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The Mother Of All Media Consolidations
By Ed Driscoll · August 9, 2007 06:03 PM
· Oh, That Liberal Media! · The Future and its Enemies · The New, New Journalism
The Future Of News writes that most of the usual suspects who complain about “fewer choices for information" due to consolidations in Big Media ignore the elephant that's been in the room for over 150 years: In fact, the mother of all media consolidations — the formation of the Associated Press — is the reason that all of our mainstream outlets run just about the same stories. It began in 1848 as a clever and benign arrangement in which NY newspapers pooled their transportation and telegraph resources to get news from across the Atlantic faster and cheaper. But, it soon degenerated into a collusive, anti-competitive scheme. The AP papers shrewdly signed an agreement giving Western Union exclusive rights to their telegraph business in exchange for higher telegraph fees for all other news providers. Then, AP bylaws were redrafted to give members veto power over admission of would-be competitors in their local circulation areas. In desperation, the fledgling Chicago Sun took the AP all the way to the U.S. Supreme Court, which in 1945 found it to be in violation of the Sherman Anti-Trust Act.It'll never happen, but clearly, the Blogosphere and other market forces have at least diluted AP's influence somewhat. Meanwhile, The Future Of News believes that the future of news may be visible now amidst the fog and rain in Seattle. (Via Galley Slaves.)
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