‘New’ business models dominate media economics summit

By Johanna Mavhungu

The recent World Media Economics and Management Conference (WMEMC) was a cornucopia of media management academic research and scholarship. Held in the second biggest city in Greece, Thessaloniki, the conference delivered thought-provoking presentations on the digital economy in Europe, South and North America, as well as in Asia.

Deliberations centred primarily on the voracious quest for ‘new’ business models, a topic that frames many of today’s conference and research agendas. The papers were presented with a blend of theoretical grounding in economics, political economy, management and the social sciences.

Concepts such as disruptive innovation, technological determinism, diffusion of technology, audience valuation and creative destruction, to name only a few, were the essence of research analysis. Unearthing new research directions and questions and evaluating the industry in four different continents was a remarkable achievement for the organisers.

Interesting research findings presented at the conference showed that:

- Young people in the US prefer online to print, using online as a form of ‘media snacking’ throughout the day (Chyi, H. Iris 2012).

- Newspapers using technology are not generating revenue to cover the significant costs of investment based on case studies from Finland, Russia, Germany and Austria. Austria was the only case study with evidence of sustainability (Koikkalainen 2012; Makeenko 2012; Freidrichsen et al. 2012; Grueblbauer 2010).

- The viability of media businesses depends on their business models and, to a lesser degree, technology (Peters et al. 2012; Graybeal 2012).

The theoretical analysis proved interesting, but little attention on media management research methodology was evident. Some conference participants asked critical questions that elicited responses from presenters about the challenges of data gathering, sampling, response rates, selecting the appropriate research paradigm and methodological approaches as well framing questions concisely, just to mention a few.

Other delegates mentioned that the conference could benefit from more rigorous economic data analysis and production of economic and organizational models informed by a quantitative research approach.

Nevertheless, the voice of African media management studies was ominously lacking at the conference. For media management scholars and academics in Africa, it is without a doubt that conferences such as WMEMC are expensive to attend but we need to find ways of participating in other forms locally and create platforms for different institutions to share ideas and collaborate more often on research projects.

Media management as a subject is fragmented, borrowing from a number of established disciplines, evidenced by the conceptual framing used in the synthesis of most of the papers.

But the fragmentation is an opportunity to study media work and organizational practices from diverse perspectives and to harness knowledge that benefits professional practice from a vast array of disciplines. The breadth and depth of the subject is an opportunity to research and contribute to public discourse about media management and leadership as demonstrated by the 120 researchers who presented papers at the conference.

Key words: WMEMC conference, media management, scholarship, Africa, Europe.

*Johanna Mavhungu is a researcher and lecturer at the Sol Plaatje Institute for Media Leadership at Rhodes University in South Africa. She can be reached at j.mavhungu@ru.ac.za.

We are in this together, folks!

By Motalatale Sam Modiba

Recent months have seen a heightened focus on the state of media in South Africa. The machinery of government communication has also come under scrutiny as issues pertaining to the agenda of the media, access to information and journalistic ethics are debated in the context of our fledgling democracy.

It was within this context that I set out to attend the week-long course for “Government Media: Essential Tools for Editors and Journalists” hosted by the Sol Plaatje Institute for Media Leadership at Rhodes University on 14-18 May this year.

My expectation of this course, having heard about it from fellow colleagues who have taken part in it previously, did not disappoint.

I am convinced, despite the many challenges that confront those of us that ply their trade as government communicators, that in our midst lies many skills and experiences which, if correctly harnessed, can serve as some of the best practices as we strive to serve as ‘indispensable links between the public and government’.

Having said this though, and in view of my opening paragraph, it quickly became clear -- to borrow a quote from Themba Sepotokele, a seasoned journalist, spokesperson, speech writer, communication strategist and media trainer -- that “There is never a dull moment in the love-hate relationship between government and the media”.

From the robust engagements that ensued over the five days of the course, it was easy to understand why there is ‘never a dull moment’. As government communicators, we sometimes tend to take a very critical view of how the media operates and how we think the media should actually function and the same is true of the media about government communicators.

While at Rhodes University, a colleague of mine and I visited the Rhodes Journalism Department and hardly before we could finish introducing ourselves we were already having to deal with some misconception about government communications and their shortfalls thereof.

Again at a Working Dinner session for course participants – it is traditionally held on Thursdays to continue deliberating on some of the issues which may not have been exhausted during lectures -- a debate broke out between a member of the Fourth Estate and some government communicators on the role of the media in society and who sets the media agenda and the effectiveness or ineffectiveness of government communication.

The course and our discussions at the journalism department and during dinner left me more appreciative of the reality that there will always be tension between my role as a government communicator and that of the media, although ultimately we are standing across the same fence: that is, our desire to relay messages to our respective constituencies.

What needs to happen though is to ensure that the unavoidable tension is a healthy one, and this can only be done when we all realise that what divides us is not a solid wall but a mere fence. This means that efforts must be made to build relations between the two groups and to understand the intricate environments in which each operates in, how and why.

Government communicators need to listen closely to what the media is saying, no matter how biased the media may be perceived to be. On the other side of the coin, there is a need for the media to not be condescending in their attitude and to at times appreciate the delicate environment in which government communicators operate in.

Unfortunately or fortunately, depending on your vantage point, the tension will always be there. What both parties should strive for is to ensure that it remains healthy.

-- *Motalatale S. Modiba is a senior media officer at Ekurhuleni Metro in Gauteng, South Africa. He contributed this article in his private capacity.

-- Editing by Francis Mdlongwa, Director of Sol Plaatje Institute for Media Leadership, Rhodes University, South Africa.

Emerging markets are driving the web, no bubble in sight: The Meeker files

Emerging market countries are driving internet growth. Thing is, it’s not the only the usual BRIC suspects that are steering the ship.

In fact the countries that are really surging ahead include likes of The Philippines, India, and Indonesia. That’s according to the 2012 Internet Trends report from renowned web analyst Mary Meeker, sometimes referred to as the “Queen of the Net”.

Meeker, a partner at VC company Kleiner Perkins Caufield Byers (KPCB), unveiled her annual trends report at All Things Digital’s D10 conference.

According to Meeker, there are now 2.3-billion web users around the world. Despite continued growth however, global internet penetration only stands at around 32%.

Read more on memeburn

Radio and the Internet: creating a sense of community

By Linda Kunene

Much has been said about the effect of the internet on print media, with circulations of newspapers and advertising spend that they attract steadily decreasing in the developed Western world.

Television has also been negatively affected by the internet, with many people opting to watch YouTube videos and downloading movies to their personal computers. However, what is the impact of the internet on radio?

Radio is part of our everyday lives. According to the MDDA Report (2009), 94.1% of South Africans have access to radio. Broadcast and print media access are lower, sitting at 83.8% and 40% respectively.

As children, our parents listened to radio in the car on our way to school, listening to traffic reports and news headlines. The voices of Jeremy Mansfield and Bob Mabena are ingrained in our minds. As we got older, we started to listen to radio on our phones. With an endless amount of media content available online, our attention is increasingly becoming a scarce resource. How will radio listenership, a passive activity, compete with more interactive online activities?

Listeners want more control over their media consumption and the internet is an attractive platform. Pandora Music is a US-based online music recommendation service that gives users the power to choose their playlist. This works for those in the developed world, who can afford to stream radio on their phones or computers, but this is not affordable to most people in South Africa and Africa.

Moreover for indigenous/vernacular language speakers, how much choice does internet radio give its listeners?

Radio stations in South Africa seem to have not been negatively affected by online media. Looking at the listenership numbers of Ukhozi FM, 5FM, and Metro FM, their positions are still strong. Why is this? Well, for vernacular radio stations, they have little – if any-- competition online. Most content on the internet is in English, and this is the same with radio stations. One would struggle to find an online radio station in vernacular. Also, radio stations offer local content.

Danika Marquis, a radio journalism lecturer at Rhodes University, adds that the SABC stations provide enough variety in content for local listeners. For English speakers, there are stations such as SAFM, 5FM, Radio 2000 and Classic FM that cater for listeners who want analysis on political and economic events, or classic, rock and contemporary pop music.

However, there are listeners who look to the internet for more choice in radio stations. Many local stations are aware of this and are creating a strong online presence to remain relevant to their audiences. 5FM and Metro FM, for instance, are active on social networking sites. By doing so, they have a better chance of getting your attention while you are online.

Some stations have used the internet to complement their activities. For example, blogging is used by DJs to create a conversation with their listeners and open space for comments. The use of social networking to interact with listeners has also become important. The internet allows for a high level of interactivity, which, if used intelligently, can help analogue stations create a strong online presence. Social networking is being used to engage frequently with listeners. For example, 5FM’s DJ Fresh and 94.7’s Anele have a huge following on Twitter. They are also encouraging listeners to use SMS and phoning-ins for dedications, song requests and competitions.

The issue of access to the internet is another factor. Internet bandwidth is expensive and therefore it limits the amount of access that people in South Africa and Africa have to internet products/ services. FM radio, as Marquis observes, is not only free to the listener, but also much cheaper to produce than TV and print.

Masixole Mdingane, Station Manager of Rhodes Music Radio (RMR), says one of the greatest things about radio on your phone is that it is everywhere you are: in your home, your car, and your pocket. This makes it so much more easily accessible than online streaming, with bandwidth being so expensive in South Africa. Patterson and Modisane (2011:32) say that “21.6% of all radio listeners tune in via their cellphones”, and indications are that this number will continue to steadily increase.

According to the AMPS June 2011 data, “total radio listenership percentages are slowly but steadily increasing, with both commercial and community radio stations improving compared to 2010” (Patterson & Modisane in The Media magazine, 2011: 32).

This is because listening to the radio gives you a sense of community that listening to your mp3s cannot provide, according to Terry Volkyn, CEO of Primedia Broadcasting (The Media Collection. Radio Edition, 2012). It is a space where the audience can engage with the DJ/ host and other listeners about local issues. This is very different to the often solitary activity of listening to your own music. And since humans are social beings, they are likely to gravitate towards activities where they can interact with other members of their communities.

All radio stations need to make use of the internet to interact with listeners and therefore provide a sense of belonging and community.

References

• 2011. Radio’s feel-good effect. [Online]. Available: http://www.screenafrica.com/page/news/radio/1056240-Radio-s-feelgood-effect. [26 April 2012]

• 2012. Commercial Station Summary. http://www.saarf.co.za/rams-commercial/2012/rams-commercial%20Feb'11%20-%20Feb'12.asp. [22 April 2012]

• Bunce, R. The real trends in the radio sector. In The Media Collection. Radio Editionmagazine, April 2012.

• de Araujo, G. 2012. 2012 Trends. Reasons not to ‘touch that dial’. [Online]. Available: http://www.bizcommunity.com/Article/196/424/69898.html [22 April 2012]

• Marquis, Danika. 2012. Interview with Rhodes University radio journalism lecturer on 11 May 2012. Grahamstown.

• Madingane, Masixole. 2012. Interview with Rhodes Music Radio station manager on 28 March 2012. Grahamstown.

• Patterson, G. & Modisane, O. Latest AMPS heralds big changes in the media. In The Media magazine, November 2011

• Rotherham, S. 2011. South Africa’s Fundamentally Flawed FM Radio “Listenership”. [Online]. Available: http://www.2oceansvibe.com/2011/12/12/south-africas-fundamentally-flawed-fm- radio-listenership/ [22 April 2012]

• Sheikh, C. 2011. The business of SA radio advertising: where to from here? [Online]. Available: http://themediaonline.co.za/2011/04/the-business-of-sa-radio-advertising-whe re-to-from-here/. [26 April 2012]

• Smith, D. New Media: where is radio going in Africa? In Mdlongwa, F. (ed). Doing digital media in Africa. Port Elizabeth: Konrad Adenauer Stiftung. p. 41-45.

*Linda Kunene is a student on the Postgraduate Diploma in Media Management at the Sol Plaatje Institute for Media Leadership at Rhodes University, South Africa.