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MAC301
robert.jewitt@sunderland.ac.uk


                                 1
 From analogue to digital
 Convergence
 The smartphone wars
 Discussion point
   One bad Apple?
   Crisis in communications




                               2
 Dominance of the smartphone




                                3
 Dominance of the smartphone
 Uptake in tablet devices
 New multimedia gaming devices




                                  4
5
6
 ‘The global media system is better
  understood as one that advances corporate
  and commercial interests and values and
  denigrates or ignores that which cannot be
  incorporated into its mission’
   (McChesney,   2003: 266).                  7
Vertical integration

Production



Distribution               Horizontal integration



Publishing     Radio      Television   Press


Consumption

                                               8
9
10
 Increased tendency in recent years to encode
  visuals, sound and print in binary digital terms

 All of our media platforms are pushing
  towards digital platforms




                                                     11
12
13
 Google’s market cap (October 2009): $174.3 billion
 Google’s market cap (November 2010): $197.6 billion
 Google’s market cap (March 2012): $196.7 billion
   Source: Yahoo Finance

                                                        14
 Convenient for content owners to
  manipulate/edit digital data

 Push comes from consolidation in large
  media entities

 Digital distribution is a lot cheaper than
  physical distribution


                                               15
16
1. Consolidation of industry
     Eg Sony = music, movies, games, hardware,
      software, etc



1. Diffusion across platforms
     Eg Lost = TV show, DVD sales, video game,
      mobile phone series, fan sites, merchandise, etc


                                                         17
18
 ‘A word that describes technological, industrial,
  cultural, and social changes in the way media
  circulates within our culture. Some common
  ideas referred by the term include the flow of
  content across multiple media platforms, the
  cooperation between multiple media industries,
  the search for new structures of media financing
  that fall at the interstices between old and new
  media, and migratory behaviour of media
  audiences who would go almost anywhere in
  search of the kind of entertainment experiences
  they want’
   Jenkins, 2006: 282

                                                      19
 ‘Once upon a time .. companies that
  published newspapers, magazines, and books
  did very little else; their involvement with
  other media was slight’
   Ithiel de Sola Pool, 1983: 23




                                                 20
 ‘convergence does not mean stability or
  unity. It operates as a constant force for
  unification but always in dynamic tension
  with change…. There is no immutable law of
  growing convergence; the process of change
  is more complicated than that’
   Ithiel de Sola Pool, 1983: 53-4




                                               21
 Source: Reuters




                    22
23
24
25
 Digital compression allows for more efficient
  use of bandwidth




                                                  26
27
27
28
The ‘Jesus phone’?
- Campbell & La Pastina, 2010




                                29
 Touted as ‘revolutionary’ convergence device
 Steve Jobs, Mac World expo, 2007




                                                 30
 http://uk.youtube.com/watch?v=8sPVfFXC6AY


 Complaint to ASA (August 2008)
   http://www.asa.org.uk/asa/adjudications/Public/TF_AD




                                                    31
 http://uk.youtube.com/watch?v=OknElEusVhM


 Complaint to ASA (November 2008)
   http://www.asa.org.uk/asa/adjudications/Public/T
    F_ADJ_45381.htm November 2008-12-08




 Trust in corporations?

                                                       32
 Days after June 2010 iPhone
  4 launch Gizmodo publishes
  blog post about faulty signal

 Flooded with complaints


 How should you deal with
  such a PR disaster?
                                  33
1.   Apologize and take full
     responsibility?
2.   Announce a huge media event and
     prime expectations?
3.   Begrudgingly offer a give-away
     late in the day?
4.   Attack your competitors?
5.   Expose the entire industries
     failings?
6.   Call the issue AntennaGate?

                                       34
 Environmental concerns


 Supply chain problems


 Foxconn suicides




                           35
 http://uk.youtube.com/watch?
  v=TrT1gzQHsI4
 Access to 2 million+ tunes from Sony,
  Warner, Universal
 Annual cost approx £300




                                          36
 http://uk.youtube.com/watch?
  v=TrT1gzQHsI4
 Access to 2 million+ tunes from Sony,
  Warner, Universal
 Annual cost approx £300


 Binned in January 2011



                                          37
 Increasing competition from Apple and Android
      Business focused on non-smartphones
      BBC clip
2007: revenue of €51bn
2007: profit of €7bn

2008: revenue of €50.7bn
2008: profit of 3.7bn

2009: revenue of €40.9bn
2009: profit of €260m

2010: Olli-Pekka Kallasvuo replaced by
Microsoft’s Stephen Elop
2010: Symbian OS to be replaced by
Microsoft’s Windows Mobile
                                                       38
39
 October 2011 – huge network
  outage
 Faulty router to blame
 Lack of email service for
  corporate users
 Unsure about the backup solution
  which threatened to do more
  damage

 How to deal with this?



                                     40
 Mike Lazardis video apology




                                41
 Dec 2011: Blackberry Playbooks written down by $485
  million
 Jan 2012: Mike Lazardis & Jim Balsillie resign




                                                        42

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Mac301 convergence and smartphones

  • 2.  From analogue to digital  Convergence  The smartphone wars  Discussion point  One bad Apple?  Crisis in communications 2
  • 3.  Dominance of the smartphone 3
  • 4.  Dominance of the smartphone  Uptake in tablet devices  New multimedia gaming devices 4
  • 5. 5
  • 6. 6
  • 7.  ‘The global media system is better understood as one that advances corporate and commercial interests and values and denigrates or ignores that which cannot be incorporated into its mission’  (McChesney, 2003: 266). 7
  • 8. Vertical integration Production Distribution Horizontal integration Publishing Radio Television Press Consumption 8
  • 9. 9
  • 10. 10
  • 11.  Increased tendency in recent years to encode visuals, sound and print in binary digital terms  All of our media platforms are pushing towards digital platforms 11
  • 12. 12
  • 13. 13
  • 14.  Google’s market cap (October 2009): $174.3 billion  Google’s market cap (November 2010): $197.6 billion  Google’s market cap (March 2012): $196.7 billion  Source: Yahoo Finance 14
  • 15.  Convenient for content owners to manipulate/edit digital data  Push comes from consolidation in large media entities  Digital distribution is a lot cheaper than physical distribution 15
  • 16. 16
  • 17. 1. Consolidation of industry  Eg Sony = music, movies, games, hardware, software, etc 1. Diffusion across platforms  Eg Lost = TV show, DVD sales, video game, mobile phone series, fan sites, merchandise, etc 17
  • 18. 18
  • 19.  ‘A word that describes technological, industrial, cultural, and social changes in the way media circulates within our culture. Some common ideas referred by the term include the flow of content across multiple media platforms, the cooperation between multiple media industries, the search for new structures of media financing that fall at the interstices between old and new media, and migratory behaviour of media audiences who would go almost anywhere in search of the kind of entertainment experiences they want’  Jenkins, 2006: 282 19
  • 20.  ‘Once upon a time .. companies that published newspapers, magazines, and books did very little else; their involvement with other media was slight’  Ithiel de Sola Pool, 1983: 23 20
  • 21.  ‘convergence does not mean stability or unity. It operates as a constant force for unification but always in dynamic tension with change…. There is no immutable law of growing convergence; the process of change is more complicated than that’  Ithiel de Sola Pool, 1983: 53-4 21
  • 23. 23
  • 24. 24
  • 25. 25
  • 26.  Digital compression allows for more efficient use of bandwidth 26
  • 27. 27 27
  • 28. 28
  • 29. The ‘Jesus phone’? - Campbell & La Pastina, 2010 29
  • 30.  Touted as ‘revolutionary’ convergence device  Steve Jobs, Mac World expo, 2007 30
  • 31.  http://uk.youtube.com/watch?v=8sPVfFXC6AY  Complaint to ASA (August 2008)  http://www.asa.org.uk/asa/adjudications/Public/TF_AD 31
  • 32.  http://uk.youtube.com/watch?v=OknElEusVhM  Complaint to ASA (November 2008)  http://www.asa.org.uk/asa/adjudications/Public/T F_ADJ_45381.htm November 2008-12-08  Trust in corporations? 32
  • 33.  Days after June 2010 iPhone 4 launch Gizmodo publishes blog post about faulty signal  Flooded with complaints  How should you deal with such a PR disaster? 33
  • 34. 1. Apologize and take full responsibility? 2. Announce a huge media event and prime expectations? 3. Begrudgingly offer a give-away late in the day? 4. Attack your competitors? 5. Expose the entire industries failings? 6. Call the issue AntennaGate? 34
  • 35.  Environmental concerns  Supply chain problems  Foxconn suicides 35
  • 36.  http://uk.youtube.com/watch? v=TrT1gzQHsI4  Access to 2 million+ tunes from Sony, Warner, Universal  Annual cost approx £300 36
  • 37.  http://uk.youtube.com/watch? v=TrT1gzQHsI4  Access to 2 million+ tunes from Sony, Warner, Universal  Annual cost approx £300  Binned in January 2011 37
  • 38.  Increasing competition from Apple and Android  Business focused on non-smartphones  BBC clip 2007: revenue of €51bn 2007: profit of €7bn 2008: revenue of €50.7bn 2008: profit of 3.7bn 2009: revenue of €40.9bn 2009: profit of €260m 2010: Olli-Pekka Kallasvuo replaced by Microsoft’s Stephen Elop 2010: Symbian OS to be replaced by Microsoft’s Windows Mobile 38
  • 39. 39
  • 40.  October 2011 – huge network outage  Faulty router to blame  Lack of email service for corporate users  Unsure about the backup solution which threatened to do more damage  How to deal with this? 40
  • 41.  Mike Lazardis video apology 41
  • 42.  Dec 2011: Blackberry Playbooks written down by $485 million  Jan 2012: Mike Lazardis & Jim Balsillie resign 42