Improving Transparency in Profit-Maximizing TV News Media

Abstract

The press, for much of America’s history, existed primarily as a public servant, acting as an intermediary between the public and government and providing a space for the public to discuss and debate issues of national and local importance. This service was viewed as an integral part of an effective self-governing society. Today, however, the press has shifted its focus to driving a profit. Large conglomerates have consolidated TV news programs with the goal of improving profits to shareholders. This financial demand has driven TV news firms to rely on advertising as their main, if not only, source of income. Reliance on advertising provides advertisers considerable leverage over TV news firms. If the content shown on TV news channels conflicts with the messaging of advertisers, advertisers are inclined to stop their advertising and advertising payments. TV news firms are thus inclined to forego segments that conflict with advertisers’ messages instead of letting them walk away with the funds TV news firms need to achieve their financial targets. The resulting advertiser-TV news firm dynamic suppresses the public’s ability to remain informed, to effectively self-govern. This paper seeks to assess this dynamic, its negative implications on democratic values, and determine a potential resolution to the information asymmetries produced.