/Neoliberal_reform_governance_and_corruption_in_Central_America_Exploring_the_Nicaraguan_case_Ed_Brown_and_Jonathan_Cloke> [Accessed on April 27, 2015] Curran, J & Morley, D, 2006, ' Media & cultural theory,' [online] Available at: < http://eclass.uoa.gr/modules/document/file.php/MEDIA165/globalization-%CF%84%CF%83%CE%B1%CE%BB%CE%AF%CE%BA%CE%B7/Curran-Ed-James-Media-and-Cultural-Theory_2006.pdf#page=142> [Accessed on April 27, 2015 ] Deuze, M, 2009, ' Media industries, work and life,' [online] Available at: www.academia.edu/182192/Media_Industries_Work_and_Life [Accessed on April 27, 2015] Easteling, S, 2003, ' Marx's theory of economic crisis,' International Socialist Review Issue 32. [online] Available at : < http://isreview.org/issues/32/crisis_theory.shtml> [Accessed on April 27, 2015] Evans, P & Sewell, W. H, 2011, 'The neo-liberal era: Ideology, policy, and social effects,' Cambridge University Press. Hemondhalgh, D, 2008, 'Neo-liberalism, imperialism and media,' The media and social theory . vol. 29, no. 2, pp.110-133. Global issues, 2010, 'A primer on neo - liberalism,' [online] Available at: www.globalissues.org/article/39/a-primer-on-neoliberalism [Accessed on April 27, 2015] McChesney, R. W, 2001, 'Global media, neo-liberalism and imperialism,' Monthly Review . vol. 52, no.10, pp. 1-19. McChesney, R.W, 1999, 'Noam Chomsky and the struggle against neo-liberalism,' [online] < http://www.chomsky.info/onchomsky/19990401.htm> [Accessed on 27 April 2015] Thorsen, D. E & Lie, A, 2006, 'What is neoliberalism,' Oslo: Department of political science. Read More

According to (McChesney, 2001, p.6 ), advertising is a business cost incurred by big enterprises in the economy. The media commercial system is the necessary business transmission belt to market the large firms' products in the entire world. Actually, media system has played a major role in enhancing globalization. According to McChesney an enormous world spending on advertisement becomes a huge contributor of the media firms' earnings or revenue. Spending on Ad has increases by bounds and leaps in the last decade, as TV has been exposed to commercial utilization, and it is expanding at over two times the GDP growth rate in most countries.

The world advertising industry consolidation is just as distinct as the world media industry, and the two are very much associated. Neo-Liberalism as a Political Theory More than an economic theory, neo-liberalism is a political theory. This is because the theory hypothesizes that business society power proceeds more effectually when there is democracy of representative, however only when it is ineffectual and weak polity exemplified by high depoliticisation levels, particularly among the working class and poor.

This explains why the commercial media system existence is so essential to the neoliberal project, since it is especially brilliant at creating the exact kind of fake political culture which allows business domination to continue without the use of police state or experiencing effectual popular resistance (McChesney, 2001p.14) Depolarization Leading to Exploitation, Inequality, and the Bankruptcy of Capitalist Politics Neo-liberalization promoted privatization which goes hand in hand with capitalisation.

According to Easterling (2003), capitalization has highly depolarized the society especial economically. In this case those that are powerful remain powerful by using their power to rob those who have little. Capitalists ensure that they have set market rules and thus ensuring that they are always benefiting more than others in the society. This high power has enabled them to remain exploitive of the others and thus denying them equal opportunities of growth and expansion. As a result, the neo-liberalism has played a great role in widening the equality gap in the society.

It has also played a great part in promoting bankruptcy especially since the capitalist defines the market rule and hence the interest rates for any given loan (Easterling, 2003). Changes that have Taken Place in the Contemporary Media Industry Most Major Media Companies are now Under Neo-Liberal Policy Before 1990s and 1980s, national systems of media were characterized by locally owned newspaper, television and radio industries. There were main books, music, TV shows, and films import, and these market were inclined to be dominated by the US founded films.

However, domestic commercial interests together with a state-affiliated service of broadcasting, prevailed in the media system. This changed very rapidly, such that world commercial-media market has been created in last few years. In this regard, to be able to understand media as it is today and as it will be in future, one must begin by understanding the international system and then consider variations at the local and international level (McChesney, 2001p. 4). Deregulation and Privatization of Media Industries Initially, media operations were part of the cultural activities regulated by the government.

The government at this intervened in media and other cultural markets in three different ways. The three governmental area of intervention are interactively known as policy. They include by use of legislate, regulate and subsidise. However, there has been a great change in the cultural industry in the past 20 years. The policy changes with advance cultural industries consequences since 1980 have happened in telecommunication and broadcasting industries. The neo-liberalism ideology started taking place in 1970s where the close regulation and public ownership were presented as the major contributors to economic downturn.

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