conceptualising convergence guy berger 2 october 2003 “media convergence: world trends and options...
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Conceptualising Convergence
Guy Berger2 October 2003
“Media convergence: world trends and options for Africa”.
Alphen Hotel, Cape Town. 1-4 October. Konrad Adenauer Stiftung,Rhodes University Sol Plaatje Media Leadership Institute
Coming up:
1. Origins
2. Converging industries
3. Device convergence
4. Media sector convergence
5. Implications for regulation
6. Money and mergers
7. Culture clashes
8. Conclusion
1. ORIGINS
Africa needs more media!Technological romanticism.My mother-in-law:
“Con virgins?”
Learning about it …
Currency of a term:
Arose with the rise of the Internet
A child of the 1990s Celebrated as part of the
Internet
Quest for a dot.com King:
content, community, commerce, channel (portal), cybercity, carrier, community-created content?
Lord of the C-ings:
None of these “C’s” Too web-Centric! Royal Person not online!
Governing Principle:
Convergence rules across all media The lesser “C’s” are part of the royal
family … Can be found across all platforms Eg. Newspapers – content, community,
commerce, channel, city, carrier, ccc Now: web needs to work with other media!
Rules of the reign:
In time, web will win as its own cost centre
But, even then, co-operation will be the order required among all the dukes, barons, princes …. and even the princesses!
We will see the of the cross-media empire!
Concept:
Convergence means the coming together of formerly separate things.
The complication is that it covers lots of processes …
Foundation & floors
Culture
Finance
Regulation
Production+distrib
Devices
Media sector
ICT sector
Technology
Tech: Digitalisation
History: analogue streams Sound, & AV hogging uninterrupted
bandwidth & physical spaces Linear text & image on printed pages.
Now: from atoms to digital bits Based on a binary principle:
One’s and zero’s
Tech: Networks
Conversion of bits into multiple formats
CompressionPacketsSignals
Tech: Carriers
Wires: copper, fibre opticWireless:
Satellite, broadcast, GSM, 3G wifi
Negroponte switch:
Bandwidth plays on …
What used to go by air …
And on …
Now goes to ground (eg. cable tv)
And on …
What was sent via ground …
And on …
Now goes to air …
Tech: connections converge
Not a seamless highway Rather a patchwork Interconnected technologies
- Hoogenboezen Incls convergence ‘tween fixed & mobile
systems
(And with links to non-electronic media … like print, art, or word of mouth …)
Example
CT caller on cellphone
12
I n J hb, call goes back on cellular,received byreporter
3
Transm itted for SABC on a broadcast frequency
4a
S atellite report m ixed into bulletin
4b
Bulletinis stored on server
5
S erved on Web 6
Tech: Computing impact: When PCs met telcoms:
From Wans & Lans to: Internet: IP protocol
Everything on IP (convergence!) Data, audio, video, mac’s, pc’s
When PCs met media: Newsgathering Editing Business management Output platform
Summing up:
The revolution of digital networking is profound
It is the foundation for what we now call “convergence”
2. INDUSTRY CONVERGENCE
1. Origins2. Converging industries3. Device convergence4. Media sector convergence5. Implications for regulation6. Money and mergers7. Culture clashes8. Conclusion
Once upon a time
telcom s I T m edia
Computers infiltrate
telcom s I T m edia
Internet is born:
telcom s
I T= I CT
m edia
I nternet
What was designed as a voice network also carries data between computers
And media joins in …
telcom s
I CT
m edia
1 to 1 comms
1 to many comms
internet
Specifically new media
telcom s
I CT
m edia
new m edia: W W W
Online papers & stations
telcom s
I CT
W W W
broadcast
Other new media exploited
telcom s
I CT
broadcast
W W W ,em ail-new s-letters,PDAs,phones,billboards.
Print & broadcast blur
telcom s
I CT
new m edia
broadcast
Dog and tail
Which platform is primary in general? Web didn’t kill old media. Who wags what? In the whole converged media pack,
what platform is top dog? In a given media company, what is the
primary platform?
Summing up:
Telcoms and IT industry create Internet Media industry joins the party, mainly
with Internet, but also other new ICTs. Lines within the media industry itself
start to blur
3. DEVICE CONVERGENCE
1. Origins2. Converging industries3. Device convergence4. Media sector convergence5. Implications for regulation6. Money and mergers7. Culture clashes8. Conclusion
On the consumption side Questions:
Top connected device: PC or TV? Lean forward or back?
Convergence of Cellphone & Laptop/PDA? True multi-media converges text, audio, etc? Will it be “killer app”, killing off mono-media?
Answers: Devices multi-functional Divergence survives
There will still be times when:
Solo sound is sought after, It will be most efficient to
communicate with text & still pictures,
Couch potatoes want to experience unidirectional AV content
Difference …
Content may arrive on handhelds, electronic paper, smart TV, PC, phone, fridge, car, clothing …
It may ride on wired or wireless signals
Difference …
New stuff will still fullfil classic functions of radio, TV, print
But: content will be convertible between text, sound, & language
And: Some content will be blended as multi-media, & the whole greater than the sum of parts
Plus: Much will be interactive.
Movable feast
Devices will offer fixed and mobile access.
We are heading for any content, any time, any place … at any price.
Ubiquity and speed of info will be hallmarks of Info Society.
Summing up:
Convergence does not annihilate devices/platforms,
But it does command us to co-operate. Old – Old Old – New New – Old Producers - Consumers
Multiple platforming ahead.
4. MEDIA CONVERGENCE
1. Origins2. Converging industries3. Device convergence4. Media sector convergence5. Implications for regulation6. Money and mergers7. Culture clashes8. Conclusion
The making of media …
Media as a sector:Distribution convergence:
Content re-purposingProduction convergence:
Database publishingMulti-skillingArchiving
Organisational: 1
television
m agazines
radio
newspapers
S etting up separate news-ops in offspring web & other platform s
Organisational 2
television
m agazines
radio
newspapers
Bringing 'em back hom e:convergingnewsroom s
Organisational 3
web
Fusion: converging com panies;integrated newsroom
television
m agazines
radio
newspapers
cm s
Summing up:
Level one: Media sector sharing content across platforms.
Level two: Media sector sharing production across platforms – with increasing integration of newsrooms.
Level three: Converged ownership?
5. IMPACT ON REGULATION
1. Origins
2. Converging industries
3. Device convergence
4. Media sector convergence
5. Implications for regulation
6. Money and mergers
7. Culture clashes
8. Conclusion
telcom s
I CT
broadcast
Who may do what, and how
Regulatory convergence: back then …
telcom s
I BA
broadcast
S atra
Regulatory convergence: now …
telcom s broadcast
I casa
Regulatory convergence: tomorrow?
telcom s broadcast
I casa
Complications:
Producers: need licence to broadcast on Internet? Via Wifi spectrum? Offshore originators?
Consumers: Need to pay TV licence when downloading
via PC or when receiving on cellphone? Cross-ownership? Foreign ownership?
Legacy regulation
Broadcast signals not yet digital “Scarce resource rationale”
Classic regulations: Moral acceptability (censorship) Legality (IPR, security, libel) Social issues (local content, etc.)
- Content Commission, DoC Colloquium
Tech Neutral regulation?
Should non-broadcast channels attract: Local content obligations? Universal access? Language mix requirements? Electoral balance?
Or should it be specific providers (eg. SABC, community broadcasters) who have conditions, irrespective of channel?
Regulate the regulatable?
250 000 movies, 11m web pages heavy touch vs light touch
notification monopoly, tariffs
penetration & scale joint regulation, self-regulation active vs passive (fetch vs push)
SA: new licence categories
Network facility provider: cables, transmitters, satellites.
Network service provider: bandwidth, broadcasting.
Application service provider: telephony.
Content applications provider: various broadcasters.
Summing up:
A single regulator Practicalities and complexities Regulating channel use, or users Degrees and forms of regulation Licencing providers to do infrastructure,
services, applications, content.
6. MONEY & MERGERS
1. Origins2. Converging industries3. Device convergence4. Media sector convergence5. Implications for regulation6. Money and mergers7. Culture clashes8. Conclusion
$ makes the world go round
“The mere fact that convergence is a technical possibility does not explain why convergence is taking place now” - Hoogenboezem
Economic drivers
Produce once, publish thrice … Content is costly to produce Cheap to reproduce electronically Repurpose for different platforms.
Background of: Fragmentation of audiences Increased competition for advertising Global and niche opportunities
Digital economics
Advertising drawing Editorial closer E-commerce convergence Subscription, pay-per-view Customisation Data-mining Cross-promotion & branding
Convergence is …
“the progressive integration of the value chains of the information and content industries …
into a single market & value chain … based on the use of distributed digital
technology” - Sameer Sharma
Value chain elements:
1. Content (origination, production)2. Services/applics (content
packaging and design) 3. Transmission/delivery (eg. satellite,
cable, mobile, wireless, broadband) 4. Consumer devices (eg. decoder,
tv, pc, mobile, pda) – Nolo Letele
Value chain today:
Old:Content creators + owners Platform owners Audience Ads/Subs
Tomorrow: overturned?
At present, SABC pays Sentech to deliver its broadcast.
In future, Sentech may pay SABC for the content it seeks to deliver.
At present, Johnnic pays Telkom for bandwidth to deliver Internet content to customers.
In future, Telkom’s rival may seek to pay Johnnic for the content.
Content folk in new food chain:
New (channels & carriers dominate): Platform Content creators + owners Audience
New (disintermediation): Advertisers Audience
New (consumers becomes producers): Audience Platform
Summing up:
Value chain is changing New revenue streams emerging More platforms More producers, incl audience More competition
7. CULTURE vs CONVERGENCE
1. Origins2. Converging industries3. Device convergence4. Media sector convergence5. Implications for regulation6. Money and mergers7. Culture clashes8. Conclusion
The people factor …
“The technical demands of convergence – establishing central news hubs – is the easy part.” Ciara Ryan
Architecture, training, social mix Leadership.
8. CONCLUSION
1. Origins2. Converging industries3. Device convergence4. Media sector convergence5. Implications for regulation6. Money and mergers7. Culture clashes8. Conclusion
Promises, promises …
Hype:InteractivitySynergiesMultimedia skillingDigital utopia
Finding hope
Industrial level: New and NB economic sector
Globalisation level: International markets, incl diaspora
Access: Increased media density
Caution
“Incumbents benefit most from convergence, because they can can leverage power and also cross subsidise.” - Talaat Laham
OR
Are big players too entrenched and slow to capitalise effectively?
Advice
“Convergence is a threat and an opportunity. The challenge to the content developer is to reach consumers through as many channels as possible, at reasonable cost.” - Connie Molusi
Summing up
Digitalisation & networks Convergence of industries Device convergence Media sector convergence Regulatory implications Changing value chain Culture question
Take away thoughts:
Convergence calls for scenario thinking.
“We overestimate the changes that will occur in 2 years, but we under-estimate those in 10”. - Pete Rinearson
Take away thoughts:
Our business is not just to report change, but to manage it as well.
Stand-alone media will not make it. The name of the new game is
convergence – let it begin with co-operation & alliances.
Step forward:
King (or Queen) convergence
Take a bow!
Extra reading:
Berger, G. 2001. Configuring Convergence. http://journ.ru.ac.za/staff/guy/fulltext/nrfboo8kisbn.doc
Dept of Communications. 2003. http://www.doc.gov.za/Convergence/convcol.html
Negroponte, N. 1995. Being Digital. New York: Alfred A Knopf