NEW YORK UNIVERSITY Stern School of Business, Marketing Department
Summer 2019 MKTG-UB.0046.01 - Monday & Wednesday 3:40 – 6:50pm
GLOBALIZATION OF THE ENTERTAINMENT INDUSTRY
Two Credits Toward the Business of EMT minor
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Adjunct Professor: Colin Brown Mobile Tel: 917-803-3957 Email: [email protected] | [email protected] | [email protected]
COURSE DESCRIPTION
This is an elective course in the Business of EMT minor. It will provide students with a framework for understanding the dimensions of globalization achieved by media and entertainment companies outside the US and their methodology for cross-border expansion. The export growth of American leisure products and services have had a significant impact on the global economy for decades now; now Media and Entertainment companies in other regional superpowers, most visibly those in Asia, are playing similar roles in their own respective economies and the global market at large. This course examines the interplay of such globalization forces across the spectrum of industries competing for the world’s leisure time dollars and attention spans.
The course will specifically focus on the socio-cultural, political, legal, technological, and economic factors that affect the media and entertainment sectors in various countries; the industry and competitive dynamics in these countries, and corporate strategies, both domestic and international. The course will selectively focus on countries in Asia, Europe, the Pacific Rim, the Middle East, Latin America, and Africa, and, within these countries, selectively focus on important sectors of the entertainment industry such as movies, television, radio, music, cable, live entertainment, gaming, theater, sports, theme parks as well as digital and social media and their development in the major countries worldwide. The topics will be covered through a combination of lectures, discussions, case analyses, and a group project.
COURSE OBJECTIVES
To provide students with an overview through case studies, lectures and readings of the opportunities and challenges involved in exporting leisure products and services to a global consumer base. We will examine the international growth ambitions of multinational companies and how they are impacted by the political, social and economic changes taking place in countries around the world (due to increased GDP’s, a rising middle class and the growth of discretionary spending and leisure time). We will also look at how technology has opened the door for small companies to compete for worldwide audience attention, regardless of their geography or language.
As an example of the far reaching influence of the emerging EMT multinationals, we will explore the Chinese entertainment industry, the new consumer for leisure time products, and the transition from a closed society with few rules, covering intellectual property distribution, to the expansion and change of the Chinese media and telecommunication industries necessary for world power status.
Such is the growth and transformational change occurring across the global marketplace that this course will be provide valuable insights for students who intend to work in the EMT industry after graduation, both within the United States and elsewhere in the world.
Required Material
Four case studies purchased from the Graduate Book Store as a Course Packet, together with course lectures and embedded links that will be posted on NYU CLASSES after each class in the form of a PDF slideshow deck.
The four case studies are as follows: • HBS: Taran Swan at Nickelodeon Latin America (June 2008) • HBS: Must Zee TV (revised Feb 2003) • HBS: Google in China A & B - (April 2010 & March 2011) • Stanford: The Xbox Launch in Korea (April 2003)
Students can purchase their access keycodes to this Course Pack either in the bookstore or the website: shopnyu.com
Course Evaluation
1. Class attendance and participation: 40%
2. Group project: 30%
3. Individual Report on Presentations: 30%
Class Attendance and Participation (40%)
Every session of the course will involve interaction in the form of class discussion. I expect each one of you to come to class on time and be prepared to contribute to all class sessions. Attendance will be taken for each class session and will be a factor in determining your class participation points. Laptops, cell phones, and other electronic devices are a disturbance to both students and professors. All electronic devices must be turned off prior to the start of each class meeting.
Every student will be required to read all four case studies. Their knowledge and understanding of these analytical case histories will be tested in the classroom through a verbal quiz around the classroom.
Class participation will be graded on the quality of the interaction and will be measured against these criteria:
• preparedness of the comments • incorporation of current news articles and topical trends • extent of knowledge • listening skills • ability to get to the heart of the matter • opening new doors for investigation • statement of practical relevant experience • new insights • building on statements of others • evidence that you have gone above and beyond the core requirements
Group Project (30%)
Small groups of 3-5 students should analyze any sector of the media and entertainment industry in any region outside the United States. You can define the region broadly to include several countries (e.g., Central America, or the Middle East), or just focus on one country. It might make sense to combine several countries into a region if (1) there are sufficient similarities across the countries, (2) the countries are contiguous, and (3) each of the individual countries is too small for a meaningful analysis by itself. As far as the industry sector is concerned, you can either select a traditional E&M sector (such as television or magazines), or select a non-traditional entertainment sector. In general, I will be quite flexible about your industry selection as long as you can convince me that it pertains to the entertainment industry. You need to get your region and industry sector approved by me before you start working on the project.
Your project report should show an understanding of the material covered in the course, as well as significant original scholarship and research involving secondary data sources. Each group will make a 20-minute presentation in class on its project findings, and be prepared to answer a few class questions immediately afterwards. There is no need to turn in a written report of your project. Instead, please turn in a copy of your presentation slides on the first day of the presentation. The slides that you turn in should contained detailed accompanying notes, and would typically contain more material than an abridged version that you might present to the class (given the time constraints).
Where possible, the chosen region should NOT be one in which any of the group’s students were raised; the whole purpose of the Group Project is to examine and analyze new marketplaces. Your report should broadly follow the following structure:
1. Introduction
2. Environmental Analysis: Examine the economic, technological, social, regulatory, political, and legal environments in your industry sector in the country.
3. Industry and Competitor Analysis: Examine the structure of the industry (whether monopoly, oligopoly, or pure competition), the different players operating in the industry (domestic and international), the economics of the industry, the core competencies of the main players, and the nature of competition in the industry, both from traditional rivals and from technological upstarts. You can also perform a Porter’s 5 forces analysis if appropriate. You should also examine the consumer culture, consumption patterns, and trends in the industry.
4. Industry Future: Given your analysis, what does the future hold for the industry sector? Do they face special challenges (either from within or outside the country)? What opportunities exist for the industry players? How can the players overcome their challenges and leverage their core competencies to create future growth and profitability?
5. Conclusions and Summary. Should include some general learning for the rest of us who are interested in the overall domain, but not necessarily on your specific topic.
Individual Report on Presentations - 30%
Write a report (about a page per presentation, double-spaced, 12pt font excluding appendices) that lists the main strengths and weaknesses of each presentation (excluding yours). Make sure to include the key learning that you got from the presentation when listing its strengths as well as including a critique, if any, in the weaknesses. Across those five reports there should be at least one comparative reference or insight from each of the 4 case studies (i.e. Taran Swan / Zee TV / Google in China / Xbox in Korea) that demonstrates understanding of the relevant issues being faced then and now.
This report is due online in NYU Classes by noon on Thursday, July 11th.
Grading
At NYU Stern we seek to teach challenging courses that allow students to demonstrate differential mastery of the subject matter. Assigning grades that reward excellence and reflect differences in performance is important to ensuring the integrity of our curriculum.
In general, students in this elective course can expect a grading distribution where about 35-40% of students will receive A’s for excellent work and the remainder will receive B’s for good or very good work. In the event that a student performs only adequately or below, he or she can expect to receive a C or lower. Note that the actual distribution for this course and your own grade will depend upon how well each of you actually performs in this course.
Re-Grading
In line with Grading Guidelines for the NYU Stern Undergraduate College, the process of assigning of grades is intended be one of unbiased evaluation. This means that students are encouraged to respect the integrity and authority of the professor’s grading system and discouraged from pursuing arbitrary challenges to it.
If you feel that an inadvertent error has been made in the grading of an individual assignment or in assessing an overall course grade, a request to have that the grade be re- evaluated may be submitted in writing to your TF within 7 days of receiving the grade, including a brief written statement of why you believe that an error in grading was made.
CLASS 1: Monday, June 17
Part I | GLOBAL OVERVIEW OF ENTERTAINMENT & MEDIA
• Introduction and Framework for Course • Definitions/Economic Factors • Trans National Media Companies • Student Teams/Projects
Part II | UK & Ireland
SAMPLE TOPICS:
• An overview of the British media & entertainment market – and how the recent Brexit vote will impact its future. • A look at how technology and competition has impacted UK media giants, old and new, such as the BBC, ITV, Granada, Rank, BT, Virgin and the new TV mini-majors such as Endemol UK, All3Media and Shine. • What’s been driving the massive consolidation wave among indie TV production companies? • The decentralization of the UK media market away from London. • A survey of London as the digital advertising capital of Europe. • The global strategies of news organizations such as The Guardian and The Economist • A look at Ireland as a distinct but parallel marketplace. • Discussion about The West End’s Live Theater sector. • The British music scene in the Spotify and downloading era. • How has Murdoch’s Sky empire changed the viewing habits of the European consumer? • The export success of British TV shows such as Downton Abbey, Sherlock and Dr Who. • Are US movies and TV programs still a major part of British entertainment – or has that dynamic shifted as result of reality TV imports? • The UK Film industry and its co-dependent/competitive relationship with Hollywood. • What is BAFTA? What is the BFI? How powerful is the Office of Communications (OFFCOM) READING ASSIGNMENT#1 TARAN SWAN: Nickelodeon in Latin America
CLASS 2: Wednesday, June 19
Part I | LATIN AMERICA: Brazil, Argentina & South America
Discussion & Questions regarding Case Study #1 TARAN SWAN
SAMPLE TOPICS
• An overview of the Latin American entertainment marketplace. • Brazil is largest economy in Latin America and the region’s biggest entertainment and media market by a wide margin. But has Brazil been too passive about exporting its own leisure businesses? • A look at the consumption and export of Brazilian music. • What is the impact of Carnivale on the culture of the country? • What impact will this year’s Rio Olympics have on the media and entertainment world – and what lessons were learned from the 2014 World Cup? • Who is making selling and exporting Brazilian “telenovelas”. • A look at the explosive growth in media spending in Brazil over the next few years - led by digitally-driven sectors and video games – and what that says about local leisure time habits. • Can the big two economics in South America create a global entertainment and media nexus by expanding their business across Southern Europe, Mexico, and the US? • The competition from the Hispanic giants headquartered in Miami. • A look at Argentina’s plan to build the tallest building in South America to accommodate its local film & TV industry • Why is Argentina ranked as the world’s fastest-growing paid media market in the world? • What is the threat to the domestic media conglomerates, Clarin Group and Telefe? • Can an independent like RGB entertainment productions thrive and prosper, and how successful have they become? • Prospects for Colombia, Chile, Peru and Venezuela. Part II | NAFTA COUNTRIES: Mexico & Canada
SAMPLE TOPICS
Mexico:
• What has been the impact of NAFTA on Mexican entertainment and cable TV? • Mexico’s media has been dominated by Televisa, Ascaraga’s TV Empire whose political clout has helped influence elections. It is the world’s largest provider of Spanish-language content. • Televisa’s virtual monopoly is being challenged by Azteca as well as foreign cable & satellite operators. How has the media landscape changed and who is benefiting? • How are the conglomerates targeting the US Spanish-speaking markets? • Is entertainment a vehicle for change in Mexico? • Despite having great potential for foreign media companies, Mexico is a difficult market to enter because of perceived corruption. How quickly can that change?
Canada:
• Canada is a country divided by language, culture, and affiliations with France and England. However, the US is a looming, problematic presence. • A look at local media powerhouses including Rogers, Bell Media, CBC, Shaw, Entertainment One, Lions Gate, • Why are US movies being made in Canada? • Why does Canadian cinema have such a bad reputation? • A look at the Toronto Film Festival and its Lightbox HQ. • Canada’s role as an international co-production partner. • Cirque du Soleil’s rise as a global entertainment brand. • A look at Telefilm Canada, the National Film Board of Canada and CRTC. How do they prevent their locals talents from being absorbed by US media and entertainment giants and create their own self-sustaining identity? • Did Canada benefit from its “cultural exemption” provisions inserted into the NAFTA trade agreement?
READING ASSIGNMENT#2 MUST ZEE TV: Indian TV
CLASS 3: Monday, June 24
Part I | EMERGENT GIANTS: India & Nigeria
Discussion & Questions regarding Case Study #2 ZEE TV
SAMPLE TOPICS
• What are the problems and opportunities in these populous countries? • Bollywood – 1000 films a year, and yet difficulties in export? • Nollywood – 1000 films a year, and its own export difficulties? • Did “Slumdog Millionaire” usher in a new era? • A look at Bollywood’s star-making machinery as marketing tools • What is the impact of censorship on private investment in cable in India? • What about the foreign ownership restrictions in India? • Are there two – and maybe more - Indias? • A look at the global release patterns of Bollywood films that target the huge Indian diaspora. • Music and publishing are growth industries in India? How is new media impacting that growth – and how will the mobile explosion play out? • A look at how Nollywood has inspired the rest of Africa’s content-makers. • What lessons do these countries hold for other emergent markets such as Philippines, Indonesia, Vietnam, DR Congo, Bangladesh & Pakistan?
Part II | ARAB WORLD Middle East & North Africa
SAMPLE TOPICS
• Overview of the pan-Arab media and entertainment market across the Middle East and North Africa (MENA) with its key players including MBC, Rotana and Orbit Showtime. • Comprised of 22 countries with a combined population of 350 million – roughly the size of Western Europe – it shares a common language but is also a fragmented marketplace with regional differences. • With half the population under the age of 25, digital media is seen as having particular potency as a revenue growth driver in a region that would rank as the worlds eighth-largest economy . • VOD platform including MoviePigs is looking to reach across this tech- savvy demographic audience with a wide choice of indie films. It also looking to reach the considerable Arab diaspora across the globe. • A look at how the UAE and Qatar are attempting to jumpstart an entire regional media and entertainment ecosystem. • Egypt’s status as the region’s oldest and largest film & TV market. • Differing censorship issues and political uncertainties across the region are among the many issues standing in the way of a pan-Arab marketplace. So also is the threat of extremists hijacking the airwaves. • Al Jazeera is an ambitious attempt to create a global multi-lingual news brand from scratch. • Other than sports and reality TV, the most popular shows are Turkish soap operas. How did this happen? • The Ramadan TV season has been likened to a month-long Super Bowl for its importance in the Arab world’s television market, a period when expensive historical epics draw huge ratings and ad dollars • The complicated relationship with Israel’s media and startup world.
READING ASSIGNMENT#3: GOOGLE IN CHINA, Parts A & B
CLASS 4: Wednesday, June 26
Part I | China & The BATs
Discussion & Questions regarding Case Study #3 Google in China
• Overview of China’s media & entertainment marketplace in the context of the country’s political and economic climate • What are the constraints of operating in one of the world’s toughest journalism environments? • What are the political considerations of operating a multinational company in China. • China’s market influence over the rest of Asia. • Censorship in China: this extends beyond just media to widespread public censorship as well, as seen in public forums, the internet etc. All this has shaped the Chinese media environment. • A look at the global media ambitions of the three giant “BAT” tech conglomerates: Baidu, Alibaba and Tencent. • What will happen when they challenge Beijing’s power? • To what extent will social media become a game-changer in China? • A discussion of the Hollywood ambitions of Dalian Wanda Group, led by China’s richest man who wants to control 20% of the world’s film market by 2020. • China prides itself on its long history of inventions and creativity. But can it also compete on the global marketing stage with its creative output?
Part II | Scandinavia & Baltic Countries
SAMPLE TOPICS
• What makes this region such a creative hotbed? • Sweden’s Bonnier Corp is a mini entertainment conglomerate. How did it grow in such a small country? • Where did the idea of a free subway newspaper come from? • The Nordic online video market serves as a media laboratory for many of the entertainment world’s pioneering ideas. • The digital revolution started here with Ericson, Nokia & Skype. • Estonia as Europe’s answer to Silicon Valley.
READING ASSIGNMENT #4: XBOX IN KOREA
CLASS 5: Monday, July 1st Part I | South Korea
Discussion and Questions regarding Case Study #4 Xbox in Korea
SAMPLE TOPICS
• An overview of Japan and Korea, the two cornerstones of the Asian media economy – until China upset the regional power structure. • How did Korean cultural exports including music (“K-Pop”), as well as TV dramas, movies and video games become so popular among young people across Asia? Was Gangnam Style a one-off global phenomenon? • A look at the Korean New Wave of filmmakers and how South Korea has forged a cinema industry through protective measures.
Part II | Japan
• Japan has one of the oldest and largest film industries in the world, one that has spawned several cinematic grandmasters. These days it is better known for a highly successful homegrown genre known as “J-horror”. • “Keiretsu”, the Japanese concept of linking companies together in a spider’s web of interlocking shareholdings, has been a strong force in Japan’s Entertainment & Media industries. Does it work? • What went wrong with Sony’s studio ambitions in Hollywood – and what is holding the company back from its once dominant position? • Why was Godzilla a Success at Home and Failure Abroad ? • How important are “Anime” cartoons and “Manga” comic-books to the Japanese entertainment economy, both at home and overseas? What are • A look at the so-called Idol Culture (“Otaku’) in Japan – and how it has apparently contributed to the decline in Japan’s population and growth. • A look at Studio Ghibli and its distribution links with Disney. • Although Japan is ceding its place as the world’s second largest media market, it remains a media innovator: one example, “Keitai novels” or literature written on mobile phones for mobile phones.
CLASS 6: Wednesday, July 3rd Part I | PRESENTATIONS: Teams A, B & C (20-25 minutes each + Q&A)
Part II | PRESENTATIONS: Teams D, E & F (20-25 minutes each + Q&A)
REMINDER: INDIVIDUAL REPORTS due online by noon on Friday, July 6th