Thursday, October 1, 2009

Deregulation


Regulation is when a nation state guides the content and general direction of mass media. Photo by French photographer René Maltête, 1960.

PAPATHANASSOPOULOS: 1. The Effects of Deregulation
The author explains that his research concerns the early 1980’s in Western Europe. He begins by outlining the general changes in television broadcasting:
-uncertainty over new technology and “new media”
-increasing costs for programming, administration and licensing
-demand for liberalization of old monopolies, especially in telecommunications

-transforming broadcasting to marketplace rather than cultural entity
-concern over inward and outward investing

The overall direction of European media during the 1980’s was toward deregulation. This meant a gradual decrease of state controlled media, to the point that the very idea of state media was becoming a thing of the past. Papathanassopoulos explains that “with deregulation, one sector of the economy after another is ‘liberated’ to capital’s unmonitored authority.” The idea of media as “public” is deceased as people are willing to pay for cable and technology services that provide more options.

An understanding of the historic process of deregulation is the essential starting place to understanding European media today. One reason for deregulation was the increasing diversity of technology with satellites, cable ad telecommunications such as mobile phones.
Papathanassopoulos explains that new technology
-required new regulations
-had a ripple effect across sectors
-created new global markets

With deregulation, the liberal environment allows companies to respond to new technology but can result in bigger monopolies that later need government intervention.

Public Service Broadcasting in Europe had a greater presence than in the US. It has provided
-universal service, free and in all locations
-balanced programming
-balanced political agenda
-independence from commercial entities and some government bodies (there was variation between stations in public and private funding)


5 challenges in the television sector were

-organizing and controlling media in countries with political instability

-increasing competition

-funding problems and advertising driven budgets

-language diversity, especially within counties like Belgium or Switzerland

-limited frequencies


Deregulation is a much larger practice of creating “enterprise culture” around the globe, essentially spreading a competitive market into every area of life. Papathanassopoulos suggests that the idea for deregulation came from the US and then to Europe.

-governments were supporting private channels

-television was at a saturation point with little licensing profits
-broadcasters were now responsible to diversity
-country to country competition

-television was expanding to lager questions about communications


Numbers of European channels

1989: 90

1996: 220

2000: 580


There were also “injudicious” deregulations happening in Italy, Luxembourg, France, Germany followed by Britain, the Netherlands and Belgium then Scandinavian countries, Spain and Greece and finally in the 1990’s in Eastern Europe.


Summary of Effects of Deregulation

Digital television and services also offer a yet unmeasured influence on all areas but these are some observations by the author.

Programming: Increased needs created an increased dependency on the US, purchasing $2.5 billion in content in 1995 alone. Yet there is evidence the Europeans want to keep their local channels which amount to 70% of their viewing.

Programming Imports: The US is the leader in media exportation. The EU trade deficit in the entertainment sector is approaching 7 billion Euros with US exports amounting to 60-90% of revenues (movie ticket sales etc) while the European share of the US market is about 1-2%. A program introduced in 2001 called “Media Plus” supports European media within and outside the EU.


Inglorius Basterds, 2009, is an exception to the rule by using a multi-language format, making it more export friendly. Most American films are dubbed in export.


Commercialization and quality: Competition for audiences meant a general increase in entertainment, especially with sex and violence.

Tabloidization of the news: Ratings driven news means more international content and human interest stories creating infortainment. Papathanassopoulos suggests that news seeks out scandals and political crime for the audiences. Even the BBC has been accused of sensationalism.

Financing: Competition means competing for advertisers. Sponsorship and subscriptions are other revenue generators.

Public broadcast: General audience decrease and an effort on their part to offer thematic channels.

Media Ownership: The diversity of channels is combined with cooperation between broadcasters that eventually leads to convergence and possible oligarchies in media that may eventually be an uneven control of the system.

Proximate television: Regional channels try to reach neighboring communities by extending the broadcast territory.

Authorities: Regulations are enforced by governments or courts. The actual regulating bodies vary country to country.

Consumption: In 1999 the average European TV viewing was 199 minutes a day. There are arguments over the accuracy of numbers and the internet will likely cause a decrease in the number of hours spent at home viewing TV.

Smaller states: Smaller emerging countries model themselves after the larger countries and depend on larger countries for guidance.


The European Media Landscape




The European Union
Established in 1993
27 member states
16 member states participate in the Euro
500 million citizens
30% of Gross World Product



The EU began as an alliance at the Schuman Treaty of 1950, a coal and steel trade agreement with Belgium, France, Italy, Luxembourg, Netherlands & West Germany.



In 1957, the same core countries signed the Treaty of Rome which continued to be revised until the official EU formation in 1993. We now have an “enlarged Europe” because it has come to include the Eastern countries.

Blue indicates the member states that use the Euro currency.

The UK retains their original currency. Non-member states Norway, Switzerland and Lichtenstein participate only in “single market” for leveling of prices. Iceland participates in single market but has now requested to join.


Fredrik Reinfeldt, b. 1965, Prime Minister of Sweden and President of the EU

The presidency rotates twice a year and is currently held by Sweden. The actual constitution has never been accepted because it was refused by France and the Dutch.




Within the EU are the following agencies
The European Parliament: works to pass legislation
The European Council: advises Parliament and controls the “Common Foreign and Security Policy”
The European Commission: initiates the legislation
The European Court of Justice: upholds the legislation



The EU executive body the “European Commission” enforces laws but it is up to each country to regulate media.


Burton, Cathie & Drake, Alan (2004). The European Media Landscape in Hitting the Headlines in Europe.

The European news system began with Roman posting of flyers and the first newspaper the Acta Diurna, meaning “daily acts.” Acta Diurna introduced the expression “publicare et propagare”, which means "make public and propagate." This expression was set in the end of the texts and proclaimed a release to both Roman citizens and non-citizens. Their original content included results of legal proceedings and outcomes of trials. Later the content was expanded to public notices and announcements of prominent births, marriages and deaths.

The first newsprint was in Nuremberg Germany in 1457, followed by Britain’s paper The Weekly News in 1622. While the ruling class tried to contain newspapers to the educated, by the 19thcentury it was a main, relatively popular form of communication amongst the literate.

Contemporary Europe now has both nation and language specific news. There is only 30% fluency in English as of 2001, with Russian being the most spoken native and second language in Europe at 288 million speakers.






European News Media



The Financial Times
Since 1888, British pink paper the supplies facts and stories about the economic climate. It is known for remaining fairly neutral with some British Labour party support.



The International Herald Tribune
Based in Paris, it works in relationship to it’s owner the New York Times.









The Economist
A Scottish founded free market magazine published in 6 different country editions. It is known for being on the right, conservative side but is at times unpredictably radical. Importantly all the stories are anonymously.

Le Monde
The newspaper has a 2 million daily readership, larger than the New York Times. It is available in 120 countries in French.


European News Agencies



















Reuters
Reuters started in Britain by carrier pigeons, then underground cables. It is now the most subscribed news source for European newspapers.







Agence France Press
16 Europeans offices with 2,000 writers. Circulates news in Europe in 7 languages






Associated Press
American based with about 250 world wide offices









Itar Tass
The former Soviet News agency now serving Russia and Eastern Europe


European News Channels










BBC World
While BBC in England is regulated public television, BBC World has advertising.









CNN
The European office is located in London. The French correspondant is AUP Professor Jim Bitterman.













Deutsche Welle
World news in German and English with some Spanish and Arabic languages for specific markets.






Euronews
Based in Lyon France, 7 language broadcast in voiceover only, currently the global leader







Arte

A combined French-German station that also reaches Austria, Belgium and Switzerland.









CNBC Europe
American NBC dependent news source targeting banks and hotels


European Media Centers











Brussels: Global politics happens here. Headquarters for the EU and NATO (North Atlantic Treaty Organization) and near the International Criminal Court in the Hague.











London: Leader in global news and center for the Foreign Press Association.











Paris: Claims largest number of foreign correspondents












Strasbourg: The European Parliament, the legislative branch of the EU, meets here and there are many human rights agencies and other offices based here.











Geneva: Home to the United Nations, World Trade Organization and Red Cross