GOLDSMITHS UNIVERSITY OF LONDON Branded Reality The Rise of Embedded Branding (‘Branded Content’): Implications for the Cultural Public Sphere Thesis submitted for the degree of PhD in Media and Communications By Anat Balint P a g e | 1 Acknowledgments This thesis has been an intellectual challenge, and much more than that: it was a personal journey and a phase of transformation. This was a shift from the world of investigative journalism to that of scholarly work, from writing 1000 words in one afternoon to creating a narrative of tens of thousands of words over many many months, from the hectic life of a daily reporter to the silent, somewhat isolating routine of a writer with a laptop. Moreover, it was a process of finding a voice and making my arguments heard. Hopefully, these efforts were somewhat successful, as during the work on the thesis, a time that was also devoted to various public activities as well as teaching and writing, the topic of embedded branding became, in my local arena at least, the subject of investigative reporting by other journalists, heated public debate, policy reports and a legislation proposal. I am most thankful to all those who were with me on this journey. First and foremost, I would like to thank my supervisors, Prof. Nick Couldry and Dr. Liz Moor. Prof. Couldry guided me through the early stages of the research, in its London phase, and was most helpful in setting its theoretical and methodological infrastructure. His immense knowledge, critical point of view and passion for the field are an inspiration to any young scholar. Dr. Moor took the handles in the later phase of the work, accompanying me through the torturing stage of data analysis, setting the final outline, writing and re-writing. I am thankful for her dedication, her detailed and smart comments, as well as her patience; it has been a long process. This is also the opportunity to thank the late Prof. Roger Silverstone who was most enthusiastic about my topic, contributed to the first stages of shaping the idea and was supposed to supervise the thesis; sadly he passed away unexpectedly, leaving a huge void behind. I would like to thank Prof. James Curran, who was present at a number of critical junctions, had quick and highly helpful insights on how to progress and always made me feel I was pursuing a worthy cause. I would also like to thank Prof. Des Freedman for his supportive feedback and good ideas during the upgrading stage. P a g e | 2 A number of scholars gave of their time to talk to me about my research topic and I am thankful to them: Prof. Joseph Turow, Prof. Paul Frosh, Dr. Jonathan Hardy, Prof. Yaron Ezrachi, Prof. Sheizaf Rafaeli, my good friend Prof. Ellen P. Goodman, whose work on the topic as a law scholar was insightful, and the members of the cultural industries research group at Haifa University. Others are not only colleagues, but close friends who were with me all along the way: Dr. Tamar Ashuri bares the responsibility for encouraging me to take the PhD path. I am grateful for her friendship and the smart advice she shared with me in every one of our conversations. Dr. Eyal Lavi was my PhD peer and still is my best London-based mate. I called him in times of distress and he was always there for me. Daniella Blau did wonderful work helping me with proof editing during the final stages, towards submission. I am thankful to all of those who gave of their time to talk to me as interviewees, shared their experiences and thoughts and provided me with valuable documents. I am especially thankful to those of them who were aware of my critical point of view and were still willing to help. The talented journalists of the Israeli media watchdog, The Seventh Eye - Shuki Tausig, Oren Persico and Itamar Ben Zaquen, are doing wonderful and extremely important work in uncovering the wicked ways in which commercial and political pressures impact the media. I find them to be true companions sharing my worldview. Last and most importantly, I would like to thank my mother, Lea Balint, who taught me to believe that anything is possible (although she forgot to mention the road could be long and arduous), and my two loved ones who were not there when I embarked on this journey, but who made me so much happier when they joined me: my partner Guy Bar-Nahum and Mika, our daughter, who is soon to become the sister of another little one. Anat Balint, December 2015 P a g e | 3 Abstract This thesis explores the rise of embedded branding (‘branded content’) since the early 2000s, a funding model in which sponsors are integrated into media content. It examines its implications for the functioning of the media as a cultural public sphere. Located within the political economy approach, the research takes a critical perspective, arguing that ‘branded content’ is, in Habermasian terms, an act of manipulation. Two case studies of British and Israeli reality television shows were used to explore three questions: 1. How does the ‘branded content’ market work? 2. Are we witnessing a new phase of content commercialisation and if so, what are its characteristics? 3. What are the implications for the media’s functioning as a cultural public sphere and, consequently, how should regulators and policy makers cope with the phenomenon? The findings uncover a niche market in which branded content agents facilitate formal agreements between sponsors and producers. As both sides have the need to look for alternative funding models in a growingly fragmented reality, these co-operations typically start as ‘synergetic’, however their implementation often becomes rife with conflict. The data further suggests sponsors influence media content in two key ways. First, through ‘deep integration’: brands appearing through abstract and surreptitious representations in programming (rather than ‘classic’ product placement). Second, through ‘continuous integration’: the tendency of these agreements to encompass multiple platforms, and predominantly the Internet, which enables personal data collection. Embedded branding therefore should be seen as a new commercialisation phase, typical of the digital age, in which brands gain omnipresence in the cultural public sphere. The two main potential harms caused by these developments are first, the saturation of the media with manipulative messages by sponsors, which distorts the editorial process and threatens freedom of expression. The second relates to the gradual loss of audience trust in the media as a platform for public debate, which is the gravest threat ‘branded content’ presents to the role of the media in democracies. P a g e | 4 Contents Acknowledgments ....................................................................................................................................... 1 Abstract ........................................................................................................................................................ 3 Table of Figures........................................................................................................................................... 8 Introduction ............................................................................................................................................... 10 Chapter 1 The Cultural Public Sphere in-between Content and Commerce ............................................ 26 Introduction ............................................................................................................................................. 26 Theoretical Framework ........................................................................................................................... 28 Normative Perspectives (1): The Public Sphere ..................................................................................... 29 Culture and Capital 1: A Culture Industry or Cultural Industries? ..................................................... 29 Culture and Capital 2: What is the Commodity – Audience or Content? ........................................... 30 Culture and Capital 3: The Rise and Fall of the Public Sphere .......................................................... 32 Culture and Capital 4: Critique of the Public Sphere .......................................................................... 36 Normative Perspectives (2): The Cultural Public Sphere ....................................................................... 41 The Contemporary Landscape (1): Beyond Journalism, Beyond Rationalism ................................... 41 The Contemporary Landscape (2): The Cultural Public Sphere ......................................................... 44 The Cultural Public Sphere: Between Communicative Action and Strategic Action ............................. 47 Discourse Ethics (1): Communicative Action and Strategic Action ................................................... 47 Discourse Ethics (2): Content and Commerce .................................................................................... 50 Neoliberal Context: Commercial Television and Deregulation .............................................................. 52 The Rise of Reality TV: an Engine for a New Business Model ............................................................. 56 Summary ................................................................................................................................................. 62 Chapter 2 The Rise of Embedded Branding: From product Placement to ‘Branded Content’ ............... 65 Introduction