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Fordham University Masthead Logo DigitalResearch@Fordham Donald McGannon Communication Research McGannon Center Working Paper Series Center

4-2006 The Diversity Challenge: Changing Television Markets and Public Service Programming in , 1993-2004 Minna Aslama Fordham University, minna.aslama@.fi

Follow this and additional works at: https://fordham.bepress.com/mcgannon_working_papers Part of the Broadcast and Video Studies Commons, and the Communication Technology and New Media Commons

Recommended Citation Aslama, Minna, "The Diversity Challenge: Changing Television Markets and Public Service Programming in Finland, 1993-2004" (2006). McGannon Center Working Paper Series. 8. https://fordham.bepress.com/mcgannon_working_papers/8

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T H E D ONALD M C G A N N O N C OMMUNICATION R ESEARCH C E N T E R

W ORKING P A P E R

THE D IVERSITY C HALLENGE : C HANGING T ELEVISION M ARKETS AND P UBLIC S ERVICE P ROGRAMMING IN F I N L A N D , 1 9 9 3 - 2 0 0 4

Minna Aslama Visiting Research Fellow Donald McGannon Communication Research Center Swedish School of Social Science University of Helsinki, Finland [email protected]

April, 2006

Donald McGannon Communication Research Center Faculty Memorial Hall, 4 t h f l . Bronx, NY 10458 718.817.4195 www.fordham.edu/mcgannon [email protected]

The author acknowledges the support of the Academy o f Finland and the Centennial Foundation of Helsingin Sanomat which made possible the Visiting Research Fellowshi p at the McGannon Center

1 Introduction: The Diversity Paradox?

AsinmostEuropeancountries,alsoinFinlandthepastdecadehaswitnessedfundamental transformationsinthetelevisionmarket,includingchangingregulationand,inconsequence, increasingcommercializationandcompetition.Consequently,thechangeshaveprompted speculationsontheirimpactontelevisionprogramming,andcreatedtwooppositescenariosthat couldbecalledtheDiversificationArgumentandtheDiversityParadox. AEuropeanwideclaim,moreorlessexplicitlystatedbymanymediapolicymakersandespecially commercialplayersinreferencetothecommercialisationofmediamarkets,couldbelabelledasthe Diversification argument.Essentially,itreadsthatwhenastategovernedsystemtransformsintoto acommerciallyfunctioningmarket,programmesupplybecomesmorediverse.Pertainingtomedia structures(e.g.,Napoli,1999;Einstein2004),diversityisoftenunderstoodashavingthree dimensions:diversityofthesources(mediaoutlets),diversityofmediacontents,anddiversityofthe audienceexposure.Abasicvariationofthisargumentisthemediaeconomic‘simpleprogramme choicemodel’,accordingtowhichdiversityinbroadcastingdependspositivelyonthenumberof channels(e.g.,vanderWurff2005,253).Thediversificationscenariothenimpliesthatacompetitive marketsituationcreatesmoreoutlets,andthistranslatestoamorevariedprogramming,ifnotin termsofverticaldiversity (i.e.,withineachchannel)thenatleastwhenthetelevisionsystemis examinedasawhole(horizontaldiversity ).(Hellman2001.) Theotherclaim,ofconvergence ,couldbecalledtheantidoteofdiversification.Theterm convergence hasmanyusesintoday’sacademicandprofessionalparlanceonbroadcasting(e.g., Hujanen&Lowe2003;Meier2003;Murdock2000)butinthiscontextitisusedtorefertoa tendencywhereinacompetitivebattleforaudiences,televisioncontents–andthusprogramming strategies,particularlythoseofpublicservicebroadcastingandcommercialchannels–becomealike (e.g.,DeBens1998&2000,Hellman&Sauri1994,1996;Meier2003).Thisisatleastthecaseinthe fiercemarketcompetitionsituationswherethetendencyistocompeteforaudiencesandadvertisers byofferingthemajority’spreference.(See,e.g.,vanCuilenburg2000;vanderWurff&van Cuilenburg2001).Sincesourcediversitydoesnot,accordingtothisargument,equalcontent diversity,theclaimhasalsoaptlybeennamedastheDiversityParadox (vanCuilenburg1998,44). Therearealsoafewadditional‘subclaims’thatseemtosurroundtheconvergenceofprogramming. Oneissometimesreferredtowiththeslogan‘dumbingdown’or‘overcommercialization’(McQuail

2 2000,260)ofprogrammesupplysothatitoffersincreasingsharesof(cheaplybought) entertainmenttoattractviewers.Thishasbeentheorizedtobeaspiralmovement:more competitionandmorefragmentedaudiencesequallessresourcesequalmorecheaplyproduced and/oracquiredprogrammes,thusproducingadownwardcycleofloweringqualityandnarrowing programmeofferings(e.g.,Picard2000).AnotherrelatedclaimisthatofAmericanizationthatwhich pertainstotheoriginof‘trivial’programming(e.g.,deBens&Smaele2001).Thedownwardcycle hascertainlybeenonevainofpublicdiscussiononthestatusofFinnishtelevisionoutput. i WhetherthetransformationofprogrammesupplyfollowstheParadoxpathorevolvestowards diversification,itstillposesachallengeforpublicservicetelevision.Traditionally,forEuropean publicbroadcasters,diversityisthemaindefiningnotionoftheirremit.Itisaprincipledconcept,a normativecriterionofqualityandadeliberatelysoughtpolicygoalaimingatpluralismatvarious levels:inreflectingthevarioussectorsofsociety,servingthemultiplicityofaudiences,andsupplying awiderangeofchoiceinprogrammecontent.(Blumler1991;Hellman2001;McQuail1992.).The contradictoryclaimstranslateintocontradictoryaccusationsagainstpublicservice:Eitherithas failedbybeingtooelitistandunabletoattractviewersorbyadjustingtothemarketdemandsof lighteningoutput(e.g.,Collins2002).Thechallengecouldbestatedmoreneutrallyasfollows:With convergence,publicservicetelevisionmightloseitsdiversitymissionorbecomesoalikeother channelsthatitsremitcouldbequestioned;withdiversification,thechallengebecomesifandhow publicserviceshouldcontributetodiverseoutput. WiththelegitimisationcrisisofpublicservicebroadcastingalloverEurope,theissuehasbeenmuch discussed,butverylittlesystematicempiricalresearchexistsontheextenttowhichtheoutputof publicservicetelevisionconvergesordivergesincompetitivemarkets(e.g.,Iosifidisetal.2004). OneinsightfuloutlookhasbeengivenbyMeier(2003)whenhediscussesconvergenceandpublic serviceprogrammingstrategiesusingtheGermansituationasanillustration.Thispaperaimsto continuethediscussionwithanempiricalmultidimensional,multimethodcasestudyonFinnish televisionprogrammingin19932004.Atcoreiswhetherandtowhatextentchangescanbe depictedinthetelevisionsupplyofthenationwideanaloguechannels,especiallythoseofpublic service,andwhatthedevelopmentsmeanintermsofdiversityofatelevisionsystem.Under examinationareprogrammetypestructuresoverallandbychannelaswellassystemandchannel diversityanddissimilarity. TheFinnishtelevisionprovidesatestcaseforconvergenceand diversificationclaimsfromthebirthtothefirstindependentcommercialchanneltothefirstyearsof thedigitalmultichannelsystem.

3 Contextualizing the Change: Finnish Television Market 1993-2004 WhilemostEuropeancountriesinthemid2000soperatebydualsystemsofpublicserviceand commercialbroadcasting,inFinlandthishadbeenthecasealmostfromthebeginningoftelevision broadcasting.Since1957,therehadexisteda‘comfortableduopoly’(Hellman&Sauri1994,51),as Mainostelevisio(thepredecessorofMTV3)sentitsownprogrammesaswellasadvertisementsinits ownprogrammingwindowsinthetwochannelsTV1andTV2ofthepublicserviceFinnish BroadcastingCompany().Liberalisationofthemarketbegan,asinmanyEuropeancountries, inthe1980s,andin1985Kolmostelevisio,ajointcompanyofMTVandYLEwasestablishedto operateathirdchannel.Anewchannelwasneeded,inpart,toprovidedomesticterrestrial alternativetoapossibleinvasionofforeignsatellitechannels.Italsolaidthebasisforthefurther commercialisationofthetelevisionsystemin1993whenMTV3becameanindependentchannel operator(Hellman1999).Asatsummer1997,thesecondnationwideanaloguecommercialchannel enteredthemarket.TheaimwasnowtoconsolidatethestructureofTVbroadcastingin Finland,keepingcommercialbroadcastingstillasnationalaspossible,butalsotoeaseoutthewayto terrestrialdigitalisationtocome.ThelicencewasgrantedtoRuutunelonenLtd,asithadgained previousexperienceasacablebroadcasterandhadeconomicallysoundowners(Hellman1999;Wiio 2003). Thesedevelopmentsresultedinamajorchangebothinsupplyanddemandoftelevision programmes.TimespentwithtelevisionisstillsignificantlylowerintheNordiccountriesthan elsewhereinEuropeorintheU.S.(Tilastokeskus2005),buttelevisionviewinghasgrownnotablyin 12years,fromtheaveragetwohourstenminutesperdayin1993totwohours47minutesperday in2004.Yet,thechangeintelevisionprogrammeoutputhasbeenmuchmoredramatic:Duringthe researchperiod,Finnishanalogueprogrammeoutputmorethandoubled,from133hoursperweek inthreechannelsin1993,to389hoursperweekin2004infournationwidechannels.Theincrease inprogrammingtimewasnotonlyduetoNelonen’sentry,butallchannelsexpandedtheirsupply significantly(AslamaandWallenius2005). Thelate1990salsowitnessedcrossmediaconcentrationandsince2001,thethreelargestmedia corporationsbyturnover,inthefollowingorder,weretheoperatorsofthenationwideTV channels:SanomaWSOY(Nelonen),AlmaMedia(MTV3)andthepublicserviceFinnish BroadcastingCompany.Yet,despiteofthegrowthindemandandsupply,theshareofthenation widebroadcastingoperationsofthetotalFinnishmassmediamarketincreasedonlyslightly,partly sinceFinlandiswellbeyondEuropeanaveragewhenitcomestoshareoftelevisionadvertisingin 4 totaladvertisingexpenditures.(Sauri2002)Thisfact,combinedwiththerealityofasmallmarket thatcouldnotgrowendlessly,putprivatetelevisionoperatorsinafinanciallydifficultsituationinthe early2000s.Atthesametime,acommonchallengeforbothpublicandcommercialchannelswas thedigitaldevelopmentthatrequiredinvestments,astheYLEleddigitalterrestrialbroadcasting beganin2001. Thesechangescouldbeexpectedtocauseatleastsomeincreaseincompetition.Chart1depictsthe developmentofmarketsharesbythenationwidebroadcasters.Here,themarketsharesareyearly averages,basedonofthePeoplemeterstudybyFinnpanelOy ii .Thechartalsoshowsthetrendbythe MarketCompetitionIntensityIndex(CI).Theindexismeasurescompetitionintensitybasedonthe numberofbroadcastersaswellasonthesharestheyhaveinthemarket.Itiscalculatedbysummingup thesquaresofthemarketsharesandsubtractingthemfrommaximumvalueofcompetition(one)As CIisconcernedwiththemarketsituationasawhole,notonlywithanaloguenationwidechannels, thereisalsothecategoryof“other”thatincludesallother(cableandsatellite)viewingmeasuredbythe Peoplemeterstudy.Also,ascompetitionisatstake,thecalculationtakesintoaccountbroadcasters,not individualchannels. iii Chart 1. Market shares (%) and Market Competition Intensity Index (CI) 1993-2004

70 0.65 0.64 0.64 0.64 0.61 0.63 0.63 0.57 0.56 0.57 60 0.56 0.55

50 YLE

40 MTV3 Nelonen 30 Other 20 CI

10

0

6 8 3 93 9 994 99 997 99 999 001 002 00 004 1 1 1995 1 1 1 1 2000 2 2 2 2 Source:Jääsaarietal..2005;Tilastokeskus2005. Itisevidentfromthechartthatthebirthofthesecondcommercialchannelbyanewoperator intensifiedcompetitionintheFinnishtelevisionmarkets.WhiletheCompetitionIntensityIndexstill

5 indicatesarelativelyconcentratedmarket(seealso,e.g.,Aslamaetal.2004a&b;vanCuilenburg forthcoming),itshowsaclearincreaseincompetitionfrom1997onandapeakin2000.However,the positionofpublicservicebroadcastingdidnotwitherduringtheresearchperiod.Whenthemoveof MTVtothethirdchannelhaddiminishedYLE’saudiencesharenotablyinthelate1980s(Hellman 1999,209),thefoundingofthesecondcommercialchannelhadmuchlessofaneffectfromwhich YLEappearstohaverecoveredquickly.ThelastyearsoftheresearchperiodindicatethatasYLE’s sharedidnotnotablydecrease,butthatthecompetitionwasbetweenthetwocommercialterrestrial channels,MTV3havingfacedasteadydeclinesince1993. iv Thisspeaksforasimilarstandingofpublic servicetelevisionasinsomeotherEuropeancountriessuchasDenmark,Germany,Norway,Sweden andtheUKthathavefacedcommercialisationbutwherepublicbroadcastersstillgainnotableratings. (E.g.,EAO2005;Steemers2003.) Despiteofthenewmarketsituation,nonewregulationwasappliedregardingcontents.Policymaking attendingtotheFinnishtelevisionmarketwasmostconcernedwithmarketentryandletcontent regulationremainatagenerallevel(Aslamaetal.2004b).TheActontheFinnishBroadcasting Company(1993)stipulatedthatitistoperformclassicpublicserviceduties:toinform,educateand entertain,with‘awidevarietyofinformation,opinionsanddebatesonsocialissues,alsoforminorities andspecialgroups’.Regulationoncommercialbroadcasterssimplystatedthatwhengrantinglicenses thegovernmentshouldaimat‘promotingfreedomofspeechandincreasingthediversityof programming’(Lakitelevisiojaradiotoiminnasta,section10).

6 Measuring the Change: Different Dimensions Whilecompetitionincreasedbuthardlyanyregulatorydemandsoncontentsweremade,theFinnish channelscouldintheoryhavefollowedeithertheconvergenceorthediversificationpathintheir programming.TodiscoverwhichoneoftheclaimswouldholdintheFinnishcase,athree dimensionalexaminationonthesupply19932004isconducted.Thefirstdimensioncomparesthe programmetypeprofilesofthetotaloutputandthefourchannelsovertimeandlooksattheorigin ofprogrammes,thesecondassessesthediversityofprogrammingbothsystemwideandbychannel, andthelastoneexaminestherelationshipsbetweenthechannelsduringtheresearchperiod.The datafortheexaminationhavebeenacquiredfromfivestudiescommissionedbytheFinnish MinistryofTransportandCommunications(Aslama&Karlsson2001,2002;Aslama&Wallenius 2003,2004,2005)andfromHellman’s(1999)studyonFinnishtelevision198896.Theresearch materialthusconsistsofatotalof72sampleweeksequallingmorethan48,000programmesof Finnishtelevision19932004. v First Dimension: Programme Profiles Anoveralllookattheprogrammingprofilesofthefourchannels(TV1andTV2ofYLE,andthe commercialMTV3andNelonen)doesnotsupporttheideaofmajorconvergenceandtrivialization.In termsofabsoluteprogrammehours,thechangeintheamountofentertainmentinFinnishsmall screensmayseemdramatic:in1993,threechannelstogetherofferedsome15hoursofentertainment orientedprogrammingperday;in2004,theamounthaddoubledasthefournationwidechannels broadcastedaltogether30hoursofentertainmentgenresperday.However,asillustratedinthechart2 thatdepictsthesharesofentertainmentorientedprogrammingintheresearchperiod,theexpansionof entertainmentorientedprogrammeswasnoticeable,yetnotdrastic.Theoverallshareofentertaining programmeshasexceeded50percentoftotalsupplysince1997,anditspeakcouldbewitnessedin 199899,directlyafterthebirthofthesecondcommercialchannelNelonen,butithasevendeclined slightlyinthelastyearsoftheresearchperiod.Infact,asat2004,fortypercentofthetotalFinnish televisionoutputconsistedofnews,currentaffairsandfactualaswellascultural,serviceand educationalprogrammes–andthesituationhadbeenthesamesince2001.

7 Chart 2. Share of entertainment-oriented programming (%) vi , 1993-2004

90 80 70 60 TV1 50 TV2 40 MTV3 Nelonen 30 Total 20 10 0

3 94 5 7 9 3 99 9 99 996 99 998 99 000 001 00 1 1 1 1 1 1 1 2 2 2002 2 2004

AlookatthedevelopmentbychannelleadstosuspectthatthecompanionshipofTV1,TV2andthe commercialpredecessorofMTV3hadpreparedthosethreechannels,asnomajoradjustmentswere madeinthefirstyearsofMTV3.Clearly,TV2andMTV3weretherealrivalsin19931996,witha similaremphasisonbothinformativeandentertainingsupply.ItwasthestartofNelonen–a newcomertargetingyoungerandmoreurbanaudiencesthanitscompetitors–thatfirsthasresultedin someincreaseintheentertainmentorientedprogramminginallchannels,notablyinTV2andMTV3in thefirstyearofthenewcomerin1997.From1998on,however,thetendencyinthepublicservice channelshasclearlybeenthatofthedecreaseofentertainment.They,infact,offerednotablymore informationalprogrammingin2004thantwelveyearsprior.EspeciallyTV2seemstohavealteredits profile:whiletheincreaseininformationalprogramminghasbeenmodest,thedecreasein entertainmentorientedprogrammingwas10percentagepointsfrom1993to2004.Someofthe developmentisduetotheinternal‘channelcommissions’ofYLE(Hujanen2002)thatpromotedthe divisionoflabourbetweenTV1andTV2regarding,forexample,educationalandchildren’s programming:theformergenrewasby2004broadcastedsolelyonTV1,thelatterpracticallyonlyin TV2.Incontrasttothepublicservicechannels,thecommercialMTV3hasaftersomefluctuations slightlybutsteadilydecreasedinformationalgenresandincreasedentertainmentorientedprogramming since2000.Interestingly,thelatestentrantNelonenwasthechannelthatatfirstseemstohaveto followedasteepdumbingdowncourse,butthenhasdiminishedentertainmentorientedsupply somewhatinthelastyearsoftheresearchperiod.

8 Itseems,then,thattheFinnishtelevisionchannelshavecreatedandmaintainedadivisionoflabourin thefactual–entertainmentaxis,inparticularbetweenthepublicserviceandcommercialchannels.Until Nelonencametochallengethesituation,thethreechannelsweremuchmorealikeinthisrespect.Now TV1,alwayslocatedinthemostinformationorientedendofthescale,hasemphasizeditsposition. TV2,too,hasdecreasedentertainmentorientation.MTV3andNelonenhaveinthelastyearsofthe researchperiodcomeclosertooneanother,theformerincreasingthelatterdecreasingentertainment programming–sothattheoverallsituationhasnotchangeddramaticallysince2000. Asalreadynoted,thespecificsubsloganofthedumbingdowndebateis‘Americanization’:theclaim thatincreasingcompetitionforaudiencesandevergrowingtransmissiontimethatneedstobefilled forcetelevisionchannelsacquiremoreandmorecheapAmericanimports.Inordertotestthis allegation,chart3depictshowtheoriginofprogrammesintotalFinnishtelevisionoutputhas developedin19932004 vii . Chart 3. Origin of programmes (%) of the system-wide supply, 1993-2004

70,0

60,0 59,8 58,2 55,4 57,0 57,5 53,4 54,5 55,3 55,2 56,1 50,0 50,6 51,3 40,0

30,0 28,3 26,5 26,8 26,4 25,6 25,1 25,8 18,9 23,5 23,3 20,0 20,1 20,1 21,7 14,9 17,7 17,2 domestic 11,1 18,5 18,9 20,0 19,1 17,8 18,6 10,0 12,0 N.American 2,3 2,2 3,5 1,2 1,9 4,5 3,7 1,8 0,0 5,2 4,9 3,1 3,3 European

4 8 1 4 9 0 other 993 99 995 996 997 999 000 003 00 1 1 1 1 1 19 1 2 20 2002 2 2 Sources:Hellman,1999;Aslama&Karlsson,2001,2002;Aslama&Wallenius,2003,2004,2005 Despiteofthegrowthofcommercialbroadcasting,itisapparentthatAmericanprogramminghasnot takenovertheFinnishsmallscreens.Similarly,itseemsthatdomestictelevisionprogramminghasnot beenendangeredby‘Americanization’butstillformsamajorityinthesystemwidesupply.Thelowest shareofFinnishprogrammesintheresearchperiodcoincides,andsurelynotaccidentally,withthe secondhighestshareofNorthAmericanprogrammingin1998,whenNelonenhadexistedforoneand ahalfyears.Yet,thechartclearlyshowsthatthesituationvariedandthatFinnishprogrammeswere grantedagainmoreairtimeinthelastyearsofthe1990s.Acomparisonwiththelate1980sverifiesthat

9 Americanizationfearsofthe1990sareunfounded:in1988theshareofdomesticandAmerican programmeswereverymuchlike15yearslater,asFinnishproductionscomprised51percent,and Americanprogrammes28percentofoveralloutput(Hellman1999,460).However,aninteresting developmentseemstohavebegunparallelwithNelonen’sbroadcastingoperations:Theproportionof Europeanprogrammingincreasedwhenthefourthchannelwasestablishedandhassinceremained approximatelyonthesamelevel,withtheshareoflittlemorethanonesixthofthetotalsupply. Individualchannelprofilesrevealthatthepublicservicechannels,then,haveconsistentlyprioritized domesticprogramming.YLE’soutputlooksalmostidenticalinthisrespectin1993and2004,asin bothyearsover60percentofitsairtimewasdedicatedtoFinnishprogrammes,some23percentto Europeanproductions,alittleovertenpercenttoprogrammesfromNorthAmerica,andafew percentagesforproductionsfromothercountries.Year1997,mostlikelytocounterNelonen’sentryto themarket,increasedthesupplyofNorthAmericanandEuropeanproductionssomewhatinYLE’s channels,withthecostofdomesticprogramming.WhiletheFinnishBroadcastingCompanyre establisheditsprioritiesoftheoriginsofprogramming,thecommercialbroadcastersbothfollowedthe oppositetrendandbothdecreasedtheshareofdomesticproductionsintheirprogramming.Yet,this resultedinnoAmericanization:AlthoughNelonendidnotaloneincreasethesupplyofEuropean programmesintheFinnishsmallscreens,itclearlywastheprimusmotorofthistendency.

Second dimension: Diversity as Breadth of Programming Theprogrammeprofilesgiveanoverviewonwhetherornottelevisionoutputis‘dumbingdown’, butdonotexplicitlyrevealhowevenlydifferentprogrammecategoriesarefeaturedinthesupplyof asystemorachannel.Toexaminediversity(orthelackofit)aswhatcouldbecalledthebreadthof programming (Hellman2001),themeasurementofRelativeEntropyIndex(H)isappliedhere.The Indexexpresseshowvariedandbalancedtheprogrammeoutputisonachannel,thatis,vertically (channeldiversity ).Whencalculatedasasummarymeasureoftheoverallprogrammeoutputacross channels,itservesasahorizontalmeasure(systemdiversity ).Thehigherthefigure,thehigherthe diversitytotheviewer:Theindexvariesbetween0(allprogramminginonecategory)to1(all programmetypeshaveanequalshareinthesupply). viii Chart4featurestheindicesforthebreadth ofprogramminginFinlandduringtheresearchperiodoverallandbychannel.Itillustratesthatthe diversityofFinnishnationwidechannelshasbeenveryhighforthosetwelveyears:

10 Chart 4. Diversity of all programming system-wide and by channel, 1993-2004

1,00 0,90 0,80 0,70 TV1 0,60 TV2 0,50 MTV3 0,40 Nelonen 0,30 Total 0,20 0,10 0,00

3 4 9 0 2 9 9 0 0 9 9 0 0 1 199 1995 1996 1997 1998 1 2 2001 2 2003 2004 WhilethediversityofFinnishtelevisionsystemseemsnottohavesufferedfromincreasedcompetition, thechartshowsthatonaverage,bothchannelsofYLE,aswellasMTV3,performedwithslightly higherdiversityaveragesintheperiodpriortotheentryofthesecondcommercialchannel.The downwarddipinsystemdiversityafter1997suggeststhatincreasingcompetitionduetothenew entrantcausedthenarrowingofthediversityofFinnishtelevisionsupply.Thefactthattheoverall systemdiversitysufferedatthatpointmorethandiversityofindividualchannelsispartlycausedby Nelonen’sconcentrationonforeignfictioninitsprogrammeprofile.Still,onecanhardlyspeakofany significantimpactthatwouldhaveshiftedtheentiresystemtowards‘moreofthesame’. Asfordifferentchannels,differentpatternscanbeobserved.Despiteofsomefluctuations,the commercialMTV3mostlymaintaineditsstatusquothroughouttheresearchperiod.Thenewcomer Nelonenseemstohavedecreaseditsdiversityduringtheentirefirstsixyearsofitsoperation–instead ofchallengingtheestablishedbroadcasterswithawiderangeofchoice.Thefinanciallydifficultyearfor thecommercialchannels,2002,canbeseenintheirdiversityscoresasthatyear,bothMTV3and Nelonenofferedthenarrowestprogrammesupplyinthehistoryoftheirexistence.However,by2004 theyhadpracticallyreturnedtoscorestheyheldbefore. Thepublicservicechannelsprovedtobethemostdiverseduringtheentireperiodbutclearlyaltered theirprofilesinthelastyears.ThediversityofTV1hadnotfluctuatedmuchbetween19942002but thendecreasednotablyinthelastyearsoftheresearchperiod.TV2,then,providedanarrowedoutput

11 particularlyinthefirstyearsofNelonen,butsincethenbroadeneditssupplyandtooktheplaceofthe mostdiversechannelofthesystem.Still,togetherYLE’sofferedmorediverseprogrammingthanas individualchannels–andasdiverseprogrammingastheentirechannelsystem(Aslama&Wallenius 2005). Byandatlarge,thediversityscoressystemwideandbychannelsuggestthatthefournationwide channelsfollowedafullservicemission,despiteofthetighteningcompetition.Theaveragesystem diversityfortheperiodwas0.92,higherthantheaverageofanyindividualchannel,thusindicatingthat thesystemasawholeofferedaudienceswithaveryvariedandevenlydistributedrangeofprogramme types.Althoughsomefluctuationoccurredduringtheresearchperiod,thesystemwidediversitywas almostashighin2004thanin1993.Nonetheless,theaveragesystemwidediversityin199396 amountedto0.94buttheperiodof19972004,inalowerscoreof0.91.Again,bothfiguresarehigher thantheaveragesofanyindividualchannelforthoseperiods,signifyingthatthechannels complementedeachotherratherthanfiercelycompetedwithoneanother. Third dimension: Dissimilarity of Channels Thethirddimensionofanalysisthatisappliedtotesttheconvergencecontradiversificationclaims isthedifferencebetweenthechannels .ItiscalculatedbytheDissimilarityIndex(D),which indicateshowmuchthecontentofonenetwork,intermsofprogrammetypesrepresentedinits schedule,deviatesfromthecontentofanother(channeldissimilarity ).Bycalculatingtheaverage dissimilarityperyear,theindexservesasahorizontalmeasureofdifferenceacrosschannels(system dissimilarity ).Theminimumvalueforthisindexis0(channelshaveexactlysamekindsof programmingprofiles);whilethemaximumis2(channelsutilizecompletelydifferentprogramme types).(See,e.g.,Aslamaetal.2004b) ix Chart5portraysthedissimilarityindicesfortheyearsin19932004andclearlyprovidesevidenceto countertheclaimaccordingtowhichincreasedcompetitionforceschannelstoconverge.Infact,it seemsthattheentryofNelonenencourageddifferentiationbetweenthechannelsratherthan decreaseddifferencesintheprogrammestructuresofthefourchannels.Theaveragedissimilarity acrosschannelsfor1993–1996was0.62,whereasfor1997–2004theaveragescoreofthesystem dissimilarityindexmarkedlyhigher,0.72:

12 Chart 5. Dissimilarity between channels in 1993-2004

1,20

1,00

0,80 TV1/TV2 TV1/MTV3

0,60 TV1/Nelonen

TV2/MTV3 0,40 TV2/Nelonen

MTV3/Nelonen 0,20 Keskim.

0,00

4 5 7 0 2 3 4 9 9 0 0 0 99 996 998 001 00 1993 19 1 1 19 1 1999 20 2 20 20 2 Inonesense,itcouldbearguedthatsomeprogrammingconvergencehasoccurredintheFinnish televisionmarket,butthatthetrendconcernsthecommercialsector,asMTV3andNelonenshow strongestalikeness.Evenifnocleartendencytowardsexcessivesamenesscouldbediscerned,the relativelylowdissimilaritybetweenthemisyetanotherindicatorthatthechannelscompetewith relativesimilarkindofprogrammingandhaveincreasinglybeguntodosointhelastyearsofthe researchperiod.Beforethat,dissimilaritybetweenthemvariedfromyeartoyear,suggestingthatthe twocommercialchannelswere‘testing’withtherightrecipetomeettherivallingchallengeofeach other. YLE’stwochannelsweremorealikeinthebeginningofthe1990sthanoveradecadelater.They clearlydifferentiatedtheirofferingsparticularlyaftertheentryofthesecondcommercialchannel.The relationshipbetweenYLE’schannelsandtheircommercialcounterpartsdiffer.Formostofthe researchperiod,TV1andMTV3hadremained‘equallydifferent’,butthetrendtoincreaseinformative programminginTV1tookthetwochannelsfurtherapartin2004thaneverbefore.TV2andMTV3 werecompetingwithfairlysimilarfaresinthebeginningofthe1990s,butsincethebirthofNelonen theybegantoseekfordifferingprogrammingstrategies.ComparedtoTV1,TV2resembledboth MTV3andNelonenandthisindicatesthatTV2hasaroleasthepublicservice‘entertainment network’.Still,TV2didnotfullyimitateitscommercialcompetitors.ThedissimilaritybetweenYLE’s channelswashighestinthefirstyearsofNelonen,resultinglargelyfromTV2’sincreasedentertainment orientation.AnotherperiodofdifferentiationbetweenTV1andTV2canbeobservedfrom2002on,

13 butnowduetoclearinformatizationoftheformer.Allinall,highestdissimilarityvalueswerefound betweenTV1andNelonenthatseemtorepresenttwodistinctlydifferentendsofachannelprofile. Thesystemwideindicesclearlysuggestthatcommercialisationhasincreaseddifferentiationandthatno majorconvergencebetweenthepublicandprivatesectorhasoccurred.

The Diversity Challenge: From Two Claims to Three Scenarios

TheFinnishcaseindicatesthatneithertheDiversityParadoxnortheDiversificationclaimsseemto applytothecaseofFinland.AstheCompetitionIntensityIndexdepicted,inFinlandtherestill existsa‘moderate’competitiveenvironment(alsovanderWurff&vanCuilenburg2001;vander Wurff2005;Aslamaetal.2004b).Thismaybethereasonwhyconvergenceordiversificationdonot manifestinextremes:Whilethesecondcommercialchannelmanagedtoslightlyraisetheshareon entertainmentorientedprogramminginthetotalsupply,theeffectwasnotsignificant. Instead,thetendenciesemergingaresubtleandcouldbecalledprogrammeprofiledifferentiation andprogrammetypeconcentration, withtheadjectivemoderateaccompanyingthem.Thetwoare partlyrelated.IntheFinnishcase,thefournationwideanaloguechannelsseemtotrytotacklethe competitiontogetherwiththediversitychallenge.Whiletheyeachstillprovidefullservice,theyhave beguntocreatedistinctprofiles,oftenbyconcentratingononeortwoprogrammecategories– hencethehighsystemwidediversity,slightlydownwardtrendofchanneldiversityandincreasing diversification.Thiscanbeillustratedwiththemainprogrammingdomainsofthefourchannelsin 2004:Nelonen’sprofileconsistedmostlyofentertainmentorientedgenres,thedominating programmetypebeingforeignfiction.MTV3’sfarewasalsoentertainmentfocused,yetitsbreakfast programmesbalancedoutitssupply:theycontributedtotheonethirdofinformational programmingseenonthechannel.TV2’sprogrammeprofilewasnotclearlycharacterizedbyany singlegenre,butchildren’sandsportsprogrammesformedthelargestprogrammecategorieswith theshareofsome15percenteach.TV1,beingattheotherendofthescale,allocatedoveronefifth ofitsprogrammingtimetocurrentaffairsandstoodoutwithasignificantshareofeducational programmesinitsprofile.Also,thesocalledprogrammechoiceoptions–thatis,theaverage numberofgenrestheviewerscanchoosefromatanygiventime–duringtheprimetimehoursin thesampleyearsof1993,1997and2004pointtowardsprofiledifferentiation:Inaverage,Finnish viewerscouldchoosefromthreedifferentprogrammetypesinfourchannels,andnoaggressive ‘counterprogramming’occurredinanyofthesampleyears(Aslama,forthcoming). 14 ThetestcaseofFinnishprogrammesupplyin19932004suggests,then,thatwhiletheconvergence andthedifferentiationclaimsarealiveandwell,theymaynotbesufficientinunderstanding changingmarketsandthepositionofpublicservicetelevision.Drawingontheorizationandthefew existingempiricalanalysesaswellasontheFinnishdata,table1suggestsamorenuancedviewon changingmarkets,changingprogrammeoutputandthepositionofpublicservicebyoutliningthree distinctscenarios.Thefirstonedepictsthesituationofgrowingentertainmentorientationasa trivialization hypothesis;thesecondoneillustratesanotherkindofconvergencethatisherenamed fullservice convergence ;andthelastonedepictsthediversificationasdifferentiation –asseemsto haveoccurredforinstanceinFinland. Table 1. Three scenarios on changing television markets and diversity Trivialization Full-service Differentiation convergence Commercial moreentertainment more‘median’, specialization programmingstrategy orientation universalmix (entertainment) PSBprogramming moreentertainment more‘median’, specialization(filling strategy orientation universalmix inthegaps) Viewonaudiences audienceswant audiences’tastesvary; fragmentedaudiences; entertainment;masses massesexistatleastto itpaysofftoserve stillexist adegree segments(commercial: withpurchasing power;publicservice: alsomarginal) Consequentmarket competition, competition,public coexistence situation commerciallyled serviceled (commercialchannels challengePSBto specialize) Consequentoutput narrow diverse diverse Thefirstscenarioof trivialization presumesthataudiencepreferencesareskewedverymuchtowards theentertainmentendoftheprogrammeprofiling.Itthenassumesthatthecommercialchannelsgo forheaudiences’preferences,butalsothatthepublicservicebroadcasting–withgeneralistchannels thatmayemphasizeinformationalprogramming–beginstostrivebeyonda‘median’programme mixtowardsmoreandmoreentertainmentorientation.Thescenarioinsinuatesthatpublicservice enjoysclearlyloweraudiencepreferencethanthecommercialcounterparts–thusthedumbing downofprogrammesupplyinordertojustifyitsexistence‘bynumbers’.Addressingthetelevision marketsinBelgium,DeBens(2000)talksaboutthespiralmovementofcommercialisationand framesitasconvergence,butmorespecifically,itisthesituationwherethecontentsofpublic serviceandcommercialbroadcastingbecomemorealike in that theybecomemoreentertainment

15 oriented(sothatthemedian,systemwideprofilealsoshiftstowardsmoreentertainment).Defined inthisway,aminorcaseoftrivializationcouldbedetectedinFinland,too,butinthe1980swhen newideologiesaroundtelevisionbegantoemergeandwhenMTVmovedtoprovideprogramming inthethirdchannel:From1982to1992,bothYLEandMTVclearlydecreasedtheirinformation orientedprogrammesandincreasedentertainmentprogramming(Hellman&Sauri1994,71).As noted,duringtheresearchperiodthebirthofNelonenalsocausedatransitoryandmoderate ‘dumbingdown’inallchannels,butthatcouldnotcountforalongtermtendency.Yet,thismodel seemstobestdescribethesituationlikeintheU.S.wherecommercialtelevisionwasthemainmode offunctionofthemarketfromthestart.Manyauthorsclaimthatdespitethepromiseofcommercial broadcastinginthebeginning,the1980especiallybroughtaboutadefinitiveshifttoanewkindof programming.Thisissaidtobegreatlyduetochangesinownershipthattransformed‘quasipublic institutions’to‘commodities’,andthiserathenbroughtaboutthequestionofAmericantelevision’s lowquality(Baker&Dessart,1998,xvi).Ingeneral,itseemsasifthishypothesisisthefuelofthe fearof‘Americanisation’(c.f.,Ellis2000,5354)andrelateddiscourses,ratherthanarealthreatin thebroadlevelofprogrammingtomostEuropeandualsystems. Thesecondscenarioisherereferredtoas full-service convergence .Inthismodel,thefocusisnot necessarilyoronlyontheentertainmentorientation,butratheronthedevelopmenttowards homogenousprogrammeprofiles.Also,thepresumptionseemstobethatviewers’preferencesare homogenousbutnotgearedonlytowardsentertainment:rather,thelargestaudiencesharescouldbe expectedwithamixofprogrammes.Thismodelexpectsexcessivesamenesswithincreasing competition,asallthechannelsaimatthemedian,thehighestpointintheaudiencepreference curve.Soasinthetrivializationscenario,alsoherehighaudienceratingscountasthevalidationfor thepublicservice’slicencefees.Thebasicdifference,then,isthatthetendencyisnotessentiallythat ofmoreentertainment,butthatofsameness. Thisscenarioisdistinctfromthetrivializationargument:Ifthefullserviceconvergencemodelholds asdepictedabove,itsharpensupandsetscertainstandardsforcommercialchannelstocompetein areaswherepublicservicehashadstrongtraditions,forinstancewithqualitynewsprogramming.If thetrivializationscenariodoomspublicserviceforfailingitsmission,inthecontextofconvergence hypothesis,itmaybeclaimedthatthespecificroleofpublicserviceisoutdated:thecommercial companiesmayaswelltakecareofinformationalprogrammingsinceallthechannelsareproviding moreofthesame.‘Convergenceassimilarity’couldbeinterpretedhavingoccurredinFinlandinthe early1990s,afterthe‘companions’YLEandMTVturnedto‘competitors’(Hellman1999).As notedearlier,TV2andMTV3werealikeduringthisperiod,andthelatteralsoincreasedits informationaloutputforafewyearstomatchwithitspublicservicerival.

16 Thethirdscenarioof differentiation hasalreadybeensuggestedasthetrendinthelastyearsofthis study’sresearchperiod.TheempiricalevidenceonFinnishtelevisionsupplydepictsgrowing distinctivenesssystemwide,betweenYLE’sandcommercialchannelsaswellasbetweenthetwo publicservicechannels.Inmediaeconomicterms,thispartlycontradictstheconvergencetheory thatbuildsadirectlinkbetweenincreasingcompetitionandincreasingconvergence.Correlations betweendiversity,dissimilarityandcompetitionintensityfor19932002,presentedinAslamaetal. (2004b,126)indicatethatintheFinnishmarketthereisastrongcorrelationbetweenmarket competitionanddissimilarity:Themorecompetitivemarket,thegreaterthedissimilaritybetween channels.This,again,suggestsforthe‘concentration’oncertainprogrammetypes,bycertain channels. Also,theanalysisofMeier(2003)ontheGermansituationinthepastdecades,basedonanindepth multidimensionalcasestudyononeofthepublicbroadcasters,comestothesameconclusion:For multipleorganizational,institutionalandeconomicreasons,thescenariothathereiscalledfull serviceconvergencedoesnothold.Instead,Germanspublicservicechannelsshowremarkable distinctiveness.BasedonMeier’s(opcit.)thoroughconceptualisation,analysisandcritiqueofthe convergenceclaim,onabroaderEuropeanoverviewbyvanderWurff(2005),aswellasonthe analysisonFinnishtelevision19932004athand,thescenarioofdifferentiationcanbesummarized asfollows:Whilecommercialchannelsmaytrytotargetlargeaudienceshares(orspecificviewer segmentsfavouredbyadvertisers)withentertainment,publicservicebroadcastersinparticular searchfortheirown“niche”thatoftenislocatedmoretowardstheinformationalendofthescale. Thedifferentiationmodelisnotblindtotheconditionsofadualsystem:Itdoesnotpresuppose thattheratingscountequallystronglyforpublicbroadcastersastheydoforcommercialchannels, thusforcingthemactsimilarlyinthemarket.Theembeddedpresuppositionhereisinfactquite different,andtwofold:First,basedonthecommonunderstandingontelevisionaudiencesoftoday, themodeltakesintoaccountthataudiencepreferencesarenothomogenousbutfragmentedand varied;that,infact,tendenciestowardsconvergencemaylargelybeimitationduetouncertaintyof audiences’preferences(Meier2003,354).Second,arelatedunderstandingbehindthismodelisthat publicservicebroadcastershaveacertainhistory.InmanyEuropeancountries,theyhavebuiltupa traditionofcertainkindofinformationalprogrammingandalsoaudiencesforit.AsMeier(opcit.) claimsregardingGermansituation,theinformationorientationmaynotonlybealegitimacyissue forpublicbroadcastersbutalsoamarketdrivenstrategy.Judgingbyitsannualmarketshares(as depictedinchart1)thedifferentiationstrategyofYLEseemstohavepaidoffthelastyearsofthe researchperiod.

17 AsMeier(opcit.)alsopointsout,thedifferentiationscenariodoesnotmeanthatotherscenarios wouldbeirrelevant.ThiscanbeseenalsointheFinnishcase.Tobesure,eachoftheFinnish analoguechannelsstillclaimstobegeneralistandprovidefullservice,whiledifferencesseemto becomemorepronounced.Yet,thecommercialsector,morevulnerabletomarketchanges,seems tobetryingoutdifferentstrategies.Upuntilrecently,it,too,seemedtospecialize,MTV3morein entertainmentandNeloneninforeignfiction,butnowitseemsthatthisdivisionoflabouris transformingintofiercercompetitionwithsimilarprogramming.The‘entertainmentchannel’of YLE,TV2,hasgivenupthisbattleandoptedforsports. Future Scenario: Digitalizing Diversity Althoughthethreemodelsdepictsimplified,idealsituations,theystillhelptosummarizethe argumentsembeddedintheconvergenceanddiversificationclaims.Theabovesuggeststhatthereis nodangeroftrivializationofFinnishtelevisionsupplyasawhole.However,thedigitalmulti channelerawillbringdifferentchallenges.InFinland,thedigitalbroadcastingbeganlate2001with threenewdigitalpublicservicechannels.Attheendof2004,22percentofFinnishhouseholdshad digitalaccessorydevices,andtheentiretelevisionsystemwillbecomedigitalin2007.Inadditionto digitalsimulcastsofTV1andTV2,YLEhoststhe24hournewschannelYLE24;theculture educationsciencechannelYLETeemaandFSTD.Thedigitalcommercialcompetitorsin2004 includedSubTVwithanentertainmentorientedprofiletargetedforyoungadults,aswellasthe sportschannelUrheilukanava.Astable2depicts,thenewdigitalchannels,withtheexceptionofthe SwedishlanguageFSTDchannel,arehighlyspecialized.

18 Table 2. Digital Channels, 2004

Multiplex A B C Channels TV1D MTV3D Urheilukanava(Sports simulcastofanaloguefull simulcastofanalogue channel) service fullservicewithextra alsooncable programming TV2D MTV3+(payTV)** CANAL+(payTV)*** simulcastofanaloguefull supplementMTV3 service

YLE24 SubTV CANAL+Film1(pay newsandcurrentaffairs entertainmentoriented TV)*** channel channelforyoungadults alsooncable YLETeema Nelonen(ChannelFour) CANAL+Film2(pay culture,scienceand simulcastofanalogue TV)*** educationoriented fullservicewithextra channel programming FSTD Nelonen+ ** CANAL+Sport(payTV) *** Swedishlanguagefull supplementNelonen servicechannel TheVoice(music videos)*** Digiviihde(adult entertainment,1 hour/day)***

A Two-Dimensional Strategy Anoveralllookattheprogrammingprofilesofthefouranaloguechannels(TV1andTV2ofYLE,and thecommercialMTV3andNelonen)andthefivedigitalchannelsthathavebeeninoperationsince 2001(YLE24,YLETeemaandFSTDofYLE,andthecommercialSubTVandUrheilukanava) revealsaninterestingresult(Aslama&Wallenius2005):Thefivedigitalchannels,ofwhichfourare thematicallyhighlyspecialized,togetherprovideaverysimilaroutputasthefouranaloguefullservice channels.Itisnotsurprisingthattheanaloguefullservicechannelsarerelativelynearthecentreofthe ‘informationentertainmentaxis’sincetheyreflectthegeneralisttradition.Thedigitalchannels,in contrast,exemplifythethematic,‘fragmented’approach:Publicservicechannelspositionthemselvesas informationprovidesandcommercialchannelsoffermainlyentertainment.Thedifferencebetweenthe publicserviceandthecommercialsectorisclearlygreaterwithinthedigitalthantheanaloguesystem.

** Asthesupplyoftheextraserviceswasmarginalin2004,itisnotincludedintheanalysis.

*** Asthechannelsenteredthemarketinmid2004,theyarenotincludedintheanalysis.

19

Thedistinctionbetweenanalogueanddigitalchannelswilleventuallyvanishwhenthenationalswitch offofanaloguetelevisionbroadcastingtakesplacein2007.Yet,interestingly,alreadyin2004,the profilesoftheanaloguechannelscateringtothemajorityoftheFinnishviewersfitnicelytogetherwith theprofilingofthenewdigitalchannelsseenonlybyonefifthofFinns.Also,thedigitalsystem emphasisestheclearpositionofpublicserviceYLEastheinformationprovider.Theonly‘new’digital channelthatcouldbecalledgeneralististhepublicserviceFSTDthatoffersallthe13programme typesandfeaturesmore‘even’programmeprofilethanTV1orTV2.Initsgeneralistapproach,itisstill aspecializedchannelthatservestojustifyYLE’spublicserviceoperations.Aspecialcaseinthe Europeancontext,FSTDcatersfullserviceprogrammingtotheSwedishlanguageminoritythatforms somesixpercentoftheFinnishpopulation.Thedevelopmentsincethefirstdigitalyear2002indicates thatallthesecharacteristicsofthemultichannelsystemhavebeenevidentsincethestartofthedigital era,butthattheyhavebecomeslightlymorepronouncedyearbyyear(c.f.,Aslama&Wallenius2003). Thechannelandsystemwidebreadthofprogrammingofanalogueanddigitalchannelsin2004, featuredinchart6,provesthatthediversityasperformedbytheanaloguedigitalchannelsystemcould beassessedtobebeneficialtotheviewer.Forthefirsttimeduringtheexistenceofdigitalbroadcasting (2001–),thedigitalchannelsofferedevenmorediverseprogrammingtogetherthantheiranalogue counterpartstogether.TheSwedishlanguagepublicserviceFSTDprovedtobethemostdiverseofall channels,followedbytheanaloguepublicservicechannelTV2.Yet,theoutputoftheanalogueand digitalchannelstogetherscoredforaveryhighdiversity(0.96).Thus,thecombinationoftheanalogue anddigitalsystempresenttotheviewersmorevariedprogrammingthanthesystemsseparately.

20 Chart 6. Diversity of Finnish analogue and digital television supply, 2004

TV1 0,86

TV2 0,91

MTV3 0,82

Nelonen 0,75

YLE24 0,45

YLE Teema 0,59

FST-D 0,94

Subtv 0,53

Urheilukanava 0,01

PSB analogue 0,93

PSB digital 0,89

PSB total 0,93

Comm. analogue 0,85

Comm. digital 0,64

Comm. Total 0,85

Analogue 0,93

Digital 0,95

Total 0,96

0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 1,00

Asfurtherillustratedbythechart,thedifferencebetweenthediversityprovidedbycommercialand publicserviceisapparent–intotal,inanalogue,aswellasindigitalsupply.Admittedly,bothYLEas wellasitscommercialcounterpartsdemonstrateadegreeofdiversitythatiswellaboveaveragein comparisonwiththesituationinmanyothercountries(e.g.,Ishikawaetal.1996;vanderWurff&van Cuilenburg2001).Yet,YLE’sstrategytoemphasiseinformationorientedprogramming,manifestedin moderationbytheanalogueTV1,andemphasisedwiththedigitalYLE24andYLETeema,seemsto besuccessfulintwoways.First,itremains‘inclusive’enoughtomaintainahighdiversitybothin analogueanddigitalsupply.Second,asat2004,YLE’sfullserviceanalogueandthematicdigital channelsareinformationorientedenoughtoactascounterforcestotheentertainmentledcommercial channelssothatthesystemwidediversityremainsveryhigh.Tosummarize:WhatYLEseemstobe engaginginisa full-service meets differentiation strategy.

21 The Challenge of Differentiation The differentiation scenarioandtheroleofpublicserviceinthefutureisstillnotastraightforward matterandagoodstartwithdigitaldiversitydoesnotnecessarilydefinethefutureofFinnishpublic broadcasting.AlthoughillustratedbytheFinnishcase,thedilemmasareEuropeanwide.Therehas beenarelativeslowdevelopmenttowardsafullyoperatingdigitaltelevisioninthebeginningofthe millennium,andthisinitspartpromptedadebateontheroleofthepublicservice.IntheFinnishcase, noonedarestoadvocatewhatJakubowicz’s(2003)callsthe‘AttritionModel’,accordingtowhich digitaldevelopmentshouldbeleftentirelytothecommercialsector;neitheristhe‘DistributedPublic ServiceModel’,asituationinwhich‘publicserviceprogramming’wouldbecommissionedbyregulators fromanybroadcaster,avoicedpossibility.However,thecommercialanaloguebroadcasters,facing financialdifficultiesduetothedecreaseinadvertisingrevenues,aswellastothenecessarybuildupof digitalinfrastructure,havesuggestedadivisionoflabour , somethingthatHujanen(2004)calls ‘fragmentedpublicservice’andJakubowicz(2003)the‘MonasteryModel’.Here,thelogicisthatpublic servicebroadcasterswouldconcentrateonkindsofprogrammesandotherservicesthatarenotoffered bytheircommercialcounterparts.MTV3andNelonenhaveurgedthatYLE’sremitshouldbeless diverseinthatthatTV1andTV2shouldstayoutofsportsandentertainmentprogramming. InFinland,thenewCommunicationsMarketAct(2002/2003)givesthecommercialchannelsa financialbreakbasedontheneedfordigitalprogress.Simultaneously,newregulationsfor monitoringYLE’spublicserviceoperationsweresetinplace.Thefuturemayinvolvesome suggestionsoftightening,asopposedtolightening,ofFinnishpublicservicetelevisionsupply.YLE maystillhaveasubstantialmarketshare,butcommercialcompetitorswillmultiplyinthefuture. Andwhennewdigitalcommercialchannels–mostofthementertainmentandfictionoriented– willinevitablyentertheFinnishmarket,YLE’sgeneralistbutinformationorientedstrategyalone maynolongerbesufficienttocorrectthe‘marketfailure’. Therefore,understandingandmonitoringthediversitychallengeaspossiblescenariosof trivialization , convergence with full service and differentiation isaparamounttask,not(solely)becauseamoralistic,value ladenworryoftrivializationofFinnishorEuropeantelevisualprogrammeculture,butinrelationto thegeneralisttraditionsofbroadcasting.AsEllis(2000,17677)hasnoted,thecoreaspectof broadcasttelevisionhashistoricallybeen‘toprovideavoluntarypointofsocialcohesion,ofbeing togetherwhilebeingapart’,andthisfunctionhasnotdiminishedwiththeeraofavailabilityofjust fewchannelsandthedawningtimesofplentyofthedigitalmultichannelsystem.Elliscallsthis ‘workingthrough’thatis‘acollectiveprocessofmakingsenseofthemodernworldthatusesthe linearityofthebroadcastmedium’anddependsonuniversalavailabilityofpublicbroadcasting

22 servicesas‘guardiansofanopenprocessthroughwhichsocialcohesioncanbenegotiated.’Thiscan becontrasted,inEllis'sview,with‘mostofthemodelsofinteractivityandchoice[which]implya loneconsumermakingchoicesinisolation’.Consequently,heconcludes,intheeraofplentythe publicservicebroadcastingcannolongerconceiveitselfasaninstitutionimposingconsensus; rather,itmustworkthroughnewpossibilitiesofconsensusbyexploringdiversity. ItseemsthenthatpublicserviceatleastinFinlandfacesathreedimensionalchallengealoneinthe levelofprogrammingsupply.First,thequestionisof diversification system-wide ,sothatthepublic servicecanbalanceoutitcommercialcounterpartsthatjustmaycompetewithrelativelysimilar programming,evenifspecialized.Second,asmanyhaveargued(e.g.,Hujanen2004),publicservice needstosecureauniversalserviceatleastwithinthe public service channel system .Iftheuniversality principleisunderstoodwithallitsdimensions(equalaccess,minorityservices,etc.),oneofitsmore specificperformancegoalsisthe diversity of programme content or supply .Inthedawnofpossibleand probablepaytvservicesinthedigitalplatform,diversificationbyYLE’schannelssothatthey togethersecurefreeanddiverseprogrammingissurelyessential.Lastly,the diversity within a channel , i.e.,thetraditionalfullserviceprinciple,mightimportantifEllis’(2000)claimistakenseriously: Fragmentedmultichannelsupply,nomatterhowdiverseoverall,mayleavealoneconsumersurfs inspecializedchannels.Anymorequalitativeoutlookislikelytopointoutthatthepublicservice taskensuringprogrammetypediversity(includingpublicservicealternativesalsoinentertaining genres)shouldentailofferingchoiceinthemes,topics,actors,formats,modesandviewpoints.

23 References

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27 Tilastokeskus2005=Joukkoviestimet2004[FinnishMassMedia].Kulttuurijaviestintä2004.Helsinki: StatisticsFinland. VanCuilenburg,Jan(1998) DiversityRevisited:TowardsaCriticalRationalModelofMediaDiversity.InBrants,Kees,Hermes,Joke& vanZoonenLiesbet(eds.)TheMediainQuestion.PopularCulturesandPublicInterests.London,Thousand OaksandNewDelhi:Sage,3849. VanCuilenburg,Jan(2000) Onmeasuringmediacompetitionandmediadiversity:concepts,theoriesandmethods.In:R.Picard(ed.), Measuringmediacontent,qualityanddiversity.Turku:Turkuschoolofeconomicsandbusiness administration.5184. VanCuilenburg,Jan(forthcoming) MediaDiversity,CompetitionandConcentration.ConceptsandTheories.IndeBensEls(ed.)MediaBetween CultureandCommerce.Brighton:IntellectBooks. VanderWurff,Richard(2005) Competition,ConcentrationandDiversityinEuropeanTelevisionMarkets.JournalofCulturalEconomics (2005)29:249275. VanderWurff,Richard&JanvanCuilenburg(2001) ImpactofModerateandRuinousCompetitiononDiversity:TheDutchTelevisionMarket.TheJournalof MediaEconomics14(4),213229. VanderWurff,Richard,JanvanCuilenburg&GenevionKeune(2000) Competition,MediaInnovationandDiversityinBroadcasting.ACaseStudyoftheTVMarketinthe Netherlands.In:J.vanCuilenburg&R.VanderWurf(Eds.),MediaandOpenSocieties.Amsterdam:Het Spinhuis.119157. Wiio,Juhani(2003) Televisio.[Television]InNordenstreng,Kaarle&Wiio,OsmoA.(eds.)Suomenmediamaisema.Vantaa: WSOY,2ndedition,114131.

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iPrimeexamplesarefeaturedinthe A-talk discussionprogramonTV1,4.12.2002;andontheotherhand,thePro Audience, Pro Yleisö, civicmomentestablishedin2002tomainlyaddresspublicservicebroadcasting.Thelattercallsamong otherthingsforsafeguardingofqualitydomesticproductionsandtreatmentofviewersascitizens,notasconsumers,see www.proyleiso.org. ii “Thesampleofthepeoplemeterstudyconsistsof900householdsoratotalofsome2000people”,Sauri2002c,141. iii TheMarketcompetitionintensityisheremeasuredasinsomerecentDutchstudies(vanderWurff&vanCuilenburg 2001);i.e.,itiscalculatedinthebasisofacommonlyusedmethodformeasuringmarketconcentration,theHerfindahl HirschmanIndex(HHI)(see,e.g.,vanCuilenburg2000,McDonald&Dimmick2003;seealsoAslamaetal.2004).HHI iscalculatedbysummingupthesquaresofthemarketsharesofthebroadcastersoperatinginthemarket(i.e.,notby channel),asfollows: 2 (1a)HHI= ∑p i wherep i standsforthepercentageofthemarketshare.VanCuilenburg(2004)givesguidelinesfortheinterpretationof theindex:thehighertheHHI,thehigherthelevelofsupplierconcentrationonthemarket.Hesuggestsan interpretationscalewherethescoreupto.10depictsanunconcentratedmarket,thescoresequalling.10upto.18signify amoderatelyconcentratedmarket,andequalorover.18pointtowardsahighlyconcentratedmarket. Marketcompetitionintensity,whichinthiscontextcouldbedefinedasanantidoteformarketconcentration,is accordinglycalculatedasfollows: (1b)CI=1HHI Accordingly,theinterpretationisalsoreversed:thehigherthescore,themoreintensethecompetition.Theabove depictedformulahasalsobeenusedinmeasuringdiversity,forexampleofprogrammetypes,inwhichcaseitisoften 2 calledSimpson’sD[Simpson’sD=1∑p i ](McDonald&Dimmick2003). Thereisalsothecategoryof“other”thattogetherincludesothercableandsatelliteviewing Here,themarketsharesaresharesofviewingasyearlyaverages. iv InFinland,thepredictionontheerosionofthepositionof(European)overairbroadcastersduetoforeignsatellite channels(seeBlumleretal.1986:347;alsoHellman1999)neverhappened,andtheshareofthesatelliteandcableviewing remainedsmallfortheentireresearchperiod. vThedataconsistof56sampleweeksin19972004(i.e.,theweeks57,2728and4243eachyear)and16sampleweeks(6, 7,42,43)fortheyears199396.Theclassificationofprogramtypesincludesthefollowing13categories:news,current affairs,factualprograms,culturalprograms,serviceandhobbyorientedprograms(i.e.,socalledpersonalinterestprograms), sports,domesticfiction,foreignfiction,movies,children’sprograms,educationalprograms,entertainment,otherprograms. vi Basedontheprogrammetypologyusedinthisstudy,entertainmentorientedprogrammingisheredefinedascomprising fromthefollowingcategories:domesticfiction,foreignfiction,featurefilms,andentertainmentprogrammes. viii Tocalculatetheindex,oneneedsfirsttomeasuretheabsoluteentropyH abs oftheprogrammeoutput.Thisisdone accordingtothefollowingformula: (a) Habs = ∑pilog 2pi wherep i standsforthepercentagedevotedtoeachprogrammecategory.AbsoluteentropyisalsocalledShannon’sH:it istheoneofthemostwellknownandusedofthediversitymeasures,asitisderivedfrominformationtheoriesandhas beenusedincommunicationstudies(aswellasinsomeotherfields)sincethe1950s(McDonald&Dimmick2003,68). ItequalsSimpson’sD,butinvolveslogarithmictransformation:thecloserthemaximumscore,themoredifficultit becomestoincreasethevalueofthescore.McDonald&Dimmick(opcit.),havingtested13diversitymeasurements, recommendtheRelativeEntropyIndex,asitissensitive,forinstance,tochangesinnumberofcategories. RelativeentropyHisthenobtainedbydividingthevalueofH abs withthemaximumvaluepossible(H max =log 2N), whereNisthenumberofprogrammecategoriesused: H abs (b) H=─────────── H max =log 2N

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RelativeentropyHvariesbetween0and1,with0expressingminimumdiversity(allcontentinonecategory)and1 expressingmaximumdiversity(allcategoriesequallylarge). Themeasurehasbeenusedinsimilarstudiesasthisone,by,e.g.,Ishikawaetal.(1996),Hillveetal.(1997),vanderWurff andvanCuilenburg(2001),andHellman(1999,2001). ix TheDissimilarityIndexisderivedbysubtractingthepercentageoftimepperprogrammecategoryibyone broadcasterA(p iA )fromthecorrespondingfigurebyanother(p iB )andsummingupthedifferences: D= ∑|p iA p iB | Thehigherthesumofdifferences,thehigherthedissimilaritybetweenthechannelsand,viceversa,thelowerthe dissimilarityindexscore,themorehomogenoustheoutput.Incalculatingtheindex,itplaysnorolewhethertheresultof subtractionispositiveornegative;onlytheextentofdeviationmatters.Thisindexhasearlierbeenused,e.g.,byHellman& Sauri(1994),withthenameDeviationIndex ,inexaminingFinnishtelevisionprogramminginthe1980sandearly1990s.

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