Comparative Media Systems: European and Global Perspectives

Actors, Evolution, and Production Models in the Commodification of Spanish Television

1 The research was my doctoral dissertation “Anàlisi econòmica i financera de TVE, Antena 3 TV, Telecinco i Canal Plus i del seu entorn (1990–2000): la mercantilitzaci ó de la televisió espanyola.” The study develops three issues: first, the economic and financial analysis of the national television in Spain in the 1990s; second, the industrial analyses, looking for competition in the communications market; and third, the contextualization in the general economic, political, and social environment. Actors, Evolution, and Production Models in the Commodification of Spanish Television Laura Bergés Saura Introduction Between 1989 and 2000, Spain’s television system went from being publicly owned to market-based. The public system consisted of two national channels (TVE1 and La 2) and eight regional channels. In 2000 the switch to a market model resulted in more than 100 national channels based on several different technologies—two public channels, four free terrestrial private channels, and pay-TV channels grouped in satellite and cable platforms—20 regional public channels in 14 autonomous regions, and about 1,000 local private and public channels. Since 2005, 20 more national digital terrestrial channels and at least five new public and private regional channels in each region have been licensed. The 1990s witnessed the commodification of television. This process included several changes: new actors, other aims in television production, and new production methods, which have meant a change in the role of television. This process of commodification refers not only to the privatization of television ownership, but also to the expansion of the market to regulate the exchanges. This can be seen as a process of commodification of audiovisual goods, audiences, and work (Mosco 1996). The process is still going on, with the development of new distribution forms such as DSL, wireless, and mobile television, but the main characteristics of the new television system were established in the 1990s. This paper presents some results of research into the commodification of television in Spain in the 1990s and its relation to the evolution of the communications industry and the general economic, political, and social environment.1 This paper consists of three parts. First, I present the main actors in the television business, looking at how they are connected with economic changes and politics. Second, I refer to stages in the commodification of television, introducing some differences between free and pay TV. I point out how these stages are also related to economic and political evolution . Third, I identify the business models in the new television system and their results in supplying programming. 1. Actors In the new scenario of privatization and commodification, television has become an economic activity involving different actors in its production, programming, transmission, commercialization, and financing. In the Spanish public broadcasting model the public companies, the U.S. film industry, and the advertising industry had the leading role. The new commercial model includes other transnational and Spanish communications groups, the telecommunications industry and the banks and other financial institutions, while U.S. firms and the advertising industry have enlarged their role. Other companies from construction, energy, tobacco, and the growing sector of national audiovisual production have also converged in the television business (Table 1). Table 1: Ownership of Private Channels in Spain (Percentage Shareholder) 128 Comparative Media Systems Shareholders beginn- 2004 Shareholders beginn- 2004 ing ing Sogecable Telecinco Prisa 25 23.6 Mediaset 25.2 52 Canal + France 25 16.4 Anaya 25.2 0 Telefónica 0 22.2 ONCE 25.2 Cajamadrid 5 5.2 Juan Fdez. Montreal 15.2 BBVA 20 3.9 Promociones Calle 10.2 Mayor Bankinter 0 1.5 Correo-Prensa 13 Española Corte Inglés (FCC) 5 3.2 Dresdner Bank 25 Inversiones Artá 15 Ice Finance 10 Imagen y Medios 5 Antena 3 TV Stock market 0 25.3 Antena 3 Radio 12.5 0 Source: Annual accounts of Gestevisión Telecinco, Antena 3 TV and Sogecable, and Anuario SGAE, 2004. The strategy and the behavior of each of these actors have been different because of their size and business characteristics. This is related to changes in the general context, including the privatization of the public sector (telecommunications, energy, and tobacco) and the liberalization of commerce and finance. This is also linked with the general process of globalization, which defines the expansion of capitalist institutions both geographically and over a broader range of activities. Actors, Evolution, and Production Models 129 Shareholders beginn- 2004...