Eli Noam Professor of Finance and Economics Garrett Professor of Public Policy and Business Responsibility Director, Columbia Institute for Tele-Information Columbia Business School http://cmpf.eui.eu/events/policy-conference.aspx http://www.youtube.com/watch?v=4qOZfV3lI-A&feature=share&list=PLI1SnAY9BlwUad15TCj7VKoG4_hbLG40c

1. 11/27/2012
Media Concentration and Outline
• I will do two things here:
Ownership in the Digital Age • 1st, an Empirical analysis of present media
structure. And because this is a European
event, it will focus on Europe.
• 2nd, I will analyze the trends and what they
portend for the future.
Eli Noam – I am mindful, however, that in Italy, after last
Professor of Finance and
Economics week, I might go to jail for being wrong about the
Garrett Professor of Public Policy future.
and Business Responsibility CMPF Policy Conference - EU Competencies – But if I go to jail, at least I will be in good
Director, Columbia Institute for in Respect of Media Pluralism and Media
Tele-Information company, with most of the world’s macro
Freedom
Florence
economists
2
Columbia Business School 25 October 2012 1
• So let me start with the current structure of
media industries.
• This is obviously not just an economic
• But how much of a problem is it, now and
question.
soon?
• It is very public issue
• Here, there are two perspectives.
3 4
1

2. 11/27/2012
• Dean of the UC Berkeley
School of Journalism,
Pultizer Prize winning
journalist.
1. Media Pessimists • Bagdikian: “5
firms…own most of the
newspapers, magazines,
book publishers, motion
picture studios, and radio Ben
and television stations in
Bagdikian
5 the US.” 6
• Larry Lessig “3”
(1998): “within a
few years, we
will live in a
world where just
three companies 2. Media Optimists
control more than
85 percent of the
media.”
8
7
2

3. 11/27/2012
Adam Thierer (Former Pres., • So who is right? Both media pessimists and
Progress and Freedom media optimists hold strong belief but marshall
few numbers.
Foundation) • Now I would never argue that a question such
“To the extent that as media ownership and diversity should be
There was ever a ‘Golden governed by empiricism alone.
Age’ of media ..., we are • But policy need to have some relation to facts
and trends.
living in it today…This is not a matter of
a silver lining around a dark cloud.
There is no cloud” 9
10
• We—that’s about 70 researchers around the • Our work covers countries that account
world, cover 30 countries, 13 media for
industries, and 10-25 years. Thousands of
companies. • 80% of world by population x, and 80%
by GDP x
• What we at Columbia added to the national • Project supported by the Open Society
research teams was the common methodology, Institute.
so that we could compare. • Guiseppe Richeri here is co-author of
• It’s the national teams that did the data work. the Italy chapter.
11 12
3

4. 11/27/2012
80% of the World by Population 80% of the World by GDP
13 14
Countries of EU Investigated Non-EU Countries in Europe
• Belgium Investigated
• Netherlands
• Finland
• Poland • Russia
• France
• Portugal • Turkey
• Germany
• Spain • Switzerland
• Ireland
• Sweden
• Italy
• UK
15 16
4

5. 11/27/2012
13 Media Industries Investigated
• 1. Content Media • 2. Platform Media
• Wireline Telecom
– 1.1 Print Media • Wireless Telecom
• And for these industries, the country teams
• Newspapers • Cable TV and Satellite identified and calculated market shares over 10
• Magazines Multichannel Platforms and often 20 years, company by company.
• Books
• This was quite an unprecedented effort.
--1.2 Audiovisual Media • 3. Internet Media
• Radio • ISPs • And its value was partly that it was done
• Broadcast TV
• Search Engines (also in consistently, across countries, across
Content)
• Video Channels • Online News Media (also
industries, and across time.
• Film in Content)
17 18
Concentration index #1: • A lot.
So what do we find?
• Herfindahl-Hirschman Index (HHI)
f • I will focus on Europe.
HHI = ∑ S i2
i =1
Antitrust enforcement guidelines
classify markets
HHI < 1,000 Unconcentrated Market
1,000 < HHI, Moderately Concentrated Market
1,800 < HHI, Highly Concentrated Market
20
19
5

6. 11/27/2012
• What we find is that media concentration in
Europe is high, and that it is higher than
population size or income or other variables
would predict.
• Let’s first look at the overall average of 8
content media per country, weighted by
industry size, and then averaged by geographic
region
21
6

7. 11/27/2012
• Within the EU, highly concentrated countries Cross-Industry
are, overall, Portugal, Germany, Spain, and
France. Measures
26
Cross-Industry Measures
• The figures above show averages across
• A “Company Power Index” = Sum of company's
industries. But concern with media power often HHI scores in 13 media industries. It is an
centers on conglomerates that have a market indicator for the cross ownership of media
presence in several media industries. Among the ownership. A company with high market shares in
several important industries will have a high
various ways to measure and summarize this is a company power index. A country with several
“National Media Power Index.” It is defined as the such companies will have a high national media
sum of a country’s major media firms’ “Company power index.
Media Power Index.” And that index is the sum of • “National Media Power Index” = Sum of the
“Company Power Index” of the major media
a firm’s market shares in each of the 13 media companies in a country
industries, squared, and weighted by the industry
size. 27 28
7

8. 11/27/2012
Example,
Industry Firm A’s Firm B’s market
revenue market share share
TV 200 20% • Now we can also calculate the power index for
Books 100 5% individual companies, across the world.
Film 50 10% • We do this by taking their national power
index, and aggregate it across countries,
accounting for the different size of countries
Total Revenue 350
by a weighting.
Firm A’s Media Power Index = 202(200/350) + • So I will aks you then, who is in that antitrust
102(50/350) = 242.85
sense the most powerful company in the
Firm B’s Media Power Index = 52(100/350) = 7.15 world???
The National Media Power Index = 242.85+7.15 = 250
29 30
All Media - National Media Power Index
8000
7000
National Media Power Index 6000
5000
4000
2004/5
3000 2008/9
2000
1000
0
Chart 7
31
8

9. 11/27/2012
Platform Media - National Media Power Index Content Media - National Media Power Index
9000 4500
8000 4000
7000 3500
6000 3000
5000 2500
4000 2004/5 2000 2004/5
2008/9 2008/9
3000 1500
2000 1000
1000 500
0 0
Chart 8 Chart 9
33 34
9

10. 11/27/2012
• They show a significantly higher Power index
in EU Europe than in North America. It is
much higher (but decreasing) in Platform
Media than in Content Media, where it is
increasing. Of European countries, it is
especially high in Portugal, Ireland, UK, and
Spain, and low in Finland and Sweden.
News Media Concentration (Weighted by Usage
News Media Concentration as News Source)
6000 5000
4500
5000
4000
3500
4000
3000
3000 2500
2004/05 2004/05
2008/09 2000 2008/09
2000
1500
1000
1000
500
0 0
Chart 17 Chart 19
10

11. 11/27/2012
News Media
• The issue of media concentration is important in • We take this one step further. Because these
all media industries, but no-where more than for media contain also non-news elements, especially
for TV and video channels, and because the
news media, as opposed to entertainment and public receives its news information in different
content-free conduits. We therefore also proportions from media we weight the news
aggregate news media for each country. These are industries according to the share in which they
newspapers, magazines, online news, radio, contribute to the news consumption. What are
these shares? [Liwei: we need to find how, for the
broadcast TV, and video channels. [Liwei, need to US, people use various news media. About ten
do this for 30 countries, and regional]. years ago, the FCC did that, but online news was
• [Findings] not used, and possibly not magazines and video
channels.]
41 42
Importance of Media as a News Source
Cable and Satellite Channels
56.1%
Broadcast TV
Newspapers 15.8%
Online 15.8%
Radio 6.6%
Magazines 5.8%
Sources: 1) “FCC Telephone Study (conducted by Nielsen Media Research), ” Washington, D.C., Federal Communications Commission, p. 87-94.
2) Veronis Suhler Stevenson, Communications Industry Forecast & Report, annual, New York, NY
These weights are constructed based on data from a 2007 FCC Telephone Study: We averaged the four categories of news:
Breaking news, in-depth information on specific news, national news, and local news.
Since consumption varies greatly in different countries between Broadcast TV and Cable and Satellite Channels, we used the
respective countries’ revenue composition to allocate the combined 56.1% for Broadcast TV and Cable and Satellite Channels.
For Magazines, we used Veronis Suhler Stevenson data on Media Usage (Time Spent). We apply the ratio between newspapers
and magazines, 15.8% for Newspapers (from the FCC study), to obtain and estimate 11.6% for Magazines that half of the time
spent on magazines is for news contents.
11

12. 11/27/2012
News Media - National Media Power Index (Weighted
by Usage as News Source)
5000
4500
4000
3500
3000
2500
2004/5
2000 2008/9
1500
1000
500
0
Chart 20
• So we now have seen how media Media Voices
in Europe is highly concentrated,
• Beyond explanations of
population, size, or income
47 48
12

13. 11/27/2012
Media Voices Media Voices – All Media
90
• Another way to look at media diversity is to 80
count the ‘voices’. We define voices as a 70
60
company that has more than 1% of its media 50
market. And where the same company cross- 40 2004/05
2008/09
owns media outlets in several media industries, 30
20
we count it only as one ‘net voice’, not as 10
several. 0
Chart 13
49
• Here, we find a significantly higher number
(40% higher) of such “Net Voices” in North
America than in Europe. (Chart xx). A
different picture emerges, however, when we
take country size into account and look at “net
voices” per capita.
52
13

14. 11/27/2012
• Now, the European average is over twice as
high as the North American and just about any
region. The reason is that…
Voices Per Capita Countries with a high count of voices per
12.0
capita tend to be relatively small countries
10.0
that maintain nevertheless a fairly rich
8.0
assortment of media voices. Europe has
6.0
many such countries, such as Finland,
4.0
2004/5
2008/9 Sweden, Ireland, and Portugal. It’s the
2.0
combination of contentious politics, diverse
0.0
population, entrepreneurship, and small
population.
Chart 15
56
14

15. 11/27/2012
Do the new internet media make a difference to
media concentration, in the way its enthusiasts
believe? Not really.
The core internet media are actually more
Internet Media concentrated than the old legacy media. The
problem are fundamental economics of scale and
network effects. There are dominant players in their
respective niches—Amazon.com, Ebay, Microsoft,
Google, Facebook, Twitter, YouTube, Apple i-store,
and on. They all have high market shares, either in
their national markets or globally. [Liwei: get non-
US and also EU examples]
57 58
These are the industries that were believed to be Finding: The Internet
wide open and competitive, which would open
things up for the rest. But they exhibit strong Media Are Rapidly
concentration trends. The underlying economic
factors, are easy to describe: High fixed cost and Rising in Concentration
low marginal cost on the supply side, and high
network effects on the demand side. This creates
very high advantages to scale.
59 60
15

16. 11/27/2012
• We measured this concentration for
ISPs, Search Engines, and Online
News.
61
For ISPs, concentration is very high. In most
countries, over 3000.
In the US, it is lower nationally. But locally, it is
largely a duopoly of the telecom company, and
the cable company. Satellite broadband is slow
and expensive, and mobile phone is also
relatively slow and expensive, once it is used for
significant data downloads. [EN add after Liwei
Internet regional]
64
16

17. 11/27/2012
For Search Engines, concentration is enormously • For Online News Media, regional data show
high in most countries, usually due to Google’s Europe.
market share. • Chart X below shows that the concentration of
online news is often lower than of print
newspapers. But in many cases it is actually
higher. This is the case in the US, Germany,
Japan, Spain, China, and Brazil.
65 66
68
17

18. 11/27/2012
Finding : There is a
Convergence of Concentration
Across countries
• Low concentration countries show rising
concentration
• High concentration countries show declining
concentration
69 70
Average HHI (Wireless Telecommunications) Average HHI (Wireline Communications)
12000 12000
10000 10000
8000 8000
America
HHI 6000 HHI 6000
Asia Non-OECD
Europe OECD
4000 4000
Middle East/Africa
2000 2000
0 0
1990 2000 2009 1990 2000 2009
Year Year
71 72
18

19. 11/27/2012
Average HHI (Daily Newspapers) Average HHI (TV Broadcasting)
2500 12000
10000
2000
8000
1500
America America
HHI HHI 6000
Asia Asia
1000 Europe Europe
4000
Middle East/Africa Middle East/Africa
500
2000
0 0
1990 2000 2009 1990 2000 2009
Year Year
73 74
Average HHI (Internet Service Providers) Average HHI (Internet Service Providers)
12000 12000
10000 10000
8000 8000
America
HHI 6000 HHI 6000
Asia Non-OECD
Europe OECD
4000 4000
Middle East/Africa
2000 2000
0 0
1990 2000 2009 1990 2000 2009
Year Year
75 76
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20. 11/27/2012
Average HHI (Search Engines)
8000
7000 • So what does this mean?
6000
• It means that basically we are, for a good
5000 number of important media industries,
America
HHI 4000
Asia
observing common trends in different parts of
3000 Europe the world. And emerging common industry
Middle East/Africa
2000 structures.
1000 • Apparently, relative regardless of national
0 economic particularities, of national regulatory
1990 2000 2009
Year particularities, of historic particularities
77 78
Finding : Globally,
content media are much
lower in concentration
than distribution media,
and the gap is declining
79 80
20

21. 11/27/2012
Concentration Trends (World)
5000
• Concentration in distribution high and rising 4500
4000
• HHI over 4,500. That’s a structure with the 3500
top firm of over 60%! 3000
2500
2000
1500
1000
500
0
~2000 ~2004 ~2008
Content Media Platform Media
Note: ~2000 number do not reflect data for all 30 countries,
since data is not available for some countries for early years
Chart 41
81 82
Concentration Trends (EU)
5000
4500
• The trends for Content Media is somewhat
4000
3500
rising concentration, while it is declining for
3000 Platform Media.
2500
2000
• However, EU Platform Media are much more
1500
highly concentrated (~3,500) than Content
1000
500
Media (~1,900).
0
~2000 ~2004 ~2008
Content Media Platform Media
Note: ~2000 number do not reflect data for all 30 countries,
since data is not available for some countries for early years
Chart 42
83
21

22. 11/27/2012
Finding : Concentration • This work is still in progress.
• In the US, the share of top 5 media firms in
Trends Come in Cycles, overall Mass Media more than doubled
1988- 2004 from 12.5% to 28.4%). But then
on an inclining axis it fell. To 21.5%. There have been major
de-mergers and spin-offs.
• But Recently, the US government approved
the acquisition by Comcast of NBC. And
now, based on that, the share of the top 5
companies is up again, to 23.2%
85 86
CONCENTRATION TRENDS, WITH CONTINUOUSLY
RISING SCALE ECONOMIES AND DECLINING ENTRY
BARRIERS
C E
Concentration
A
Concentration
C’
Trend
D
B
Schematic
87 88
Time
22

23. 11/27/2012
Concentration Trend: Impact of Scale Economies and Entry
• This would describe a cyclical
Barriers
concentration trend of up-and-down.
However, this is not quite the end of the
story. Even within the cycles there can be
a trend. This trend is based on the
Scale Economies
economies of scale. When these
economies grow, they lead to relatively
larger firms within an industry, that is, to
Rising Declining
a higher concentration level. This can be
seen in the next figure. It shows the
Rising Higher Concentration
Inverted-U Concentration oscillations in concentration that one
Trend could expect in an environment in which
Entry Barriers
entry barriers steadily decline while
economies of scale steadily rise.
U-shaped Concentration
Decli- ning Lower Concentration
Trend
89 90
CONVERGENCE OF CONCENTRATION OF
OVERALL INFORMATION SECTOR AND
Finding: The Mass Media MASS MEDIA SECTOR
Sector’s Concentration
Concentration
Information Sector
C
A D
Trend is converging with
that of ICT. B
Mass Media Sector
91 92
Time
23

24. 11/27/2012
• This convergence tendency suggests that the • The fundamental problem is
mass media sector, from a relatively lower
level of concentration, will move to a higher that the underlying economics
level that is more similar to that of the overall of the media sector are those of
information sector.
high fixed costs, low marginal
costs,
93 94
And these fundamental economics are quite
• Media equilibrium structure likely
powerful, and show themselves globally, so
to assume oligopoly structure they are not just due to some particularly
• Fundamental economic reasons: greedy empire builder, or a pliant and
–High fixed costs complacent regulator. If one does not like that
–Low marginal cost equilibrium then the conclusion has to be that
of some form of regulation.
–Competition
–Leads to over-investment, price
deflation, failure, consolidation to
achieve price stability
95 96
24

25. 11/27/2012
• And this is just the
beginning.
• Because the entire nature of
media will be shifting.
97 98
1st Generation Television:
Broadcasting
• The TV of the future is not just more
of the same.
• Not just a widening of old TV to
today’s multi-channel TV.
99 100
http://media-2.web.britannica.com/eb-media/31/71331-004-CDC77097.jpg
25

26. 11/27/2012
3rd Generation of TV: Widening-- More
TV Options
Are You Ready?
• But the trends are pushing on, for a century or
more, exponential trends, secular trends
– In tranmission speeds achieved by engineers x
– In the cost per unit of infromation distribution x
– In the cost per unit of content x
101 102
10
P(D): Price of Distribution per Mbit/capita
Speed (Kbps) Trends (Individualized Channels)
103 104
26

27. 11/27/2012
Price of Media Content per Gbit/cap of
information P(B)
• Deepening:
–Greater “Richness” of content
105 106
• And the number of seconds available
for media consumption does not
increase by much – there are only so
• Richness means a greater sensory impact of
media many hours one can spend on media
• More bits/second • Therefore, the cheaper bits mean that
• If we look at the history of media for centuries, more of them will be consumed per
it is a history of continuous decline in the price second – more bit per second
per bits delivered to the user.
• So the user keeps consuming more and more
• And this means richer media.
bits because they become more affordable
107 108
27

28. 11/27/2012
Bit Richness of Different Media per
Secon’ • Thus, the consumption of bits per
time unit of media use has risen, by
this calculation, by a 5.38%
compound annual growth rate. This
relationship is confirmed by the
directly measured empirical trend, as
shown in Graph 4 which exhibits a
compound growth rate of 8%.
109 110
Flat Screens Big Screens Greater
Next Generation TV Requirement for Sharpness of Pix
• 4K and 8K resolution
• 3D
• 2-way interactivity
• Multi-lateral interactivity
• Person to computer interactivity
• Personalization
• Multi-platform
• Asynchronous
• Immersion 111 112
28

29. 11/27/2012
Person-to person interactivity:
3D-TV Interactive Games
113 114
Google’s “Project Glass”
Person-to-Computer Video
2012
Interactivity • Person-Computer Video Interaction
115 116
29

30. 11/27/2012
Immersion Technology:
Avatars and Virtual Worlds
• Put these together and
you can have
“immersion.”
117 118
• In Gladiator, Russell Crowe’s face was digitally
superimposed on others’ bodies.
• If they can use Crowe’s face,
why not yours?
http://ffmedia.ign.com/filmforce/image/article/569/569303/gladiator_crowe_
tiger_1101791020-000.jpg
119 120
30

31. 11/27/2012
Participatory Experience – Film
• Put all of these elements together
• This enables TV as an immersive,
participatory, personalized, experience
121 122
http://www.collider.com/uploads/imageGallery/Three_Hundred_300/300_movie_image_s.jpg
Participatory Sports – Experience Content Model: Adult Applications
123 124
31

32. 11/27/2012
D. Content Model: Interactive and
Immersive Marketing
F. Content Model: Travelogue
Test Drive Car
125 126
• One model: the community
• To produce such content is
model, in which modules of
difficult.
media creation and play
• It requires creativity, many
modules will be created by
programmers, lots of alpha and
beta testing, and many new decentralized peers,
versions collaborating loosely with
• There are basically two models each other.
to create it. 127 128
32

33. 11/27/2012
• Terminator 2 (1992): $2.5
• But for Premium content there will
computer animators
complex, large suppliers • Terminator 3, $20 million
computer graphics.
• a richer content means a more
expensive content. This is a http://us.movies
1.yimg.co
continuation of trends. m/movies.
yahoo.co
m/images/
hv/allpost
ers/60/180
0022060p
.jpg
129 130
• In 1977 the credits for the original
Star Wars listed 143 technicians; • Such expensive content
• in 2003 the CG sequel, Attack of exhibits strong economies of
the Clones, listed 572 technicians. scale on the content
• Avatar: over 800 computer production side, and network
externalities on the demand
graphic artists, $50 million spent
side.
on special effects.
131 132
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34. 11/27/2012
• Both favor content providers with • Now obviously not all of video will be like
that.
–big budgets • Linear will be around, but will be shrinking
–can diversify risk • Immersive content will be the frontier of
–can distribute over other platforms technical and cultural creativity
• There will be a lot of individualization that is
–Can distribute globally automatic.
–With ability to coordinate
specialized inputs
133 134
• And this new TV will have lots of new and old Issue:
problems.
• Privacy. Child protection. National culture. Interoperability
Access.
• But perhaps the most important new or newish
issue is interoperability x
135 136
34

35. 11/27/2012
• There are numerous interoperation • An interoperability is required of content
types, of users, of devices, of networks, of
and coordination issues in such a
prioritization of traffic or software, of
system operating systems, of payment systems, of
IPRs
• All of these are necessary in multi-player,
multi-lateral tv
137 138
Take for example 3D-TV
• 3D video requires coordination– producers, • In the absence of clear interoperation
filmmakers, tv networks, tv sets. principles, these things will emerge inside of
• This has been quite a challenge already. end-to-end integrator firms. Like apple
• If you don’t get it right, everybody gets a • Create certainty and confidence.
headache and never comes back. • But will easily lead to end to end control, even
• Now add an interactive dimension to it into the production side
139 140
35

36. 11/27/2012
Google Cloud Netflix Cloud
http://www.afterdawn.com/news/article.cfm/2009/10/23/netflix_watch_instantly_is_going_international_in_2010
141 142
The NBC (Comcast)—Fox (News
Corp.)—ABC (Disney) Cloud The BBC Cloud
http://www.jeffooi.com/2007Q3/hulu.gif
143 Patalong, Frank (2007). BBC to Broadcast via Youtube. Retrieved from: 144
144
http://www.spiegel.de/international/0,1518,469586,00.html
36

37. 11/27/2012
Next Generation TV:
“Cloud-TV”
• The structure of media firms
• The TV system as “a cloud of will be affected
clouds” • What will be emerging is a two-
tier system of integrator firms
and specialist firms
145 146
Eli M. Noam, Production
146
The Future Structure • The major firms then are mainly
coordinators, integrators of the
of Media Industries specialist firms, and the branders of
the final products. This will be the
• 1. specialized providers of organizational model for media
specialized media modules firms of the future.
• 2. Integrator firms
147 148
147 Eli M. Noam, Production
148
37

38. 11/27/2012
Which firms might be such Integrator Expertise
integrators? Required in
• CE
• Multiple skills hard to assemble and • Distrib N/Ws ( telecom, cable, sat,
manage BB)
• Of today’s media giants, which might • Content prod and selection
have many of these skills? • Marketing
– Disney? Viacom? TW? GE? Bertelsmann?
Vivendi? Sony? Verizon? DT? BBC? • Portals and e-commerce
Google? • Payment systems
149 150
149 150
• So to conclude, the future
Generation of TV media will not
be just more of the same TV, but
also a very different system of TV
• And that system will be tech-
intensive
151 152
38

39. 11/27/2012
• They will have high scale economies • So this will affect media structure in very
• And they will probably be regulated much fundamnetal ways
more like telecom companies than like • It will affect politics
traditional media or tv companies. • It will affect culture
• Regulations like access, non-discrimination,
univerality, tax, plus new tasks like assuring
IPRs, child protection, consumer protection,
etc.
153 154
The Relation of
Our research has already Politics
shown interrelations and
Media
Concentration
155 156
39

40. 11/27/2012
TV Concentration and Government TV Concentration and Democracy
Effectiveness
120 Good 10
Good
Democracy Index
9,5
100
9
R² = 0,7272
80
Effectiveness
8,5
Government
60 8
R² = 0,496
7,5
40
7
20
Bad Bad 6,5
0 6
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 0 1000 2000 3000 4000 5000 6000 7000 8000 9000
157 158
HHI (TV broadcasting) HHI (TV broadcasting)
ISP Concentration and Freedom Index TV Concentration and Freedom
60
90.0
Bad Bad
Freedom House Index
80.0
50 R² = 0,7437
Freedom Index
70.0
60.0
40
50.0
R2 = 0.4754
40.0 30
30.0
20.0 20
10.0
Good 0.0 10
0 1000 2000 3000 4000 5000 6000 7000 8000 Good
ISP HHI
0
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
159 160
HHI (TV broadcasting)
40

41. 11/27/2012
TV Concentration and Regulatory Quality TV Concentration and Control of
120
Corruption
Good 10
Good
Regulatory Quality
100 9
Corruption Index
R² = 0,6649 8
80
7
6
60
5
40
4
3
20
R² = 0,6625
2
Bad 0 1
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
Bad
HHI (TV broadcasting) 0
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
161 162
HHI (TV broadcasting)
TV Concentration and Happiness
Good 60
Happy Planet Index
50
R² = 0,4819
40
30
20
10
Bad
0
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
163 164
HHI (TV broadcasting)
41

42. 11/27/2012
• And the problem is, that the underlying • And what’s more, this will get worse,
economics result in equilibria which we do not inevitably.
like
• And these fundamental economics are quite
powerful, and show themselves globally, so
they are not just due to some particularly
greedy empire builder, or a pliant and
complacent regulator, or a legally corrupt
legislature.
165 166
Thank you!
• Whatever we do, we should think about it
soon, before it is too late.
• Before the realities on the ground have become
End of Talk
too entrenched. noam@columbia.edu
• So we have started at Columbia to design some
principles for the next generation of TV, for
that Cloud TV.
• And we invite all of you to join us.
167 168
42