Democracy and Governance

Where communication and media are central to Democracy and Governance


Average Rating: 3.35 out of 5 (17 ratings submitted)

Globalisation of the Media Industry and Possible Threats to Cultural Diversity

Summary

The objective of this report is to assess if the new circumstances produced byglobalisation in the media industry represent a threat for cultural diversity and, if this isthe case, to determine the areas affected and evaluate the consequences for the contentdistributed by the media. This work also advises on the measures which should beadopted by the European institutions in order to reduce the risks and benefit effectivelyfrom the advantages of a globalised society.

As is to be expected from a contribution made from the university arena, the researchhas gathered updated information which has allowed us to present a thorough analysisof the issue and an evaluation of the risks and opportunities of the situation reflected onby experts. It concludes with a description of the tendencies which appear to dominatethe international market of the media in general and the audiovisual in particular andadvice on the measures considered necessary to promote or implement.

Cultural diversity in the global context

  • Globalisation is a phenomenon generated simultaneously by the application of newtechnologies, which overcome barriers of time and space, and the generalisation ofthe principles of free trade in a market of world dimensions. In itself, thisphenomenon does not necessarily imply the homogenisation of contents whichthreatens cultural diversity.
  • However, it has a negative effect on the media industry through two mainconditioning factors:
    • the promotion of the concentration of companies as a means to reach thenecessary competitiveness in the international market;
    • the elaboration of contents which satisfy general interests to the detriment ofmore particular tastes, placing commercial success before a quality product.

  • These risks are revealed by the predominance of North American companies andcapital in the market and the global spread of their products. In the intra-Europeanarea that imbalance is translated into the competitive advantage held by thecountries with a greater production and investment capacity over those whoseresources are limited, whose geographical area is small or who speak a minoritylanguage.

Opportunity to adopt measures in defence of cultural diversity

  • The political-social context itself, which plainly requires recognition on the part ofcultural minorities, recommends the adoption of measures favouring and facilitatingthe expression of the different social groups through the media.
  • The rapid expansion of the new technologies, especially the digitalization of theaudiovisual media and Internet, offers opportunities for production, distribution,access and participation of the media products which must be urgently exploited.
  • The present situation of the process of European integration, with the prospects ofthe expansion of the number of its members and the widening of the competenciesof the Union, seems an especially opportune moment to bring together the measureswhich promote diversity, a real characteristic of the European culture, with thenecessary strengthening of identity.

Concentration and fragmentation of the media industry in the European Union

  • From the point of view of concentration and competitiveness, the communicationmarket in Europe poses three types of basic problems:

    the situation of domination of the leading companies in pay television, the musicindustry and film distribution: in these areas, the main companies obtain highmarket quotas in the greater part of the Community countries. In contrast, in othersectors, such as the daily press, radio or open television, audience leadership isalways in the hands of the companies of their own country, with the exception of theFrench-speaking area of Belgium. The economic press, magazines and thepublishing industry are found to be in an intermediate position as far as theexistence of large companies with a dominant position on a European scale areconcerned;

    • the dominant presence of North American capital in some sectors: such is thecase in advertising (through the European subsidiaries of the large multinationals),film distribution (concentrated in companies which are the property of the great'majors' of Hollywood), pay television (if we consider that a large part of Vivendi'scapital is in the hands of pension funds in the United States, and that RupertMurdoch, the principal owner of the second largest operator - BSkyB -, has NorthAmerican citizenship) and the music industry;
    • the excessive fragmentation in several markets which hinders competitiveness ofEuropean companies at a worldwide level. The small average size of the Europeancompanies produces a decisive disadvantage, for example, in the production ofaudiovisual works;
    • the audiovisual sector is subject to particular ground rules, which limit the fulldevelopment of a market of free competition. In the first place, the tendency tovertical concentration, which is leading many television networks to create theirown production companies or buy others, increases the risk of a lack of pluralism incontent. This tendency also means that the broadcasting companies consolidate anexcessively dominant position with regard to the production companies, limiting theinternational exploitation of the broadcasting rights of the programmes.

Cultural diversity in the audiovisual area

  • The figures on the trade balance of the audiovisual sector show that in theprogramme planning of European general television stations as a whole - whichuntil now capture the highest audiences -, there is a significant presence of NorthAmerican programmes, which implies a risk that these cultural values becomedominant. However, both the figures on the percentage of fiction programmes andthe study on the type of cultural values that are present in the highest audiencespaces, reveal that nationally produced programmes manage to draw a greaternumber of viewers. This fact implies that, although the North American presence isimportant, and has even significantly increased in latter years, the nationalproduction of each country is mostly found at prime time and its cultural values,therefore, reach more people.
  • Of the study of the cultural values present in the highest audience programmesbetween 1995 and 2000 it can be seen that the impact of globalisation on the culturaldiversity of the television programmes with the highest audience is not verysignificant, since the programmes produced in their own country and broadcastin their own language predominate. The highest audience programmesfundamentally uphold national cultural values from each country (as opposed to theNorth American values or those of third parties). The genres with programmes withthe highest audiences analysed are sports (32.5%), fiction series (16%), feature films(8.92%), news (7.5%) and music (5.11%). In the main, sports, fiction series andnews promote national cultural values.
  • The study of a selection of cultural programmes has allowed us to describe somesuccessful formulas: Imprint, (RTE 1, Ireland); Walking with Dinosaurs, (BBC 1,Great Britain), Un livre, un jour, (FR3, France), Horizontes da Memória, (RTP 2,Portugal), Superquark, (RAI 1, Italy), La España salvaje, (TVE 1, Spain) andSoirées thématiques, (ARTE, France-Germany). The analysis of these culturalprogrammes helps with the identification of various criteria for quality: the adoptionof innovatory approaches in the treatment of cultural subjects, the communicativeability of the presenters and the high production values. These characteristics favourthe programmes' lasting popularity, as well as critical success.
  • The cultural programmes which represent successful formulas highlight the key roleplayed by public television in the distribution of specifically cultural high qualitycontents. Public television maintains an uneasy balance between the functions ofproviding entertainment and providing culture in the whole of its programmeplanning. The characteristics of quality of the cultural programmes pointed outpreviously could be used as a reference for the promotion of programming of thistype in European television.

Evaluation of the measures adopted by the European Union

  • In this area, the European Union is faced with the phenomenon of globalisation withthe aim of achieving two apparently contradictory objectives:
    • to strengthen European production in order to increase its presence in theinternational market and thus be able to compete with North American productswhich also penetrate the domestic market;
    • to guarantee cultural diversity, which is one of the characteristics which bestdefines the European identity, backing the production of those nations with a lowcapacity and helping them to become profitable.

  • Both aims are found in the legislative texts although not in the same way. Eventhough the considerations place the same importance on the two aims, the practicalmeasures show that the objective of reaching international competitiveness is givenpriority over the defence of cultural diversity. The evaluation of the impact of theMedia Programmes on the European Union shows that most of the aid has beenawarded to the countries with the largest audiovisual industry in Europe (UnitedKingdom, Germany, France, Italy and Spain) in detriment to those which have asmaller production capacity.
  • This fact also demonstrates that Community legislation attaches greater importanceto the views of the Commission rather than to those of Parliament. The documentswhich contain the considerations prior to the approval of the Media-TrainingProgramme and the Media-Plus indicate that the Commission gives priority to thestrengthening of the industrial fabric of the countries with the aim of promoting thedevelopment of competitive companies. The European Parliament, withoutdisregarding that first objective, makes greater insistence on the importance of theprotection, aid and encouragement of the industry in the markets of countries withless production capacity as a means of guaranteeing cultural diversity.
  • The risks of fragmentation and concentration of the market are identified and themeasures suggested by the Community institutions seem, in general terms, to beopportune and sufficient. For example, the quotas on independent audiovisualproduction are a reasonable measure for the prevention of an excessive verticalintegration of the industry and to encourage the development of independentproduction in Europe.
  • However, it would be useful to put forward the following aspects:
    • Establish a way which prevents the search for international competitivenessnegatively affecting cultural diversity. As was advised in the European Conferenceof the Audiovisual Sector in Birmingham, the system could involve sharing outcompetencies between the European institutions, which would promote theindustrial and structural objectives, and the national authorities would concentrateon the cultural objectives.
    • Increase aid to audiovisual production in new technologies, where it seems that,according to the results of Media II, the countries with a reduced production andinvestment capacity have fewer possibilities for development.
    • Continue the effort to contribute to the training of professionals in the sector,both in creative and business aspects. Training plans must consider as a priority theelements of production and commercialisation of the European contents ininternational markets.
    • Assume a wider concept of cultural diversity. To consider cultural diversity interms of language or to relate it to the production or capacity of the nationalindustries seems to be restricted. Although it is a practical criterion for resourcedistribution, it diminishes the richness and variety of the cultural manifestations.
    • Broaden the actions in defence of diversity in regional and local geographicalareas. Although it is not the Union's competence to intervene at these levels, itwould be useful to establish incentives for the member countries' governments totake action in this direction. In these areas, diversity is expressed with greaterrichness and it does not seem consistent to limit the defence of diversity to somenational borders overcome by the effects of globalisation.
    • Promote the creation of national organisms, or their consolidation in thosecountries where they already exist, in order to promote the broadcasting of qualityprogrammes. These organisms should carry out a follow up of contents of televisionprogrammes in their respective areas of competence, in order to determine up towhat point programme scheduling follows the criteria for quality and distribution ofcultural values previously established. At the same time, the functioning of TVviewers' organisations should be encouraged, since they can fulfil an importantfunction in the formation of public opinion and in the denunciation of irregularitiescommitted by programmers.

Special mission of public television

Public television represents the perfect instrument for promoting cultural diversity andidentity and for serving as a reference point for private production.

  • In this sense, the national legislation of each Member State should promote thebroadcasting of quality programmes with solid cultural values, although they are notprofitable in the short term. Legislative measures could include conditions for thefunding of programmes with public money, limitations on time and income fromadvertising and the direct promotion of a certain type of contents. It is important toconsider the effect of attraction that public television can exercise on privatetelevision.
  • In this way, it can influence audience tastes and demands so that companies obtainprofitability in the mid and long term, with programmes of a greater cultural value;in this way, the current tendency towards the increasingly marked predominance ofprogrammes with little cultural value or with non-European values will becounteracted.
  • A new legislative framework must be formed which, taking into account the newsituation of the markets, guarantees sufficient and lasting funding. In severalEuropean countries, the public television companies continue acting as distortingfactors for competition in the markets. They must hold a relevant position in theirnational markets to favour cultural diversity if they act with the coherence and logicof a public service which distinguishes itself from the programme planning ofcommercial networks.
  • Lastly, the possibility of indirect action on the production of private televisionshould not be forgotten. In this sense, national legislation should influenceprogramme planning, for example, by foreseeing the possibility of criteria forquality in the contents in the awarding of licences. Some organisms such as thoseestablished in the United Kingdom ( Independent Television Commission) andFrance (Conseil Superieur de L' Audiovisuel) seem to work, as they do not only keepwatch over the fulfilment of the conditions in which the licences were granted butalso enjoy the power to sanction.

Impact of the new technologies

  • Despite the fact that, in the mid term, traditional media will probably continue tohave the greatest incidence in the spreading of cultural values, the digitalization ofthe media opens up perspectives for the distribution of contents which will mean anincrease in the cultural diversity of the media. However, there is a tendency towardsthe implantation of pay media which could mean that access to the contents isrestricted for a great part of the society, who do not have sufficient resources. Thistendency must be counteracted especially by the public ownership media.
  • The digitalization and convergence of the media offer new possibilities forincreasing cultural diversity, such as the number of channels, the user's direct accessto the contents, the greater possibility for subtitling or dubbing and the new routesfor the distribution of contents.

The Internet is an especially appropriate medium for the transmission of culturalcontents, including that for even the smallest minority, given that it notablyincreases the possibilities for choice for the public and offers immediate access. TheInternet can facilitate the presence in society of universities, cultural associationsand other organisations of diverse nature, which develop interesting culturalactivities.

  • In the area of multimedia contents (Internet, DVD and videogames), as well as thedigital television channels, the present situation of dependency of European marketswith respect to North American and Japanese production, is a serious risk for therestriction of cultural diversity in Europe. In order to confront this situation, theEuropean audiovisual sector must be involved as a priority in the development ofcontents for this medium, especially of those which include interactive applicationsbased on connection to the Internet.
  • European leadership in the area of digital television offers favourable ground for thedevelopment of home-grown cultural contents which enjoy public preference. Thissituation can also encourage the development of multimedia contents related to themost successful television programmes...

Click here for the full PDF version of the report.


Placed on the Communication Initiative site August 27 2002
Last Updated December 03 2002



How useful did you find the knowledge and contacts on this page to your work?


3.35
Average: 3.4 (17 votes)
Your rating: None


COMMENTS POSTED


The article is very useful to face the challenge of producing quality TV in our times. Futura channel,from Brazil, tries to be an alternative of educational TV that, in addition to quality programming, builds a network of institutions (public schools, hospitals, prisons, nurseries, community associations....)that use the channel´s contents in taylor made projects. We reach almost 2 million people directly through our community work.
Futura is Brazilian and is delivered to 40 million people by C band and 5 million through cable.
It is non commercial and private, created by the Roberto Marinho Foundation and founded and funded by 14 leading Brazilian and international partners(such as Cnn/Turner and Schering).
I suggest that instead of assigning the mission of quality almost exclusively to public TV (mostly maintained by the states) we should broaden the concept to "educational TV" and be more iinclusive. Futura creates a different bond to the public, building together a new possibility of responsible relationship between TV and viewers.
Lucia Araujo- Futura general manager - lucia@futura.org.br

The article is very useful to face the challenge of producing quality TV in our times. Futura channel,from Brazil, tries to be an alternative of educational TV that, in addition to quality programming, builds a network of institutions (public schools, hospitals, prisons, nurseries, community associations....)that use the channel´s contents in taylor made projects. We reach almost 2 million people directly through our community work.
Futura is Brazilian and is delivered to 40 million people by C band and 5 million through cable.
It is non commercial and private, created by the Roberto Marinho Foundation and founded and funded by 14 leading Brazilian and international partners(such as Cnn/Turner and Schering).
I suggest that instead of assigning the mission of quality almost exclusively to public TV (mostly maintained by the states) we should broaden the concept to "educational TV" and be more iinclusive. Futura creates a different bond to the public, building together a new possibility of responsible relationship between TV and viewers.
Lucia Araujo- Futura general manager - lucia@futura.org.br

I am currently researching for a media studies essay on the effects of globalisation on the media. I found this report to be a valuable resource, its break-down of the concepts and ideas it conveys is excellent, putting it into a form that allowed me to use the information to its full potential. The objective viewpoint it offers leaves no room for the ambiguity which plagues many online resources these days. A great piece of work, thanks very much. Student, Edinburgh.

فلسطين


Help Seed The CI Network

Jobs and more...

Newspapers and Democracy

How central to democracy are newspapers - some of which are being lost to budget cuts and other changes - as opposed to blogs, YouTube, emails, text messaging, twittering, and the like?