tag:theconversation.com,2011:/us/topics/media-disruption-40100/articlesMedia disruption – The Conversation2019-02-26T12:26:19Ztag:theconversation.com,2011:article/1124482019-02-26T12:26:19Z2019-02-26T12:26:19ZIf anyone won the Oscars this year it was Netflix – the prize for its industry disruption<p>No single film dominated the 2019 Academy Awards as in some years, but arguably Netflix emerges as the winner. It entered the awards as an outsider and won in some of the most important categories. With 15 Oscar nominations, Netflix achieved as many nominations in 2019 as in the previous five years added together. </p>
<p>The Netflix film <a href="https://www.netflix.com/gb/title/80240715">Roma</a> was nominated for 10 awards including best picture, best director, best foreign language film and best cinematography, and <a href="https://www.engadget.com/2019/02/25/netflix-roma-oscar-wins/">went on to win the latter three</a>. For the first time, a film distributed by an online streaming provider has won the industry’s highest accolade. </p>
<p>Behind the polite plaudits and acceptance speeches there are bitter feelings within the mainstream film industry on whether Netflix merits this level of recognition. John Fithian, president of the National Association of Theater Owners, <a href="https://www.nytimes.com/2018/12/16/business/media/netflix-movies-hollywood.html">articulated this reticence</a> when he said: “for filmmakers who want to go to Netflix, they are kind of selling their soul – the pot of money versus how they know a movie should be seen.”</p>
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<p>Roma’s success is the latest beachhead in the ongoing march of Netflix as a serial disruptor in the entertainment industry. In the late 1990s the company famously disrupted the video and DVD rental business through an online subscription model with rented titles distributed by post. Its tenacity in sticking to this model saw Netflix dispatch rental industry leader Blockbuster, which closed in 2010. </p>
<p>Next in line were television broadcasters, which Netflix took on through its online streaming service once broadband internet speeds allowed it. This has fuelled the <a href="https://hbr.org/2018/10/how-netflix-expanded-to-190-countries-in-7-years">unprecedented speed of the company’s international expansion</a>, transforming Netflix from a content aggregator to a producer of high-quality content, now posing a <a href="https://www.ft.com/content/48cc5458-2885-11e9-a5ab-ff8ef2b976c7">major challenge</a> to mainstream broadcasters and encouraging many “<a href="https://www.wsj.com/articles/outlook-for-traditional-tv-goes-from-bad-to-worse-1542632401">cord-cutters</a>” to cancel the cable TV subscriptions once seen as essential. It has also driven fundamental changes in viewing habits, ushering in the generation of “binge-watchers”.</p>
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<p>But the success of Roma at the Oscars was not a happy accident. It was the result of the same single-minded determination that has driven Netflix’s previous industry disruption. The film was the ideal weapon to seek an Academy Award. It had a director and producer with strong track records and previous awards and its <a href="https://www.huffingtonpost.com/entry/netflix-roma-theaters-explainer_us_5c0e77ece4b035a7bf5da827">black-and-white arthouse style</a> offered only limited appeal to mainstream cinema audiences anyway. Netflix even compromised on its long-held day-and-date strategy, which requires its programming to be available in all regions at the same time in order to meet the qualifying criteria of the Academy (which requires that a film has some degree of cinema release). It also <a href="https://www.nytimes.com/2019/02/17/business/media/netflix-movies-oscars.html">commissioned the Oscar campaign veteran Lisa Taback</a> to promote the case for this movie with Academy members.</p>
<h2>Keeping up the momentum</h2>
<p>But Netflix now faces stark <a href="https://www.ft.com/content/43f9e89a-30c4-11e9-8744-e7016697f225">commercial realities</a>. The company’s share price has risen over 20-fold and its revenue has grown from US$3.5 billion to US$16 billion since 2012, but by 2018 the company had long-term debt of over US$10 billion. And this excludes the additional US$19.3 billion needed to secure the rights to content Netflix intends to stream in the future. </p>
<p>The sheer volume of content that Netflix subscribers now expect is expensive to sustain, with production budgets estimated to be in the region of US$13 billion this year. This puts pressure on free cash-flow which will inevitably remain negative for the foreseeable future.</p>
<p>If Netflix is to service its mounting debt burden and remain sustainable, it needs to accelerate new subscriber growth and increase the revenue subscribers yield. This will be necessary in the face of aggressive competition from other established streaming players, such as Amazon, Hulu or HBO, and to stay one step ahead of new entrants such as <a href="https://www.theguardian.com/media/2018/dec/24/netflix-market-leader-apple-disney-launch-streaming-services-roma">Disney and Apple</a>, which come equipped with very deep pockets. </p>
<p>This will not be possible if Netflix continues to be seen as merely an alternative delivery channel for viewing content that would otherwise be available via broadcast television. Instead, Netflix wants to be recognised as the premium channel through which high-quality content may be viewed. The hope is that it will therefore be perceived by the market as being at least equivalent – if not superior – to cinemas as somewhere to watch the latest movies. Achieving such a shift in consumer and producer preferences would disrupt the established industry business model of giving cinemas precedence for latest releases.</p>
<p>Even were Netflix to achieve this, past precedent suggests that we should not expect the company to be satisfied. The company makes no secret of its view that it sees itself in competition with all other users of leisure time and leisure dollars. Its focus on enticing subscribers to further increase their viewing hours at the expense of other activities is unlikely to diminish.</p>
<p>However, the question remains whether whether Netflix can navigate its financial challenges and battle the competition that seeks to thwart its extraordinary march of disruption. Media mogul Barry Diller has already concluded that Netflix has won and that “<a href="https://www.dailymail.co.uk/news/article-6723141/Former-CEO-Paramount-Fox-says-Netflix-won-game-Hollywood-irrelevant.html">Hollywood is now irrelevant</a>”. Perhaps, but we can expect many more episodes of Netflix as serial disruptor to play out before we know for sure.</p><img src="https://counter.theconversation.com/content/112448/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>With 15 nominations and three Oscars, Netflix is besting the big film industry players at their own party.Louis Brennan, Professor of Business Studies, Trinity College DublinPaul Lyons, Lecturer in Business Studies, Trinity College DublinLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1032432018-10-10T22:42:43Z2018-10-10T22:42:43ZMedia Files: Guardian Australia’s Katharine Murphy and former MP David Feeney on the digital disruption of media and politics<p>Today on Media Files, a podcast about the major issues in the media, we’re taking a close look at the role of the news media in politics.</p>
<p>As the Wentworth by-election looms, we’re asking: is digital disruption changing the rules of journalism and politics in Australia?</p>
<p>It is easy to miss how disorienting it can be to work in the always-on-at-fire-hydrant-strength world of political journalism these days, as Guardian Australia’s political editor Katharine Murphy recounts in her recent essay-book <a href="https://www.mup.com.au/books/on-disruption-paperback-softback">On Disruption</a>. Matthew Ricketson speaks with her to understand the media’s role (if any) in the political turmoil that cost Malcolm Turnbull the prime ministership, triggering this month’s hotly contested by-election.</p>
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<a href="https://theconversation.com/media-files-spotlights-walter-v-robinson-and-the-newcastle-heralds-chad-watson-on-covering-clergy-abuse-and-the-threats-that-followed-102564">Media Files: Spotlight's Walter V. Robinson and the Newcastle Herald's Chad Watson on covering clergy abuse - and the threats that followed</a>
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<p>One person who’s seen up close the sometimes difficult relationship between reporters and politicians is former federal Labor MP David Feeney. </p>
<p>Speaking to Andrea Carson about falling media trust and increased political polarisation, he asks: “In today’s Australia, where do you have a public conversation? Because there are so many different filter bubbles, there are no agreed facts… we are losing the capacity to build a consensus.” </p>
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Read more:
<a href="https://theconversation.com/media-files-what-does-the-nine-fairfax-merger-mean-for-diversity-and-quality-journalism-102189">Media Files: What does the Nine Fairfax merger mean for diversity and quality journalism?</a>
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<p>Media Files is produced by a team of journalists and academics who have spent decades working in and reporting on the media industry. They’re passionate about sharing their understanding of the media landscape, especially how journalists operate, how media policy is changing, and how commercial manoeuvres and digital disruption are affecting the kinds of media and journalism we consume.</p>
<p><a href="https://theconversation.com/au/podcasts/mediafiles">Media Files</a> will be out every month, with occasional off-schedule episodes released when we’ve got fresh analysis we can’t wait to share with you. To make sure you don’t miss an episode, find us and <a href="https://itunes.apple.com/au/podcast/media-files/id1434250621">subscribe on Apple Podcasts</a>, in <a href="https://play.pocketcasts.com/">Pocket Casts</a> or wherever you find your podcasts. And while you’re there, please rate and review us - it really helps others to find us.</p>
<p>You can find more podcast episodes from The Conversation <a href="https://theconversation.com/au/topics/podcast-3738">here</a>.</p>
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<p><em>Recorded at the University of Melbourne’s Centre for Advancing Journalism. Producer: Andy Hazel.</em></p>
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<p>Theme music by Susie Wilkins.</p><img src="https://counter.theconversation.com/content/103243/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Andrea Carson is part of a research group that receives funding from the Australian Research Council where she is a chief investigator using big data to study public policy making in Australia.</span></em></p><p class="fine-print"><em><span>Matthew Ricketson receives funding from the Australian Research Council for two projects on which he is a chief investigator. He is president of the Journalism Education and Research Association of Australia (JERAA) and is the Media Entertainment and Arts Alliance's (MEAA) representative on the Australian Press Council.</span></em></p>Today on the podcast we're talking filter bubbles, fake news, opinion vs fact. Media Files asks two experts how the media and politics influence each other - and why that's causing concern.Andrea Carson, Incoming Associate Professor at LaTrobe University. Former Lecturer, Political Science, School of Social and Political Sciences; Honorary Research Fellow, Centre for Advancing Journalism, The University of MelbourneMatthew Ricketson, Professor of Communication, Deakin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/798772017-06-26T00:38:26Z2017-06-26T00:38:26ZIt’s time to start The Conversation in Canada<figure><img src="https://images.theconversation.com/files/175464/original/file-20170623-12628-2mj5d2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">There has been a proliferation of free online information globally. </span> <span class="attribution"><a class="source" href="https://pixabay.com/en/browser-computer-depth-of-field-1867049/">Pixabay</a></span></figcaption></figure><p><em>Editor’s note: Professors Mary Lynn Young and Alfred Hermida of the University of British Columbia are the co-founders of The Conversation Canada. In this essay written for our first day of publication, the journalists-turned-academics explain why the time has come for this new model of journalism.</em></p>
<p>The launch of <em>The Conversation Canada</em> is an opportunity to contribute to the quality of explanatory journalism in this country — and the promise such journalism holds for democratic engagement, informed policy and media innovation. </p>
<p>It brings academics and experienced journalists together to share timely analysis and commentary drawing from research, evidence and insights generated by Canadian universities.</p>
<p>We know that research can contribute to our understanding of today’s most pressing local, national and global concerns.</p>
<p>As a new national non-profit organization, <em>The Conversation Canada</em> demonstrates continued momentum for fresh ways to fund journalism. It adds to the growing list — early counts indicate at least 20 — of non-profit to semi-non-profit, foundation or university-based journalism organizations in Canada, according to a study by our UBC colleague, journalism professor Taylor Owen. </p>
<p>We are among an increasing number of institutional entrepreneurs experimenting with and reworking what journalism can and should do in this country.</p>
<p>This process involves recognizing that past forms and ways of being a journalist need to be disrupted and re-oriented for diverse audiences and changing technologies, and to address the continuing impact of what media economics scholar <a href="http://www.robertpicard.net/">Robert Picard</a> has called Canada’s “extraordinary consolidation of news enterprises.” </p>
<h2>Circulation of ideas</h2>
<p>For <em>The Conversation Canada</em>, part of the disruption lies in reshaping the role of the journalist as an editor/curator for academic contributors. This is important because universities and scholars have emerged as trusted sources of expertise globally. </p>
<p>Yet a significant portion of scholarly knowledge remains relatively hidden in expensive journals and is more often than not written for academic peers, rather than for a broad public. </p>
<p><em>The Conversation</em> model is based on fostering the broadest circulation of content and amplifying the impact of ideas and research. All articles are free to republish by the media. The site is not just a destination but serves as a distribution hub for academic knowledge.</p>
<p>The innovation also lies in the funding model. Many new journalism non-profits have a mix of backing because it is such a challenging space. Similar to the early co-operative days of <a href="http://thecanadianpress.com/about_cp.aspx?id=77"><em>The Canadian Press</em></a>, <em>The Conversation Canada</em> is based on a membership model. It has received funding from <a href="https://theconversation.com/ca/partners">17 Canadian universities, foundations, federal research funding, and a research institute</a>.</p>
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<p>As journalists who later took up positions as academics at a research university, we became intrigued by <em>The Conversation</em> model when we heard about its 2011 launch in Australia.</p>
<p>Founded by veteran editor Andrew Jaspan, the model is based on a partnership between academics and journalists that creates quality explanatory journalism free for anyone to share and republish. Researchers write in their field of expertise, and are edited by professional journalists to make independent, evidence-based contributions to the media. </p>
<h2>Journey to launch</h2>
<p>It has taken more than two years to bring this project to launch and pilot the service over the summer. We first raised it as a possibility in meetings with Stephen Toope, while he was president of the University of British Columbia, and was exploring how to transform the communications environment at the university. </p>
<p>These discussions led us to apply for funding from the Social Sciences and Humanities Research Council in 2015 to explore the demand and viability for a Canadian version of <em>The Conversation</em> global network of sites. The network includes five other sites in Australia, France, South Africa, the U.K., and the U.S., with a combined monthly audience of five million users and reach of 35 million through Creative Commons republication. </p>
<p>All of this led to the two big ideas in launching <em>The Conversation Canada</em>.</p>
<p>The first is to transform academic knowledge sharing and advance the quality of journalism in Canada by creating an independent and sustainable way to support researchers’ capacity to do explanatory journalism. </p>
<p>The second is to maximize the digital sharing of scholarly expertise. <em>The Conversation</em> model encourages open source values and collaboration in the university sector, amplifying the national and global impact of Canadian research.</p>
<p>These ideas come out of our ongoing research agenda on journalistic practices, media innovation and emerging technologies. From our perspective, <em>The Conversation Canada</em> provides a lab to investigate and interrogate new approaches to journalism.</p>
<h2>It takes a village</h2>
<p>Meeting all of these challenges has required a small village to reach launch day.</p>
<p>First, we wouldn’t be here without the leadership of our colleagues at <em>The Conversation Media Group</em> in Australia and elsewhere in the team globally. This includes editors at <em>The Conversation</em> outlets in Australia, France, U.K., U.S. and South Africa and the technology team in Melbourne. They have been exceptional supporters with proven success in connecting academics and journalism. </p>
<p>At <em>The Conversation Canada</em>, we have benefited from the significant contributions of launch editor Penny Park, a respected science journalist and founding executive director of the <a href="http://www.sciencemediacentre.org/">Science Media Centre</a>, former associate editor Zoe Tennant and research assistants Peggy Lam, Frederick Blichert, John Woodside and Brittany Duggan. </p>
<p>The Social Sciences and Humanities Research Council supported this project with two competitive grants amounting to almost $250,000. We would not have been so successful in securing the funding without the rigorous and insightful institutional grant application guidance of Dawn Whitworth at UBC.</p>
<p>Over the past year, we have reached out to the university sector nationally, meeting many people who committed their expertise to help us think through and/or collaborate on <em>The Conversation Canada</em>. They include Stephen Toope, Sheldon Levy, Paul Davidson, Pari Johnston, Philip Steenkamp, David Estok, Philippe Beauregard, Johanne Lebel, Gauri Sreenivasan, Allison Sekuler, Charles Falzon, Charles Davis, Daniel Justice, Alfred Leblanc, Christian Riel, Alex Freedman, Colette Brin, Noreen Golfman, Ann Sherman, Charles Pascal, Arvind Gupta, Cynthia Milton, Russel MacDonald, Jacqui Tam, Dawn Bazely, Minelle Mahtani, Michelle Stack, Rumee Ahmed, Daniel Muzyka, Robert Picard, Léo Charbonneau, Bruce Anderson, Brian Leadbetter, Lori Yarchuk, Janice Neil, Chris Waddell, Kelly Toughill, Tim Cahill, Nathan Hall, Ying Chan and Susan Danard. </p>
<p>In the philanthropic sector, Jane Bertrand at the Margaret & Wallace McCain Family Foundation appreciated the vision of the project early on and supported it along with some of her partners and colleagues from the early child development funders working group including the Lawson Foundation. Alison Lawton, Graham Dover and Laura Schoenmakers of Mindset Social Innovation Foundation generously contributed the financial leadership and strategic advice for the funding model. Marcel Lauzière, Hilary Pearson, Stephen Huddart, Jean-Marc Chouinard, Chad Lubelsky and Laurence Miall provided essential expertise, connections and feedback about the project.</p>
<p>In the journalism sector, Madelaine Drohan, Malcolm Kirk and Gerry Arnold were early supporters. We also valued the conversations and wisdom of John Stackhouse and Beth Haddon along the way.</p>
<p>And lawyers Mark Crosbie, Christopher Lennon and David Wotherspoon in Vancouver and Stuart Robertson in Toronto helped to bring us up to speed on digital media startups, the non-profit sector and media insurance.</p>
<p>All along we have been fortunate to be able to count on the generosity and wisdom of our colleagues, friends and graduate students at the <a href="http://www.journalism.ubc.ca">UBC School of Journalism</a>. Special thanks to Candis Callison, Kathryn Gretsinger, Peter Klein and Taylor Owen.</p>
<p>There is always the risk of missing someone, and there are many more people who helped to make <em>The Conversation Canada</em> a reality. We extend our extreme gratitude to everyone who gave unsparingly of their time and insight along the way. It made a difference.</p><img src="https://counter.theconversation.com/content/79877/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mary-Lynn Young receives funding from funding from the Social Sciences and Humanities Research Council of Canada (SSHRC) and she is co-founder of The Conversation Canada.</span></em></p><p class="fine-print"><em><span>Alfred Hermida receives funding from the Social Sciences and Humanities Research Council of Canada (SSHRC) and he is co-founder of The Conversation Canada.</span></em></p>Co-founders Mary Lynn Young and Alfred Hermida explain how The Conversation Canada contributes to re-working what journalism can and should do.Mary Lynn Young, Associate professor, Graduate School of Journalism, University of British ColumbiaAlfred Hermida, Director and Associate professor, Graduate School of Journalism, University of British ColumbiaLicensed as Creative Commons – attribution, no derivatives.