Chapter 12 : The Transformation of

Communication in CanadaVincent Mosco

BY: Asha Clarke, Rosemeen Shaikh, Navjot Sidhu

Introduction: Millennium Mergers

New Millennium = Transformation in Communication IndustryBegan in 2000 with AOL-Time Warner take over

Brought together world’s largest Internet service provider and world’s largest holder of intellectual property

Canadian Media MergersCanadian media companies followed in the steps of U.S

Bell Canada Enterprises (BCE)

CanWest Corporation

Quebecor

Rogers Communication

Political Economy ApproachWhat can a political economy

approach contribute to our understanding of these developments in communications?

Chapter 12 considers:The process of digitization and commodification underlying new media concentration trend

The consequences for Canada for putting in place a regional and global communication regime

Political Economy ApproachPolitical economy helps expand our

understanding of expansion of market power in the communications arena

Media concentration = advanced by powerful processes, but are not subject to singular forces

DIGITIZATION Provides gains in transmission speed and flexibility over electronic communication that relied on analog techniques

Allows for one language to govern over all electronic mediaCommon universal language = digitization as attractiveNegroponte (1995) new digital technologies are

creating a fundamentally new world that we must accommodate to End of the world of atoms (rough, limited, materiality)

beginning of digital world ( transcends spatial, temporal and material constraints)

Idea that there is no alternative, that no social or natural action can stop the emergence of the digital world = digital age cannot be stopped

Digitization is aligned with the discourse by Fukuyama about the end of history, end of geography, and the end of politics

COMMODIFICATIONMiege (1989) flow-type communication systemsCommodification

Based on inflexible system of delivering a batch of broadcast channels into the home

Fordist model = generic programming to mass audienceRefinement of Commodification of communication through digitization

Which allows for commodity to be measured, monitored and packaged in a specific manner

Commodification of LabourMovement away from mechanical labour to electronic systems

Elimination of jobs in the printing industry

CONFLICTSDigitization is not a flawless technical process and is subject

to problems that slow it downCommodification is challenged by organizations defending

both private sphere and public sphere Right to privacy Right to communicate openly and in a democratic fashion

Marxist perspective The social impact of commodification = alienation and

commodity fetishismCommodity fetishism = state of social relations that

arise in a complex capitalist market structure in which the social relationships place commodities at the centre

VIDEO CLIPhttp://www.youtube.com/watch?v=iu0ztxdsFi

s

Toward an Integrated Electronic Information and Entertainment

Services ArenaDigitization has allowed for one common language

to be developed across the communication industry and so there are no longer distinct barriers dividing these industries which include:1) Print

2) Broadcasting and Telecommunications

3) Information Technology or Computer Data

LEGAL REGIMES Print Publishing industry

Limited government involvement Local, typically family owned

Broadcasting and telecommunication Canada/United States/Europe all placed

higher restrictions on radio, television, telephone systems in order to accomplish national objectives such as national identity and a national market

Information Technology & Computer Data When this sector took off it was not seen as

holding any public interest or public service responsibilities, no system of subsidized pricing to those who need it, no commitment to universality of access, and no expectation that national firms would shortly be on the way to multinational control

CONVERGENCEThe coming together of all communication

sectors around regimes that are in place for the information technology and computer data sectors

The Concentration of Power in the Communication Business

1) BCE – CTV – Thomson (Globe & Mail)

2) Rogers – MacLean Hunter3) CanWest Global – Hollinger4) Quebecor – Sun Media – Groupe

Videotron (French language & tabloid media)

The Concentration of Power in the Communication BusinessCanada has allowed companies to build

structures that integrate across monopoly and competitive markets and across production and distribution

Example, Bell Canada Enterprise

Toward a Regional and Transnational Communication Order

Political Globalization and Global ContextFree Trade Agreement, North American Free

Trade AgreementWorld Trade Organization

Regional and Global Integration Example

1999 Bell Canada permitted the U.S. telephone company Ameritech to acquire a 20% stake in it

Rogers Communication deal with Microsoft to sell a minority stake to the U.S. firm, whereby Microsoft would use Canada’s largest cable television provider to develop high speed Internet access services

1999, Rogers sold a $1 billon stake in its mobile telephone company to AT&T and British Telecom (AT&T used the WTO to challenge Canadian dominance of Bell Canada)

FTA AND NAFTALiberalized trade in this sector

under both was permitted by a notwithstanding clause that allowed retaliation against cultural protectionism through measures in other industries, by general agreements on restricting government activity, and by liberalizing trade in sectors converging with the cultural industries

FTA AND NAFTATreaty provisions also require

“national treatment” to each others companies

Treaty provisions also place restrictions on the ability of governments to establish new government or public institutions to provide services in competition with private businesses

Global Pressures The WTO has had

more of an active role than regional trade agreements in applying pressures to expand transnational control over Canadian communications

IDEOLOGICAL SHIFTAlthough the Canadian state has

traditionally attempted to create protectionist policies in the communications industry we are now beginning to see a shift

Protectionist Policies within the Culture and Communications sectors have readily become a part of the general processes of government funding cutbacks

Although attempts have been made to preserve culture through media it is difficult to dissolve close ties with U.S and global markets

Contradictions & OppositionRecap: Neoliberalism = retreat of the

state/government from all areas of social life; private sector best provides these functions

Neoliberalism is contradictory to the operation of the communication arena, since it clearly demonstrates that its ideals are not easy to accomplish; governments are needed to regulate & standardize

Contradictions & OppositionTechnical concerns

standardization, who sets standards? Competitors

reluctant to cooperate since they would have to share info, which may be valuable, private, and central to their own success

Contradictions & OppositionITU (International Telecommunications Union): global body

made up of government organizations and run on a one nation, one-vote basis to establish global standards for new technology

Setting up public national or international regulatory authoritiesCritical to capitalist expansion

How can access be expanded for technology to build markets?How is it ensured that some measure of privacy will

create consumer confidence in technology?Government brought in to regulate by capitalists;

governments succeeded; opened private arena to public, who used opportunity to fight for public broadcasting

Contradictions & OppositionFight for personal privacy part of a

wider struggle against expanding commodityConflict between need to build

consumer confidence to turn internet into universal market tool & the need to commodify whatever moves over Internet, including personal identity

Conflict deepened by technology industries opposition to state intervention

Privatization of public space and centrality of culture & communication Struggle of public space as

global business directed to branding of physical & cultural space; Americanization?

Contradictions & OppositionShift from productivist emphasis on international division of

labour to concern for consumption & cultural receptionExpansion of consumer markets & growth of popular culture

Use of communication/info technology for opposition & resistancebuilding global resistance movements

Major opposition movements based on building global solidarity & strategy through use of communication systemsStrategy takes many forms: Direct attacks on communication

systems of transnational companiesUse of cyberspace to advance politics of democratic

communicationGlobal communication can result in open areas of attack (ie.

9/11)

ConclusionsSeveral processes of transformation taking place in

Canadian communicationDigitization and Commodification are providing

opportunities for capital to turn content, audiences and labour of the communication industries into marketable commodities

Leading to the amalgamation of multiple industries such as the printing, broadcasting, telecommunications and IT sectors

Media Concentration: media ownership within Canada where only 4 –5 groups hold power and manage the communication industry marginalization of others

However, each transformation processes contain problems; ranging from glitches to outright challenges

National preferences are promoted by companies, who are threatened by transnational integration led to new social movements against WTO

QUESTIONSHow are the forces of globalization through

international capital and new globalized communication networks acting on the entity Canada and how are they changing it into a North America without borders?

Is Canadian identity/national culture threatened through mergers and privatization of communication?

CLASS EXERCISEExercise will consist of class divided

in to two sides: FOR & AGAINSTStatement provided to class; each

side gets 2 minutes to discuss with group

Each side will get 1-2 minutes to present arguments

Debate! Side w/ best arguments win prize! [Add quote]

CLASS EXERCISE“The convergence of accelerating

communication & transportation networks & expanding neoliberalism poses danger of an explosive combination.” (Pg. 306)

“Like a force of nature, the digital age cannot be denied or stopped.” (Pg. 290)

“It is quite fair to say that in some areas the Canadian government blazed new ground, as in May 1999 when it fully supported the decision of its chief communication regulatory authority to formally rule against regulation of the Internet.” (Pg. 299)

THE END