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with structural facts (as we describe below), Bagdikian also may be understating the degree of effective concentration in news manufacture. It has long been noted that the media are tiered, with the top tier—as measured by prestige, resources, and outreach—comprising somewhere between ten and twenty-four systems.13 It is this top tier, along with the government and wire services, that defines the news agenda and supplies much of the national and international news to the lower tiers of the media, and thus for the general public.14 Centralization within the top tier was substantially increased by the post-World War II rise of television and the national networking of this important medium. Pre-television news markets were local, even if heavily dependent on the higher tiers and a narrow set of sources for national and international news; the networks provide national and international news from three national sources, and television is now the principal source of news for the public.15 The maturing of cable, however, has resulted in a fragmentation of television audiences and a slow erosion of the market share and power of the networks.

Table 1–1 provides some basic financial data for the twenty-four media giants (or their controlling parent companies) that make up the top tier of media companies in the United States.16 This compilation includes: (1) the three television networks: ABC (through its parent, Capital Cities), CBS, and NBC (through its ultimate parent, General Electric [GE]); (2) the leading newspaper empires: New York Times, Washington Post, Los Angeles Times (Times-Mirror), Wall Street Journal (Dow Jones), Knight-Ridder, Gannett, Hearst, Scripps-Howard, New-house (Advance Publications), and the Tribune Company; (3) the major news and general-interest magazines: Time, Newsweek (subsumed under Washington Post), Reader’s Digest, TV Guide (Triangle), and U.S. News & World Report; (4) a major book publisher (McGraw-Hill); and (5) other cable-TV systems of large and growing importance: those of Murdoch, Turner, Cox, General Corp., Taft, Storer,17 and Group W (Westinghouse). Many of these systems are prominent in more than one field and are only arbitrarily placed in a particular category (Time, Inc., is very important in cable as well as magazines; McGraw-Hill is a major publisher of magazines; the Tribune Company has become a large force in television as well as newspapers; Hearst is important in magazines as well as newspapers; and Murdoch has significant newspaper interests as well as television and movie holdings).

These twenty-four companies are large, profit-seeking corporations, owned and controlled by quite wealthy people. It can be seen in table 1–1 that all but one of the top companies for whom data are available have assets in excess of $1 billion, and the median size (middle item by size) is $2.6 billion. It can also be seen in the table that approximately three-quarters of these media giants had after-tax profits in excess of $100 million, with the median at $183 million.

Many of the large media companies are fully integrated into the market, and for the others, too, the pressures of stockholders, directors, and bankers to focus on the bottom line are powerful. These pressures have intensified in recent years as media stocks have become market favorites, and actual or prospective owners of newspapers and television properties have found it possible to capitalize increased audience size and advertising revenues into multiplied values of the media franchises—and great wealth.18 This has encouraged the entry of speculators and increased the pressure and temptation to focus more intensively on profitability. Family owners have been increasingly divided between those wanting to take advantage of the new opportunities and those desiring a continuation of family control, and their splits have often precipitated crises leading finally to the sale of the family interest.19

This trend toward greater integration of the media into the market system has been accelerated by the loosening of rules limiting media