A recent study of media in 51 countries shows that the internet has a big impact on the aggregate revenue of major media industries.
The study was conducted by Sung Wook Ji, an assistant professor at the Media Communication Division, Hankuk University of Foreign Studies in South Korea, between 2009 and 2013.
The study focused on nine forms of traditional media: books, radio, newspapers, magazines, music, home video, theater, broadcast television, and subscription television. The study also estimated the advertising revenue as well as the direct payments from consumers by using an empirical method called the static panel data model. The model is about considering time series data and cross-sectional data simultaneously.
In the increased broadband penetration, the media industries experienced different influences. For example, theater, radio, broadcast television and subscription television revenues remained almost the same while books, newspapers, magazines, recorded music, and home video decreased, the study found.
According to the study, the average aggregate media revenue in 51 countries, including the U.S., Canada, South Korea, Italy, Kenya, India, Pakistan, and Hungary, decreased by 12.5% in comparison to the average GDP between 2009 to 2013 while internet conditions were improving.
The advertising proportion of the industries decreased with the increase in broadband internet penetration, the study found. Newspaper companies in the U.S., Canada, and the UK had already started direct payments from their single consumers. About 40% of the newspapers from the U.S. apply the strategy to increase revenue while numbers are 60% and 80% for the UK and Canada respectively.
To read more: https://doi.org/10.1177/1077699018807914
Ji, Sung Wook. “The Internet and Changes in the Media Industry: A 5-Year Cross-National Examination of Media Industries for 51 Countries.” Journalism & Mass Communication Quarterly (2018): 1077699018807914.