Media Policies Revisited

The Challenge for Media Freedom and Independence

E. Psychogiopoulou, E. Psychogiopoulou

• Publisher: Palgrave Macmillan
• Year: 2014
• ISBN:
  9781137337849
• Topic: Sciences sociales
• Subtopic: Étude des média

Evangelia Psychogiopoulou brings together distinguished scholars across a range of academic disciplines to investigate the media's freedom and independence, and the media policy processes, institutional spaces, regulatory practices and instruments that can support the development of free and independent media in Europe.

1

The Emerging Governance Pattern in Media and Communications

Petros Iosifidis

1.1 Introduction

This chapter discusses the key issues that emerge in the context of media policies in light of the emerging spaces for global media policy governance. So far, media policies have been mainly national, with nation states being the main actor initiating and implementing policy within specific territorial boundaries. However, new forms of policy/governance need to be developed to result in a fresh dynamic between the state, the market, the citizen and the media. In light of technological convergence, deregulation and media globalisation, this chapter offers guidelines for regulatory reform and makes an assessment as to whether it is sector-specific or economic/competition regulation that may provide an adequate regulatory response to public interest concerns, such as the freedom of expression, the protection of editorial standards, media independence and pluralism.

The analysis starts by defining relevant terms such as technological convergence and globalisation and presents the regulatory challenges raised by these processes. It then assesses the need for a new, common regulatory framework for the converged information and communications sectors and the extent to which traditional communications regulation models are applicable to new services in the globalised network society. Besides exploring the balance between competition law and sector-specific regulation, such as content and media ownership regulation, the chapter also looks at self- and co-regulation, which have gained momentum in recent years. The chapter concludes that the role of competition policy is crucial in order to guarantee a ‘level playing field’, preserve open access and prevent the formation of dominant positions in the media market. However, the protection of social values, such as plurality of sources and diversity of content, threatened by the power of media conglomerates, require traditional non-economic measures such as content regulation, the transparency of media ownership and the maintenance of public service media, as well as policies developed through self- and/or co-regulation.

1.2 Conceptualisation of convergence

Convergence between the information technology (IT), telecommunications and media sectors is hardly a newly conceived notion. McLuhan (1964) argued as early as the 1960s that telecommunications networks and the broadcasting of information will together create the ‘global village’. During the 1970s in the United States and to a lesser extent in Europe, telecommunications and IT enterprises came together to create new products and services, such as digital switches and value added network services. Also, convergence between broadcasting and telecommunications has been evident since the development of copper coaxial cable (now boosted by fibre optics), which enabled cable networks to deliver television pictures. More recent technological advances, such as digitalisation, compression, processing power and the Internet, have widened the scope of convergence potential.

A main element of recent transformations has been the digitisation of information and the packaging of data to be distributed by digital networks. Digitisation enables formerly distinct services, like voice, data, video and audio, to be delivered over the same network, to share resources and to interact with each other. While the traditional structural model of communications has been dominated by analogue technologies with a national market focus, the new service delivery model uses digital networks that favour customisation and an international market focus. Digital technology permits multitude service offerings to be delivered over the same network. This allows third-party service providers and users greater control over service delivery (Australian Government, 2000). In short, the process of convergence leads to a services sector that has the following characteristics: it is more fragmented, competitive, flexible, and international in its outlook.

At the same time, the Internet has turned into a platform for the distribution of broadcasting and other content of information or entertainment nature. There is a widespread belief that the Internet will become a substitute for broadcasting, Internet Protocol Television (IPTV; the delivery of audio and video over broadband) and digital television satellite distribution. While the pace and direction of technology is as yet uncertain, what is clear is that the consumption of broadcasting content online has become commonplace, especially among youth. Meanwhile, Third Generation (3G) wireless networks have enabled consumers to use wireless devices to consume online broadcasting content.

The pace of convergence is influenced by a series of structural changes in the information and communication industries, such as mergers and acquisitions of previously separate enterprises. Corporate consolidation indicates that traditional entities search for new business opportunities and revenue streams through horizontal and vertical integration. Horizontal integration is a consolidation of many companies that handle the same part of the value chain, while vertical integration is a case in which one company is engaged in different parts of the value chain (for example, production, distribution and marketing). Multi-service providers that integrate the Internet, telephony, wireless and audiovisual distribution under one corporate roof can deliver a wide range of services such as those with mass appeal or niche content, voice telephone and Internet access.

Convergence opens up new sales markets for firms, a case observed in many sectors including mobile operators. As the market matures, these firms look to non-voice services, such as video streaming, portals, information services, messaging and gaming, to drive revenue growth (Papadakis, 2007). Convenience and simplicity are also apparent, as at device level users find in convergence an opportunity to enjoy many devices, all in one, saving on both size and ownership costs. The inexorable globalisation of the information and communication technologies together with the tendencies towards commercialisation and liberalisation are additional driving forces for convergence. Liberalisation and deregulation have allowed companies to expand their activities in different sectors across the world. The rapidly developing Information and Communication Technologies (ICTs) and the media industries have contributed to the emergence of the phenomenon of globalisation. In the process of spreading new ICTs, similar ICT devices are adopted everywhere, with converging functions. ICT networks thus become globally interconnected and foster all types of communication and information transfer (Heller, 2008: 29–30). In addition, similar information and entertainment trends apply to global media, and access to output is facilitated through various wired or wireless devices. In this sense, globalisation, liberalisation and ICT developments result in rising levels of convergence on a global scale.

Meanwhile, a great number of sources of substitutable products, services and applications delivered by national or international providers have fragmented the communications market. Two primary trends are evident: consolidation and fragmentation; convergence and divergence. Regarding the latter, it is clear that while there are many possibilities for convergence at a horizontal level between different sectors and vertical integration between different levels, there can also be divergence and disintegration. At a theoretical level, such divergence can be shown by referring to a multitude of public spheres that exist in a multicultural, global society (see Dahlgren, 2008). At a practical level, sectors that have witnessed some degree of vertical integration may experience new lines of division of labour between the different sectors concerned.

To sum up, convergence – the delivery of similar, existing or new, media, telephony and Internet services via the same transmission platform – can be present at three different, although interrelated, levels: the technological level (mainly due to digitisation of broadcasting, IT and telecommunications networks), the structural level (as a consequence of corporate alliances across different sectors), and the services and markets level (here, reference is made to the new value added and multimedia services) (Iosifidis, 2002). It is, however, important to stress that convergence and especially technological convergence does not always entail ‘functional’ convergence, for the media are still expected to fulfil a distinct set of functions.

1.3 Regulatory challenges

The aforementioned technological, structural and market developments, together with the globalisation phenomenon and political shifts towards liberalisation, have called into question the existing regulatory regime covering the wider communications and information industries. It has been said that the existing fragmentation in the regulation of communications sectors might not be suitable to ensure a coherent and flexible framework to respond to convergence. The arrival of digital technology and the development of the Internet, in particular, were seen as requiring rapid policy development, which could permit a common approach across all different communications sectors. In this context, it has been argued, in particular, that an emerging new paradigm needs to pay attention to the ongoing convergence between different communications spheres by adopting an integrative approach of the convergent communications multimedia system (Van Guilenburg and McQuail, 2003).

Coordination was considered to be especially important in the field of spectrum management to avoid market distortion and to improve competition between infrastructures (Organisation for Economic Cooperation and Development, 2003). It seems indeed that the scene has been set, at various countries, for a new approach, with provisions tailed to migrating from today’s regulatory frameworks to a future unified regime.

Since existing regulatory regimes rely on the specific classification of providers, it may be difficult to regulate new integrated services based on existing laws. Content can now be transmitted over various networks that previously were subject to a separate regime of laws. Unlike telecommunications, broadcasting policy has been characterised by highly prescriptive regulation, while the press has been subject to limited regulation in the light of (constitutional for the most part) prescriptions for a free press. How then could policy-makers treat audiovisual and press content that is transmitted through the Internet? Should Internet telephony be classified as telephony and Internet television as television, or should the above services fall under the auspices of Internet law? Should new services such as Voice over Internet Protocol (VOIP) be regulated at all? The above are just a few examples showing the level of legal uncertainty.

1.4 The rationale for regulation in the digital age

While there has been much discussion about how the process of convergence and digital compression challenges audiovisual and telecommunications regulation, accompanied by calls for a ‘lighter’ regulatory regime, few argue that ‘no regulation’ is a valid option. Limited or no regulation at all has traditionally been applied to the print publishing industry in order to secure the freedom of speech. Pro-market evangelists suggest that the regulatory model within which publishers currently operate could also be adopted for all players in converging markets (for example, the freedom to set up a business and unrestricted access to the market, the application of general laws combined with an effective competition policy, and so on). Publishing, according to European Publishers Council (1998), is an example of how competition can thrive in a highly competitive market without the need for strict sector-specific regulation. In Europe, this view is in line with the wider argument that competitiveness is of fundamental importance given that European enterprises must prepare for global competition in a scale never experienced before. The problem is that the characteristics of the publishing sector may not be applied to other sectors. For example, whereas it is relatively inexpensive to launch a magazine, it is very costly to set up a television network. The television industry involves high entry and operational costs, which prohibit many potential proprietors from launching even small or local television stations. True, digital technology, by driving costs down, has enabled small firms to enter the broadcasting market, but very few have managed to challenge the incumbents and gain a significant market share. In any case, there are good reasons to believe that regulation is still needed in the digital age, as discussed in more detail in the sections below.

1.4.1 News and public service media

Given that news plays a vital role in the democratic process, can one put faith in the power of the market for producing high-quality news, including ‘hard’ news such as financial? There are at least three compelling reasons as to why this might not be the case. First, driven by profits/ratings, commercial players might be inclined towards distributing the more sensationalist news and information rather than important knowledge to the citizenship. As Ted Koppel, American network ABC News veteran argues, cable and satellite networks give people ‘what they want’ instead of ‘what they need to know’, because it is the best way to secure advertising profits (Koppel, 2010). Second, presenting the facts accurately might be difficult as priority is naturally given to breaking news first without always double-checking the credibility of sources. Third, in time commercial news organisations will most certainly start charging customers for news consumption in order to get a return of investment, whereas the public service media generally provide online news and other services for free.

In the capitalist era of mass politics, mass communications and the dominance of deregulatory philosophy, collective goods, such as the provision of news, can be best safeguarded within the public sphere. The attempts to move the emphasis from the public to the private sector may not be in the ‘public interest’. The free market competition philosophy declares that it can deliver diverse news and a free market place of ideas; these goals are essential for the creation and maintenance of a public sphere of communication. But are public argumentation, the freedom of speech and other desirable objectives, such as the quality of content, guaranteed in an age of information abundance and online media? Pro-market regulatory bodies, such as Ofcom, point out that commercial broadcast media may be less able to deliver content quality and variety due to rising competition and lack of resources as advertising spending gradually moves to the Internet (Ward, 2006). It appears that public media have an important democratic role to play in the multi-channel, converged digital age.

1.4.2 Management of spectrum

Second, convergence has not eliminated the need for management of spectrum. The trends toward convergence, competition and liberalisation may call for a shift in scarcity-based regulation to tailor-made regulation for the era of abundance. Still, new services and technologies (i.e. mobile commerce, wireless telecommunications links, high-speed data links to electronic equipment, etc.) have highlighted the need for regulators, at both national and global levels, to ensure adequate spectrum for all new technologies and types of services. The radio spectrum is a finite resource. There are many competing technologies and services and the question as to which find success in the market place will depend on how well they meet consumer needs and preferences. But the regulatory challenge is how to make spectrum available to meet the growing and often-conflicting demands of businesses, consumers and essential services, particularly information services, necessary in democratic societies, at a time of rapid, unpredictable change. This will require a flexible, dynamic approach using a full range of spectrum management tools, including regulation, pricing and trading.

1.4.3 Universal access

Third, regulation is required to ensure adequate technical standards and universal compatibility. Rules are needed to ensure that universal access is maximised. The principles of regulation, that is, to protect and promote values, such as the freedom of expression and access to information, and the need to balance these with acceptable limitations, such as the protection of minors, diversity and impartiality, continue to occupy an important place in the converged era. Because broadcasters can exert tremendous communicative power and form public opinion, regulation is required to ensure that operators reflect a range of different views and cultures in a society and contribute to a rational political debate (Humphreys, 2000).

Reliance on commercial media may deprive some parts of the population of certain kinds of programmes, such as quality news and current affairs. In order to address the issue of consumer access to trustworthy online news, it has been suggested that policy-makers retain free-to-air public service broadcasters and allow them to expand into new platforms, such as digital terrestrial television, as well as the Web. Cross-platform strategies and the launch of on-demand services help public service media to reach new audiences and serve an extended form of citizenship (see Tambini and Cowling, 2004; Lowe and Bardoel, 2007; Iosifidis, 2010). This way the gap between information haves and have-nots (the so-called ‘digital divide’) may be bridged.

The term ‘digital divide’ refers to the gap between individuals, households, businesses and geographic areas at different socio-economic levels with regard to both their opportunities to access ICTs and to their use of the Internet for a wide variety of activities (Organisation for Economic Cooperation and Development, 2000), including information services. However, as computer ownership and Internet access are rising sharply, the idea of the digital divide has lost some ground. What is more, the Internet has now been liberated from the tyranny (or gateway bottleneck) of the PC, because digital television sets and 3G mobile phones provide alternative gateways. Meanwhile, various projects have been launched that have provided positive steps in bridging the divide. These include the One Laptop per Child (a US non-profit organisation established to oversee the creation of an affordable educational device for use in the developing world) and 50x15 (launched in 2004 by Advanced Micro Devices, aimed at providing accessible Internet and computers for 50% of the world’s population by 2015).

Yet, it is likely that an Internet differentiation will emerge along the dimensions of quality. For example, high-speed broadband Internet access requires an upgrade of infrastructure – be it telecommunications, cable or wireless – but because this will be achieved through higher prices, not everyone will have access. High-speed Internet access is not expected to command the same societal priority as the...

Table of contents

• Cover
• Title
• Introduction
• 1 The Emerging Governance Pattern in Media and Communications
• 2 Media Freedom and Independence in Contemporary Democratic Societies
• Part I Media Policy Processes and Regulatory Patterns
• Part II Courts
• Part III Media Finance and Business Models
• Part IV The Journalistic Profession
• Conclusion: Towards Media Freedom and Independence
• References
• Index