MEDIA GLOBALISATION: Global Media Concepts and Theories incorporating key concepts (from Sessions 3, 4 and 5)

1. MEDIA GLOBALISATION: Global Media Concepts and Theoriesincorporating key concepts (from Sessions 3, 4 and 5) MCC314/MCC614 Global Media Technologies 2nd Semester 2009 - Session 3 Lecture By Associate Professor Terence Lee

2. Introduction & Definitions From the outset, 3 Qs: • What is media globalisation? • How is media globalisation different from globalisation? • Are they different in the first place? Media globalisation deals with “the pivotal role that the media play in the more general globalisation process” (Devereux, 2003: 33). The subject of media globalisation is primarily concerned with the domination of the global media industry by a small number of powerful transnational media conglomerates, and the extent to which these impact upon the worldviews of individuals in different parts of the world.

3. “Transnational” is preferred to “multinational” when describing global media conglomerates Companies operate as if they are purely regional/national/local companies despite being part of a global setup i.e. HSBC, Daimler-Chrysler, DHL, UPS etc

4. Three senses of ‘media’(Ref: Flew, 2007: Chapter 1) 1) Technological means of communication • ‘Media’ extension of ‘medium’ • plural term • transmission model of communication • refer to a range of ‘communicative praxis’ or ‘practices’, including: infrastructure, telecommunications, flows, etc. 2) Institutional and organizational forms through which media content is produced and distributed. • the notion of ‘industries’ as in ‘global media industries’ as well as the ‘market’ • Flew (p. 3): “The term market is used to incorporate a variety of forms of transactions between agents” • producers & consumers or ‘prod-Users’ & ‘pro-Sumers’?

5. 3 senses… 3) Informational and symbolic content that is received and consumed by readers, audiences and users. • i.e. the socio-cultural context of reception. Which leaves us to consider: • Media and power • Media markets • Media institutions and policy • Media and culture • New Media Technology

6. 6 distinct features of media globalisation • Concentration, Conglomeration (& Corporatisation): The emergence of and continued domination of the global media industry by a small number of transnational media conglomerates (as mentioned earlier). • Technological Change: The extent of new information and communications technologies use by these media conglomerates. • Deregulation: The increasingly deregulated environment in which these media organisations operate More…

7. 6 distinct features of media globalisation (continued) • Cultural Imperialism: The globalisation of media content, leading to greater amount of homogenisation and standardisation of media product • Asymmetrical Flows: The uneven flow and distribution of information and communication (media) products within the global system and the different level of access that global citizens have to global networks of communication. • Ideology of Capitalism: Media globalisation is inextricably linked with the promotion of the ideology of consumerism and therefore bound up with the capitalist project (cf. Appadurai’s Ideoscape).

8. Corporatization is under `global media ownership’ because of globalization of media, rise of media conglomerates Direct result of `corporate mentalities’ or expansion of corporation as legal entity and business strategy; driving global mass media. “The Corporation” – 2004 Chapter 3 of Flew – list of media outlets i.e. Warner, News Corp, Walt Disney, Vivendi Universal etc Most of these huge media companies have grown through Ms and As

9. Mergers & Acquisitions (M&As), Economic Integration, Etc…. • 1990s saw unprecedented wave of mergers and pressure to increase • Move from manufacturing-dominated economies (mining & automotive) to information-based economies • Global companies with non-media assets (GE) move to media • “Who controls the media is key to our culture and democracy, MediaGuardian identifies the 100 people that decide what you watch, read, hear, download.Those who make up the Media Guardian 100 are predominantly white, male and middle-aged, which is no surprise when you remember the list is about power, not equality”

10. Mergers & Acquisitions (M&As), Economic Integration, Etc…. More info on the world's biggest 500 companies at: http://money.cnn.com/magazines/fortune/global500/2009/ How many of these are media/entertainment companies? Why are these mergers happening? • Significant cost savings from the fuller utilisation of existing personnel, facilities & ‘content’ resources • Ability to apply economically-proven strategies of integration – both horizontal and vertical • Utilising economies of scale and scope (greater opportunities of cross-promotion, cross-selling and privileged access) • When Disney produces a film, it can guarantee film showings on cable and commercial network television, produce soundtracks, spin-off tv series, related amusement park rides, CD-roms, books, comics and merchandise to be sold (Herman & McChesney, p.54)

11. Mergers & Acquisitions (M&As), Economic Integration, Etc…. • Disney has become involved in building family communities  transferring Disneyland success to actual homes and suburbs in Florida! • Whilst many mergers are profitable, some can run into problems (assets paid too high and market changes allow unmanageable debts) • Joint-ventures are more flexible, less formal structure than buyouts or takeovers • Attractive due to reduction of capital and risk of participants, allow to permit spread resources widely. • Often happen between global media giants and second-tier company with ‘national basis’ i.e. News Corp JV with StarTV in 1993

12. Mergers & Acquisitions (M&As), Economic Integration, Etc…. • Corporations try to guess most profitable company profile (i.e. internet or satellite television) • Market forces increased concentration on media oligopolistic framework (enemies sometimes work on agreements on JVs, projects), causing slim possibilities for new companies to actually enter the global arena. • Biggest media merger Time Warner by AOL, 2000. Worth USD 160 billion, overtaking Time & Warner Brothers merger record at USD 14 billion. • Represented old media and `new’ media , with new sophisticated internet perceptions. • AOL empire + Time Warner cable network+ Time Inc = 130 million subscribers. • 800,000 people signed up for Time Inc subscriptions through AOL offer

13. Mergers & Acquisitions (M&As), Economic Integration, Etc…. • 9/11 caused plunge on company’s revenue, Securities Commision investigation on accounting = largest annual loss in US corporate history of US$100 billion. • Ted Turner (CNN) resignation, AOL returns to the name “Time Warner” as “America Online” is not conducive for global media business • New media driven by the internet will expunge traditional advertising.

14. Finally… Media Globalisation:Some Trends & Issues to consider Political Contexts & De-regulation Trends • Changes in the profile of the global media industry are not just the outcome of purely operating market forces • The greater play of market forces is the result of political actions and decisions • Broad definition of political – both big ‘P’ and small ‘p’ • Loss of the ‘public’ (whither public service?) • Influence and impact of new media technologies? Uneven/Regional Developments in Global Media • The 3 Cs: Corporation/Concentration/Conglomeration: • the new reality/ies of ‘media globalisation’?

15. Thank you! Now, let’s get on with the video….