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The Media and Communication Industries a 21St Century

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The Media and Communication Industries a 21St Century TH E MEDIA AND COMM U NICATION INDUSTRIES: A 21ST CENT U RY P ERS P ECTIVE Alan B. Albarran, Ph.D. The University of North Texas Center for Spanish Language Media Denton, TX, USA [email protected] Resumen Los medios de comunicación y las industrias de la comunicación están experimentando cambios y evolución sin precedentes en el siglo veintiuno. Este trabajo examina este proceso con un método de estudio de casos que analiza los sectores tradicionales y nuevos de los medios de comunicación, utilizando los siguientes criterios: los mercados en los cuales se ubican, los líderes en cada una de las industrias respectivas, el potencial económico de estas industrias, y los procesos continuos de evo- lución y transformación. El estudio sostiene que ya no se identifican los medios de comunicación y las industrias de la comunicación en términos de sectores centrales tales como la radiodifusión o los periódicos, sino en una estructura de actividades distinta, que involucra áreas como contenido, dis- tribución y búsqueda. Además, el trabajo plantea que los estudiosos necesitan nuevas herramientas teoréticas y metodológicas para comprender mejor los cambios y transformaciones masivos que se ocurren a través del sector de los medios de comunicación. Una serie de propuestas concluyen el estu- dio, ofreciendo un marco sobre el cual se puede construir la investigación y el análisis en el futuro. Palabras claves: Comunicación, industrias, medios, mercados, cambios, transformaciones Abstract The media and communication industries are experiencing unprecedented change and evolution in the 21st century. This paper examines this process with a case study method by analyzing the tradi- tional and new media sectors using the following criteria: the markets in which they are engaged, the leaders in each of the respective industries, the economic potential of these industries, and their con- tinuing evolution and transforming processes. The paper argues that the media and communications industries can no longer be identified in terms of core sectors such as broadcasting or newspapers, but rather to a different structure of activities involving such areas as content, distribution, and search fea- tures. Further, the paper posits that new theoretical and methodological tools are needed by scholars to better understand the massive changes and transformation occurring across the media sector. A se- COM HUMANITAS VOL . 1. NO. 1. AÑO 1 · PÁGS .: 59-68 60 COM HUMANITAS ISSN: 1390-5619 ries of propositions concludes the paper, offering balization, regulation, economics, technology, and a framework on which to build future research and social aspects. Each of these forces is described analysis. briefly in the following paragraphs. Key words: communication, industries, Globalization is a term with many different media, markets, changes, transforming. meanings (Micklethwait & Wooldridge, 2000); for media firms and industries the act of globa- Artículo recibido el 04 de diciembre de 2009; so- lization occurs when companies reach beyond metido a pre-revisión el 15 de diciembre de 2009; enviado domestic borders to engage consumers in other a revisión el 20 de diciembre de 2009; aceptado el 25 de nations, thus expanding their markets. Originally, diciembre de 2009; publicado Año 1. Vol. 1.No. 1. media globalization was limited to selling content around the world, a practice that first began with Hollywood films and later television programming. 1. Introduction The United States is the largest exporter of media content in the world, raising many concerns about the influence of America abroad and the notion of The first decade of the 21st century has “cultural imperialism” (Jayakar & Waterman, 2000). been unique in terms of its impact on the media Globalization also occurs when compa- and communication industries. From the rapid rise nies acquire other properties in other countries. and collapse of the dot-com era to a worldwide News Corporation was first an Australian newspa- economic recession impacting virtually every sec- per company, acquiring newspapers in the United tor of business activity, along with the introduction Kingdom and the United States, and later pur- of converging technologies such as the mobile chasing a group of television stations that would “smart phone” and multiple digital platforms, the eventually become the Fox TV Network. Sony en- media and communication industries are not only tered the film industry by first acquiring Colombia in the process of transforming themselves, but are Tri-Star, and later MGM. being transformed by many external factors (Alba- Yet another form of globalization occurs rran, 2009). This paper takes a look back, as well when a company establishes multiple locations in as a look forward, to understand this process and other nations. The Nielsen Company, a privately how it is reshaping the future of the media and held firm specializing in various types of research communication industries. services, operates in over 100 countries throug- The word “transformation” is purposely used hout the world. Disney operates theme parks in in this paper to represent the massive changes ta- several important global cities, with a separate king place across the media and communication base in Latin America. As the global leader in book industries. Transformation is typically defined as publishing, Germany-based Bertelsmann also has an act or a process that transforms something, re- operations around the world through its various sulting in a change in form or appearance (Trans- publishing entities. formation, Merriam-Webster). The term captures Regulation and regulatory practices differ the environment that currently confronts the me- from nation to nation; through regulation govern- dia and communication industries. The transfor- ments require business and industry to follow cer- mation of the media and communication indus- tain rules and guidelines. Regardless of the coun- tries didn’t happen overnight. The process has try, most businesses and industries dislike being been accelerated by several external factors dis- regulated, and would prefer to operate without cussed in the next section of the paper. government oversight (Albarran, 2002). But regu- lation is important in establishing and maintaining competition, to protect workers and consumers, and to generate revenues through taxation in or- 2. External forces transforming der for government to operate. the media industries Over the years the media industries have evolved in many developed nations from being There are five predominant forces that in- strictly regulated to various forms of deregulation teract in any society impacting the media and and liberalization. In the United States and Uni- communication industries. These forces are glo- ted Kingdom, regulations for the media industries Vol. 1. No. 1. Año 1 - Diciembre 2009 - Enero 2010 COM HUMANITAS 61 have been repeatedly relaxed since the 1980s, tion is graying; American society along with many especially in regards to media ownership. Other other nations are becoming much more ethnically nations have followed suit to some degree, but in diverse and multicultural; people are living longer other regions of the world (e.g., Middle East, Asia) and working longer; younger people are more te- heavier regulation exists. chnologically savvy and prefer to access content Economics in any nation is influenced by its differently than adults. government’s philosophy and the interplay of Given all the outlets available for entertain- market forces, which are identified through an ment and information in a digitally delivered me- analysis of macro- and microeconomic concepts. dia world, audience fragmentation is at an all-time Macroeconomics is concerned with the aggregate high. Audience members are more empowered economy, and topics like gross domestic product than at any other time in media history. Audience (GDP), gross national product (GNP), labor and members no longer just consume content -they unemployment, interest rates, and banking and also make content in a multitude of ways, whether finance (Albarran, 2002). Microeconomic analysis through blogging, podcasting, uploading videos, is concerned with the structure, conduct and per- or social networking to just name a few options. formance of markets and individual firms (corpo- Social aspects are yet another force driving the rations). transformation process. During the 1980s and 1990s, the media in- dustries experienced massive global consolidation thanks to a host of economic factors: strong cash 3. The evolution of media flow and profit potential for media properties; plenty of available capital for investing; low inter- and communication markets est rates; and relaxed government policies liberali- zing ownership requirements. 3.1. Traditional Media Technology has both enhanced and disrupted and Communication Markets the media economy. Innovations in technology through distribution and reception technologies Historically, media and communication mar- continue at a rapid pace (Shapiro & Varian, 1999). kets were easy to define because they functioned The plethora of technological advances has for- in a specific area -such as publishing (newspa- ced media companies to try to keep up with one pers, magazines, books), radio, television, sound another, while at the same time not knowing what recordings, and film. Media companies could be technologies consumers will ultimately adopt. The further differentiated because they tended to fo- digital environment has caused havoc
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