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A Framing Analysis

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Editorial Board Content JMM – Vol. 2 – No. III/IV – 2000 Alan B. Albarran University of North Texas, U.S.A. Michael Dowling University of Regensburg, Germany Thomas R. Eisenmann Harvard Business School, U.S.A. Peter Glotz University of St. Gallen, Switzerland Peter Gomez University of St. Gallen, Switzerland Rolf Hoyer Norwegian School of Management, Norway Otfried Jarren University of Zürich, Switzerland Eli Noam Columbia University, Columbia Institute for Tele-Information, U.S.A. Robert G.
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  Content  JMM – Vol. 2 – No. III/IV – 2000 Alan B. Albarran University of North Texas, U.S.A. Michael Dowling University of Regensburg, Germany  Thomas R. Eisenmann Harvard Business School, U.S.A. Peter Glotz University of St. Gallen, Switzerland Peter Gomez University of St. Gallen, Switzerland Rolf Hoyer Norwegian School of Management,Norway  Otfried Jarren University of Zürich, Switzerland Eli Noam Columbia University, Columbia Institutefor Tele-Information, U.S.A. Robert G. Picard Turku School of Economicsand Business Administration, Finland Arnold Picot Ludwig-Maximilian-Universität München,Germany  Beat F. Schmid University of St. Gallen, Switzerland Michael O. Wirth University of Denver, U.S.A. Mark Wössner Bertelsmann-Foundation, Gütersloh,Germany  Axel Zerdick Freie Universität Berlin, Germany  Editorial Board Beat F. Schmid, Peter Gomez,Peter Glotz, Dörte WittigBharat RaoPolytechnic University of N.Y., U.S.A.Ruth De Backer, McKinsey& Company, Brussels, BelgiumShahid Akthar,Mahesh Kumar Malla, John GregsonInternational Centre for IntegratedMountain Development,Kathmandu, NepalVictor W. MbarikaLousiana State University, U.S.A.Terry Anthony Byrd, Jennie E.Raymond, Patrick R. McMullenAuburn University, U.S.A.Tadeusz KowalskiWarsaw University, PolandSune TjernströmUmeå School of Businessand Economics, SwedenSanghee KweonSouthern Illinois University,U.S.A.Dan Steinbock Columbia Institute for Tele-Information (CITI), ColumbiaGraduate School of Business, U.S.A.Markus Will and Victor Porak University of St. Gallen,Switzerland 115116124133143153165178195202203 Editors’ Note The Broadband Debate – Legal and Business ImplicationsTransparency, Accountabilityand Good Governance – Role of New Information andCommunication Technologiesand the Mass MediaInvestments in Telecommuni-cations Infrastructure Are Notthe Panacea for Least DevelopedCountries Leapfrogging Growthof TeledensityMedia Internationalisation – The Case of PolandPublic Service Management – Towards a Theoryof the Media FirmA Framing Analysis: How didthree U.S. News MagazinesFrame about Mergersor Acquisitions?Building Dynamic Capabilities.The Wall Street Journal Inter-active Edition: A successfulOnline Subscription ModelCorporate Communication inthe New Media Environment – A Survey of 150 CorporateCommunication Web Sites Calendar of EventsImpressum, Order Form   JMM    – Vol. 2 – No. III / IV – 2000 115     w    w    w .    m    e     d     i    a     j     o    u    r    n    a     l .    o    r    g Dear Reader Welcome to the new issue of JMM – TheInternational Journal on Media Manage-ment.The papers in this issue cluster around legal,regulatory and governmental themes. Weare again happy to be able to present the work of a number of distinguished authors.Each of the contributions allows the readerto gain interesting insights and detailedinformation on different fields of concernin the above topics and within the generalcontext of media management.Broadband Internet infrastructure prom-ises to revolutionize the range and varietyof services available to consumers in access-ing interactive media content. Ruth deBacker and Bharat Rao lead off this issue with an overview of legal and businessissues related to broadband. In their con-tribution they discuss how it will impactfuture innovation in the industry.Shahid Akhtar, Mahesh Kumar Malla and Jon Gregson analyze in their paper the rolenew information and communicationtechnologies (ICTs) can play in achievinggoals such as transparency, accountabilityand good governance. After a short outlineof these concepts, the paper probes intoboth the advantages and disadvantages of the growing utilization of ICTs in the gen-eral framework of globalization and de-mocratization, with a focus on the devel-oping world and the Asian continent. It isargued that by increasingly using ICTs andtaking on a role as spokespeople for civilsociety, the Asian media has the potentialto promote good governance practices and values.It is a known fact that there is a high corre-lation between the level of telecommuni-cation infrastructure represented byteledensity and the level of economicpower represented by GDP per capita. Theproblems and actions for the growth of teledensity in 48 least developed countries(LDCs) are being discussed , as well as theopportunities for utilizing communica-tion technologies to solve prior problemsin those countries. However, the study sub-mitted by Victor W. Mbarika suggests thatincreased investment in telecommunica-tion technologies is not a major factor forgrowth of teledensity; higher GDP andhigher contribution of the service sectorshare to GDP in the least developed coun-tries play a more important role for growthof teledensity.In his article, Tadeusz Kowalski delivers anin-depth examination of what happened tothe media market in Poland in the processof the so called “media internationaliza-tion”. It is an example of the shift from ahighly ideologically motivated concentra-tion into an also high, but mainly capitaldriven concentration. The general develop-ment enabled diversity of expression butas the author points out , “there is no gooddinner free of charge”: there are indica-tions of conglomerates lead by foreign me-dia, for which Poland is only a market of secondary meaning thus bringing alongthe danger of “recycled content”.Drawing on results from a historical studyof the Swedish Broadcasting Corporation,the article written by Sune Tjernströmargues the need to develop present theo-ries of the media firm for media manage-ment research. Doing this, agency theoryis identified as a powerful tool for theanalysis of the behavior in public serviceorganizations.The research paper written by SangheeKweon explores how news magazines deal with mergers and acquisitions in the 1990sunstable social phenomenon. One of manyfindings of examining the coverage of mergers based on types of mergers, govern-ment policy, and news focus of three U.S.magazines was that news organs tend tocover media mergers differently than nonmedia mergers.In his essay “Building Dynamic Capabili-ties”, Dan Steinbock describes the develop-ment of the Wall Street Journal InteractiveEdition. The paper aims to explain why the WSJE was able to launch and stabilize a suc-cessful subscription model, a feat thatmost of its direct and indirect rivals havefailed to accomplish.In the new media environment, communi-cation has become an even more impor-tant factor for a company’s success. Thisissue of JMM is rounded out with a papersubmitted by Markus Will and VictorPorak. Using a survey of 150 corporate com-munication web sites, they examine thequestion whether known offline commu-nication models are also used for onlinecommunication. In addition, it is shownthat in corporate communication websites, content is distributed using a classi-cal target group rather than a communitydriven approach. We hope you will enjoy this collection of contributions. The JMM Editorial Teamgives heartfelt thanks to all those whohelped to make this journal a successfuland internationally known publicationsince its foundation one year ago. We areproud of the JMM‘s success and will giveour best to provide our readers with inter-esting new findings in this research areain the future as we did in the past.  Beat F. Schmid Peter Glotz Peter Gomez Dörte Wittig   JMM – The International Journal on Media Management Editorial   JMM    – Vol. 2 – No. III / IV – 2000 165     w    w    w .    m    e     d     i    a     j     o    u    r    n    a     l .    o    r    g A Framing Analysis:How Did Three U.S. News MagazinesFrame about Mergers or Acquisitions? by Sanghee Kweon, Southern Illinois University, Carbondale, U.S.A. Introduction Media researchers have long recognizedthat journalists play a pivotal role inthe social construction of reality.Lippmann (1922) stated that the newsmedia construct a picture of reality forthe audience both in agenda settingand priming. “[T]he picture inside theheads of these human beings, the pic-tures of themselves, of their needs, pur-poses, and relationship, are their pub-lic opinion (1922: p.29).”Carey also noted “the press collaboratesin the quest for meaning while inno-cently reporting the news” (1986:p.193). Journalists are the sense-makers,not only informing the public but alsoproviding a context to help people weave isolated events into their existingconcept of reality. Yet, as Carey observed, that contextdepends less upon the nature of real-ity than journalistic traditions. “[T]hestories written by journalists manifestthe reality-making practices of thecraft rather than some objective world”(p.159). When news media confront a newtrend or development in society, theyperform a service by manufacturing afixed, representation, and stable world. When confronted with a new trend,technology, or development, the newsmedia go about this manufacturingreality called “reality making.” Theyproceeded in this “reality-making”based on various organizational con-straints.erage between media and non-mediamergers will be compared as eitherequal-voice or biased. When govern-ment policy is changed, is the newsmedia voice toward mergers positive ornegative? Finally, this study comparesthe coverage of the three news-magazines: Fortune, Newsweek, andU.S. News & World Report. Thereforethis study assumes the tone andfrequencies will depend on three fac-tors: merger types, social or govern-ment policy, and the organization’s fo-cused area and topic.The second-level question is how newsmagazines covered the dimensions of news for mergers from various newsformats and news orientations. Morespecifically, this study will comparedifferences between issue- and event-related coverage for mergers, and howmany illustrations the news has. Tofigure out the frame level, this paperuses several broad concepts as variables.This paper is coded two ways: the use of positive and negative terms and the em-phasis “issue oriented” which is relatedto the thematic presentation or “eventoriented,” which is related episodically.Iyenger (1991) found two types of fram-ing, “episodic and thematic.” Accordingto his research, television news providesone or the other of these types of framesof reference when reporting politicalissues. The episodic news frame is takenfrom a case study or event-orientedreport (accident or crime), whereas thethematic frame places public issues insome more general or abstract context(social welfare or government policy).Finally, this paper will find out wherethe news’ geographical locations are.The three U.S. new magazines focusglobal mergers or U.S. and how thenews location affects the tone anddirection. Significance of the Study This study explores the existence of themerger as a social phenomenon in themedia’s handling of mergers or acqui- Mergers in 1990s More and more, business and mediaorganizations have become subsidiariesof conglomerate ownership. Thus,mergers are the 1990s’ new businessand economic trend under the newlogic of capitalism (Chan-Olmsted,1998). The mergers of ownership inmedia and general business have beengrowing and are expected to continue.Therefore, the news media devoted con-siderable space and time to the cover-age of merger news. A brief reading of the sampled merger news for the lastsix years has borne sufficient supportof this phenomenon, but questionsremain whether news media criticizeor support the mergers or acquisitionphenomenon. The relationship betweennews media’s coverage and social phe-nomenon is a serious topic in mass com-munication studies. Asking Questions How did U.S. news media cover mergersor acquisitions as a significant socialphenomenon? How did the news mediacover the mergers and acquisitions?Using this perspective, this paper willfocus on the news media coverage of mergers. A literature review will showthat the media mergers in the 1990s area critical turning point to the mediaconglomerate ownership as followingnew economic trends.The question arises whether Journal-ists’ coverage and attitudes are positiveor negative toward mergers as socialphenomena. And then, the merger cov-   w w w.m e d  i     a   j     o ur n a l    . or   g  166 JMM    – Vol. 2 – No. III / IV – 2000 sitions, specifically in the coverage of the mergers or acquisitions of news sto-ries by three major U.S. newsmagazines.People become aware of merger realitybased on media reconstruction of thisreality, that it is inter-related with gov-ernment policy and news media’s ownperspective for the event, and their ownrules. The importance of this study is tofind out how news media cover the vari-ous merger phenomena. When mergerphenomena began in the early 1970s,news media’s coverage was unnotice-able. That changed rather abruptly with the appearance of media conglom-erates in the 1980s, when the mergeror acquisition became the subject of articles in The Economist, Wall Street Journal, and perhaps most notably inthe business section of certain elitenewspapers (Bagdikian, 1992). After the1990s, the merger news became front-page news.Media systems in the 1990s in theUnited States created new media indus-tries, called conglomerate ownershipor ownership convergence, from pre- viously distinctive media forms suchas newspaper, television, and radio(Croteau, 1997). Most media trends are“convergence” caused by media mergersand new digital technologies. Thesetwo trends create three media conver-gences: industry convergence (horizon-tal integration or vertical integration),media content convergence (variousgenre combination) and media con-sumer convergence that blur nationalboundaries and generation gaps (Pavlik,1998, p.134). 1 The first convergence ormedia conglomerate ownership createsnew types of media content and mediaconsumer convergence because it createsnew commodities.The shift from traditional media to thenew style is called a paradigm shift. 2 Convergence through mergers and ac-quisitions seems a main trend in the American media industry in the 1990s.The changes in ownership and news ormedia contents are the main causes of the paradigm shift from highly socialeconomic changes (Chan-Olmsted,1998). When media structure has beenchanged, the media content alsochanges. The corporation ownershiphas changed the product’s content.This merger phenomenon also occursin non-media areas such as banking,medicine, airline, car, and computerindustry. Not only non-media but alsomedia sides keep continue to mergertogether. Various media mergers andacquisitions occur under business strat-egies, but average people understand orrealize the merger or acquisition fromnews media or companies’ PR activities.Thus, actual merger and news coveragemight be different or biased. As the result, it is important to exam-ine how news media cover these kindsof mergers or acquisitions news. Thisstudy examines coverage of mergersand acquisitions news by U.S. news-magazines, discovering evidence of afavorable-nonfavorable-neutral tone inreporting of the mergers or acquisitionsphenomenon comparing between media– and non-media, before and after theTelecommunication Act of 1996, andtypes of magazines. Literature Review Theoretical Background Framing theory is the primary theoreti-cal framework in this study, but severaltheories will be introduced. Framinganalysis has been used in media contentanalysis and fits well in the mergernews study. As already mentioned, thisresearch incorporates a comparative re- view of media mergers and non-mediamergers. The government policy is re-garded as a significant social politicalfactor, and news focused types are orga-nizationally constrained. According toGamson (1989), the news frame is thecentral organizing idea for makingsense of relevant events and suggesting what is at issue. The government policy,specific topics, and media type maylead to different frame in news report-ing. Thus, this study focused on hownews media employ different frames forreporting merger or acquisition eventsbased on their media-self reflective,types of news focused magazines, andpolicy.Reality-making especially relies on me-dia organizations’ interests and theirperspectives. News media may useframe devices to create reality making.Media frames are typically unobtrusiveand encompass principles of selection,emphasis, exclusion, and presentationroutinely used by journalists to orga-nize discourse (Gitlin 1980). News mediacan frame social phenomenon such asmergers, crime, poverty, and politicalissues in several ways: “by ignoring it,blurring the news in the back section,repeating or stressing.” (David et. al1981). Tankard, et. al. (1991) states thatnews media frame social issues basedon “central organizing idea for newscontent that supplies a context andsuggests what the issue is through theuse of selection, emphasis, exclusionand elaboration.” So, frame analysisconnects related to interpretation of anissue. Thus, a frame connects ideas within a news story in a way that sug-gest a particular interpretation of anissue.One important function of framing isto define a problem or suggestion. What aspects of the issue are most im-portant, and how are they presented? Another function of framing is the as-signment of responsibility for social 1 Furthermore, traditionally distinctive contents includingdata, text, voice, and picture are all, put together into onemedia. Convergence is the coming together of all forms of mediated communications in an electronic, digital formdriven by computers and enabled by network technology.Convergence presents profound challenges for the exist-ing media order. 2 Paradigm is a group style, a set of elements, which can,according to rules, substitute for one another. The styleremains a unified system because the paradigm offersbounded alternatives.
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