Media concentrationPatricia EstévezFederación de Sindicatos de Periodistas (FeSP)
ConcentrationThewordconcentrationrefersto 5 differentphenomena: 4 of economicalnature…Integration of operations: strategiesforexternalgrowth (jointventures, mergers, alliances…) Concentration of ownership: situation at a given timeConcentration of themarket: dominating position of a series of companies in respecttothemarket as a wholeAudienceconcentration: of a media outlet in a geographicalareaAnd a 5th of politicalnature…5. Centralizationoraccumulation of power, as a result of theeconomicalpower(C. Llorens, 2003)
MEDIA EMPIRESTheworld’slargestmulti-media corporationswithdiversified media-holdings, the «Big 7»: Time WarnerDisneyNews Corp.BertelsmannCBSNBCViacom
MEDIA EMPIRES are theresult of…3 Trends:Deregulation, liberalization and privatizationbroughtdown mental barriers in respecttomonolopoliesDeregulation «corporatized» media platforms: imposition of business-logicDigitization: consolidationintojustonenetwork of telecomms, internet & mass media(Arsenault & Castells, 2008)
MEDIA EMPIRES have set new trends3 Trends:Diversification of platforms and convergence: notonlytheyown more thanbefore, butthecontentcreatedisdeliveredviaanincreasingnumber of platforms. VERTICAL INTEGRATION AS A PRECONDITION OF SUCCESS FOR CULTURAL PRODUCTSSegmentation and Customization: New ways of identifying and deliveringcustomizedcontenttargettingcriticaladvertisingmarkets. MONETIZATION OF CONTENT Economies of synergy: networkedforms of organization, creating GLOBAL NETWORK ENTERPRISES THROUGH DIAGONAL INTEGRATION. Holdings, partnerships and cross-investmentswithnational, regional and local companiestofacilitatemarketexpansion(Arsenault & Castells, 2008)
EUROPE«Media Power in Europe: The Big Picture of Ownership» (EFJ, 2005) identified:4 majorEuropeanmultinational and multi-media companies:Bertelsmann AG
Lagadère
Axel SpringerVerlag
ScandinavianBroadcastingSystem SA3 big «foreignplayers»Central European Media Enterprises LTD (CME)
WAZ
RingierA broadbandserviceprovider- Liberty Global
Bertelsmann AGBusiness Areas: Television and radio; book publishers; magazines and newspapers; media and communication services; media clubs and direct marketingDivisions: RTL Group (Luxembourg), Random House, Inc. (New York), Gruner + Jahr (Hamburg), Arvato (Gütersloh), Direct Group (Gütersloh)Shareholders: Bertelsmann Stiftung (77.4%), Mohn family (22.6%)Countries: has operations in more than 50 countriesEmployees: 102,983 Revenues: 15,400 (2009), 11,007 (sept 2010)	by business field 	RTL Group: 34.4%; Random House: 11.0%; Gruner + Jahr: 	16.0%; Arvato: 30.7%; Direct Group: 7.9%	by region 	U.S.: 12.5%; Germany: 35.0%; Europe (excluding 	Germany): 47.7%; other countries: 4.8%
Bertelsmann AGRTL Group (Luxembourg)Television: each day, more than 170 million viewers in Europe watch TV channels operated by RTL Group: RTL Television, Super RTL, Vox or N-TV in Germany; M6 in France; Antena 3 in Spain, RTL 4 in the Netherlands; RTL TVI in Belgium; and RTL Klub in Hungary etc. Radio: Radio Luxembourg, RTL in France, 104.6 RTL (Berlin), BelRTL in Belgium… Fremantle Media, RTL Group’s content production arm,produces more than 10,000 hours of programming every year in 22 countries. With programming rights in about 150 countries, it is also the largest independent TV distribution company outside the United States.Random House, Inc. (New York) With more than 11,000 new books issued a year and 500 million books sold annually, it presents a broad spectrum of editorial voices supplied by over 120 publishing imprints in 19 countries, including historic publishing houses such as Doubleday and Alfred A. Knopf (USA); Ebury and Transworld (UK); Plaza & Janés (Spain); Sudamericana (Argentina) and Goldmann (Germany).
Bertelsmann AGGruner+ Jahr (Hamburg)More than 285 print titles and accompanying homepages in over 20 countries, printing plants in Germany and the United States, and professional websites.Arvato(Gütersloh)Arvato AG is an international media and communication service provider, offering from conventional printing to modern services such as service centers, financial clearinghouses and mobile services. Arvato is comprised of four divisions: ArvatoServices, ArvatoPrint, Arvato Digital Services and Arvato SystemsDirect Group (Gütersloh)More than 15 million customers in the 16 countries where Direct Group has operations: media clubs, bookstores, online stores, publishers, direct sales
lagaRdèreBusiness Areas: Television and radio; book publishers; magazines and newspapers; media and communication services; media clubs and direct marketingDivisions: LagardèrePublishing (book-publishing business segment); Lagardère Active (magazine publishing, audiovisual -radio, television, audiovisual production- and digital activities, and advertising sales); Lagardère Services, (travel retail and press-distribution business segment);Lagardère Unlimited (sport industry and entertainment)Countries: operations in more than 50 countriesEmployees: 29,519 Sales: 7,892 M € (2009)by region 	U.S. and Canada: 12.8%; France: 33.6%; Europe 	(excluding France): 36.8%; other countries Europe (non-EU): 	7.4%, other countries: 9.4%
AXEL springerverlagBusiness Areas: over 230 newspapers and magazines, more than 80 online offerings, holdings in television and radio stationsCountries: active in a total of 36 countries.Employees: 10,500  Revenues:  2,611.6M € (2009)
ProSiebenSat.1 GroupBusiness Areas: Commercial television, premium pay channels, radio stations and related print businesses. 2nd largest broadcasting group in Europe. In Germany (SAT.1, ProSieben and kabeleins)is number one in the TV advertising market. Strong market positions in free TV in the Netherlands with the channels SBS 6, Net 5 and Veronica, in Hungary with TV 2 and FEM3, and in Sweden with Kanal 5 and Kanal 9. Shareholders: Lavena Holding companies(56.7%), Telegraaf Media Groep N.V. (6.0%), Free Float (37.3%)The Lavena Holding companies are controlled by funds advised by Kohlberg Kravis Roberts & Co. L.P. (KKR) and PermiraBeteiligungsberatungGmbH (Permira).Free floatincludes6,027,500 treasury shares.Countries: has operations in 14 countriesEmployees: 5,000 Revenue:  1,320.9€ (2009)(Took over  SBS Broadcasting Group on June 27 2007)
Central European Media Enterprises Business Areas: Broadcast, content, new mediaLeading vertically integrated media company in Central and Eastern Europe. It operates TV Nova, Nova Sport, Nova Cinema and MTV in the Czech Republic, PRO TV, PRO TV International, ACASA, PRO CINEMA, Sport.roand MTV Romania in Romania, TV Markíza, Nova Sport, Television Doma and MTV in the Slovak Republic, POP TV, KanalA and POP BRIO in Slovenia, NOVA TV in Croatia and bTV, Pro.BG, bTV Comedy, bTV Cinema and Ring.BG in Bulgaria.Countries: has operations in 6 countriesBermuda company, with subsidiaries in the Netherlands, London and in each operating country
WestdeuscheAllgemeineZeitung (WAZ) Media groupBusiness Areas: Press, Radio stations, online market, service companies 29 daily newspapers with a circulation of over 2,5 million copies, 19 weekly newspapers, 186 popular magazines and trade journals, 99 advertising journals, and approximately 400 customer magazines, among others. It has financial interests in numerous local radio stations on the Rhine and the Ruhr, and is the majority shareholder in eleven of them. In July 2005, it sold to Bertelsmann AG its 20 percent share in the Holding BW-TV (Bertelsmann-WAZ-TV) which they operated together. Cityweb Network: online market. Service companies, among other things, runs private postal delivery services in North-Rhine Westfalia and Thuringia.Countries: has operations in 10 European countries (special interest in Southeastern Europe)Employees: 17,000
ringierBusiness Areas: multinational integrated media company - print, broadcast, radio, online and mobile media brands, and is a successful player in the printing, entertainment and internet businessRingier publishes and prints over 70 newspapers and magazines in Germany, Hungary, Romania, Serbia, Slovakia and the Czech Republic. In Asia, it owns the printing company Ringier Print (HK) Ltd., Hong Kong, and Ringier is active in China since 1997.Countries: has operations in 6 European countries Employees: 7,448Revenue:  1,296.1 	By country Switzerland and Germany 63.7%;Czech 	Republic 11.4%; Slovakia 5.1%; Hungary 8.3%; Romania 	2.7%; Serbia 4.8%; Pacific 4.0%
Liberty globalBusiness Areas: Video onDemand, High Definition TV, and Digital Video Recorders, broadband internet services, Multi-feature VoIP telephony servicesLargest cable company outside the U.S. and one of the fastest growing in the world. 31.2 million homes passed, 17.7 million customer relationships, and 27.5 million video, voice, and internet subscriptions (RGUs)Divisions:UPC Broadband: Cable operations in 10 countries, LargestPan-European cable operatorUnitymedia(Germany): part of the UPC Broadband division, second largest cable operator in GermanyTelenet (Belgium): Own ~ 50% of Telenet, Largest cable operator in BelgiumChellomedia: Content generator: 44 channels, of which 29 are 100% owned and 15 jointventures. Subscribers: 252 million TV households globallyAlso: Australia (Austar) and the Americas (VTR–Chile; LibertyCablevision- Puerto Rico)Countries: 14 countriesEmployees: 20,000Revenue:  $9,000 M

Media Concentration

  • 1.
    Media concentrationPatricia EstévezFederaciónde Sindicatos de Periodistas (FeSP)
  • 2.
    ConcentrationThewordconcentrationrefersto 5 differentphenomena:4 of economicalnature…Integration of operations: strategiesforexternalgrowth (jointventures, mergers, alliances…) Concentration of ownership: situation at a given timeConcentration of themarket: dominating position of a series of companies in respecttothemarket as a wholeAudienceconcentration: of a media outlet in a geographicalareaAnd a 5th of politicalnature…5. Centralizationoraccumulation of power, as a result of theeconomicalpower(C. Llorens, 2003)
  • 3.
    MEDIA EMPIRESTheworld’slargestmulti-media corporationswithdiversifiedmedia-holdings, the «Big 7»: Time WarnerDisneyNews Corp.BertelsmannCBSNBCViacom
  • 4.
    MEDIA EMPIRES aretheresult of…3 Trends:Deregulation, liberalization and privatizationbroughtdown mental barriers in respecttomonolopoliesDeregulation «corporatized» media platforms: imposition of business-logicDigitization: consolidationintojustonenetwork of telecomms, internet & mass media(Arsenault & Castells, 2008)
  • 5.
    MEDIA EMPIRES haveset new trends3 Trends:Diversification of platforms and convergence: notonlytheyown more thanbefore, butthecontentcreatedisdeliveredviaanincreasingnumber of platforms. VERTICAL INTEGRATION AS A PRECONDITION OF SUCCESS FOR CULTURAL PRODUCTSSegmentation and Customization: New ways of identifying and deliveringcustomizedcontenttargettingcriticaladvertisingmarkets. MONETIZATION OF CONTENT Economies of synergy: networkedforms of organization, creating GLOBAL NETWORK ENTERPRISES THROUGH DIAGONAL INTEGRATION. Holdings, partnerships and cross-investmentswithnational, regional and local companiestofacilitatemarketexpansion(Arsenault & Castells, 2008)
  • 6.
    EUROPE«Media Power inEurope: The Big Picture of Ownership» (EFJ, 2005) identified:4 majorEuropeanmultinational and multi-media companies:Bertelsmann AG
  • 7.
  • 8.
  • 9.
    ScandinavianBroadcastingSystem SA3 big«foreignplayers»Central European Media Enterprises LTD (CME)
  • 10.
  • 11.
  • 12.
    Bertelsmann AGBusiness Areas:Television and radio; book publishers; magazines and newspapers; media and communication services; media clubs and direct marketingDivisions: RTL Group (Luxembourg), Random House, Inc. (New York), Gruner + Jahr (Hamburg), Arvato (Gütersloh), Direct Group (Gütersloh)Shareholders: Bertelsmann Stiftung (77.4%), Mohn family (22.6%)Countries: has operations in more than 50 countriesEmployees: 102,983 Revenues: 15,400 (2009), 11,007 (sept 2010) by business field  RTL Group: 34.4%; Random House: 11.0%; Gruner + Jahr: 16.0%; Arvato: 30.7%; Direct Group: 7.9% by region  U.S.: 12.5%; Germany: 35.0%; Europe (excluding Germany): 47.7%; other countries: 4.8%
  • 13.
    Bertelsmann AGRTL Group(Luxembourg)Television: each day, more than 170 million viewers in Europe watch TV channels operated by RTL Group: RTL Television, Super RTL, Vox or N-TV in Germany; M6 in France; Antena 3 in Spain, RTL 4 in the Netherlands; RTL TVI in Belgium; and RTL Klub in Hungary etc. Radio: Radio Luxembourg, RTL in France, 104.6 RTL (Berlin), BelRTL in Belgium… Fremantle Media, RTL Group’s content production arm,produces more than 10,000 hours of programming every year in 22 countries. With programming rights in about 150 countries, it is also the largest independent TV distribution company outside the United States.Random House, Inc. (New York) With more than 11,000 new books issued a year and 500 million books sold annually, it presents a broad spectrum of editorial voices supplied by over 120 publishing imprints in 19 countries, including historic publishing houses such as Doubleday and Alfred A. Knopf (USA); Ebury and Transworld (UK); Plaza & Janés (Spain); Sudamericana (Argentina) and Goldmann (Germany).
  • 14.
    Bertelsmann AGGruner+ Jahr(Hamburg)More than 285 print titles and accompanying homepages in over 20 countries, printing plants in Germany and the United States, and professional websites.Arvato(Gütersloh)Arvato AG is an international media and communication service provider, offering from conventional printing to modern services such as service centers, financial clearinghouses and mobile services. Arvato is comprised of four divisions: ArvatoServices, ArvatoPrint, Arvato Digital Services and Arvato SystemsDirect Group (Gütersloh)More than 15 million customers in the 16 countries where Direct Group has operations: media clubs, bookstores, online stores, publishers, direct sales
  • 15.
    lagaRdèreBusiness Areas: Televisionand radio; book publishers; magazines and newspapers; media and communication services; media clubs and direct marketingDivisions: LagardèrePublishing (book-publishing business segment); Lagardère Active (magazine publishing, audiovisual -radio, television, audiovisual production- and digital activities, and advertising sales); Lagardère Services, (travel retail and press-distribution business segment);Lagardère Unlimited (sport industry and entertainment)Countries: operations in more than 50 countriesEmployees: 29,519 Sales: 7,892 M € (2009)by region  U.S. and Canada: 12.8%; France: 33.6%; Europe (excluding France): 36.8%; other countries Europe (non-EU): 7.4%, other countries: 9.4%
  • 16.
    AXEL springerverlagBusiness Areas:over 230 newspapers and magazines, more than 80 online offerings, holdings in television and radio stationsCountries: active in a total of 36 countries.Employees: 10,500 Revenues:  2,611.6M € (2009)
  • 17.
    ProSiebenSat.1 GroupBusiness Areas:Commercial television, premium pay channels, radio stations and related print businesses. 2nd largest broadcasting group in Europe. In Germany (SAT.1, ProSieben and kabeleins)is number one in the TV advertising market. Strong market positions in free TV in the Netherlands with the channels SBS 6, Net 5 and Veronica, in Hungary with TV 2 and FEM3, and in Sweden with Kanal 5 and Kanal 9. Shareholders: Lavena Holding companies(56.7%), Telegraaf Media Groep N.V. (6.0%), Free Float (37.3%)The Lavena Holding companies are controlled by funds advised by Kohlberg Kravis Roberts & Co. L.P. (KKR) and PermiraBeteiligungsberatungGmbH (Permira).Free floatincludes6,027,500 treasury shares.Countries: has operations in 14 countriesEmployees: 5,000 Revenue: 1,320.9€ (2009)(Took over  SBS Broadcasting Group on June 27 2007)
  • 18.
    Central European MediaEnterprises Business Areas: Broadcast, content, new mediaLeading vertically integrated media company in Central and Eastern Europe. It operates TV Nova, Nova Sport, Nova Cinema and MTV in the Czech Republic, PRO TV, PRO TV International, ACASA, PRO CINEMA, Sport.roand MTV Romania in Romania, TV Markíza, Nova Sport, Television Doma and MTV in the Slovak Republic, POP TV, KanalA and POP BRIO in Slovenia, NOVA TV in Croatia and bTV, Pro.BG, bTV Comedy, bTV Cinema and Ring.BG in Bulgaria.Countries: has operations in 6 countriesBermuda company, with subsidiaries in the Netherlands, London and in each operating country
  • 19.
    WestdeuscheAllgemeineZeitung (WAZ) MediagroupBusiness Areas: Press, Radio stations, online market, service companies 29 daily newspapers with a circulation of over 2,5 million copies, 19 weekly newspapers, 186 popular magazines and trade journals, 99 advertising journals, and approximately 400 customer magazines, among others. It has financial interests in numerous local radio stations on the Rhine and the Ruhr, and is the majority shareholder in eleven of them. In July 2005, it sold to Bertelsmann AG its 20 percent share in the Holding BW-TV (Bertelsmann-WAZ-TV) which they operated together. Cityweb Network: online market. Service companies, among other things, runs private postal delivery services in North-Rhine Westfalia and Thuringia.Countries: has operations in 10 European countries (special interest in Southeastern Europe)Employees: 17,000
  • 20.
    ringierBusiness Areas: multinationalintegrated media company - print, broadcast, radio, online and mobile media brands, and is a successful player in the printing, entertainment and internet businessRingier publishes and prints over 70 newspapers and magazines in Germany, Hungary, Romania, Serbia, Slovakia and the Czech Republic. In Asia, it owns the printing company Ringier Print (HK) Ltd., Hong Kong, and Ringier is active in China since 1997.Countries: has operations in 6 European countries Employees: 7,448Revenue: 1,296.1 By country Switzerland and Germany 63.7%;Czech Republic 11.4%; Slovakia 5.1%; Hungary 8.3%; Romania 2.7%; Serbia 4.8%; Pacific 4.0%
  • 21.
    Liberty globalBusiness Areas:Video onDemand, High Definition TV, and Digital Video Recorders, broadband internet services, Multi-feature VoIP telephony servicesLargest cable company outside the U.S. and one of the fastest growing in the world. 31.2 million homes passed, 17.7 million customer relationships, and 27.5 million video, voice, and internet subscriptions (RGUs)Divisions:UPC Broadband: Cable operations in 10 countries, LargestPan-European cable operatorUnitymedia(Germany): part of the UPC Broadband division, second largest cable operator in GermanyTelenet (Belgium): Own ~ 50% of Telenet, Largest cable operator in BelgiumChellomedia: Content generator: 44 channels, of which 29 are 100% owned and 15 jointventures. Subscribers: 252 million TV households globallyAlso: Australia (Austar) and the Americas (VTR–Chile; LibertyCablevision- Puerto Rico)Countries: 14 countriesEmployees: 20,000Revenue: $9,000 M