Relations Among Media Economics, Content, and Diversity

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Relations Among Media Economics, Content, and Diversity Aktuellt forskningsprojekt Relations among Media Economics, Content, and Diversity ROBERT G. PICARD The relationships among economics, content, and and draw from the work of other portions of the diversity are being explored in a large-scale Finn- project. The common approach stems from the phi- ish project conducted by researchers at a consor- losophy that the economic structure of media dic- tium of universities and research centres. The tates the conduct of media firms and the extent to three-year project is exploring how changes in which they perform the social, cultural and political Finnish media structure during the second half of roles they are expected to play in society (Figure 1). the twentieth century affected strategic and opera- tional choices of media firms and how the choices altered the content provided. Background and Relevance The project is funded by the Academy of Fin- Mass media and the related fields of advertising, land, with additional funding from the Ministry of telecommunications and other aspects of the “infor- Transport and Communications, YLE (the national mation society” are growing in importance, both in public service broadcasting company) and TEKES terms of their economic and socio-political signifi- (the state technology fund). cance in society. But in addition to overall growth, In addition to providing the historical view, re- the media field is undergoing a structural – indeed sults will be used to help interpret how future de- historic – change at the turn of the century. This is velopments will affect the structures and economics not only due to the so-called new media, based on of existing media. It will identify new opportunities computer-telecommunications applications (Inter- and problems that technological and market net, digital television, etc.), but first and foremost changes will create for media firms and how these due to shifting economic structures of the media in- are likely to affect the content of media. dustries, accompanied by shifting socio-cultural The project is built upon several co-ordinated roles played by the media in society (Beniger, studies that complement each other to provide a 1986; Mosco, 1989; Babe, 1995). Aspects of these broad understanding of the nature and scope of me- shifts are the increasingly intertwined media com- dia industries in Finland. The project is headed by pany operations and the increasing trend toward the Media Group at Turku School of Economics entertainment-styled content referred to as and Business Administration, and involves re- “tabloidisation”, “infotainment”, “edutainment”, searchers in the Department of Journalism and etc. (Dholakia et al., 1996). Mass Communication at the University of Tampere, The most fundamental aspect of this structural the Culture, Media, and Time Use Unit of Statis- change relates to the theory and practice of democ- tics Finland, and the Media Department of the racy: What is the role played by the media in de- State Technical Research Centre. mocracy and what should the public policy be The project is unified by a common approach in which shapes media development? These questions which the various aspects of the study build upon are being raised both at the national and interna- tional level, including studies and discussions in Media Group, Turku School of Economics and the European Union and the Council of Europe Business Administration, PL 110, FIN-20521 Turku, (Commission of the European Communities, 1992; [email protected] Council of Europe, 1998). Especially important in 87 Figure 1. Philosophical Rationale of the Project Structure of affects Conduct of affects Content of Media Media Media these discussions are the rise of large firms and the views about a particular event and the amount of role of media concentration (Picard et al., 1988; information that each medium can carry are already Tunstall & Palmer, 1991; Sanchez-Tabernero, limited by time and space constraints. Although the 1993; Bagdikian, 1997; Barnow, 1997) and globali- existence of multiple media outlets makes it theo- sation of media firms and content (Garnham, 1990; retically possible for a larger number of views and Smith, 1991; Mattelart, 1996; Herman & Mc Ches- opinions to be communicated, the mere existence ney, 1997). of media plurality does not ensure message plural- However, media research has not been able to ism, i.e., diversity of viewpoints. Most studies of provide much theoretical and empirical input to media content have shown that different units of a this crucial policy debate. The primary reasons for medium and different media tend to provide rela- the dearth of these studies has been the lack of ad- tively similar content, programming, and views be- equate media and communications data and the cause of commercial concerns, the adoption of lack of funding to conduct the kind of large-scale standard industry norms and business practices, economic and content research necessary to under- and dependence on a small number of similar take such extensive research. sources of news and opinion (Nimo & Combs, Social and political theorists recognise that pre- 1990; Gaunt, 1990; McManus, 1993; Underwood, conditions for the establishment and preservation 1993; Jamison & Campbell, 1998; Picard, 1998). of democratic governance include freedom of ex- The answer to such problems then must come in pression for individuals and groups with divergent the form of not merely anticartel laws and regula- views. The basic tenets of democracy hold that tions limiting ownership, but also in policies and through an airing of such views citizens will be regulations that preserve independent voices. In ad- able to choose the most meritorious from among the dition, policies should ensure promotion of domes- ideas and that society will thus be advanced. tic media and content, encourage the establishment Therefore it is logical to relate the media struc- of additional competing media and, more impor- tures to the content produced by the media and to tantly – because of the homogenisation problems – ask, whether current structures and operations lead provide for access to non-mainstream voices and al- to homogenisation and whether consumers really ternative means of coverage of social and political get the kinds of communications they want and issues (Picard, 1985; Rouet, 1991; Gustafsson, need. This has seldom been done on a systematic 1995). basis. Media studies have typically been frag- In Finland and most of the developed world, the mented and looked at one dimension at a time. first goal of establishing additional competing me- Even research on media content has been mostly dia has been and continues to be accomplished. short-term and case-based, although currently there Much of the world has had a history of state-related is a growing interest in monitoring media content telecommunications and broadcasting supple- overall. A good example of this approach is the mented by a commercial and party press. The pri- British project “Information and Democracy – An mary commercial medium in many countries was Audit of Public Information in the Media,” directed magazines. In many developed nations, the govern- by Peter Golding and described in Nordenstreng & ment monopolies in broadcasting and telecommuni- Griffin, 1999. cations were broken in the 1980s and 1990s, and In the realm of media theory and policy this con- they are now being supplemented by commercial cept has been manifest in the idea that media plu- systems subject to the same pressures as those seen rality, i.e., multiple media outlets, is a primary goal in the United States. for providing the opportunity for diverse voices to These developments of additional competing be heard and for ideas to circulate. The number of media, however, have led to new forms of private 88 ownership and commercial operation. Because Structure and Economics The first dimension of these tend to follow the same practises that have this project focuses on describing the Finnish me- led to limitations on the marketplace of ideas, a dia industry and its branches using the industrial great deal of interest is being raised about their ef- organisation model and related techniques. It seeks fects. This is especially true where the deregulation to define and explain the structure and workings of and increasing commercialisation of media and the media industry and to explore trends and devel- communications systems has been accompanied by opments in the market. This is being accomplished the growth of large firms serving domestic and for- by examining the market’s structure—including the eign markets worldwide. amount and strength of competition, conditions of Paradoxically, these changes in media owner- entry and cost factors, including the amount and ship and communications have created both more strength of competition, capital equipment and fa- and less opportunity for political and social dis- cilities costs, labour costs, distribution costs, and course and action. On one hand, changes in tech- policies and regulations (Picard, 1989; Alexander nology and deregulation have resulted in increasing et al., 1993; Turow, 1993; Albarran, 1996). numbers of broadcast stations, cable and satellite The research is describing changes in media distribution systems, and broadcast and cable/satel- markets, competition, production, sales and other lite networks throughout the world in the past dec- relevant economic developments. It is exploring the ade. These media changes, along with telecommu- financing of firms and revealing how changes in nications developments that have made possible technology and Finnish and international media wide diffusion of fax, e-mail, and related Internet and telecommunications policy have altered the services, have created more opportunities and structure and economics of media in the recent dec- means for communications. On the other hand, ades. The research is also documenting levels of however, the changes have simultaneously resulted economic concentration and ownership concentra- in communications to smaller audiences and fewer tion by media industries and in the media and com- individuals than were reached by traditional mass munications branch.
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