Convergence of Telecommunications and Broadcasting in Japan, United Kingdom and Germany

Technological Change, Public Policy and Market Structure

Koichiro Agata, Kiyoshi Nakamura

• Publisher: Routledge
• Year: 2013
• Print ISBN:
  9780700715558
• eBook ISBN:
  9781136127069
• Topic: Social Sciences
• Subtopic: Ethnic Studies
• Index: Social Sciences

The convergence of telecommunications and broadcasting raises many questions. What form will convergence take in the future? When convergence produces new opportunities in the information, education and entertainment markets, what sort of rules of the game will be required? How will the players behave in these new markets? What policies might be needed?

PART 1 Telecommunications and Broadcasting in Germany

DOI: 10.4324/9780203037393-1

CHAPTER ONE Convergence of Telecommunications and Broadcasting in Germany

DOI: 10.4324/9780203037393-2

Technological Change, Public Policy and Market Structure

Peter Eichhorn

Mannheim University

1. Technological development is integrating the former separated industries of Television, Computer and Telecommunication.
   The expansion of digital technology enables electronic devices in domestic homes, free enterprise, associations (e.g. societies, federations, chambers, social insurance) and administrative authorities to be networked and allows them to connect to the outside world via the Internet. The World Wide Web is the basis for global, interactive communication.
   It is not yet clear which digital communication based technology will lead to the merger of the TV-set and personal computer. Will we watch television on the computer monitor or will a keyboard allow the TV audience to go on-line with their TV-set? The terminals do not necessarily have to merge despite the uniformity of the distribution. The reason is that two user attitudes are becoming more and more visible: desk viewing (lean forward) and couch viewing (lean backward).
   Furthermore, broadcasting networks can be used for telephone calls and radio and television programmes can be received via the telephone network. In August 1998 the German Federal Government took a decision on this possibility, not self-evident as, in Federal Germany, the States have the responsibility for Broadcast Regulative Laws, the Federal Government for Telecommunications Regulative Laws.
2. Globalisation, understood as worldwide business strategy, will also influence broadcasting.
   We are looking at two different concepts: From the American point of view, broadcasting is a commodity that can be offered commercially. The Commission of the European Union seems to sympathise with this primacy of the market. In Germany, in comparison, a pluralistic arrangement is preferred: broadcasting as cultural possession and commodity. For this reason the Green book on convergence of telecommunications, media and information technology as well as a working paper summarising public consultations, published by the Commission dated 29 July 1998, receive criticism.
3. The pluralistic arrangement of broadcasting in Germany is illustrated by the sharing of Public Broadcasting and Commercial Broadcasting, the so-called dual broadcasting system. Licence fees, supported to a small extent by commercials, finance the public broadcasters while the private broadcasters exist exclusively through commercials. Recently the dual broadcasting system has been changing to a triple system. As a third finance model Pay TV (Subscription TV, Pay Per View and Video on Demand) is becoming prominent. A new conflict is becoming obvious between so called Free TV (financed by commercials) and Pay TV.
   We number 10 state public broadcasters and one federal broadcaster. The latter, as the overseas service, is financed from taxes. As members of the ARD (Arbeitsgemeinschaft der öffentlich rechtlichen Rundfunkanstalten Deutschlands, translated as Consortium of German Public Broadcasters), they offer 14 TV and over 50 radio programmes. In addition, the ZDF (Zweites Deutsches Fernsehen translated as Second German Television), which is controlled by all German States, transmits nationally and internationally, not regionally as the state public broadcasters.
   Amongst the private Broadcasters RTL, SAT 1 and PRO 7 are the most important. Altogether 33 German language and 5 to 10 foreign language free TV programmes are produced by the private broadcasters. One programme is produced as Pay TV (Premiere World).
   The TV market in Germany totals 33.1 million viewers (including children above the age of 3). The reception status in domestic households is as follows: 18.4 million receive TV programmes via cable, 11.5 million direct via satellite and 3.8 million via terrestrial transmitters. The relative market share for 1998 (current figures are not yet available) are: ARD 15.4 percent, RTL 15.1 percent, ZDF 13.6 percent, SAT 1 11.8 percent and PRO 7 8.7 percent (35.4 percent is shared by the other broadcasters).
4. With regard to the trend to a networked media world the USA is 4 to 5 years head of European countries. Meanwhile computers, TV and telephones have been networked in such a manner that their use is as simple as possible, that is to say user-friendly.
   It was a spectacular takeover in January 2000 of the worlds largest media group Time Warner (including several TV stations, film and audio studios, music publishers, press-media and the second largest TV cable network in the USA) by America Online (AOL with several online services, including email, on the world-wide data network). Two global companies merged to form a union of television and internet. Hence it appears that the internet is coalescing more and more with the classic media of television, radio, music and film.
5. Apparently, the course of development will give the TV-set with private internet access a greater role than the personal computer. This is probably true for entertainment, consumer-electronics as well as for the users, who need large data streams from or to the internet. E.g. the user makes a connection to the internet via mobile telephone and the download is established via a TV channel to the set top box of his TV-set. The interaction can proceed via the feedback channel. Consequently, major investments will have to be made in TV cable networks. Already it is possible to use existing systems such as the asymmetrical use of narrow band mobile radio and wide band TV (asymmetric meaning: short commands release large information data streams).
   The technological basis for this project is the DVB standard (digital video broadcasting), a joint European development. Digital terrestrial television (DVB-T) has been operational since 1998 in Great Britain and since 1999 in Sweden. Trial operation began in Germany two years ago, but is faced with a problem. Dissemination and acceptance depend on the fact that DVB-T not only consists of TV programmes. The expensive set top box for DVB-T should also provide such services as e-mail, e-commerce or even music on demand and also be able to access these services as a portable system. Motivate (mobile television and innovate receivers), a European project is under development aiming to make digital television accessible in cars, buses and even on trains or trams. The circumstances in Germany are different to those in e.g. Great Britain; only 11 percent of the viewers receive TV programmes via a traditional antenna. DVB-T has therefore a disadvantage in comparison with satellite and cable reception.
6. In Germany plans exist to make access to the internet available via the TV cable. A decoder (called d-box) developed by the Leo Kirch group, enables the reception of digital television (up to now in Germany only Pay-TV) and could help to develop digital television even more, allowing for hundreds of TV programmes on cable or satellite to be available. (As I have already mentioned, 18.7 million domestic households have access to the TV cable network). Not only digital television but also several internet services would then be available like e-mail, e-commerce and e.g. e-books and print-on-demand as well as home banking and other multimedia services. The discussions do not concern the technical area so much, but are looking at the political aspects. The standard-decoder should not allow monopolisation, but should be open to the entire electronic media. The technology for the ‘open decoder’ (called common interface) already exists.
7. It is conceivable that, in the future, the multimedia user at his multimedia workstation will become his own Director of Programmes. He will have to choose from the huge supply of video, audio and print media. It seems certain that the mass media, television and radio, will evolve to an individual communication, independent of the distribution system and the merging of the terminals. In addition the profit increasing sales chain will become longer. From the point of view of the network founders and providers broadcasting will dissolve into the world wide web. In other words: the world wide web will dominate broadcasting.
   In order that broadcasting can fulfil its task for society, it should not be permitted to be at the mercy of commercial interests. In this sense the broadcasting system in Germany is an obstacle, giving the public broadcasters a functional mandate to serve society, whereas commercial TV and radio companies pursue the rate of return and publishing aims of their associates.
8. The Programme mandate for public broadcasters consists in the guarantee of a basic supply of the population with a wide, manifold, integrating and exhaustive offer of information, educational, entertainment and advice programmes. These programmes must satisfy high quality demands and should set a leading example, give orientation, support cultural activities, form discussion forums, and accelerate innovations.
   High standard professional staff must play a part to achieve a cultivated, communicative and appropriate programme.
   The German constitutional court has judged in favour and confirmed the position and function of the public broadcasters in Germany. The basic supply is not a minimal supply but contains an extensive right of existence including financial and development guarantees. Public broadcasting, financed by the principle of solidarity (licence fee), controlled and consulted by major and relevant groups of society sees its tasks in:
   • – the development of free and public opinion and political character
   • – ensuring diversity of opinion
   • – the compensation of interests of different groups
   • – the protection of minorities
   • – the respect of human dignity
   • – the exposure, criticism and control of grievances and wrong developments
   • – collectively: for public welfare
   Commercial broadcasters are aiming at attractive entertainment programmes for the mass audience (which is legitimate), because high audience rating bring high advertising revenue and therefore commercial success. It is no wonder that commercial television bets on sport, crime, sex and taboo programmes.
9. The public broadcasters meet changing demand – due to technological development and changes in the users’ attitude – with new programme offers. Individual communication has changed and has become more selective, is not time related, is directed by themes and is more interested in permanently accessible news.
   Consequently the public broadcasters are rearranging their programmes and are opening new theme channels. ARD and ZDF are replacing individual main programmes with a digital ‘bouquet of programmes’ containing e.g. children, theatre, weather, documentary, tourists and parliament programmes. All this is accessible with an EPG (electronic programme guide).
   On the internet domains of the public broadcasters (which are financed with the licence fee and not with advertisement) links are available not only to programme related additional information, but also to pages containing information on e.g. sports, computers and news. This gives the viewer limited individual communication.
   In addition to entertainment programmes, thanks due to digital technology, educational programmes will become more important, competing with the scientists and teachers who in the future will be holding lectures and instruction courses beyond the traditional education system on the internet. (In a few years there will be an estimated 500 million internet users. A similar rate of growth is expected fo...

Table of contents

• Cover Page
• Half Title Page
• Title Page
• Copyright Page
• Table of Contents
• Preface
• List of Contributors
• Part 1 Telecommunications and Broadcasting in Germany
• Part 2 Regulatory Challenges in the United Kingdom
• Part 3 Convergence and Technological Changes in Japan