Media and Globalization

Media and Globalization

• Globalization involves increasing interconnection at all levels in recent decades
• Since the mid-1980s, scholars have studied the driving forces behind globalization, including economics, technology, politics, and cultural change

Theoretical Perspectives

• Differences of opinion among scholars on globalization stem from varying theoretical perspectives

Globalization Observations

• Globalization is observable in financial crises, epidemics, trafficking, multinational corporations, and media products

Media Industry

• The media industry is well-suited for globalization due to its ability to spread global trade regardless of political borders

Low Marginal Costs

• Low marginal costs in media lead to larger profit margins, as information is not a physical good, and shipping costs are minimal

Global Reach

• The global reach of media allows it to be relevant in many different countries

Media as partial cause

• Media is a partial cause of globalization, not just another globalized industry

Cultural Influence

• Media's role as a cultural product means its transfer can influence the recipient's culture

Technology and Globalization

• Technology propels globalization through quick communication, transport, and efficient marketing

Globalized Culture and Markets

• Globalized media content largely comes from the West, particularly the U.S.
• Driven by advertising, U.S. culture encourages consumerism, potentially influencing foreign cultures to adopt consumerist ideals

One way transmission

• Globalization can provide content and create demand for products, contributing to a "one-way transmission of ideas and values that result in the displacement of indigenous cultures."

World economic trend

• Globalization lowers economic trade borders and involves culture

Influence

• The transfer of industry and technology encourages outside influence through the influx of foreign money, while cultural transfer opens up markets

Community adoption

• Communities may adopt and personalize U.S. cultural values as they become more economically similar to the United States

Spread Outcomes

• The spread of U.S. culture can lead to homogenization or heterogenization, or both
• A mix of factors is involved in globalization

Globalization process

• The globalization of media differs from other products due to cultural differences

Cultural transfer

• Globalization often occurs as media is language and culture based, following broader "ways of organizing and creating media"

Corporate Structure

• Media companies can maintain culturally specific brands while maintaining a globalized corporate structure

Vertical Integration

• Vertical integration in multinational media companies is a necessary aspect when studying globalized media

Media company practices

• Many media companies practice vertical integration

Vertical Integration Benefits

• Media companies benefit from vertical integration and globalization due to the proliferation of U.S. culture abroad

Media outlets

• Media outlets use similar distribution structures with few changes due to U.S. cultural proliferation

Speed of Reaction

• Vertically integrated companies can react quickly to events and trends in a globalized marketplace

Production Values

• Production values for single-country distribution are similar to those for multiple countries, so vertical integration allows higher-budget movie production

Titanic case study

• Titanic made twice as much internationally as it did domestically, demonstrating the importance of foreign markets

American Culture Export

• American culture is increasingly exported, and U.S. media outlets rely on selling their products in foreign markets

Audience tailoring

• American culture has been tailored not only to U.S. citizens but also to worldwide audiences

Foreign market potential

• Foreign markets have enormous profit potential

Cameron's Titanic

• James Cameron's 1997 film Titanic which had a budget around $200 million

Expectations

• Titanic was not anticipated to perform particularly well at the U.S. box office, predictions of foreign box-office receipts allowed the movie to be made

Box Office

• Of Titanic's total box-office receipts, only about one-third came from the domestic market

Difference

• The difference was in the foreign market, where Titanic grossed $1.2 billion

Hollywood Ties

• Hollywood studios have agreements with theaters all over the world to show their films, enabling these arrangements

Foreign market

• The foreign market for French films is not as established and is partially subsidized by the French government

World Trade

• Hollywood has lobbied the World Trade Organization, which pushes for fewer market restrictions, to rule that French subsidy is an unfair restriction on trade

Globalization concerns

• Globalization presents concerns about the endangerment of indigenous culture, which the transfer of culture has some influence over

Key Takeaways

• Key tech advancements contributing to the global field are technology, communication, transport, and mass marketing
• Media economies of scale allow much larger profit by using digital technology to sell information worldwide over a global market
• Foreign markets provide economies of scale; companies can build a global following

Mass Media economic

• In the late 19th century, Andrew Carnegie pioneered vertical integration

Vertical integration

• It occurs when a company owns its suppliers and buyers

Company advantages

• It allows cutting out the middle-man so profits soar

Commerce Advantages

• Still effective today; helps cable companies join NBCUniversal

Comcast stake

• The purchase allowed Comcast to gain a 51 percent stake, together the companies would control Universal Pictures and Focus Features; Spanish-language network Telemundo and the cable networks USA, Bravo, CNBC, and MSNBC with Comcast’s cable channels, which include E! Entertainment, the Golf Channel, and the sports network Versus
• One of the nation's largest providers, Comcast would then be able to restrict NBC-owned networks only available on its cable or charge more

Monopoly Aspects

• It is beneficial for Comcast because the merger is able to integrate online content with cable media via Hulu

Comcast integration

• Being able to create a subscription model for internet content

Customer Effect

• Viewers could pick and choose online content that they want

Mass Media

• It affects production and distribution to customers and may set up subscriptions for more

Internet Effect

• Companies may grant its own content channels such as Hulu, privileges over competing channels

Potential

• Comcast could prevent broadband internet provider from being a monopoly

Rapid Transformations

• Rapid rise of news that transform or replace traditional media outlets

Media Industries

• How the companies merge

Industries Models

• Different models of television, film, etc

Monopoly

• When one controls as industry

Oligopoly

• Control of a product

Amalgamation

• Increasing economies of scale that potentially could not be achieved

Mergers

• A single media markets that conglomerates own

Advertizing

• The main implication of advertising proportions

Fears

• Corporate control is intensified

Independence

• Ongoing channels used to provide diversity that is not always found in coporations

Musical Impact

• Small music labels are increasing album distribution

Revenue Increase

• Ways to raises revenue for their services, that boils down to two fundamental ideas, advertising, commerce, and consumerism

Money

• Money comes either from consumers or from advertising

Flexible Income

• Many combine the two to give themselves a flexible income

Endpoints

• Traditional Book Publishers and cable companies are on opposite ends of the money receiving spectrum

Mass effect

• Magazines, newspapers, and broadcast television have had the largest impact raising revenue

Television

• With lack of direct fees, networks can sell their advertising time at a premium, as opposed to a cable channel with a more limited and likely more narrow viewership

Print Media

• Books, newspapers, and magazines are all print media, top 10 trade publishes control 72% of the market
• Adversity is through internet classified services

The press

• Main paper points are first copy costs and marginal costs
• The printing paper increases costs

Editorial Costs

• Remain main costs through the paper

USA

• Today as well as mostly local newspapers in 33 states, guam, and the UK

McClatchy

• Also run their own wire services to help reduce cost

Magazines

• Much Like newspapers, many magazine chains are themselves owned by much larger media conglomerates

Television and Radio

• Nearly owned by Large media conglomerates

Local Markets

• In many places, one cable company dominates

Competing with cable

• Satellite companies now compete but offer limited competition

Expanding Consolidation

• As cable spreads, radio has become consolidated

FCC Impact

• The lower part of FM is desinated for non commercial means only

Music and Film

• Has unique business opportunities and challenges; has undergone large shift as of late

America's Four

• Music industry has been closely related to the radio

Big Four

• Four record companies dominate the recorded airwaves making radio extremely important

Musical tastes

• Hard to handle as it is easier to manage programming across large region

Performance of the Big Four

• They can provide a major act through various musical stations

Domination

• Wide range of independent companies

Major labels structure

• Almost the same way, under same structure

Consolidation

• Dominate the recent music industry, however have had little to do with live performances

The industry

• Musicians toured to promote the albums

Financial Assistance

• The concert ticket generated significantly more income per sale; live nation and ticketing services are essential to continue

No booking

• With over 10% being covered

Musical medium

• Nature has its differences

Business Aspects

• As well as connections

Musical Partners

• With control aspects as major factors

Sell Chains

• Wide influence as of sale of 600 screens

Small Competition

• Provide limited competition

Media Models

• Internet changed the industry game

Popularization

• Such aspects and controlling influence as major factors

Weinstein

• Had a messy broken up

Foundation

• Founded with intent for independence

Limit release

• Release had major distribution

Gained access

• By providing access

Directors

• The production brought in a wide ranger

Success Rate

• The new budget helped raise financial influence over financial stability