Media’s Role in Shaping Politics: A New Era Emerges
Understanding the Connection Between Media and Political Communication
For many years, media and politics have been closely linked. Politicians use media to spread their messages, while media outlets rely on politicians for advertising and viewership. Throughout U.S. history, this relationship has influenced the country significantly. In the early 1900s, President Teddy Roosevelt traveled by train, engaging large crowds to share his views. Although political rallies still occur today, the media landscape has dramatically changed since then. Franklin D. Roosevelt, a distant cousin of Teddy and the longest-serving U.S. president, transformed communication through radio with his famous “Fireside Chats” during the Great Depression and World War II.
Fast forward to October 1960, when millions watched the first televised presidential debate between Robert F. Kennedy and Richard Nixon. This event changed the course of the 1960 election, highlighting the power of television. While Nixon appeared more polished on the radio, Kennedy’s charisma on television ultimately swayed public opinion in his favor.
The Changing Media Landscape
Historians often note the impact of events like the “Fireside Chats” and the televised debates as vital moments in media evolution. After these shifts, traditional media could not revert to its previous state, forcing politicians to adapt. For approximately the last 50 years, cable television has dominated news. However, the upcoming 2024 election signals another major shift in media consumption.
Declining Trust in Traditional Media
Recent data from Gallup reveals a concerning trend. Only 31% of Americans express a “fair amount” of confidence in mass media to report the news “fully, accurately, and fairly.” This decline in trust indicates a critical juncture in the media’s role in politics.
Growth of Independent Media
To wrap up this historical journey, take Robert Kennedy as an example. He, the nephew of JFK, ran as an independent candidate in the 2024 election. Although he did not win, he stood out as one of the more successful independent candidates and attributed his media impact to podcasts, particularly “The All-in Podcast.” This popular podcast features four venture capitalists discussing various topics, including politics and economics.
More Americans are now turning to independent media, such as podcasts, for their news consumption. This shift allows them to choose their sources, instilling greater trust, and providing on-demand access to lengthy discussions rather than the brief soundbites common in mainstream media. Alongside Kennedy, other candidates like Kamala Harris and Donald Trump have utilized podcasts this election cycle, further illustrating this trend.
Key Beneficiaries: Spotify, Apple, Amazon
For now, streaming service Spotify (SPOT) emerges as the biggest beneficiary of this new media landscape. In 2020, the platform paid approximately $100 million to comedian Joe Rogan to join its ranks. Over the past two years, Spotify’s stock has increased nearly 400%. Earlier this year, the company renewed its deal with Rogan for a staggering $250 million.
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Other notable podcast platforms include Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN). However, Spotify remains focused on podcasting, allowing it to benefit more significantly from the industry shift compared to larger tech companies.
Stocks to Watch in the Media Sector
BuzzFeed (BZFD)
BuzzFeed is a media company known for its viral content and entertainment. Although the company has seen a decline, the stock received attention earlier this year when former presidential candidate Vivek Ramaswamy took an activist stake in the firm.
Trump Media & Tech (DJT)
As the parent company of Donald Trump’s “Truth Social” platform, DJT remains unprofitable but has seen interest from investors as they anticipate a Trump win in the upcoming elections. Shares increased by more than 200% in October alone.
Rumble (RUM)
Rumble is a video-sharing platform catering to users seeking alternatives to mainstream platforms like YouTube. It has garnered a loyal following among right-wing audiences.
Conclusion
The 2024 presidential election signifies a critical transition from traditional to independent media. Spotify is currently at the forefront of this new media era.
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