Media Structures and Institutions

1. Week 2 MCS101MEDIA INSTITUTIONS MediaStructures andInstitutions İbrahim Cansızoğlu, Burak Doğu ibrahim.cansizoglu@ieu.edu.tr, burak.dogu@ieu.edu.tr Media and Communication, IUE

2. Defining media institution Although it is not possible to define the media institution in an objective manner we can roughly summarize the position of a media institution in society as: An established organization, that deals in the creation and distribution of advertising, entertainment and information services.  Media institutions can be commercial or non-commercial entities.   Examples of media institutions include: News International, Time Warner, The Walt Disney Company, Sony, Ofcom, RTÜK, BBC, TRT, and Doğan Medya.  This lecture is about the characteristics of media institutions at different levels.   • Do you consider media as a social institution or an industry?

3. Some facts effecting the frame of definition • Economic, political, socio-cultural reasons • Nature of mediabusiness enterprise > information and communication sectors • Privatization of telecommunications • Competition • Changing technologies of distribution

4. Characteristics of media institution The activities of media institutions are both economic and political. Media have grown up in response to the social and cultural needs of individuals and societies, and they are largely run as business enterprises. Media generally have to operate wholly or partly according to the dictates of market economics.   • What are the other forces regulate media other than free market rules? Media activities involve production of goods and services both private and public.     Private - consumption for individual goods and services    Public- viewed as necessary for the working of society as a whole • Do you think media has a public character?

5. Characteristics of media institution III • Media has a political function in democracy. • Information, culture and ideas are considered as common properties of all. • Various mechanisms are imposed on media to encourage, protect or limit them on behalf of a supposed 'public interest'.   Any definition of the media institution is shaped by a certain perspective on the media.  These different perspectives are: • Economic/industrial perspective; considers media mainly as an economic enterprise. • Political-economic perspective; mostly relies on the critique of capitalism, focuses on the processes of concentration and commercialization. • Public interest perspective; interested in normative criteria of conduct. • Media professional point of view; regards media from an internal view.

6. Social influences on media

7. Media structure Media system refers to the actual set of mass media in a given national society even if there may be no formal connections between the elements. The media system can be analyzed at different levels: • The degree of influence by private and public elements (free-enterprise media of USA vs. state-run media in China) • The degree of concentration and privatization (media conglomerates operating in the broader sense of the whole information and communication sectors) • Media sector (newspaper, tv, film...) • Circulation area (national, regional) • Unit medium (any specific newspaper, any specific tv channel) • Unit media product (book, film, song...) • Regulatory organs are closely linked to the politics, therefore to the media system.

8. Other facts to be considered are... Each medium differs from the other in the means of its economic structure and publishing/broadcasting policies (e.g. local, national, international). Media are not only businesses responding to economic forces, but also deeply rooted social and cultural institutions. Global issues are also to be considered in this process of media work (e.g. north vs south, Mcbride). The two basic dynamics are the wish to make money and struggle for power in society. Changing dynamics of technologies and convergence are also important cases to influence.

9. Concept definitionConvergence The blurring of the distinctions between telecommunications, computers, radio, television and newspapers caused by the improvements in digital technology. It is what Crisell (2002: 286–7) describes as the ‘interchangeability’ of media that is allowing all the various media platforms to take on some of the characteristics and functions of others. media_convergence.wmv

10. Media structure (cont'd) Another way of thinking media is to adopt a broader sense, interconnected with the industries of advertising, public relations, marketing and audience research. And when we say media, we refer to different types like newspapers, tv, radio, music, film, telecommunications, etc. This brings us to vertical integration and monopolisation. Thus it is not possible to think of media product (book, film, etc.) as a single unit.

11. Economic principles of media structure Market can be defined according to place, people, type of revenue and the nature of product or service. Media market is consist of two categories: • Consumer market • one-off products (books, films, etc.) • continuous services (cable tv, online media, etc.) • Advertising market •  Where do we integrate the free newspapers into the picture? • How does the dependency on advertising as the income source effect media outlets?

12. Economic principles of media structure(cont'd) The correlation between media and advertising can be summarized as ... the more advertising, the less credibility of information provided by any specific media outlet. Dependency on advertising pulls media outlets more into the political economic system. Therefore they also get more under the influence of economic recessions. • Do you think that the content patterns of media is parallel to consumption patterns of target audiences?  The final picture of advertising revenue depends on the geographical circumstances and on the homogeneity of  audiences.

13. Competition for revenue Competition for a single revenue source results in imitative uniformity. In other words, low taste is triggered by mass consumer advertising. Apart from this, the fact that different media often compete with each other for the same advertising income can encourage diversity. The growth of Internet for advertising is another question in minds. Especially types of ads like classified, personal, property, personal, job, etc. suit more to the nature of this new medium. It seems that the advertising shares of the Internet will raise up to 16% in 2011.

14. Media cost structure • Fixed costs      Land, physical stuff, equipment, etc. • Variable costs      Software, labour If the fixed costs are high in value, the business is more vulnerable to changing market conditions. New media opens up new uncertainities for the established media. For the new media fixed costs are much lower, however the content costs a lot. It is better understood considering the fact that the first copy always costs more in the media business.

15. Ownership and control According to Marxist theory, “ownership ultimately determines the nature of media.” • Do you agree with this statement? Altschull's second law of journalism (1984); "The contents of the media always reflect the interest of those who finance them." Financiers of the media are: private investors, advertisers, consumers, public or private enterprises, governments A media company; • may be public/private, • may belong to a large chain or conglomerate, • may be independent (usually small).

16. Effects of ownership Liberal theory; “Ownership can be seperated from control of editorial decisions.” But, media exist in a capitalist system, therefore they have make profit. That means, profit involves taking decisions which directly influence content (such as cutting costs, closing down, shedding staff, investments, merging operations). Public ownership is thought to neutralize or balance particular pressures, however that too means following a certain editorial line. For the liberals, the solution lies in multiplicity of private ownership.

17. Effects of ownership (cont'd) According to social theories 'public interest' places a value on diversity. monopoly vs. competition Risk: Competititon may also end up with monopolies. Types of competition: • inter-media, • intra-medium, • inter-firm. All media types have distinct advantages to advertisers in the means of form of the message, timing, type of audience, context of reception (Picard, 1989). Units of the same medium sector are more substitutable than between media.

18. Horizontal vs. vertical concentration • Vertical concentration refers to a pattern of ownership which extends through different stages of production and distribution. • Horizontal concentration refers to mergers within the same market. • Cross-media ownership is the concentration of different media by the same firm.

19. Other issues regarding concentration Sharing of certain services by diffferent media, reduces the difference between various types of concentration. Audience market shares play an important role in concentration. • Pricing, • Quality of the product, • Position of the competitors. Recent trends regarding the content are; adequacy of local news and information, the performance of the political and opinion-forming functions of media, degree of access to different voices, choices and diversity.

20. Media concentration in Turkey I CİNER GRUBU Televizyon: Kanal 1, Habertürk.Dergi: HM, Arena, Rolling Stone, OK, Marie Claire, Empire, Süper Dergi, PC Magazin, Seventeen, Marie Claire Maison, Electronic Gaming Monthly, Joy.İnternet: Habertürk.com, kanal1.com.tr, Guncel.net.Radyo: Habertürk Radyo ÇALIK GRUBU Gazeteler:  Sabah, Takvim, Yeni Asır, Pas Fotomaç.Televizyon: ATVDergiler: Yeni Aktüel, Bebeğim ve Biz, Sinema, Sofra, Home Art, Şamdan Plus, Para, Global Enerji, Transport, Hukuki Perspektifler, Cosmopolitan, Harper’s Baazar, Auto Classic, Auto Motors & Sport, Cosmo Girl, Cosmopolitan Bride, Esquarie, Forbes Türkiye, House Beautiful, Hülya. Radyo: Radyo City.Baskı ve Dağıtım: Turkuvaz Dağıtım (eski adı Merkez Dağıtım)

21. Media concentration in Turkey II ÇUKUROVA GRUBU Televizyon: Show TV, SKY Türk.Digital & Pay TV: Lig TV, ShowMax, ShowPlus, GoldMax, GoldMax2, MovieMax, MovieMax2, ActionMax, TürkMax, MovieMax HD, ComedyMax, DiziMax, MyMax, İz TV, Estore Tv, S’nek TV.Gazete: Akşam, Tercüman, Güneş.Radyo: Alem FM, Lig Radyo.Dergi: Alem, Total Film, Stuff, Platin, FourFourTwo, AutoCar, Eve, Maxim. DOĞUŞ GRUBU Televizyon: NTV, Kral TV, CNBC–e, e2, NBA TV, NTVSporRadyo: NTV Radyo, Radyo Eksen, Radio N101, Billboard Radio.Dergi: CNBC-e dergisi, e2 kanalı eki, Motor Boat, National Geographic, National Geographic Kids, CNBC–e Business, Billboard, Slam, F1 Racing, Evo.İnternet: ntvmsnbc.com, ntvspor.net, cnbce.com, e2.tv.trDiğer: NTV Yayınları

22. Media concentration in Turkey III FOX GRUBU Televizyon: Fox TV, Baby TV, FX tv, FoxLife, National Geographic Turkey. İHLAS GRUBUTelevizyon: TGRT Haber TV, TGRT Pazarlama TV.Haber Ajansı: İhlas Haber Ajansı.Gazete: Türkiye Gazetesi.İnternet: İhlas.netRadyo: TGRT FM

23. Media concentration in Turkey IV KANAL 7 GRUBU Televizyon: Kanal 7, Ülke TV, Kanal7 Int, TVT.Radyo: Radyo7, İstanbul'un Sesi Radyosu.İnternet: Haber7.com, Cafesiyaset.com, Rotahaber.com, Tumspor.com, NewsTime7.com FEZA  GRUBU Gazete: Zaman, Today's Zaman.Televizyon: Samanyolu TV, Samanyolu Haber TV, Mehtap TV, Ebru TV, Yumurcak TV.Dergi: Aksiyon, Sızıntı, Yeni ÜmitHaber Ajansı: Cihan Haber Ajansı İnternet: Samanyoluhaber.com, zaman.com.trRadyo: Burç Fm, Dünya Radyo, SamanyoluHaber.

24. Media concentration in Turkey V DOĞAN GRUBU IGazete: Hürriyet, Milliyet, Posta, Vatan, Radikal, Fanatik, Referans, Turkish Daily News.TV: Kanal D, Star TV, CNN TürkDigital & Pay TV: Dream TV, Dream Türk, D Max, D Yeşilçam, D Plus, D Çocuk, D Spor, BJK TV, GS TV, FIX TV, Movie Smart, Movies 24, Comedy Smart, Pembe Smart, D Shopping, TAY TV, Emlak TV.Time Warner & Doğan Ortaklığı: TNT TV, Cartoon Network TVDergi: Atlas, Auto Show, Blue Jean, Burda, Capital, Chip, Dr. Kuşhan’la Diyet, Ekonomist, Elele, Elle, Elle Decor, Ev Bahçe, Evim, Formsanté, Güncel Hukuk, Hafta Sonu, Hello, Hey Girl, İstanbul Life, Level, Lezzet, Maison Française, Pc Net, Seda Magazin, Seninle, Tempo, Yacht Türkiye, Goal. (Ayrıca 16 çocuk ile 2 gençlik dergisi)Haber Ajansı: Doğan Haber Ajansı.

25. Media concentration in Turkey VI DOĞAN GRUBU IIRadyo: RadyoD, Radyo Moda, CNN Türk Radyo, Slow Türk.Yurtdışı: Euro D, Euro Star.Kanal D Romania TVTME Gazeteleri (Iz Ruk v Ruki, Expressz, Oglasnik.)İnternet: Hurriyet.com.tr, Milliyet.com.tr (Milliyet Emlak ve Arabam gibi 5 alt marka), Yenibiris.com, Insankaynaklari.com, Hurriyetemlak.com, E–Kolay E–Kolay.net, Mahmure, Bigpara), Azbuz.com, HepsiBurada.com, Gayet.net, HerEveLazim.com.tr, HemAlHemSat.com, GeziSitesi.com, OnPunto.com, TatilSepeti.com.Baskı ve Dağıtım: Yaysat, DPP Dergi Pazarlama Planlama, Doğan Printing Center, Doğan Ofset. Diğer: D Productions, Kanal D Home Video, MedyaNet, Doğan Kitap, Altın Sayfalar, DMC, Doğan Telekom, Smile ADSL, D&R.

26. Distinctive features of media economics I Media are typically hybrid in character. Often they operate in a dual market selling a product to consumers and a service to advertisers.  Media cost structures are characterized by high labor intensiveness and high fixed costs. High degree of uncertainty and uniqueness of the product is another distinctive feature.   Media products should be differentiated even though there is an urge for standardization.

27. Distinctive features of media economics II Media seem tended to concentration. Advantages of monopoly, appeal for power and social prestige are some factors in this tendency. Many media businesses (especially those of involving distribution) are unusually hard to enter without large capital resources. High fixed costs and high launch costs are important factors. Media are different just because of the public interest they are after. Social responsibility is an indispensable.  

28. Four main dynamics of the media structure • The pursuit of profit in a situation of supply and demand (market forces), • The dominance of certain technologies for a period of time, • Social and economic changes in society, • Various political and policy goals which often shape the working environment of media.

29. Market forces and technology When the market forces are concerned, commercial media is not very much different than any other business. Yet the difference arises when the media has a semi-public status or role. The rise of new technologies constantly challenges media institutions for change and adaptation. Their status in the market is determined by how they integrate with the new technologies.   The rise of a specific technology does not usually eclipse old media entirely since the change never occurs in one day. It is rather a long process.

30. The role of public policy  Since about 1980s in Western Europe and until 1989 in Turkey the development of radio and television had been kept firmly in the hands of national governments. The broadcast media were deemed too important to society to be left to the marketplace. Political arrangements were undermined by four main kinds of change:  • Technological advances • Neo-liberal policies • European integration • Free market ideology

31. Four types of societies in relation with their communication policies (Salvaggio, 1985) • Competitive free market, • Public utility, • Communist, • Third world. Some economic and external forces constantly influence the communication policies of specific societies.

32. The regulation of mass media: Alternative models Free press model  The basic model for the press is one of freedom from any government regulation and control that would imply censorship or limits on the freedom of publication. Press freedom is often protected as a principle in national constitutions and in international charters, such as the European Treaty of Human Rights. Press is often protected from damaging effects of free market competition with some economic benefits. The main principle in this kind of a public policy is to protect citizens' rights to access to a free press.     There may also be anti-concentration laws and rules against foreign ownership. 

33. Broadcasting model   By contrast to the press, radio and television broadcasting have been subject to high levels of restriction and direction, often involving direct public ownership. Initially regulation was designed for fair allocation of limited resources (frequencies) and control of monopoly, however after 1980s the trend became institutionalized as a consequence of emerging technologies and changing opinions. There are different forms in public model; weaker (as in USA), stronger (in Europe).  Usually there are specific media laws to regulate the industry and often some form of public service bureaucracy to implement the law. Despite its relative decline, however, the broadcasting model shows no sign of being abandoned, for reasons related to the presumed communicative power of audiovisual media and broader public interest concerns.  

34. Common carrier model This model primarily related to communication services such as mail, telephone, telegraph which are purely for distribution and intended to be open to all as universal services. The main motivation behind regulation of these services is increasing efficiency for customers. In this model there is heavy regulation for infrastructure and of economic exploitation but only very marginal regulation of content. This is in sharp contrast with broadcasting which is characterized by high degree of content regulation. This model of regulation is often consequenced by natural monopolies.

35. The regulatory models compared Regulation of infrastructure Regulation content PrintBroadcasting Common Carrier None High High None High None

36. Dimensions of media system difference Differences between particular countries are not limited to the variations of systems. Their particular characters (such as culture and history) are established outside the media systems. • Scale and centralization, • Degree of politicization, • Diversity profile, • Sources of finance, • Degrees of public regulation and control. In general, media are thought to be becoming more globalized, less massified, more decentralized, more oriented to popular taste and culture, less politicized, less regulated and more commercial in funding.

38. Some facts on Turkey… The total amount of advertisement share in Turkey is 3.2 billion dollars. There are 35 national, 99 regional, and 944 local radios in Turkey. Their total advertisement share is no more than 3%. Since 2003, Ipsos KMG makes the measurements on the mentioned media by using self-reporting diary methodology. Currently 16 national, 15 regional, 229 local, and 53 cable Tv stations broadcast in Turkey where ratings are measured by AGB Nielsen since 1989 by making use of a device called peoplemeter.

39. Concept definition Rating/share Rating: The percentage of a given population group consuming a medium at a particular moment. Share: Percentage of households in a specific geographic area with television sets tuned to a particular program as compared to the percentage of households with television sets turned on. The difference between rating and share is that a rating reflects the percentage of the total population of televisions tuned to a particular program while share reflects the percentage of televisions actually in use. Samples: http://www.agbnielsen.net http://www.medyatava.com

40. About AGB Nielsen I Multiple countries across five continents, hundreds of channels, thousands of programs, millions of viewers. Our job is to decipher and deliver television data every day. How does a program achieve the top rank in TV ratings, and what does this mean? Our ratings aren’t qualitative evaluations of how much a program is ‘liked’. Instead, our ratings provide the simplest, most democratic measurement: ‘How many people watched?’. Nielsen measures over 40% of the world’s TV viewing behaviour. It is the Nielsen mission to establish the common currency to be used by TV Broadcasters, Agencies and Advertisers, based upon a reliable, independent and transparent audience measurement system. Nielsen currently manages more television audience measurement (TAM) panel households than any other international television audience ratings provider.

41. About AGB Nielsen II Today, the typical home has multiple television sets and well over 100 channels from which to choose. Likewise, our measurement technologies must constantly evolve to keep pace with daily innovations in consumer electronics. With recent advances in electronics, viewing is no longer limited to the television set and content is available on multiple platforms. Computers and mobile devices have joined the television as places to view programming. Nielsen measures how people use and engage with content across these ‘three screens’. Nielsen uses BuzzMetrics to measure blog activities. Mobile phone activities are also measured. Telephia is used as a tool to get stats on that media. Nielsen/NetRatings monitors and measures more than 90% of global Internet activity and provides insights about the online universe - including audiences, advertising, video, e-commerce and consumer behavior.

42. TİAK Televizyon İzleme Araştırma Komitesi (TİAK), Türkiye'de televizyon izleyici araştırmalarını organize etmek ve denetlemek amacıyla çalışan bir komitedir. Reklam kuruluşları ve televizyon şirketleri tarafından oluşturulmuş olan TİAK, televizyon izleyici ölçüm işlerini AGB Nielsen Media Research şirketinin Türkiye kolu olan AGB Anadolu'ya ihale etmiştir. Amacı, "örneklem büyüklüğü, iller, temsil edilecek evren, panel kompozisyonunda kullanılacak temel değişkenler ve raporlama kriterlerini" belirlemektir. Komite, AGB'nin işverenidir, araştırmayı organize eder, yapılışını denetler ve sonuçları komiteyi finanse eden kuruluşlara dağıtır. Türkiye’deki televizyonlar için izlenme oranları (reyting) ölçümleri nasıl yapılmaktadır? Türkiye’de reyting ölçümü, Avrupa’da bir çok ülkede bu türden veriler üreten Ocak 2005’den itibaren izleme ölçümleri, 21 il merkezinde ve bu il merkezlerinin 20.000 nüfus üstü kent-ilçelerinde olmak üzere Türkiye’de 2201 hanede yapılmaktadır. Firmadan alınan bilgilerde söz konusu hane sayısının bu bölgelerdeki 5 yaş üzeri 38.935.633 kişiyi temsil ettiği belirtilmektedir. (Kamuoyu, Yayın Araştırmaları ve Ölçme Dairesi Başkanlığı) Ölçüm yapılan dört tane grup var. A/B, C1, C2, D/E. Bu grupları oluştururken hane reisinin eğitim ve mesleğine bakılıyor. Eğitim düzeyi yüksek olan insanlar A/B dediğimiz grubu oluşturuyor. C ve D/E grubu ise daha alt geliri temsil eden insanlar. Total ise bütün bu grupların toplamını temsil ediyor.

43. Reklamları seyreder misiniz? Televizyon İzleme Eğilimleri Araştırması - RTÜK

44. Advertising on Tv networks I Radio and Tv stations generate revenue either by selling advertising time or by subscription. Another way broadcasters raise revenue is by selling programmes, or formats, abroad. In Britain, Channel 3, the ITV Network, generated £1.8 billion from advertising in 1998. The estimated cost of buying a 30-second slot in the nation’s most popular soap opera, Coronation Street, stands at a staggering £100,000. This hugesum will deliver coverage of more than 25% of the UK population – some 14 million people... UK media agency Zenith Media estimates that the average cost of a 30-second peaktime ad on ITV...is £53,000. (Darns, 2001, p. 11)

45. Advertising on Tv networks II In 1999, the arrival of digital TV both expanded the market, as more people subscribed to pay TV, and ate into advertising budgets. If advertisers have more channels at their disposal it means each channel is likely to get a smaller share. The amount companies spend on advertising is also extremely sensitive to the economic conditions of the time: when recession hits, advertising, along with jobs, is cut. The market share of many cable and satellite channels is so small that it barely registers. However, these can be successful in deliveringniche audiences to advertisers. Advertisers have paid more to reach the same number of people. This expansion cannot continue indefinitely. By the end of the 1990s British TV networks have merged in order to survive. There was the assumption that only the large networks would make profit.

46. Audience share (percentage of total audience)