- Throughout this course we have analyzed the class structure, monopoly capitalism (the dual economy), economic concentration of the media, the increasing essential role of advertising in these processes, and the relation between the capitalist class and the state. How have these structures and processes evolved with the introduction of the internet as part of the US communications infrastructure? Has it significantly changed the political economic structure of capitalism to call it "revolutionary"? Has it moved journalism any closer to serving as a public good in achieving the normative goals of democratic communications theory noted below?
Introduction:
The internet is a revolutionary concept in the field of technology and communications. The purpose of the internet was essentially for exchange of information to take place at the “speed of light” (Foster and McChesney, pg 2). The paper analyzes how the communication has evolved through the ages, whether it truly is revolutionary vis a vis the political, economic structure and if journalism exemplifies the normative goals of democratic communications. Research from other scholarly articles such as John Bellamy Foster and Robert W. McChesney’s, The Internet’s Unholy Marriage to Capitalism, helps shed light on the fact that the internet has evolved to become a highly monopolistic and capitalistic market where all information is disseminated for the purpose of profit-making instead of its original purpose which was for the public good.
In the early 90’s at the advent of the internet the scenario was viewed as an optimistic one where people and corporations alike thought that the internet would enhance communication between people and organization or corporation and consumer by bringing in equality, transparency and an open “two-way flow, or multi-flow” (Foster and McChesney, pg 2) of information. The thought was that no matter what class, each person will be able to access to the internet. But sadly the scenario today is quite disappointing when compared to the expectation laid out at the time of its advent. Through the years, the internet has evolved but has also been subjected to a capitalist society wherein instead of openness (democratization) there exists commercialism that is dominated by the big corporations thereby creating a monopolistic market. Nowadays the internet is dictated by profit motive and for e-commerce instead of the public interest.
Earlier, that is during the post-war period, the internet was subsidized by the government through military and leading research universities. Foster and McChesney argue that if it were up to capitalism and the “free market”, that is the private corporations, the internet would never have come into existence. The purpose of federal funding of the internet was to propagate non-commercial exchange. But this purpose was soon defeated in the 1990’s when capitalism drove the internet market and it was believed by corporations that for the internet to thrive it needs to be profit-driven in addition to becoming a free market where government intervention is negligible. This can be said about the internet of today as well.
The belief that federal funding was to create completion was untrue as the market was monopolistic because of the government policies. The government policy allowed few corporations to operate within the market making it increasingly touch for competition to survive hence creating a monopoly. Due to this monopolistic market the accessibility of the internet across various classes was limited and unequal. For example, only a handful of broadband service providers controlled the market due to their economic and political power. Post this period came about the time of deregulation where there were no government regulations or taxes or subsidies operating the market. This further created a monopoly and then led to privatization of the internet that further increased commercialism and capitalism across the market. Since it was based on profitability, many rural areas remained unconnected.
Gerhard Lenski once defined technology as the ways in which resources of the environment are enployed in order to satisfy the needs and desires of human beings. It is clear to all of why the internet is important to us and how it has impacted media. However, the sad aspect of the internet is that just like with media, the controlling share lies with fewer corporations. Media ownership is clearly consolidated and the same hold true for the Internet. For example, Google controls seventy percent of the search engine market. Considerable monopolistic power is controlled by Amazon, Facebook, Cisco, eBay, Intel and a handful more. This is economic concentration of the media and internet by very few corporations. The case is same with media channels. Though there are a lot of individual television stations, they are being run by the top conglomerates. In the United States of America, private organizations are owned by the media. These organizations that control the maximum share of the media and the internet have intentions of controlled and selective news broadcasting. Additionally, the service providers that controlled telephone lines are the ones controlling internet services. There is no room for any competition.
With the advent of the internet, advertising over this medium has increased tremendously. Visual Communication that is the use of an image to convey an idea is the dominating the internet. This has given rise to new career opportunities like graphic designing, logo designing, animation, etc. Visual Communication has been used since the world wars in the form of posters. But with the internet, its effects and consequences are very profound. Now, advertising is everywhere. When we browse the internet, we see hundreds of consumer products flashed before us. Businesses have made excellent use of this opportunity and bombard us with subliminal advertising at all times of the day.
The relation between the capitalist class and the state can be explained in relation to the Lauderdale Paradox, which states that private riches grow at the expense of public wealth. The paradox explains that by creating a scarcity (private riches) the state can impose a fee on public wealth and earn a profit i.e. creating a capitalist economy. In the case of the Internet, due to its abundance the paradox is inverted which means that it will not be a profit-making commodity but a self-destructive one. Foster and McChesney write that in order to convert the Internet into a profit-making commodity there needs to be a scarcity and this scarcity can only be induced in alliance with the public sector/the state. “The FCC’s approval of the 2011 merger of Comcast and NBC Universal is a case in point” (Foster and McChesney, pg 28).
The main aim of capitalism is revenue generation and privatization. In the earlier years of the internet, it was looked at as a means to free communication, democracy and public ownership. However, this not where we stand today and this is not where we are headed. Natural monopolies must be publically owned or highly regulated. This is required in order to curb any monopolizing of public functions. However due to antitrust laws from the government and corporate political power, this is not the case. As mentioned above, majority of the search engine share lies with Google. Which technology we are allowed to use, what data we are allowed to view without consequences, is in the hands of top corporate and the government. We are becoming more and more aware of the security threats we face. One particularly terrifying example is AT&T illegally monitoring customer communications for the NSA. More recently, there has been news of PayPal and Amazon teaming up with the government on the Wiki Leaks issue. This is a big blow to the democratic notion for which the internet was created.
Even when we take a look at the services internet provides us, the capitalistic nature shines through. Copyright protection laws were strengthened in the twentieth century, This lead to the government monopolizing the protection licenses. Such laws are disadvantageous to the consumers and artists who wish to use this material. But this was a win for the corporate since buying the licenses brought in a lot of money. Currently, copyright laws can extend up to a hundred years. To highlight this point, nothing produced post the is a part of public domain and is completely controlled by the capitalistic organizations. TO eliminate problems due to over-air broadcasting, the United States started allowing businesses to advertise to subsidize broadcasting conducted by for-profit corporations. One of the most highly debated topics in the US was if broadcasting should be a capitalist industry. The Internet raised the problem of free broadcasting to an unimaginable extent. The response was heavy copyright enforcement and development of digital rights management (DRM). However, the most effective way to keep the Internet capitalistic has been the shameless advertising being done online. Internet of today is a merger between the richest corporations. They are erecting large walls and creating scarcity. Hence, even though the initial speculation was that the internet would break down capitalistic models, it has not been able to do so. Rather, it has propelled capitalistic mindsets. It has fallen short of being revolutionary.
The internet is also used for the purpose of journalism. At the time of commencement of the internet, it was indeed a promise for journalism which allowed freedom of speech where one could express oneself without being withheld by the law (which was not the case in television or radio). But as the years progressed the capitalism percolated to journalism as well where it became a space for selling other entertainment and products instead of information. All firms were out to maximize profit. Though journalism is for the public good, it needs a self-governing body to regulate the information disseminated to the people, but because of regulations the quality and quantity are compromised. Since anybody can obtain a website and upload free information, journalism’s actual purpose for the public good is achieved to some extent. Due to capitalism journalism moves away from being for the public good and more of a space for advertising and commercialism. In the words of Foster and McChesney, journalism “downplays and undermines, rather than exploits and accentuates, the most revolutionary and democratic aspects of its technology” (Foster and McChesney, pg 21).
I would like to conclude that though the internet started out as a medium of breaking social barriers and with the idea of having a free exchange of communication, instead it has become commercial and capitalistic which has further led to the alienation of society.
Sources
Foster, John Bellamy; Mc,Chesney, Robert W. “The Internet’s Unholy Marriage to Capitalism”. Monthly Review Vol. 62 No. 10 (Mar 2011). PDF File.
