Are the global media and entertainment conglomerates having an impact on cultural diversity? : a critical assessment of the argument in the case of the film industry

Critical examination of the dominant discourse on the global media and its impact on cultural diversity. The term cultural diversity suffers from the lack of good definition and criteria to assess its degree and change over time in specific markets. The paper also argues from an economic perspective that the distinctive economic features of the film business has led to market concentration, which, however, is ‘natural’ and does not trigger the application of competition law to rectify it. A particular problem is the assumed link between the market structure and its performance, which is not definitively supported by theory or empirical research. It is argued that the discussion in the media and entertainment studies literature is sometimes based on flawed reasoning and insufficient evidence. It is suggested that we start with the important discussion on what state of cultural diversity cultural policy should strive to achieve.