Media Business and Innovation Mike Friedrichsen Yahya Kamalipour Editors Digital Transformation in Journalism and News Media Media Management, Media Convergence and Globalization Media Business and Innovation Series editor M. Friedrichsen, Stuttgart Media University, Stuttgart, Germany and Berlin University of Digital Sciences, Berlin, Germany More information about this series at http://www.springer.com/series/11520 Mike Friedrichsen • Yahya Kamalipour Editors Digital Transformation in Journalism and News Media Media Management, Media Convergence and Globalization Editors Mike Friedrichsen Yahya Kamalipour Stuttgart Media University North Carolina A&T State University Stuttgart, Germany Greensboro, USA Berlin University of Digital Sciences Berlin, Germany Media Business and Innovation ISBN 978-3-319-27785-1 ISBN 978-3-319-27786-8 (eBook) DOI 10.1007/978-3-319-27786-8 Library of Congress Control Number: 2017936201 # Springer International Publishing AG 2017 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Europe’s Future Is Digital We are living in a world in which communication is increasingly digital. Our day-to-day activities are being remodelled by digital communications. The way people look for a job, for a hotel or for a car to rent is now already largely digital. And the way we access news and entertainment is also more and more digital, personalised and interactive. Content is accessed through a multitude of websites and applications: from Facebook to video-on-demand platforms and from Twitter to the websites of our high-quality European newspapers and magazines. Names such as le Monde, Die Zeit, El Pais, The Guardian and the FT are valuable brands, both offline and online. Both Europe’s public broadcasters, like ARD, BBC and Rai, and the private players are more and more active online. The future is paved with digital opportunities. How to make sure that Europe is on the lead when it comes to embracing those opportunities? The Commission is already very active in encouraging this process. Today, I will present you what the Commission is doing to strengthen Europe’s connected digital single market: one of the key priorities of the Juncker Commission. I will focus on the rules at European level for audiovisual media services and copyright, as well as digital education. I will then mention our research actions in the field of media convergence. I will conclude with a few words on an important aspect such as media freedom and pluralism. The Digital Single Market Let’s start with the Digital Single Market. The Single Market that we created in 1992 remains one of Europe’s greatest assets, and it holds an even greater potential in the digital area. However, at the moment blockages and barriers exist in the digital world. An example of this is geo-blocking, which frustrates millions of consumers across Europe every day. v vi Europe’s Future Is Digital As the digital transformation accelerates, it brings immense opportunities for innovation, growth and jobs. ICT has already made a major contribution to eco- nomic growth. Between 2001 and 2011, digitalisation accounted for 30% of GDP growth in the EU. And European early success stories abound, like Skype, Snapchat and Spotify. The question we need to ask is whether we provide the right environment in Europe today for our promising start-ups and web entrepreneurs to grow and prosper? Do they have sufficient access to finance? Do they have the human resources available to them to innovate? Do we give them space to focus on their core businesses or are they tied down with the regulatory burden of having to adapt to 28 different legal regimes for consumer protection and data protection and for copyright and VAT? We have to realise that the key variable for the digital economy is scale. The larger the market in which companies operate, the stronger the growth impulse. The digital economy is also crucially about speed and first mover advantages; markets punish those who arrive too late. There are some signs that European companies are currently falling behind their global competitors. In certain segments of the market—like for Internet search, communications/social media or e-Commerce platforms—non-European players are driving innovation. Among the global top ten ICT firms, only 1 is European. In particular, there is a sense in which Europe’s creative industry and rich media landscape are hampered in the current fragmented market situation. The work to complete the Digital Single Market is all about positioning Europe for the future, to enable European companies to exploit a home market of more than 500 million consumers, to innovate and experiment and to scale up and grow globally. It is about creating hundreds of thousands of jobs in thriving new areas like data analytics, content and service applications and maximising the growth potential of the sharing economy. We will achieve this aim by focusing on a small number of key interdependent actions that can only be taken at EU level. The 16 actions in our new strategy have been chosen to have maximum impact—to reduce regulatory fragmentation and substantially improve the cross-border flow of goods and services in the digital age. If we get the work done and establish a truly integrated Digital Single Market, we can create up to €340 billion in additional growth, hundreds of thousands of new jobs and a vibrant knowledge-based society in the EU. The AVMSD REFIT and Review An important aspect of the digital single market strategy is the review of the Audiovisual Media services Directive, better known as the AVMSD. Why are we reviewing the legislative framework? Because things have changed! Europe’s Future Is Digital vii The rise of digital and media convergence is indeed reshaping the economic, cultural, social and political life. Media convergence comes with new business models and opportunities for democratic interaction and cultural expression. We no longer need to head to our living room to watch a movie or the latest news. This is a terrific opportunity for us all. Our TV is still there, but we now have the option to use Connected TV, set-top boxes and not least our PCs, laptops, tablets and smartphones to watch Video-On- Demand (VOD) and audiovisual content online. The Internet has become the main news source for young audiences. We are witnessing a revolution and content is at the centre of it: whether professionally created or user generated, live or on demand. Europe must remain a leading player in the audiovisual media sector, all along the value chain. This is why the DSM strategy announces that the Commission will look back and assess the impact of the AVMSD and whether it is still sound in the digital age. The DSM also looks ahead and announces a review of the Directive in 2016. In these months, we are going through an intense process that combines evaluating the existing Directive and looking into policy options for the future of the Directive. I strongly encourage you all to participate in the Public consultation that the Commission launched on 6 July and that will run until 30 September. What benefits has it brought? This is your opportunity to let us know what is the impact of the Directive—i.e. what costs has it caused? As well as to indicate what you believe are the most suitable options for the future. What is the public consultation about? The AVMSD has shown us the benefits of the internal market by fostering the transmission of audiovisual media services within Europe. At the end of 2013, about 23% of TV channels established in the EU targeted foreign markets (either EU or extra EU). But we need to make sure that we are up to speed in the digital revolution. Just consider that in 2019 video traffic will be 80% of all the Internet traffic globally. The current framework applies to television broadcasts and audiovisual media services offered on demand when the provider has control over the programmes. Services like Netflix or iTunes are hence already regulated by AVMSD while Internet services hosting user-generated content (like YouTube, Vimeo, etc.) are not. Is the current system working or should new services be further regulated, either by the Directive or via self/co-regulation? A basic set of rules in the AVMSD (for example, that it is prohibited to incite hatred) apply to all services. In specific areas, rules are more stringent for broadcast services than for on-demand services, as in the latter the users play a more active role and can decide on the content and the time of viewing. Media convergence has now in some cases blurred the boundaries between broadcast and on-demand services, constantly redefining how consumers interact with content. viii Europe’s Future Is Digital In the light of this, we will look closely at whether the existing system is still working well and if not what are the right tools to address any shortcomings, particularly in the following fields: 1) Commercial communications; 2) Protection of minors; 3) Promotion of European works. Protecting the public interest is also one of the AVMSD main goals. The public consultation addresses, amongst other things, the issue of the findability of public interest content. All in all, it is important to clarify that all the options are open at this stage. I once again invite you all to actively contribute to this public consultation and give us your views on the review of the AVMSD. Copyright Another key element of the DSM is the modernisation of the copyright framework. Digital technologies are changing the ways creative content (e.g. films, music, books or games) is produced, distributed and accessed. They create opportunities as well as new challenges for all players in the value chain. New online services based on innovative business models are offered in all sectors of the creative industry, opening the door to new types of uses of content. Both our businesses and citizens increasingly exploit the possibilities provided by digital technologies. For instance, consumer spending in the creative sector is up 25% from 2001, with all growth driven by digital media. Digital uses equally facilitate access to knowledge: today, over 90% of scientific, technical and medical journals are accessible electronically and 87% of cultural heritage institutions have a digital collection. In a market where the online distribution and access to cultural content are widespread, copyright rules must be adapted to, and back the potential of, the Digital Single Market. The modernisation of the EU copyright framework is therefore an essential part of the Digital Single Market strategy. The “Digital Single Market Strategy for Europe”, set out in the Commission Communication of 6 May 2015, outlined the Commission’s objectives in the area of copyright: • Take action in the area of portability and cross-border access to online content services for consumers while considering the specificities of different creative sectors; • Have more harmonised copyright exceptions for people with disabilities, cul- tural institutions, research—including text and data mining—and education; • Clarify the role of intermediaries as distributors of copyright-protected content. • In the long run, we are also looking at how to improve copyright enforcement and we will launch a review of the cable and satellite directive. Europe’s Future Is Digital ix The Commission’s ambition is to achieve the right balance between the different interests. On the one hand, citizens and businesses should be able to provide services and have better access to content across borders. European citizens, libraries, universities and researchers should have more legal certainty when they adapt their activities to the digital environment. Also, copyright must remain a key driver for creativity, innovation and invest- ment in the digital economy, and the whole creative content value chain should ensure adequate reward for those who create and invest in creativity. I am confident we will achieve those objectives, starting by the legislative copyright initiative which the Commission intends to propose by the end of 2015. Digital Education Let me now come to digital education. Digital technologies are a key catalyst for change in digital society, as they provide access to learning worldwide: having access to a connected digital device means access to learning from anywhere, by anyone, anytime. However, digital technologies do not only provide access and change the way we learn: they also challenge what we learn and why we learn in the digital society and what kind of jobs and future is the educational system preparing us for. Even though we can’t predict the future, we know that most of the jobs in the future will require digital skills and competence. This also applies to those numer- ous future jobs that do not exist yet: according to predictions, 80–90% of the future jobs are yet to be created. The opportunity of pervasive learning through digital technologies and the conundrum of how to teach for jobs that are yet to be created pose a policy challenge that we need to take seriously regarding the growth and jobs of our economies for future generations. We believe that in order to prosper in the ever more connected global commu- nity, everyone in Europe should benefit from the transformational power of digital learning. This applies for all contexts of learning, from kindergarten until all forms of lifelong learning, be it for work, at work or after work. The Commission has put forward a digital learning agenda for Europe: in the Opening Up Education initiative, it highlights that making learning fit for purpose in the digital economy and society is a challenge affecting us all—learners, teachers, industry, employers and policymakers. It calls for more innovation in learning and teaching with technology, valorising open educational resources, improved access to digital devices and connectivity. The agenda is challenging, and we know we can’t achieve it alone but only through joint action involving the entire stakeholder chain. The Commission funds policies, research and innovation for boosting the use of digital technologies in learning to make learning more engaging, motivating and fun. The Member States and all other stakeholders are invited to join in.