Hi, lulop-ga!
Wow, this question has so many facets, it has been hard to figure out
where to start. It has forced me to dig deep, over many hours, and I
finally believe I have some information which should prove valuable to
you.
First of all, the encouraging news is that the television news market
does have a future and continues to overshadow other sources of
information when it comes to consumer preferences. A recent survey by
the UCLA Center for Communication Policy found that, during one of the
most terrifying recent moments in U.S. history, most Americans
bypassed the web and relied on television news to stay updated on the
September 11th terrorist attacks. “The vast majority of Americans
found out about the attacks on television…….and that is where they
stayed for more information." For continuous news coverage, “almost 80
percent of Americans then again turned to television as their source
of information.” While viewers had a tendency to switch channels for
variations on television coverage during the week of Sept. 11, almost
“three-quarters of respondents (73.6 percent) said their use of TV
increased after the attacks.” The Feb.7, 2002 article can be found at
http://ccp.ucla.edu/pages/NewsTopics.asp?Id=32
A White Paper commissioned by Intel, titled “Establishing the Global
Online Video Markeplace”, January 29, 2002, is a goldmine of
information concerning the global news market. The complete article
can be found at http://www.intel.com/ebusiness/pdf/business/digitalmedia/wp020701.pdf.
The following information has been gleaned from the above article.
Links under each paragraph will take you to the first page of the
report.
Growth in the Online Media Market
The past four years have seen considerable growth in the online
market. The online media market was worth approximately $1 billion in
2001, and projections allowing for recent deflation estimate that at a
conservative 50% growth rate, the market will be valued at $5.1
billion by 2005. http://www.intel.com/ebusiness/pdf/business/digitalmedia/wp020701.pdf
Growth in the Streaming Media Market
“The online streaming media market in 2001 was worth an estimated
$300 Million {Media Vision}. The revenues in the Digital Rights
management market in 2000/2001 were about $200 Million {IDC & PWC}.
The growth in this combined sector is predicted to be meteoric as
usual, however, if one considers the global media market was worth
$800 Billion in 2001 and consider
that the trend brings the online media market into the mainstream
market activities then the meteoric predictions begin to gain
credence. IDC and PriceWaterhouseCoopers (PWC) predict the global
media market be worth $1,200 Billion by 2005. Of that enormous figure
the Digital Rights management market is predicted by IDC and PWC to be
worth $3.5 Billion. At 0.029% of the total market it would still
manage to grow 438% in 4 years.” Streaming media offers tremendous
flexibility and is gaining in popularity because it allows the editing
together of many different network streams from various network
editors to form “seamless streaming program.”
http://www.intel.com/ebusiness/pdf/business/digitalmedia/wp020701.pdf
Video News
Associated Press Television News, through it’s Global Video Wire,
reports that it supplies more news to the world community than any
other global news organization. Statistics of programming clips broken
down into News, Entertainment and Sports can be seen on page 5 of the
article under the ATPN Daily Digest.
http://www.intel.com/ebusiness/pdf/business/digitalmedia/wp020701.pdf
Satellite
Satellite operations are now seen as having limitations, since they
do not allow for interactive, timely news. “Internet Protocol
solutions offer a more cost efficient and timely distribution method
for video and related material.” The investment in Video.net has
opened up “world class services provided by APTN to a new
audience…..no longer dependent on satellite downlink facilities or
advanced capture and editing equipment to obtain and publish this
quality of content.” APTNVideo.net is seen as an innovator in a “vital
new industry sector”, in which others are expected to follow.
http://www.intel.com/ebusiness/pdf/business/digitalmedia/wp020701.pdf
Infrastructure expenditures
“When speaking of trends in the online media market place one has to
take into account the pressure of inevitable convergence taking place
in hardware. However, as that convergence process continues the signs
are clear that it is based on common connectivity, and that being
Internet Protocol. Taken from another perspective, that of the content
producers/buyers/sellers
this process is one of divergence rather than convergence. The demand
for homogeneous content on numerous hardware platforms represents a
greater cost of production for any given piece of content. The return
on investment from each platform is not yet sufficient to justify each
on its own. As a result content providers have sought, and technology
providers have sought to provide
solutions, which can seamlessly publish content to numerous platforms
without an incremental increase in cost.”
http://www.intel.com/ebusiness/pdf/business/digitalmedia/wp020701.pdf
Content issues
“The value of content to an online environment is largely decided by
its associative cross media value. In other words such a piece of
content as a football match attracts a large audience on television,
then its popular value is determined to be similar in other mediums.
The pricing is then
related to audience and territory” See page 15, Section 42 for more
information. http://www.intel.com/ebusiness/pdf/business/digitalmedia/wp020701.pdf
Growth of Video news
The popularity and prospects for news video is evidenced by the
alliance of the Associated Press and RealNetworks in February 2000. In
a press release announcing the merger, Jim Kennedy, director of AP
Multimedia Services said, “The online news market is moving quickly to
embrace multimedia presentations that include audio and video, driven
by the increasing momentum behind broadband delivery technology and
more competition for the online news audience….The AP identified that
shift early and developed AP Streaming News to help its member
newspapers and broadcasters catch the leading edge of this audio-video
wave." Expenditures for staff and technology are minimal when websites
contract for streaming media services, since AP and RealNetworks take
responsibility for supplying the sites with continual news updates and
e-mail alerts concerning updated links. USA Today, the Washington Post
and Knight Ridder were some of the first big companies to sign up for
AP streaming news. http://apdmz.ap.org:8080/corpcomm/APPRweb.nsf/3e1f1b834dfbadfd8525669a00705390/7fb762295357bb40852568800052b64d?OpenDocument
To get an idea of how quickly streaming media has caught on since that
initial launch in 2000, go to the AP Wired website and see how many
U.S. and international online newspapers currently subscribe to AP
streaming media.
http://www.wire.ap.org/public_pages/WirePortal.pcgi/us_portal.html#ut
The world’s leading video news agency, the international arm of the
Associated Press (APTN) serves“more than 500 broadcasters worldwide.
With a network of 83 bureaus in 67 countries covering news around the
clock and throughout the world, APTN forms a vital part of The
Associated Press.” The AP was “hours ahead” of major competitors in
it’s May video broadcast of Pakistani authorities identification of
Daniel Pearl’s possible grave site.
http://www.apbroadcast.com/AP+Broadcast/About+Us/Press+Releases/May+Breaking+News.htm
Cost efficiency and maximizing production are essential to successful
online news programming. The Electronic News Production System (ENPS)
of the Associated Press, considered the most popular new news
production system in the world, is currently being implemented by more
than 400 newsrooms in 39 countries. Most recently, it has been chosen
by the Allbritton-owned channels to “allow them to share and use
video, graphics, audio, photos, news stories, background and other
newsgathering information to make them a more efficient and effective
news organization.” Other broadcasters using the AP’s ENPS system to
increase news output effiency include “CBS News, National Geographic
Television, BET, WBAL TV and Radio, WTOP Radio, and National Public
Radiothe BBC, Hearst Argyle Broadcasting, Tribune Broadcasting, Raycom
Media, ESPN, Telemundo, NHL, and Fox Sports Networks.”
http://www.apbroadcast.com/AP+Broadcast/About+Us/Press+Releases/ENPS+Allbritton.htm
Efficient news production, Infrastructure
All major global news organizations are faced with the dilemma of
streamlining the raw news to the online viewing public in the most
cost efficient manner. Lowering the cost of news production, obtaining
quick and easy access to news, minimizing the time to broadcast and
identifying new sources of revenue are common problems. CNN has set an
example of efficiency by teaming with Virage to allow journalists in
all eight Atlanta news divisions (including CNN, CNN International and
Headline News), to access and view news video at the same time, rather
than being overwhelmed by the 150 hours of daily news feeds that
previously had to be shared as a single source. The situation had
been, says CNN's Vice President of Research and Development, Kevin
Ivey, “chaotic.” Now, with the VideoLogger software from Virage, the
numerous news divisions have been centralized into one, virtual
office, where hundreds of journalists can view video simultaneously.
http://www.creativepro.com/story/feature/3479.html
Content and Infrastructure
Multicast Media Network, the leading global provider of streaming
broadband media via satellite, and AP Digital, a division of The
Associated Press, have joined forces to provide “AP news in text,
photo, audio, video and graphics formats, covering a variety of
topics, including business, sports, politics, international news,
entertainment, health and technology.” Businesses and corporations may
then contract with the companies to “receive AP content via
Multicast's satellite delivery infrastructure, which overlays and
integrates with the Internet, allowing for the fastest global delivery
of extremely large files, and efficient local distribution of
information to subscribers' user-desktops.” The contracting companies
can then receive customized content packages specific to their
industry and needs. This strategy is a wise, cost-efficient approach
for companies desiring the services of a video news and program
provider by allowing them to pay only for the programs and features
they desire. http://www.apdigitalnews.com/PressRelease/media.html
Further information
A lengthy article which tackles various aspects of your question,
titled “The Convergence of the Telecommunications, Media and
Information Technology Sectors, and the Implications for Regulation”,
May 1998, can be found at
http://europa.eu.int/ISPO/convergencegp/bbc.html
An interview titled “The Future of Television News,” 5/10/2002,
between Ted Koppel, anchor at ABC television, and Kalb, Marvin,
Director, Harvard University, Shorenstein Washington Program, can be
ordered for $45USD from C-Span.org at
http://www.c-spanstore.com/170029.html
Search strategy on Google:
Global news market
Satellite news
Global video news
Television news expenditures
Global news resource allocation
CNN television cost allocation
Well, this is lengthy, and took many hours! As for concrete allocation
costs for TV production and syndication, it would be wise to look at
the websites for the various news organizations that are important to
your research needs.
Sincerely,
Umiat-ga |
