How Globalization is Impacting the Media Industry
In Brief
Globalization fosters connections between cultures, institutions, and individuals, with technology enhancing its impact on media, enabling rapid information spread and increased connectivity.
Globalization of Media
Globalization has significantly contributed to our progress toward modernity, allowing societies to develop connections between cultures, institutions, and individuals. Globalization has had widespread effects, particularly due to the development and advancement of technology, which has enhanced the impact of globalization on media in particular. With the internet and other forms of media enabling the rapid spread of information and knowledge, we are now more connected than ever.
There have been both positive and negative effects of media globalization, and our growing level of connectedness has a number of implications for society as a whole. On the one hand, it has expanded and diversified the media by democratizing access, but this increase in the supply of content has dramatically compressed advertising margins, resulting in increased concentration in the institutional media sector.
In this sense, it has reduced diversity of perspectives. To address this, it is crucial that we look to adopt solutions that decentralize control and ensure a more equitable media landscape.
What is the Globalization of Media?
So, what exactly is the role of media in globalization, and what are the pros and cons of media globalization? Made possible by ongoing changes in information and communications technology, the globalization of media results in vast amounts of information being transferred around the globe in a matter of seconds.
Trends and influences are no longer contained to singular countries or states – now, they are disseminated internationally, leading to the influence of various forms of media having a global impact.
Cultural hybridization is frequently seen as a positive effect of globalization, where access to diverse ideas fosters the creation of new, dynamic cultural forms. In theory, exposure to different cultures and perspectives can enrich society, broaden horizons, and shape opinions in meaningful ways.
However, in reality, the media industry is defined by a concentration of power held among a handful of corporations, and the effects of globalization on media have resulted in narrow, corresponding viewpoints across a number of different platforms.
What is the Negative Risk of Media Globalization?
A 2023 report from the Media Reform Coalition revealed that three UK companies control 90% of the country’s national newspaper market. Across the sea in the US, six media companies are regularly cited as giants that dominate the industry: Comcast, Disney, Warner Bros, Discovery, Paramount Global, Sony, and Amazon.
Given free, independent, plural media is essential to a functioning democracy and society, the dominance of a handful of media corporations gives them a disproportionate share of power to dominate national conversations.
With the rise of the digital age and the internet, the traditional way of consuming news was disrupted, having a significant negative impact on local and print media. This led to cultural attitudes and influence specific to different regions being eroded, particularly among communities where local news outlets are experiencing job cuts, falling revenue, or publications shutting down entirely.
Struggling local media made it easier for oligopolies to emerge, making it even more difficult for smaller outlets to remain competitive, and now, we are seeing a growing number of news deserts – areas with no professional news service – emerge. The benefits of media globalization are reversed, with the potential for a range of ideas from different communities replaced by promoting the vested interests of media moguls.
Large corporations’ demand for profit further exacerbates the problems caused by media globalization; profitability is prioritized over the people’s right to knowledge. Given their imperative of advertising revenue, media organizations tend to favor stories that align with the interests of their sponsors, which, in turn, whether subtly or overtly, influence the news agenda. Stories that cast a negative light on advertisers can be downplayed, while content that aligns with specific interests receives more prominent coverage.
The ultimate goal of attracting an audience as large as possible also can also lead to a focus on sensationalism and attention-grabbing headlines at the expense of in-depth journalism and critical analysis.
While media outlets may want to maintain editorial independence, falling revenues make it increasingly difficult to achieve this. With their dominance in the market, it becomes very difficult to find alternative points of view in mainstream media, while smaller players with less market share struggle to be heard.
Improving the Effects of Globalization on Media
Having analyzed the advantages and disadvantages of media globalization, we can see it has led to exponential developments in the media in all of its forms. The benefits of the globalization of mass media have largely been enjoyed by the media giants operating within the industry rather than the public as a whole.
The compressed revenues in the media industry have reversed the positive effects we should have enjoyed as a result of globalization – diverse opinions and voices from a range of local and international media outlets. Rather, we are faced with an increasingly concentrated industry that is more easily capturable by powerful interests.
The industry must undergo significant changes to prevent us from exacerbating the risks of media globalization. Increased advertising, reliance on subscription models, and censored content can be replaced by a new, collaborative system where information is allowed to occur freely without influence or bias.
A decentralized, censorship-resistant platform offering a subsidy-based funding model can democratize access to information while remaining accurate and economically viable. We need to leverage the effects of globalization and the media in a way that benefits the entire population rather than a small handful of media conglomerates.
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About The Author
Ciarán Murray, the founder of Olas, has extensive experience in the blockchain industry. He has been involved in various blockchain projects over the years and recently developed a proof-of-concept for synthetic assets. Before his work in blockchain, Ciarán had a career in the media industry, including a role at British Sky Broadcasting. His background provides him with a unique perspective on the challenges within the media industry and how blockchain and distributed technologies can be applied to address them.
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Ciarán Murray, the founder of Olas, has extensive experience in the blockchain industry. He has been involved in various blockchain projects over the years and recently developed a proof-of-concept for synthetic assets. Before his work in blockchain, Ciarán had a career in the media industry, including a role at British Sky Broadcasting. His background provides him with a unique perspective on the challenges within the media industry and how blockchain and distributed technologies can be applied to address them.
