Media Structures and Institutions

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Week 2
MCS101MEDIA INSTITUTIONS

• Media Structures and Institutions

Ibrahim Cansizoglu, Burak Dogu ibrahim.cansizoglu_at_
ieu.edu.tr, burak.dogu_at_ieu.edu.tr Media and
Communication, IUE
2
Defining media institution

• Although it is not possible to define the media
  institution in an objective manner we can roughly
  summarize the position of a media institution in
  society as
• An established organization, that deals in the
  creation and distribution of advertising,
  entertainment and information services. 
• Media institutions can be commercial or
  non-commercial entities.  
• Examples of media institutions include News
  International, Time Warner, The Walt Disney
  Company, Sony, Ofcom, RTÜK, BBC, TRT, and Dogan
  Medya. 
• This lecture is about the characteristics of
  media institutions at different levels.  
• Do you consider media as a social institution or
  an industry?
•  

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Some facts effecting the frame of definition

• Economic, political, socio-cultural reasons
• Nature of mediabusiness enterprise gt information
  and communication sectors
• Privatization of telecommunications
• Competition
• Changing technologies of distribution

4
Characteristics of media institution

• The activities of media institutions are both
  economic and political.
• Media have grown up in response to the social and
  cultural needs of individuals and societies, and
  they are largely run as business
  enterprises. Media generally have to operate
  wholly or partly according to the dictates of
  market economics.  
• What are the other forces regulate media other
  than free market rules?
• Media activities involve production of goods and
  services both private and public.
•     Private - consumption for individual goods
  and services    Public - viewed as necessary for
  the working of society as a whole
• Do you think media has a public character?

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Characteristics of media institution III

• Media has a political function in democracy.
• Information, culture and ideas are considered as
  common properties of all.
• Various mechanisms are imposed on media to
  encourage, protect or limit them on behalf of a
  supposed 'public interest'.  
• Any definition of the media institution is shaped
  by a certain perspective on the media.  These
  different perspectives are
• Economic/industrial perspective considers media
  mainly as an economic enterprise.
• Political-economic perspective mostly relies on
  the critique of capitalism, focuses on the
  processes of concentration and commercialization.
• Public interest perspective interested in
  normative criteria of conduct.
• Media professional point of view regards media
  from an internal view.

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Social influences on media
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Media structure

• Media system refers to the actual set of mass
  media in a given national society even if there
  may be no formal connections between the
  elements.
• The media system can be analyzed at different
  levels
• The degree of influence by private and public
  elements
• (free-enterprise media of USA vs. state-run media
  in China)
• The degree of concentration and privatization
• (media conglomerates operating in the broader
  sense of the whole information and communication
  sectors)
• Media sector (newspaper, tv, film...)
• Circulation area (national, regional)
• Unit medium (any specific newspaper, any specific
  tv channel)
• Unit media product (book, film, song...)
• Regulatory organs are closely linked to the
  politics, therefore to the media system.

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Other facts to be considered are...

• Each medium differs from the other in the means
  of its economic structure and publishing/broadcast
  ing policies (e.g. local, national,
  international).
•  
• Media are not only businesses responding to
  economic forces, but also deeply rooted social
  and cultural institutions.
•  
• Global issues are also to be considered in this
  process of media work (e.g. north vs south,
  Mcbride).
•  
• The two basic dynamics are the wish to make money
  and struggle for power in society.
•  
• Changing dynamics of technologies and convergence
  are also important cases to influence.

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Concept definition Convergence

• The blurring of the distinctions between
  telecommunications, computers, radio, television
  and newspapers caused by the improvements in
  digital technology.
•  
• It is what Crisell (2002 2867) describes as the
  interchangeability of media that is allowing
  all the various media platforms to take on some
  of the characteristics and functions of others.
• media_convergence.wmv

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Media structure (cont'd)

• Another way of thinking media is to adopt a
  broader sense, interconnected with the industries
  of advertising, public relations, marketing and
  audience research. And when we say media, we
  refer to different types like newspapers, tv,
  radio, music, film, telecommunications, etc.
•  
• This brings us to vertical integration and
  monopolisation. Thus it is not possible to think
  of media product (book, film, etc.) as a single
  unit.

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Economic principles of media structure

• Market can be defined according to place, people,
  type of revenue and the nature of product or
  service.
• Media market is consist of two categories
• Consumer market
• one-off products (books, films, etc.)
• continuous services (cable tv, online media,
  etc.)
• Advertising market
•  
•  Where do we integrate the free newspapers into
  the picture?
•  How does the dependency on advertising as the
  income source effect media outlets?

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Economic principles of media structure (cont'd)

• The correlation between media and advertising can
  be summarized as ...
•  
• the more advertising, the less credibility of
  information provided by any specific media
  outlet.
•  
• Dependency on advertising pulls media outlets
  more into the political economic system.
  Therefore they also get more under the influence
  of economic recessions.
•  
• Do you think that the content patterns of media
  is parallel to consumption patterns of target
  audiences? 
•  
• The final picture of advertising revenue depends
  on the geographical circumstances and on the
  homogeneity of  audiences.

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Competition for revenue

• Competition for a single revenue source results
  in imitative uniformity. In other words, low
  taste is triggered by mass consumer advertising.
•  
• Apart from this, the fact that different media
  often compete with each other for the same
  advertising income can encourage diversity.
•  
• The growth of Internet for advertising is another
  question in minds. Especially types of ads like
  classified, personal, property, personal, job,
  etc. suit more to the nature of this new medium.
  It seems that the advertising shares of the
  Internet will raise up to 16 in 2011.

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Media cost structure

• Fixed costs
•      Land, physical stuff, equipment, etc.
• Variable costs
•      Software, labour
•  
• If the fixed costs are high in value, the
  business is more vulnerable to changing market
  conditions.
•  
• New media opens up new uncertainities for the
  established media. For the new media fixed costs
  are much lower, however the content costs a lot.
•  
• It is better understood considering the fact that
  the first copy always costs more in the media
  business.

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Ownership and control

• According to Marxist theory, ownership
  ultimately determines the nature of media.
• Do you agree with this statement?
• Altschull's second law of journalism (1984)
• "The contents of the media always reflect the
  interest of those who finance them."
• Financiers of the media are
• private investors, advertisers, consumers, public
  or private enterprises, governments
• A media company    
• may be public/private,
• may belong to a large chain or conglomerate,
• may be independent (usually small).

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Effects of ownership

• Liberal theory
• Ownership can be seperated from control of
  editorial decisions.
• But, media exist in a capitalist system,
  therefore they have make profit. That means,
  profit involves taking decisions which directly
  influence content (such as cutting costs, closing
  down, shedding staff, investments, merging
  operations).
•  
• Public ownership is thought to neutralize or
  balance particular pressures, however that too
  means following a certain editorial line.
• For the liberals, the solution lies in
  multiplicity of private ownership.

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Effects of ownership (cont'd)

• According to social theories 'public interest'
  places a value on diversity.
• monopoly vs. competition
• Risk Competititon may also end up with
  monopolies.
•  
• Types of competition
• inter-media,
• intra-medium,
• inter-firm.
•  
• All media types have distinct advantages to
  advertisers in the means of form of the message,
  timing, type of audience, context of reception
  (Picard, 1989).
• Units of the same medium sector are more
  substitutable than between media.

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Horizontal vs. vertical concentration

• Vertical concentration refers to a pattern of
  ownership which extends through different stages
  of production and distribution.
• Horizontal concentration refers to mergers
  within the same market.
• Cross-media ownership is the concentration of
  different media by the same firm.

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Other issues regarding concentration

• Sharing of certain services by diffferent media,
  reduces the difference between various types of
  concentration.
• Audience market shares play an important role in
  concentration.
• Pricing,
• Quality of the product,
• Position of the competitors.
•  
• Recent trends regarding the content are adequacy
  of local news and information, the performance of
  the political and opinion-forming functions of
  media, degree of access to different voices,
  choices and diversity.

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Media concentration in Turkey I

• CINER GRUBU
• Televizyon Kanal 1, Habertürk.Dergi HM,
  Arena, Rolling Stone, OK, Marie Claire, Empire,
  Süper Dergi, PC Magazin, Seventeen, Marie Claire
  Maison, Electronic Gaming Monthly, Joy.Internet
  Habertürk.com, kanal1.com.tr, Guncel.net.Radyo
  Habertürk Radyo
• ÇALIK GRUBU
• Gazeteler  Sabah, Takvim, Yeni Asir, Pas
  Fotomaç.Televizyon ATVDergiler Yeni Aktüel,
  Bebegim ve Biz, Sinema, Sofra, Home Art, Samdan
  Plus, Para, Global Enerji, Transport, Hukuki
  Perspektifler, Cosmopolitan, Harpers Baazar,
  Auto Classic, Auto Motors Sport, Cosmo Girl,
  Cosmopolitan Bride, Esquarie, Forbes Türkiye,
  House Beautiful, Hülya. Radyo Radyo City.Baski
  ve Dagitim Turkuvaz Dagitim (eski adi Merkez
  Dagitim)
•  

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Media concentration in Turkey II

• ÇUKUROVA GRUBU
• Televizyon Show TV, SKY Türk.Digital Pay TV
  Lig TV, ShowMax, ShowPlus, GoldMax, GoldMax2,
  MovieMax, MovieMax2, ActionMax, TürkMax, MovieMax
  HD, ComedyMax, DiziMax, MyMax, Iz TV, Estore Tv,
  Snek TV.Gazete Aksam, Tercüman, Günes.Radyo
  Alem FM, Lig Radyo.Dergi Alem, Total Film,
  Stuff, Platin, FourFourTwo, AutoCar, Eve, Maxim.
  
• DOGUS GRUBU Televizyon NTV, Kral TV, CNBCe,
  e2, NBA TV, NTVSporRadyo NTV Radyo, Radyo
  Eksen, Radio N101, Billboard Radio.Dergi CNBC-e
  dergisi, e2 kanali eki, Motor Boat, National
  Geographic, National Geographic Kids, CNBCe
  Business, Billboard, Slam, F1 Racing,
  Evo.Internet ntvmsnbc.com, ntvspor.net,
  cnbce.com, e2.tv.trDiger NTV Yayinlari

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Media concentration in Turkey III

• FOX GRUBU Televizyon Fox TV, Baby TV, FX tv,
  FoxLife, National Geographic Turkey.
• IHLAS GRUBUTelevizyon TGRT Haber TV, TGRT
  Pazarlama TV.Haber Ajansi Ihlas Haber
  Ajansi.Gazete Türkiye Gazetesi.Internet
  Ihlas.netRadyo TGRT FM

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Media concentration in Turkey IV

• KANAL 7 GRUBU Televizyon Kanal 7, Ülke TV,
  Kanal7 Int, TVT.Radyo Radyo7, Istanbul'un Sesi
  Radyosu.Internet Haber7.com, Cafesiyaset.com,
  Rotahaber.com, Tumspor.com, NewsTime7.com
• FEZA  GRUBU Gazete Zaman, Today's
  Zaman.Televizyon Samanyolu TV, Samanyolu Haber
  TV, Mehtap TV, Ebru TV, Yumurcak TV.Dergi
  Aksiyon, Sizinti, Yeni ÜmitHaber Ajansi Cihan
  Haber Ajansi Internet Samanyoluhaber.com,
  zaman.com.trRadyo Burç Fm, Dünya Radyo,
  SamanyoluHaber.

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Media concentration in Turkey V

• DOGAN GRUBU IGazete Hürriyet, Milliyet, Posta,
  Vatan, Radikal, Fanatik, Referans, Turkish Daily
  News.TV Kanal D, Star TV, CNN TürkDigital
  Pay TV Dream TV, Dream Türk, D Max, D Yesilçam,
  D Plus, D Çocuk, D Spor, BJK TV, GS TV, FIX TV,
  Movie Smart, Movies 24, Comedy Smart, Pembe
  Smart, D Shopping, TAY TV, Emlak TV.Time Warner
  Dogan Ortakligi TNT TV, Cartoon Network
  TVDergi Atlas, Auto Show, Blue Jean, Burda,
  Capital, Chip, Dr. Kushanla Diyet, Ekonomist,
  Elele, Elle, Elle Decor, Ev Bahçe, Evim,
  Formsanté, Güncel Hukuk, Hafta Sonu, Hello, Hey
  Girl, Istanbul Life, Level, Lezzet, Maison
  Française, Pc Net, Seda Magazin, Seninle, Tempo,
  Yacht Türkiye, Goal. (Ayrica 16 çocuk ile 2
  gençlik dergisi)Haber Ajansi Dogan Haber Ajansi.

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Media concentration in Turkey VI

• DOGAN GRUBU IIRadyo RadyoD, Radyo Moda, CNN
  Türk Radyo, Slow Türk.Yurtdisi Euro D, Euro
  Star.Kanal D Romania TVTME Gazeteleri (Iz Ruk v
  Ruki, Expressz, Oglasnik.)Internet
  Hurriyet.com.tr, Milliyet.com.tr (Milliyet Emlak
  ve Arabam gibi 5 alt marka), Yenibiris.com,
  Insankaynaklari.com, Hurriyetemlak.com, EKolay
  EKolay.net, Mahmure, Bigpara), Azbuz.com,
  HepsiBurada.com, Gayet.net, HerEveLazim.com.tr,
  HemAlHemSat.com, GeziSitesi.com, OnPunto.com,
  TatilSepeti.com.Baski ve Dagitim Yaysat, DPP
  Dergi Pazarlama Planlama, Dogan Printing Center,
  Dogan Ofset. Diger D Productions, Kanal D Home
  Video, MedyaNet, Dogan Kitap, Altin Sayfalar,
  DMC, Dogan Telekom, Smile ADSL, DR.

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Distinctive features of media economics I

• Media are typically hybrid in character. Often
  they operate in a dual market selling a product
  to consumers and a service to advertisers. 
• Media cost structures are characterized by high
  labor intensiveness and high fixed costs.
• High degree of uncertainty and uniqueness of the
  product is another distinctive feature.  
• Media products should be differentiated even
  though there is an urge for standardization.

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Distinctive features of media economics II

• Media seem tended to concentration. Advantages of
  monopoly, appeal for power and social prestige
  are some factors in this tendency.
• Many media businesses (especially those of
  involving distribution) are unusually hard to
  enter without large capital resources. High fixed
  costs and high launch costs are important
  factors.
• Media are different just because of the public
  interest they are after. Social responsibility is
  an indispensable.  

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Four main dynamics of the media structure

• The pursuit of profit in a situation of supply
  and demand (market forces),
• The dominance of certain technologies for a
  period of time,
• Social and economic changes in society,
• Various political and policy goals which often
  shape the working environment of media.

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Market forces and technology

• When the market forces are concerned, commercial
  media is not very much different than any other
  business.
• Yet the difference arises when the media has a
  semi-public status or role.
• The rise of new technologies constantly
  challenges media institutions for change and
  adaptation. Their status in the market is
  determined by how they integrate with the new
  technologies.  
• The rise of a specific technology does not
  usually eclipse old media entirely since the
  change never occurs in one day. It is rather a
  long process.

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The role of public policy 

• Since about 1980s in Western Europe and until
  1989 in Turkey the development of radio and
  television had been kept firmly in the hands of
  national governments.
• The broadcast media were deemed too important to
  society to be left to the marketplace.
• Political arrangements were undermined by four
  main kinds of change 
• Technological advances
• Neo-liberal policies
• European integration
• Free market ideology

31
        
Four types of societies in relation with their
communication policies (Salvaggio, 1985)

• Competitive free market,
• Public utility,
• Communist,
• Third world.
• Some economic and external forces constantly
  influence the communication policies of specific
  societies.

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The regulation of mass media Alternative models

• Free press model 
• The basic model for the press is one of freedom
  from any government regulation and control that
  would imply censorship or limits on the freedom
  of publication.
• Press freedom is often protected as a principle
  in national constitutions and in international
  charters, such as the European Treaty of Human
  Rights.
• Press is often protected from damaging effects of
  free market competition with some economic
  benefits. The main principle in this kind of a
  public policy is to protect citizens' rights to
  access to a free press.    
• There may also be anti-concentration laws and
  rules against foreign ownership. 

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• Broadcasting model  
• By contrast to the press, radio and television
  broadcasting have been subject to high levels of
  restriction and direction, often involving direct
  public ownership.
• Initially regulation was designed for fair
  allocation of limited resources (frequencies) and
  control of monopoly, however after 1980s the
  trend became institutionalized as a consequence
  of emerging technologies and changing opinions.
• There are different forms in public model weaker
  (as in USA), stronger (in Europe). 
• Usually there are specific media laws to regulate
  the industry and often some form of public
  service bureaucracy to implement the law.
• Despite its relative decline, however, the
  broadcasting model shows no sign of being
  abandoned, for reasons related to the presumed
  communicative power of audiovisual media and
  broader public interest concerns.  

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• Common carrier model
• This model primarily related to communication
  services such as mail, telephone, telegraph which
  are purely for distribution and intended to be
  open to all as universal services.
• The main motivation behind regulation of these
  services is increasing efficiency for customers.
• In this model there is heavy regulation for
  infrastructure and of economic exploitation but
  only very marginal regulation of content.
• This is in sharp contrast with broadcasting which
  is characterized by high degree of content
  regulation.
• This model of regulation is often consequenced by
  natural monopolies.

35
The regulatory models compared

• Regulation of infrastructure
• Regulation content

Print Broadcasting Common
Carrier None High
High None High None
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Dimensions of media system difference

• Differences between particular countries are not
  limited to the variations of systems. Their
  particular characters (such as culture and
  history) are established outside the media
  systems.
• Scale and centralization,
• Degree of politicization,
• Diversity profile,
• Sources of finance,
• Degrees of public regulation and control.
• In general, media are thought to be becoming more
  globalized, less massified, more decentralized,
  more oriented to popular taste and culture, less
  politicized, less regulated and more commercial
  in funding.

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(No Transcript)
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Some facts on Turkey

• The total amount of advertisement share in Turkey
  is
• 3.2 billion dollars.
• There are 35 national, 99 regional, and 944 local
  radios in Turkey. Their total advertisement share
  is no more than 3. Since 2003, Ipsos KMG makes
  the measurements on the mentioned media by using
  self-reporting diary methodology.
• Currently 16 national, 15 regional, 229 local,
  and 53 cable Tv stations broadcast in Turkey
  where ratings are measured by AGB Nielsen since
  1989 by making use of a device called peoplemeter.

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Concept definition Rating/share

• Rating The percentage of a given population
  group consuming a medium at a particular moment.
• Share Percentage of households in a specific
  geographic area with television sets tuned to a
  particular program as compared to the percentage
  of households with television sets turned on.
• The difference between rating and share is that a
  rating reflects the percentage of the total
  population of televisions tuned to a particular
  program while share reflects the percentage of
  televisions actually in use.
• Samples
• http//www.agbnielsen.net
• http//www.medyatava.com

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About AGB Nielsen I

• Multiple countries across five continents,
  hundreds of channels, thousands of programs,
  millions of viewers. Our job is to decipher and
  deliver television data every day. How does a
  program achieve the top rank in TV ratings, and
  what does this mean? Our ratings arent
  qualitative evaluations of how much a program is
  liked. Instead, our ratings provide the
  simplest, most democratic measurement How many
  people watched?.
• Nielsen measures over 40 of the worlds TV
  viewing behaviour.
• It is the Nielsen mission to establish the common
  currency to be used by TV Broadcasters, Agencies
  and Advertisers, based upon a reliable,
  independent and transparent audience measurement
  system. Nielsen currently manages more television
  audience measurement (TAM) panel households than
  any other international television audience
  ratings provider.

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About AGB Nielsen II

• Today, the typical home has multiple television
  sets and well over 100 channels from which to
  choose. Likewise, our measurement technologies
  must constantly evolve to keep pace with daily
  innovations in consumer electronics.
• With recent advances in electronics, viewing is
  no longer limited to the television set and
  content is available on multiple platforms.
  Computers and mobile devices have joined the
  television as places to view programming. Nielsen
  measures how people use and engage with content
  across these three screens.
• Nielsen uses BuzzMetrics to measure blog
  activities.
• Mobile phone activities are also measured.
  Telephia is used as a tool to get stats on that
  media.
• Nielsen/NetRatings monitors and measures more
  than 90 of global Internet activity and provides
  insights about the online universe - including
  audiences, advertising, video, e-commerce and
  consumer behavior.

42
        
TIAK

• Televizyon Izleme Arastirma Komitesi (TIAK),
  Türkiye'de televizyon izleyici arastirmalarini
  organize etmek ve denetlemek amaciyla çalisan bir
  komitedir. Reklam kuruluslari ve televizyon
  sirketleri tarafindan olusturulmus olan TIAK,
  televizyon izleyici ölçüm islerini AGB Nielsen
  Media Research sirketinin Türkiye kolu olan AGB
  Anadolu'ya ihale etmistir. Amaci, "örneklem
  büyüklügü, iller, temsil edilecek evren, panel
  kompozisyonunda kullanilacak temel degiskenler ve
  raporlama kriterlerini" belirlemektir. Komite,
  AGB'nin isverenidir, arastirmayi organize eder,
  yapilisini denetler ve sonuçlari komiteyi finanse
  eden kuruluslara dagitir.
• Türkiyedeki televizyonlar için izlenme oranlari
  (reyting) ölçümleri nasil yapilmaktadir?
• Türkiyede reyting ölçümü, Avrupada bir çok
  ülkede bu türden veriler üreten Ocak 2005den
  itibaren izleme ölçümleri, 21 il merkezinde ve bu
  il merkezlerinin 20.000 nüfus üstü
  kent-ilçelerinde olmak üzere Türkiyede 2201
  hanede yapilmaktadir. Firmadan alinan bilgilerde
  söz konusu hane sayisinin bu bölgelerdeki 5 yas
  üzeri 38.935.633 kisiyi temsil ettigi
  belirtilmektedir. (Kamuoyu, Yayin Arastirmalari
  ve Ölçme Dairesi Baskanligi)
• Ölçüm yapilan dört tane grup var. A/B, C1, C2,
  D/E. Bu gruplari olustururken hane reisinin
  egitim ve meslegine bakiliyor. Egitim düzeyi
  yüksek olan insanlar A/B dedigimiz grubu
  olusturuyor. C ve D/E grubu ise daha alt geliri
  temsil eden insanlar. Total ise bütün bu
  gruplarin toplamini temsil ediyor.

43

• Reklamlari seyreder misiniz?

Televizyon Izleme Egilimleri Arastirmasi - RTÜK
44
Advertising on Tv networks I

• Radio and Tv stations generate revenue either by
  selling advertising time or by subscription.
•  
• Another way broadcasters raise revenue is by
  selling programmes, or formats, abroad.
• In Britain, Channel 3, the ITV Network, generated
  1.8 billion from advertising in 1998.
•  
• The estimated cost of buying a 30-second slot in
  the nations most popular soap opera, Coronation
  Street, stands at a staggering 100,000. This
  huge sum will deliver coverage of more than 25
  of the UK population some 14 million people...
  UK media agency Zenith Media estimates that the
  average cost of a 30-second peaktime ad on
  ITV...is 53,000. (Darns, 2001, p. 11)

45
Advertising on Tv networks II

• In 1999, the arrival of digital TV both expanded
  the market, as more people subscribed to pay TV,
  and ate into advertising budgets.
• If advertisers have more channels at their
  disposal it means each channel is likely to get a
  smaller share. The amount companies spend on
  advertising is also extremely sensitive to the
  economic conditions of the time when recession
  hits, advertising, along with jobs, is cut.
• The market share of many cable and satellite
  channels is so small that it barely registers.
  However, these can be successful in delivering
  niche audiences to advertisers.
•  
• Advertisers have paid more to reach the same
  number of people. This expansion cannot continue
  indefinitely.
•  
• By the end of the 1990s British TV networks have
  merged in order to survive. There was the
  assumption that only the large networks would
  make profit.

46
Audience share (percentage of total audience)