Final answer:
Neo-liberalism favors a limited government role in media ownership, supporting a free-market approach according to classical liberal principles. However, it contends with issues like media consolidation, which narrows media diversity, a key aspect of a healthy democracy.
Step-by-step explanation:
The neo-liberal view on mass media ownership promotes limited government intervention and a free-market approach to media ownership. This perspective aligns with classical liberal principles of individual rights, minimal government, and capitalistic economic systems. The free-market approach is considered essential for the freedom of information exchange and propagates the development of new media sources. However, observed trends such as media consolidation have led to an oligopoly within the media landscape, with fewer corporations controlling a significant portion of media outlets, potentially limiting the diversity of viewpoints available to the public. Neo-liberals may agree with this consolidation as a natural outcome of market forces, while critics like C. Edwin Baker argue for the importance of media diversity in supporting a healthy democracy.