CORE Metadata, citation and similar papers at core.ac.uk Provided by Lehigh University: Lehigh Preserve Lehigh University Lehigh Preserve Volume 36 - The nitU ed Kingdom On The rB ink Of Perspectives on Business and Economics Brexit (2018) 2018 Consequences Of Lax Media Ownership Regulation On Freedom And Plurality Of The UK's Fourth Estate Mina Khan Lehigh University Follow this and additional works at: https://preserve.lehigh.edu/perspectives-v36 Recommended Citation Khan, Mina, "Consequences Of Lax Media Ownership Regulation On Freedom And Plurality Of The UK's Fourth Estate" (2018). Volume 36 - The United Kingdom On The Brink Of Brexit (2018). 2. https://preserve.lehigh.edu/perspectives-v36/2 This Article is brought to you for free and open access by the Perspectives on Business and Economics at Lehigh Preserve. It has been accepted for inclusion in Volume 36 - The nitU ed Kingdom On The rB ink Of Brexit (2018) by an authorized administrator of Lehigh Preserve. For more information, please contact [email protected]. Perspectives on Business and Economics, Vol. 36, 2018 CONSEQUENCES OF LAX MEDIA OWNERSHIP REGULATION ON FREEDOM AND PLURALITY OF THE UK’S FOURTH ESTATE Mina Khan The British media landscape faces a ubiquitous threat, one of both lack of regulation and excessive freedom in terms of concentration and ownership. This article examines the potential effects of unregulated media concentration on political relationships between prominent media owners and the UK government as well as its overall effect on UK citizens’ quality and perception of news. Introduction giant media conglomerates presenting sizeable threats to freedom of the overall press (“Who Press freedom in the UK, in reference to Owns the UK Media?”). According to the both freedom of expression as well as freedom Harvard Business Review this may be beneficial of media ownership and concentration, is in some respects, as privatization of British an issue of increasing concern due to the media companies has dramatically improved rising popularity of media practices such the economy and generated an estimated £34 as misinformation and post-reality politics. billion in additional GDP annually since the Historically, threats to press freedom have been sale of the British Telecom by the Thatcher concentrated in parts of the world in which government in 1984, the largest public democratic presence was weak, but pressures flotation at that time. Privatization has reversed of a different nature have begun to appear in losses of state-owned industries and improved UK’s fourth estate (Willems and Puddington). British citizens’ perceptions of free enterprise In the past five years, the UK has fallen 12 (Moore). However, despite the clear economic ranks in the World Press Freedom Index as benefits from privatization, its influence on a result of new regulatory measures, a dip in the media industry has arguably been divisive. rankings that does not yet even account for The rise of media giants headed by some of concerns of decreasing plurality and increasing the wealthiest in the UK, including Rupert cross-media ownership (Gayle). Murdoch, Lord Rothermere, and Sirs David The UK has one of the most heavily and Frederick Barclay, has had major political concentrated media landscapes globally. consequences, most recently culminating Lax media regulation over time has led to in the Brexit vote. Too much freedom of privatization of media and the formation of expression paralleled by lack of regulation in 102 regard to media concentration has become a of less freedom and vice versa. Tabloid media substantial threat to the UK press’s freedom has the least amount of self-censorship in all as a whole due to its consequence on plurality, forms of British media. The tabloids’ ability throttling the diversity of viewpoints. Although and willingness to publish whatever they some corporations, such as those of the want can be directly seen in the notorious aforementioned men, have substantial freedom, phone-hacking scandal—a controversial issue this comes at the direct cost of representation regarding collusion between British police of local news and other smaller outlets and and journalists employed at newspapers mediums. Journalistic integrity, including published by News International, including public trust in it, is threatened in the UK by News of the World, which was shut down as concentrated ownership. Freedom of the press a result (“Press ‘Need to Act’ After Leveson”). is under siege, counterintuitively, because of News International is a subsidiary of News too much freedom; that is, regulations are too Corporation, owned by Murdoch, whose reach, lax in terms of press ownership and market chronicled later, is one of the greatest in concentration. present-day privatized British media. A second ranking system, the Freedom of the Press 2017 Measuring Freedom of the Press report, similarly gives the UK a press freedom in the UK status of “free” (“United Kingdom Profile”). The UK scores 25 out of 100 (with 0 “most According to two widely regarded free”), which is the sum of its performance in press freedom monitoring groups, Reporters the legal environment (9 out of 30), political Without Borders (which publishes the World environment (9 out of 40), and economic Press Freedom Index) and Freedom House environment (7 out of 30). In the legal realm, (which publishes Freedom of the Press annual like the 2017 World Press Freedom Index, reports), the UK press ranks as “free.” The 2017 the Freedom of the Press report notes that World Press Freedom Index ranks the UK as the key development contributing to a status 78% higher in press freedom than the world of “less free” recently in the UK is legislation average. This analysis uses seven qualitative criteria categories and indicators, including concerning national security, such as the pluralism, media independence, and self- Investigatory Powers Act, which discourages censorship, together with quantitative analysis investigative journalism. of crimes committed against persons of the As for the British political environment media, weighed for violence (“United Kingdom: (i.e., interactions between politicians, the A Worrying Trend”). government, and other sectors of the economy), Pluralism, in the context of the World Press it is not considered a threat to British journalists. Freedom Index, refers to the representation of A separation between the press and political diverse opinions in the media. It is typically environment is necessary for media freedom high in regions of the world with media of expression, and the UK media is generally freedom, such as Great Britain, but threatened independent from political influence (“United by densely concentrated media ownership in Kingdom Profile”). The political environment the press and in television. Concentration of does not appear to directly pressure the press. media ownership is conducive to the biased However, the reverse—press pressuring treatment of news and opinions, driven by politicians—has become a significant question the political and economic agendas of wealthy of influence in the UK that can be traced media owners. As detailed later, the British as far back as the Thatcher government’s media is increasingly concentrated. assistance in the acquisition, outlined later, Self-censorship, in the World Press of a popular and fairly unbiased newspaper, Freedom Index methodology, refers to the The Times, by Murdoch’s News Corporation ability of the press to publish freely, given the (Evans). The blackmail of politicians by the environment in which the media platform is press, primarily the privately owned sector, operating, without having to censor for fear of has social and economic ramifications, as punishment. High self-censorship is indicative reflected in policy, laws, and favoritism, such 103 Table 1 Weekly (Daily plus Sunday) Market Share of National Newspaper Circulation Publisher Market Cumulative Circulation Share (%) Share (%) News Corp UK & Ireland Limited 15,818,965 33.6 33.6 Associated Newspapers (now DMG Media) 11,372,076 24.1 57.7 Mirror Group Newspapers 6,395,622 13.6 71.3 Express Newspapers 5,691,767 12.1 83.3 Telegraph Media Group 3,309,100 7.0 90.4 Independent Print Limited 2,102,236 4.5 94.8 The Financial Times Ltd 1,243,074 2.6 97.5 Guardian News and Media Ltd 1,198,526 2.5 100.0 Total 47,131,366 100.0 — Source: “Who Owns the UK Media?” as exemptions from requirements and limits Mail on Sunday accounted for roughly 50% of on media concentration. As discussed in the the shares of circulation of national Sunday case study later, press barons, like Murdoch, papers (“Who Owns the UK Media?”). In terms are able to manipulate politics to further their of revenue of the various companies (Table political, personal, and business agendas, using 2), Murdoch-owned News Corp UK & Ireland the threat of defamation. Limited and Rothermere’s DMG Media had a In this analysis, the pluralism and self- cumulative 57.7% market share (“Who Owns censorship measures from the Freedom of the the UK Media?”). Press report and the political environment The same issue repeats in television criteria from the Reporters Without Borders broadcasting. In fact, already high index help illustrate the counterintuitive effect concentration is likely to increase soon. Sky that the lack of ownership regulation has on TV and Sky Broadband (Sky plc) lead in terms limiting media freedom of expression. The of revenue (Figure 1), followed by British increasingly concentrated media ownership Broadcasting Corporation (BBC), which is the threatens the ultimate voice of independent largest public service broadcaster (“Who Owns media as political ambitions and vested the UK Media?”). Although most broadcasters interests become involved. are controlled by UK-based companies or the public (Table 3), a US-based corporation, 21st British Media Ownership Century Fox, is steadily expanding its television ownership. Murdoch’s 21st Century Fox has a Three companies controlled an estimated 39.1% share of Sky plc, and despite its initial cumulative 70% of national British newspaper failed bid, the corporation is vying for full circulation in 2015: Murdoch’s News Corp UK ownership (“Who Owns the UK Media?”).