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

print

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

Print & broadcast blur     

telcom s

I CT

print

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

print

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