Manufacturing Consent_ The Political Economy of the Mass Media - Edward S. Herman [36]
The non-media interests of most of the media giants are not large, and, excluding the GE and Westinghouse systems, they account for only a small fraction of their total revenue. Their multinational outreach, however, is more significant. The television networks, television syndicators, major news magazines, and motion-picture studios all do extensive business abroad, and they derive a substantial fraction of their revenues from foreign sales and the operation of foreign affiliates. Reader’s Digest is printed in seventeen languages and is available in over 160 countries. The Murdoch empire was originally based in Australia, and the controlling parent company is still an Australian corporation; its expansion in the United States is funded by profits from Australian and British affiliates.35
Another structural relationship of importance is the media companies’ dependence on and ties with government. The radio-TV companies and networks all require government licenses and franchises and are thus potentially subject to government control or harassment. This technical legal dependency has been used as a club to discipline the media, and media policies that stray too often from an establishment orientation could activate this threat.36 The media protect themselves from this contingency by lobbying and other political expenditures, the cultivation of political relationships, and care in policy. The political ties of the media have been impressive. Table 1–3 shows that fifteen of ninety-five outside directors of ten of the media giants are former government officials, and Peter Dreier gives a similar proportion in his study of large newspapers.37 In television, the revolving-door flow of personnel between regulators and the regulated firms was massive during the years when the oligopolistic structure of the media and networks was being established.38
The great media also depend on the government for more general policy support. All business firms are interested in business taxes, interest rates, labor policies, and enforcement and nonenforcement of the antitrust laws. GE and Westinghouse depend on the government to subsidize their nuclear power and military research and development, and to create a favorable climate for their overseas sales. The Reader’s Digest, Time, Newsweek, and movie- and television-syndication sellers also depend on diplomatic support for their rights to penetrate foreign cultures with U.S. commercial and value messages and interpretations of current affairs. The media giants, advertising agencies, and great multinational corporations have a joint and close interest in a favorable climate of investment in the Third World, and their interconnections and relationships with the government in these policies are symbiotic.39
In sum, the dominant media firms are quite large businesses; they are controlled by very wealthy people or by managers who are subject to sharp constraints by owners and other market-profit–oriented forces;40 and they are closely interlocked, and have important common interests, with other major corporations, banks, and government. This is the first powerful filter that will affect news choices.
1.2. THE ADVERTISING
LICENSE TO DO BUSINESS:
THE SECOND FILTER
In arguing for the benefits of the free market as a means of controlling dissident opinion in the mid-nineteenth century, the Liberal chancellor of the British exchequer, Sir George Lewis, noted that the market would promote those papers “enjoying the preference of the advertising public.”41 Advertising