This presentation was delivered by Dr. Justine Ram, Director of Economics, CDB, at the Caribbean Broadcasting Union 47th Annual General Assembly in Havana, Cuba on October 24, 2016.
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Enhancing Media Competitiveness in the Caribbean
1. ENHANCING MEDIA
COMPETITIVENESS
IN THE CARIBBEAN
Dr. Justin Ram
Director
Economics Department
October 24, 2016
Caribbean Broadcasting Union
47th Annual General Assembly
Havana, Cuba
2. Outline
1. Macro-economic Developments in the Caribbean
2. Competitiveness in the Caribbean – Doing Business
Indicators
3. The Global Media Industry
4. The Caribbean Context
5. Opportunities
6. Next Steps
3. Average growth of 1.5 % over the
past 5 years; high debt
0
20
40
60
80
100
120
140
Debt to GDP
(General Government Gross Debt)
2015 2016
4.2
3.5
3.3 3.4
3.1 3.1
6.3
5.3
4.9
4.6
4.0
4.2
4.9
3.2
3.0
1.3
-0.1
-0.5
1.5
0.9
1.6
2.2
1.4 1.4
2011 2012 2013 2014 2015 2016
GDP Growth World
Emerging Markets and Developing Economies
Latin America and the Caribbean
BMCs
Source: World Economic Outlook, October 2016
5. Most Caribbean countries rank in the
bottom half of the Doing Business
rankings
1
21
41
61
81
101
121
141
161
181
Doing Business Rankings (2009 vs 2016)
DB 2009 DB 2016
Source: World Bank Doing Business
6. Distance to Frontier relatively stable in 2016;
Average 43 points from Frontier
Source: World Bank Doing Business
0
10
20
30
40
50
60
70
80
90
100
Distance to Frontier (2010 vs 2016)
DB 2010 DB 2016 DTF
7. Countries at different levels;
clusters in starting a business and trading
across borders
-19
1
21
41
61
81
101
121
141
161
181
Doing Business Indicators 2016
Antigua and Barbuda
Bahamas, The
Barbados
Belize
Dominica
Dominican Republic
Grenada
Guyana
Haiti
Jamaica
St. Kitts and Nevis
St. Lucia
St. Vincent and the
Grenadines
Suriname
Trinidad and Tobago
Startinga
Business
Construction
Permits
Getting
Electricity
Registering
Property
Getting
Credit
Protecting
Minority
Investors
Paying
Taxes
Trading
Across
Borders
Resolving
Insolvency
Enforcing
Contracts
8. Media:
All channels that carry news and information
MEDIA
COMMUNICATION
ENTERTAINMENT
PUBLIC EDUCATION
INFORMATION
Media is the most popular tool of
communication.
We now know refer to the world
as a “global village” because of
media, and its role in connecting
people worldwide.
The importance of media in
nation-building cannot be
neglected.
10. Global Media and Entertainment spending
of US$1.8 trillion in 2016
Source: Mc. Kinsey and Co. 2015 Global Report
11. Global Media and Entertainment
spending of US$1.8 trillion in 2016
Source: Inside Scoop, Intel, 2013
12. Shift in Global Media to Digital Media –
Redefining Business Models
vs.
NOWTHEN
13. Global Trends in E&M Industry
Global spending
in E&M is growing
more rapidly than
GDP (5.1%
CAGR)
Youth Movement
– strong
correlation
between under-35
population and
growth in E&M
industry
Cultures and
Tastes in Content
remain
Steadfastly Local
Source: PWC Report 2016-2020
14. Digital Advertising is the fastest growing
category in the industry
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Total Global Media Spending (US$M)
2009 2015
Source: Global Media Report 2015, Mc. Kinsey Source: Global Entertainment and media outlook 2016-2020, PwC, Ovum
16. On average, 6.1 hours per day on
online media
Source: GlobalWebIndex, 2014; Global Social Media Trends 2015, European Publishers Council
17. Top 10 media companies
Liberty Media Corp.
(Englewood, Col. USA); 11.2b; at
No. 12
18. Scope for Change in the Caribbean
CHANGE THE MEDIA
CHANGE THE WORLD
19. How Does the Caribbean Compare / Compete
in the Global Media Industry
Weaknesses
Lack of data
Media associations at
various stages of
organizational strength
Broad focus on media/press
freedom
Limited Focus on Innovation and
Digital Economy
Opportunities
Online models;
news, streaming radio and
television
Relatively high mobile penetration
rates in the Caribbean;
Local Content;
merger with Creative Industries
20. Caribbean Media Landscape
Shaped by ICT
Population % Pop. Internet Users, Penetration Users Facebook
( 2015 Est. ) of World 30-Nov-15 % Population % World 15-Nov-15
Caribbean
42,108,083
0.6% 17,656,562 41.9% 0.5% 9,721,980
Rest of the World
7,217,794,160
99.4% 3,348,604,594 46.4% 99.5% 1,505,482,170
World Total 7,259,902,243 100.0% 3,366,261,156 46.4% 100.0% 1,515,204,150
Source: Internet World Stats
Caribbean Internet Users and Population Statistics - 2015
21. Source: ICT-Pulse.com
Lowest and Highest Advertised Download Speeds
and the Corresponding Best Rates in Select
Caribbean Countries
22. Monthly Internet Plan (2 Mbps)
Caribbean Countries 2015 vs May 2016
Source: ICT-Pulse.com
2015 2016
23. Broadband subscription in CDB’s Borrowing
Member Countries and Latin America
Source: ICT-Pulse.com
0
5
10
15
20
25
30
35
40
45
50
2001 2003 2005 2007 2009 2011 2013 2015
BMC Fixed Broadband Subscriptions Per 100 Anguilla
Antigua & Barbuda
Bahamas
Barbados
Belize
British Virgin Islands
Cayman Islands
Dominica
Grenada
Guyana
Haiti
Jamaica
St. Kitts and Nevis
St. Lucia
St. Vincent and the
Grenadines
Suriname
Trinidad & Tobago
Virgin Islands (US)
24. Broadband Subscription in CDB’s Borrowing
Member Countries and Latin America
Source: World Bank
0
5
10
15
20
25
30
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Latin America Mobile Subscription Per 100 Argentina
Aruba
Bolivia
Brazil
Chile
Colombia
Costa Rica
Cuba
Curacao
Dom Rep
Ecuador
El Salvador
Guatamela
Honduras
Mexico
Nicaragua
Paraguay
Peru
Puerto Rico
Uraguay
Venezuela
Panama
25. Fixed Broadband subscription
in the United States and Singapore
0
5
10
15
20
25
30
35
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fixed Broadband Subscription Per 100 United States Caribbean small states Pacific island small states Singapore
26. Connected by Mobile Technologies
(avg. 1 cell per person)
-30
20
70
120
170
220
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
BMC Mobile Subscriptions Per 100 Anguilla
Antigua & Barbuda
Bahamas
Barbados
Belize
Bermuda
British Virgin Islands
Cayman Islands
Cuba
Dominica
Grenada
Guyana
Haiti
Jamaica
Montserrat
St. Kitts and Nevis
St. Lucia
St. Vincent and the
Grenadines
Suriname
Trinidad & Tobago
Source: ICT-Pulse.com
27. Connected by mobile technologies
(avg. 1 cell per person)
Source: ICT-Pulse.com
-30
20
70
120
170
220
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Latin America Mobile Subscription Per 100 Argentina
Aruba
Bolivia
Brazil
Chile
Colombia
Costa Rica
Cuba
Curacao
Dominican Republic
Ecuador
El Salvador
Guatemala
Honduras
Mexico
Nicaragua
Paraguay
Peru
Puerto Rico
Uruguay
Venezuela, RB
Cayman Islands
Panama
28. Mobile subscription in
in the United States and Singapore
0
20
40
60
80
100
120
140
160
180
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mobile Subscription Per 100 United States Caribbean small states Pacific island small states Singapore
30. Radio Moving to Online Streaming in
the Region
0
5
10
15
20
25
Anguilla
Antiguaand…
Aruba
Bahamas
Barbados
BritishVirgin…
CaymanIslands
Cuba
Dominica
Grenada
Guadaloupe
Guyana
Haiti
Jamaica
Martinique
Monsterrat
St.KittsandNevis
St.Lucia
St.martin
St.Vincent
Suriname
Trinidad&Tobago
Turksand…
USVirginIslands
Approx. No. of Online Radio Stations
Internet Radio
Increase in Talk Shows
Active Civil Society in
Dialogue
Increase Live Coverage
of Key Events
Local Content Remains
Low
32. Live Streaming: Listening to music or
watching video in real time
Video Streaming Starting price
Netflix $9 per month
Hulu $8 per month
Amazon Instant
Video
$99/year or
7.99/month
Sling Orange $20 per month
Playstation Vue $50 per month
Crackle Free
Funny or Die Free
Twitch Free
Vevo Free
Music Streaming Starting Price
Spotify $10 per month
Apple Music $9.99 per month
YouTube Free
Tidal $9.99 per month
Pandora Free
Sound Cloud Free
WiMP 5
Simfy 4
TuneIn Radio Free
35. • IT Investment
• PC ownership
• Broadband penetration
• Internet Protection
• Mobile Penetration
ICT Support Systems
• Business Environment
• Human Capital
• Infrastructure
• Legal Environment
• Research and Development
Competitiveness: “The Set of Institutions, Policies
and Factors that Determine the Level of
Productivity of a Country – (WEF)
Competitiveness in the Caribbean
36. Legislation/ Regulations Infrastructure/ Technology
Broadcasting Regulations Cost of Broadband
Freedom of Press Legislation Access to Internet
Piracy Telecoms Liberalisation
Broadcasting Laws New Technology (fibre optics)
Defamation Laws
Cyber-security
Data protection legislation
Copyright/Patents
Licensing
Competitiveness in the Caribbean Affected by
Legislative and Infrastructure Shortfalls
37. 5 out of 20 Caribbean Community
Countries Have Freedom of Information law
Regulations / Law
Trinidad
and Tobago
Dominica
Dominican
Republic
Jamaica
Legal guarantees in place to assure the confidentiality of
journalists' sources
No No Yes No
Qualifications required by law/regulation for an individual
to practice as journalist
No No Yes No
Anti-concentration/anti-trust rules or laws on media
ownership for domestic private and foreign companies
No No Yes No
Cross-media ownership limitations for domestic private
and foreign companies
No No No No
Existence of legal provision for access to information held
by the state
Yes No Yes Yes
Source: UNESCO, 2013
38. Media and development potential
in the Caribbean
Expansion of Networks
Entertainment Industry
Economic Growth
• Reduced Cost
• Innovation (media content
including music, film and
local content)
• Local content development
• Niche markets
• Small Business
Development
• Creative Industries
development
• Merger of Creative
Industries with Media
• Human Capital
Development
39. Data is at the Heart of the Media
Predicting what
audiences want
Increasing acquisition and
retention
Scheduling optimisation
Ad targeting
Content monetization and
new product development
40. The Way Forward
Develop a Highly Skilled Workforce;
CT Enabled, and Solutions Oriented
Investment in ICT Infrastructure;
Reducing the Cost of Access to ICT
Legislative Reform
Small Business Development; Micro
Financing
Support for Innovation, Research and
Development
Development of Standards
Data Collection
Local Content Regulations
Broadcasting Regulations
Ease of Access to Information –
Electronic Data