PROGRAMMING STRATEGIES OF U.S.-ORIGINATED CABLE NETWORKS IN ASIAN MARKETS: DESCRIPTIVE STUDY BASED ON THE PRODUCT STANDARDIZATION/ADAPTATION THEORY By GORO OBA A DISSERTATION PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY UNIVERSITY OF FLORIDA 2007 1 © 2007 Goro Oba 2 To Mitsuko Oba and Marin Oba. 3 ACKNOWLEDGMENTS Whenever I am almost daunted by some difficulties, I always bring to mind my favorite words once spoken by Robert Kennedy: “Only those who dare to fail greatly can ever achieve greatly.” I am still unsure if I have achieved something greatly, as I have just completed a dissertation and my doctoral degree. However, I am sure that I would never have been one step closer to my dream if I had feared failure. It was actually a decision involving many risks for me to study in the United States, but I have embarked on an academic journey for intellectual fulfillment. This dissertation is the culmination of my study from 2001 to the present. I could not have survived the years without the encouragement from the following people who helped me to pursue academic challenges. First of all, I would like to give my sincerest gratitude and appreciation to my supervising committee members at University of Florida. I wish to thank Dr. Sylvia Chan-Olmsted, the chair of the committee and my academic advisor and mentor, for her wisdom, honesty, encouragement, and guidance I always hold valuable. I feel truly blessed to work as an assistant of her and indebt to her in my life. When I give a lecture to my students or conduct research, I often ponder what she is likely to do if she were in my position. I enjoyed talking with Dr. Marilyn Roberts because of her witty remarks and jokes. It should be noted that the original idea of this dissertation initially arose during I took the International Advertising course offered by her. I also appreciate Dr. Juan-Carlos Molleda’s advices, which are based on his rich knowledge of the international public relation arena. I am grateful to Dr. Jinhong Xie for comments and suggestions. Her wealth of knowledge regarding international marketing study was invaluable at all phases of this project. I like the committee very much because it is really an “international” team. I would also like to thank some faculty members at Michigan State University. Dr. Steve Wildman, Dr. Johannes Bauer, Dr. Barry Litman, and Dr. Thomas Baldwin taught me how exciting to research media economics and industries. 4 I also owe a special debt of gratitude to many friends and organizations for their continued support and encouragement. I appreciate my old friends Hiromichi Sakai and Leon Liu, who have extensive business networks, for their support to set up interviews. I would like to thank executives and managers of MTV, Cartoon Network, ESPN, and Discovery Channel, who participated in interviews, for their precious time, data, and comments. My officemates at University of Florida, in particular Changhyun Jin, Al Tritico, and Roxanne Watson, shared with me ideas, information, and laughter. Daphne Landers and Byenghee Chang, advisees of Dr. Chan-Olmsted as well as myself, helped me when I was in trouble with research. I also thank the Japanese Society of Gainesville for regularly having parties to relax. My ten years of experience in Nippon Television Network became the cornerstone for my academic career, and colleagues at the network still give me a boost. The dissertation research was supported by the grant from Hoso Bunka Foundation established by NHK and the research fund of Kyoto Gakuen University. Last but not least, I wish to thank my parents for realizing and understanding the importance of study to me since I was a kid and for being brave enough to set me free to pursue my dreams. I adore the Suzukis, the Shimokawas, and the Hirabayashis for being patient with me and seeing me through tough times. My grandmothers passed away in the year I returned to Japan and the following year. They were obviously sad events, but I was fortune to be able to say last goodbyes to them who always looked forward seeing my growth. Finally, my deepest appreciation goes to my wife Mitsuko for her love and patience. I would never forget that she accepted my dream with an open mind and compassionate heart when I left a television network. Neither my study in the United States nor this dissertation could have been completed without her continuing support and encouragement. One of our best experiences in the United States was the birth of our daughter Marin, who provided a joyful dimension to our lives. Mitsuko and Marin are always a positive motivating force within my life. I have the best family in the world. 5 TABLE OF CONTENTS ACKNOWLEDGMENTS ...............................................................................................................4 LIST OF TABLES .........................................................................................................................12 LIST OF FIGURES .......................................................................................................................13 LIST OF ABBREVIATIONS ........................................................................................................14 ABSTRACT...................................................................................................................................15 CHAPTER 1 INTRODUCTION..................................................................................................................17 Media Globalization and Global Television Networks...........................................................17 Gaps in Current Literature......................................................................................................23 Purpose of the Study...............................................................................................................27 2 LITERATURE REVIEW........................................................................................................35 Theoretical Backgrounds for Product Standardization/Adaptation........................................35 Determinants of the Degree of Product Standardization/Adaptation .....................................41 Product Characteristics....................................................................................................43 Target Market Segment ...................................................................................................44 Country’s Cultural Characteristics ..................................................................................47 Country’s Environmental Characteristics........................................................................50 Economic condition..................................................................................................50 Physical/geographic condition .................................................................................51 Legal environment....................................................................................................52 Infrastructure/supporting sector ...............................................................................53 Industry Competition.......................................................................................................54 Brand and Country of Origin...........................................................................................55 Firm Characteristics.........................................................................................................59 Philosophy/orientation .............................................................................................59 Resource...................................................................................................................62 Degree of centralization/decentralization.................................................................64 Market entry mode ...................................................................................................65 3 APPLICATION OF INTERNATIONAL MARKETING THEORIES ..................................74 Standardization/Adaptation of Television Programming........................................................74 Determinants of the Degree of Programming Standardization/Adaptation............................75 Product Characteristics....................................................................................................75 Target Market Segment ...................................................................................................79 Country’s Cultural Characteristics ..................................................................................81 Country’s Environmental Characteristics........................................................................84 Economic condition..................................................................................................84 Physical/geographic condition .................................................................................86 6 Legal environment....................................................................................................87 Infrastructure/supporting sector ...............................................................................89 Industry Competition.......................................................................................................93 Brand and Country of Origin...........................................................................................95