Presentations

Enhancing Media Competitiveness in the Caribbean

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Summary
  1. ENHANCING MEDIA COMPETITIVENESS IN THE CARIBBEAN Dr. Justin Ram Director Economics Department October 24, 2016 Caribbean Broadcasting Union 47th Annual General Assembly Havana, Cuba
  2. Outline 1. Macro-economic Developments in the Caribbean 2. Competitiveness in the Caribbean – Doing Business Indicators 3. The Global Media Industry 4. The Caribbean Context 5. Opportunities 6. Next Steps
  3. Average growth of 1.5 % over the past 5 years; high debt 0 20 40 60 80 100 120 140 Debt to GDP (General Government Gross Debt) 2015 2016 4.2 3.5 3.3 3.4 3.1 3.1 6.3 5.3 4.9 4.6 4.0 4.2 4.9 3.2 3.0 1.3 -0.1 -0.5 1.5 0.9 1.6 2.2 1.4 1.4 2011 2012 2013 2014 2015 2016 GDP Growth World Emerging Markets and Developing Economies Latin America and the Caribbean BMCs Source: World Economic Outlook, October 2016
  4. Competitiveness in the Caribbean
  5. Most Caribbean countries rank in the bottom half of the Doing Business rankings 1 21 41 61 81 101 121 141 161 181 Doing Business Rankings (2009 vs 2016) DB 2009 DB 2016 Source: World Bank Doing Business
  6. Distance to Frontier relatively stable in 2016; Average 43 points from Frontier Source: World Bank Doing Business 0 10 20 30 40 50 60 70 80 90 100 Distance to Frontier (2010 vs 2016) DB 2010 DB 2016 DTF
  7. Countries at different levels; clusters in starting a business and trading across borders -19 1 21 41 61 81 101 121 141 161 181 Doing Business Indicators 2016 Antigua and Barbuda Bahamas, The Barbados Belize Dominica Dominican Republic Grenada Guyana Haiti Jamaica St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Suriname Trinidad and Tobago Startinga Business Construction Permits Getting Electricity Registering Property Getting Credit Protecting Minority Investors Paying Taxes Trading Across Borders Resolving Insolvency Enforcing Contracts
  8. Media: All channels that carry news and information MEDIA COMMUNICATION ENTERTAINMENT PUBLIC EDUCATION INFORMATION Media is the most popular tool of communication. We now know refer to the world as a “global village” because of media, and its role in connecting people worldwide. The importance of media in nation-building cannot be neglected.
  9. Social Media
  10. Global Media and Entertainment spending of US$1.8 trillion in 2016 Source: Mc. Kinsey and Co. 2015 Global Report
  11. Global Media and Entertainment spending of US$1.8 trillion in 2016 Source: Inside Scoop, Intel, 2013
  12. Shift in Global Media to Digital Media – Redefining Business Models vs. NOWTHEN
  13. Global Trends in E&M Industry Global spending in E&M is growing more rapidly than GDP (5.1% CAGR) Youth Movement – strong correlation between under-35 population and growth in E&M industry Cultures and Tastes in Content remain Steadfastly Local Source: PWC Report 2016-2020
  14. Digital Advertising is the fastest growing category in the industry 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 Total Global Media Spending (US$M) 2009 2015 Source: Global Media Report 2015, Mc. Kinsey Source: Global Entertainment and media outlook 2016-2020, PwC, Ovum
  15. Digital media – new opportunities
  16. On average, 6.1 hours per day on online media Source: GlobalWebIndex, 2014; Global Social Media Trends 2015, European Publishers Council
  17. Top 10 media companies Liberty Media Corp. (Englewood, Col. USA); 11.2b; at No. 12
  18. Scope for Change in the Caribbean CHANGE THE MEDIA CHANGE THE WORLD
  19. How Does the Caribbean Compare / Compete in the Global Media Industry Weaknesses Lack of data Media associations at various stages of organizational strength Broad focus on media/press freedom Limited Focus on Innovation and Digital Economy Opportunities Online models; news, streaming radio and television Relatively high mobile penetration rates in the Caribbean; Local Content; merger with Creative Industries
  20. Caribbean Media Landscape Shaped by ICT Population % Pop. Internet Users, Penetration Users Facebook ( 2015 Est. ) of World 30-Nov-15 % Population % World 15-Nov-15 Caribbean 42,108,083 0.6% 17,656,562 41.9% 0.5% 9,721,980 Rest of the World 7,217,794,160 99.4% 3,348,604,594 46.4% 99.5% 1,505,482,170 World Total 7,259,902,243 100.0% 3,366,261,156 46.4% 100.0% 1,515,204,150 Source: Internet World Stats Caribbean Internet Users and Population Statistics - 2015
  21. Source: ICT-Pulse.com Lowest and Highest Advertised Download Speeds and the Corresponding Best Rates in Select Caribbean Countries
  22. Monthly Internet Plan (2 Mbps) Caribbean Countries 2015 vs May 2016 Source: ICT-Pulse.com 2015 2016
  23. Broadband subscription in CDB’s Borrowing Member Countries and Latin America Source: ICT-Pulse.com 0 5 10 15 20 25 30 35 40 45 50 2001 2003 2005 2007 2009 2011 2013 2015 BMC Fixed Broadband Subscriptions Per 100 Anguilla Antigua & Barbuda Bahamas Barbados Belize British Virgin Islands Cayman Islands Dominica Grenada Guyana Haiti Jamaica St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Suriname Trinidad & Tobago Virgin Islands (US)
  24. Broadband Subscription in CDB’s Borrowing Member Countries and Latin America Source: World Bank 0 5 10 15 20 25 30 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Latin America Mobile Subscription Per 100 Argentina Aruba Bolivia Brazil Chile Colombia Costa Rica Cuba Curacao Dom Rep Ecuador El Salvador Guatamela Honduras Mexico Nicaragua Paraguay Peru Puerto Rico Uraguay Venezuela Panama
  25. Fixed Broadband subscription in the United States and Singapore 0 5 10 15 20 25 30 35 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fixed Broadband Subscription Per 100 United States Caribbean small states Pacific island small states Singapore
  26. Connected by Mobile Technologies (avg. 1 cell per person) -30 20 70 120 170 220 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 BMC Mobile Subscriptions Per 100 Anguilla Antigua & Barbuda Bahamas Barbados Belize Bermuda British Virgin Islands Cayman Islands Cuba Dominica Grenada Guyana Haiti Jamaica Montserrat St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Suriname Trinidad & Tobago Source: ICT-Pulse.com
  27. Connected by mobile technologies (avg. 1 cell per person) Source: ICT-Pulse.com -30 20 70 120 170 220 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Latin America Mobile Subscription Per 100 Argentina Aruba Bolivia Brazil Chile Colombia Costa Rica Cuba Curacao Dominican Republic Ecuador El Salvador Guatemala Honduras Mexico Nicaragua Paraguay Peru Puerto Rico Uruguay Venezuela, RB Cayman Islands Panama
  28. Mobile subscription in in the United States and Singapore 0 20 40 60 80 100 120 140 160 180 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Mobile Subscription Per 100 United States Caribbean small states Pacific island small states Singapore
  29. Online streaming: The media is the new business frontier
  30. Radio Moving to Online Streaming in the Region 0 5 10 15 20 25 Anguilla Antiguaand… Aruba Bahamas Barbados BritishVirgin… CaymanIslands Cuba Dominica Grenada Guadaloupe Guyana Haiti Jamaica Martinique Monsterrat St.KittsandNevis St.Lucia St.martin St.Vincent Suriname Trinidad&Tobago Turksand… USVirginIslands Approx. No. of Online Radio Stations Internet Radio Increase in Talk Shows Active Civil Society in Dialogue Increase Live Coverage of Key Events Local Content Remains Low
  31. Case of Barbados TODAY: Is New Media the Future?
  32. Live Streaming: Listening to music or watching video in real time Video Streaming Starting price Netflix $9 per month Hulu $8 per month Amazon Instant Video $99/year or 7.99/month Sling Orange $20 per month Playstation Vue $50 per month Crackle Free Funny or Die Free Twitch Free Vevo Free Music Streaming Starting Price Spotify $10 per month Apple Music $9.99 per month YouTube Free Tidal $9.99 per month Pandora Free Sound Cloud Free WiMP 5 Simfy 4 TuneIn Radio Free
  33. Caribbean television: Cable from the US Source: Digicel Barbados Facebook Source: FLOW Barbados Facebook
  34. Where does Caribbean media fit? Source: IMDb.com
  35. • IT Investment • PC ownership • Broadband penetration • Internet Protection • Mobile Penetration ICT Support Systems • Business Environment • Human Capital • Infrastructure • Legal Environment • Research and Development Competitiveness: “The Set of Institutions, Policies and Factors that Determine the Level of Productivity of a Country – (WEF) Competitiveness in the Caribbean
  36. Legislation/ Regulations Infrastructure/ Technology Broadcasting Regulations Cost of Broadband Freedom of Press Legislation Access to Internet Piracy Telecoms Liberalisation Broadcasting Laws New Technology (fibre optics) Defamation Laws Cyber-security Data protection legislation Copyright/Patents Licensing Competitiveness in the Caribbean Affected by Legislative and Infrastructure Shortfalls
  37. 5 out of 20 Caribbean Community Countries Have Freedom of Information law Regulations / Law Trinidad and Tobago Dominica Dominican Republic Jamaica Legal guarantees in place to assure the confidentiality of journalists' sources No No Yes No Qualifications required by law/regulation for an individual to practice as journalist No No Yes No Anti-concentration/anti-trust rules or laws on media ownership for domestic private and foreign companies No No Yes No Cross-media ownership limitations for domestic private and foreign companies No No No No Existence of legal provision for access to information held by the state Yes No Yes Yes Source: UNESCO, 2013
  38. Media and development potential in the Caribbean Expansion of Networks Entertainment Industry Economic Growth • Reduced Cost • Innovation (media content including music, film and local content) • Local content development • Niche markets • Small Business Development • Creative Industries development • Merger of Creative Industries with Media • Human Capital Development
  39. Data is at the Heart of the Media Predicting what audiences want Increasing acquisition and retention Scheduling optimisation Ad targeting Content monetization and new product development
  40. The Way Forward Develop a Highly Skilled Workforce; CT Enabled, and Solutions Oriented Investment in ICT Infrastructure; Reducing the Cost of Access to ICT Legislative Reform Small Business Development; Micro Financing Support for Innovation, Research and Development Development of Standards Data Collection Local Content Regulations Broadcasting Regulations Ease of Access to Information – Electronic Data
  41. Thank You!
  42. -1 0 1 2 3 4 5 Average GDP Growth Rates 2011-2016 Additional Slides
  43. -10 -8 -6 -4 -2 0 2 4 6 8 10 Primary Balance (% of GDP)2015 2016 e