Media Monopoly [Again]
I was browsing through the website of Channelnewsasia when I chanced upon this advertisement -
"Abang45 a Divorcee with a 19yr old Daughter & 17yr old Son looking for female/male friendS aged 18-49. 91267260. 24hourS. I HAD BEEN DIVORCED FOR 10YEARS."
I kid you not, the last sentence was in capital letters. Here.
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
The return of the media monopoly has spewed forth a recent spate of articles ranging from Straits Times to blogs. A particular reference for critical viewpoints can be read on Singabloodypore.
As I reflect back, I dug through my archive of newspapers snippets and to my joy uncovered two articles - One by Cherian George who's a postdoctoral fellow at the Asia Research Institute, National University of Singapore [NUS], where he studies media and politics. The other article by our local columnist [Ms] Chua Mui Hoong. The following entry would possess certain excerpts from their articles.
Ironically, both parties were already prepared to throw in the towel even before competition has started. Minister for Information, Communications and the Arts Lee Boon Yang said,"Wherever we can, we will try to promote and encourage competition, but we are also realistic and if competition does not work, then, well, we have to accept that the market itself is just too small to accept more than one significant player." - Cherian George.
Throw in doubts that this duopoly had been managed by Chief Executives with no prior experience in media management and the methods used for competition were hard-hitting you would not expect very positive analysis for the future of the media market. Programme timings clashes head-on and the famous cry for foul when both stations hosted their main programmes at the same day on the same time slot. The State regulator for the Media Industry, also known as Media Development Authority [MDA], quickly issued the Code of Practice For Market Conduct in the Provision of Mass Media Services to ensure regulatory practices in the competitive market. - Cherian George.
The popular comparison of the media industry was referred to the telecoms industry. By taking an economic viewpoint, we use a theory called the Law of Two. It means in any industry if there are just two companies that produces exactly the same product and compete on price, then there's a perfectly competitive outcome. The price is driven down to market level - to the point where that is the highest price consumers are willing to pay and the lowest price possible for companies to stay in business. This situation is called a Bertrand Competition. - Chua Mui Hoong.
One point to note is that Bertrand Competition works only if both companies are able to produce perfect substitutes for each other. Reasoning? If both products are perfect substitutes, the consumer will keep switching between the two companies and the companies are forced to lower prices which ultimately benefits the consumers. - Chua Mui Hoong.
So when you have Singtel versus M1 versus Starhub, the main priority is the handphones. Attractions vary only in terms of price plans but a telephone call is a telephone call so only the price matters while most consumers do not place heavy emphasis on the quality of the phone reception; perhaps on the availability of the reception.
But the media industry is highly differentiated and the two different stations would never produce two identical programmes. Even when both stations hosted their own charity fund-raising drive the special stars employed and the variety of entertainment hosted was completely different.
A good argument can be held for the improvement in quality as both companies strive for breakthroughs in terms of product quality since price cannot be used as a comparing factor [The channels are free-to-air after all unless you subscribe to Starhub Cablevision but that's another story].
MediaCorp showed strong support for goverment policies and constantly hosted health programmes and local drama series advocating the importance of family life and racial harmony. MediaWorks however chose to delve deeper into daily issues that often summarises the bouquets and brickbats of our lives. They even experimented with using the 35mm camera lens to produce a series about our national defence and on the impending threats of terrorism. In a matter of jest, it almost looks like two different approaches - the ying and the yang. MediaCorp used the "white light" [harmony, happiness and health] approach while MediaWorks delved deeper into the "dark shade" [Perceptions, National Security, Supernatural] approach.
And it seems like the "White Light" has won in the end, coincidental?
Why then did the State not allow media liberalisation to include the entry of foreign Multinational Corporations [MNC] as well? Perhaps we can use the example of Virgin Mobile as a reference in the case of the telecoms industry. Virgin Mobile was set up by Mr Brandon Virgin, owner of Virgin Enterprises which diversifies into a large variety of businesses and its interest in Singapore is only one of many. The Company launched an aggressive marketing campaign with outlets in The Hereen [a prime location considering the flow of fashion-savvy teens and adults] and eye-catching advertisements featuring our local actor Mr Ivan Heng. Unfortunately, they retreated from the competition after 2 years claiming substantial losses.
If Economics offers no positive analysis for the duopoly of Media Market then why the strong desire to push in the first place? Perhaps the State would have felt less pressure in nurturing the media market without interventions from foreign MNCs, and they would have considered the media market as a special catoegory not comparable to other industries like health or even airline services.
Unfortunately, this strong desire for experimentation has resulted in losses of over S$200 millions for both companies.
Not to mention that competition from media companies would usually result in some programmes of sex appeal being thrown in for results-driven goals. Mediacorp's Monday primetime slot featured "Are You Hot?" while MediaWorks competed by bringing in "For Love or Money" as a reply.
Now the final verdict rests on a merger of the two media companies, with Singapore Press Holdings [SPH] buying nearly half of their rival's newspaper assets and MediaCorp holding 80% of stakes in a new company co-owned by both MediaCorp and SPH.
Let the new era of Media Monopoly begin once more.
"Abang45 a Divorcee with a 19yr old Daughter & 17yr old Son looking for female/male friendS aged 18-49. 91267260. 24hourS. I HAD BEEN DIVORCED FOR 10YEARS."
I kid you not, the last sentence was in capital letters. Here.
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
The return of the media monopoly has spewed forth a recent spate of articles ranging from Straits Times to blogs. A particular reference for critical viewpoints can be read on Singabloodypore.
As I reflect back, I dug through my archive of newspapers snippets and to my joy uncovered two articles - One by Cherian George who's a postdoctoral fellow at the Asia Research Institute, National University of Singapore [NUS], where he studies media and politics. The other article by our local columnist [Ms] Chua Mui Hoong. The following entry would possess certain excerpts from their articles.
Ironically, both parties were already prepared to throw in the towel even before competition has started. Minister for Information, Communications and the Arts Lee Boon Yang said,"Wherever we can, we will try to promote and encourage competition, but we are also realistic and if competition does not work, then, well, we have to accept that the market itself is just too small to accept more than one significant player." - Cherian George.
Throw in doubts that this duopoly had been managed by Chief Executives with no prior experience in media management and the methods used for competition were hard-hitting you would not expect very positive analysis for the future of the media market. Programme timings clashes head-on and the famous cry for foul when both stations hosted their main programmes at the same day on the same time slot. The State regulator for the Media Industry, also known as Media Development Authority [MDA], quickly issued the Code of Practice For Market Conduct in the Provision of Mass Media Services to ensure regulatory practices in the competitive market. - Cherian George.
The popular comparison of the media industry was referred to the telecoms industry. By taking an economic viewpoint, we use a theory called the Law of Two. It means in any industry if there are just two companies that produces exactly the same product and compete on price, then there's a perfectly competitive outcome. The price is driven down to market level - to the point where that is the highest price consumers are willing to pay and the lowest price possible for companies to stay in business. This situation is called a Bertrand Competition. - Chua Mui Hoong.
One point to note is that Bertrand Competition works only if both companies are able to produce perfect substitutes for each other. Reasoning? If both products are perfect substitutes, the consumer will keep switching between the two companies and the companies are forced to lower prices which ultimately benefits the consumers. - Chua Mui Hoong.
So when you have Singtel versus M1 versus Starhub, the main priority is the handphones. Attractions vary only in terms of price plans but a telephone call is a telephone call so only the price matters while most consumers do not place heavy emphasis on the quality of the phone reception; perhaps on the availability of the reception.
But the media industry is highly differentiated and the two different stations would never produce two identical programmes. Even when both stations hosted their own charity fund-raising drive the special stars employed and the variety of entertainment hosted was completely different.
A good argument can be held for the improvement in quality as both companies strive for breakthroughs in terms of product quality since price cannot be used as a comparing factor [The channels are free-to-air after all unless you subscribe to Starhub Cablevision but that's another story].
MediaCorp showed strong support for goverment policies and constantly hosted health programmes and local drama series advocating the importance of family life and racial harmony. MediaWorks however chose to delve deeper into daily issues that often summarises the bouquets and brickbats of our lives. They even experimented with using the 35mm camera lens to produce a series about our national defence and on the impending threats of terrorism. In a matter of jest, it almost looks like two different approaches - the ying and the yang. MediaCorp used the "white light" [harmony, happiness and health] approach while MediaWorks delved deeper into the "dark shade" [Perceptions, National Security, Supernatural] approach.
And it seems like the "White Light" has won in the end, coincidental?
Why then did the State not allow media liberalisation to include the entry of foreign Multinational Corporations [MNC] as well? Perhaps we can use the example of Virgin Mobile as a reference in the case of the telecoms industry. Virgin Mobile was set up by Mr Brandon Virgin, owner of Virgin Enterprises which diversifies into a large variety of businesses and its interest in Singapore is only one of many. The Company launched an aggressive marketing campaign with outlets in The Hereen [a prime location considering the flow of fashion-savvy teens and adults] and eye-catching advertisements featuring our local actor Mr Ivan Heng. Unfortunately, they retreated from the competition after 2 years claiming substantial losses.
If Economics offers no positive analysis for the duopoly of Media Market then why the strong desire to push in the first place? Perhaps the State would have felt less pressure in nurturing the media market without interventions from foreign MNCs, and they would have considered the media market as a special catoegory not comparable to other industries like health or even airline services.
Unfortunately, this strong desire for experimentation has resulted in losses of over S$200 millions for both companies.
Not to mention that competition from media companies would usually result in some programmes of sex appeal being thrown in for results-driven goals. Mediacorp's Monday primetime slot featured "Are You Hot?" while MediaWorks competed by bringing in "For Love or Money" as a reply.
Now the final verdict rests on a merger of the two media companies, with Singapore Press Holdings [SPH] buying nearly half of their rival's newspaper assets and MediaCorp holding 80% of stakes in a new company co-owned by both MediaCorp and SPH.
Let the new era of Media Monopoly begin once more.
posted by Inarticulate at 9:31 AM
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