1. Are innovation policies leading to more innovative media markets
Are innovation policies leading to more innovative media markets? A decade of Spanish experience ( )
Francisco J. Pérez-Latre
Alfonso Sánchez-Tabernero
Media Management Department
University of Navarra (Spain)

2. Closures affected media companies of all kinds
MARKET EVOLUTION
A market in turmoil
Spain has been one of the European countries in which the recession hit hardest since 2007
Closures affected media companies of all kinds
Print media declined in terms both of market share and advertising income
Online versions were not able to change market dynamics for legacy companies
Conference of the European Media Management Association (EMMA) 2017
Gent, May

3. A market in turmoil: single-copy sales 2016 vs 2015
MARKET EVOLUTION
A market in turmoil: single-copy sales 2016 vs 2015
Conference of the European Media Management Association (EMMA) 2017
Gent, May

4. Terrestrial television becomes a duopoly after mergers
MARKET EVOLUTION
A duopoly in TV
2010: Analogue switchoff
Terrestrial television becomes a duopoly after mergers
National Public TV abandoned the advertising market
As of January 2017, Telecinco reaches 28,6 percent audience share (seven channels); Atresmedia, 26,9 percent (six channels)
Both companies dominate 85% of advertising
Conference of the European Media Management Association (EMMA) 2017
Gent, May

5. Telefonica’s Movistar + after a new merger
MARKET EVOLUTION
New pay TV players
Telefonica’s Movistar + after a new merger
Netflix comes to Spain (2015)
HBO and Amazon Prime (2016)
Conference of the European Media Management Association (EMMA) 2017
Gent, May

6. A SORT OF “NOT CREATIVE DESTRUCTION”
The challenge to the industry
New market competitors
Diminishing advertising expenditures
A culture of “news is free”
With less resources, some prestigious brands lost quality
Most part of new native digital media don’t have professional structures, principles and practices in place
Conference of the European Media Management Association (EMMA) 2017
Gent, May

7. A SORT OF “NOT CREATIVE DESTRUCTION”
The challenge to the industry: is there a role for policy?
Creative destruction revolutionizes economic structures from within, incessantly destroying the old, incessantly creating the new
To really “create the new”- both older and new media organizations should be more innovative
Find the sources of revenue which allow to “invest in quality”
Could policy-makers help to fulfill such goal?
Conference of the European Media Management Association (EMMA) 2017
Gent, May

8. Incremental, semi-radical and radical innovation
CONCEPTUAL FRAMEWORK
Incremental, semi-radical and radical innovation
The need for new services and the new business processes that allow them to flourish are considered
Creative innovation and service-technology innovation were explored, although we focused more on the last
Concepts of incremental, semi-radical and radical innovation have been helpful
Conference of the European Media Management Association (EMMA) 2016
Faculty of Arts, Porto University, June

9. BUILDING ON OUR WORK ON INNOVATION IN THE LAST 6 YEARS
Conference of the European Media Management Association (EMMA) 2017
Gent, May

10. BUILDING ON OUR WORK ON INNOVATION IN THE LAST 6 YEARS
Conference of the European Media Management Association (EMMA) 2017
Gent, May

11. RESEARCH QUESTIONS
Could regulations and policies be a force to unleash technology-based innovation and entrepreneurship?
Is there anything policy and regulation can do to alleviate the perception of risk in markets where there is a need to challenge the status quo and try new things?
In Spain, local and national governments have been involved in the industry creating often large public enterprises with offerings in the sector
Conference of the European Media Management Association (EMMA) 2017
Gent, May

12. A historical account based on secondary literature.
METHODOLOGY
A historical account based on secondary literature.
A detailed document analysis and close reading of regulations and policies of national and regional government in Spain in a variety of fields
It includes but is not limited to broadcasting and telecommunication; digital and mobile development and adoption; entrepreneurship; talent attraction; and the promotion of local media clusters, where governments could play a role
Conference of the European Media Management Association (EMMA) 2017
Gent, May

13. PUBLIC POLICIES AND INSTITUTIONS TO PROMOTE INDUSTRY INNOVATION
The Ministry of Industry coordinated the work of AETIC (Association of Spanish Electronics, Information and Telephone Technology Companies) and the DTT IMPULSA plan to encourage the digital transition from 2005
Red.es works in the development of the Internet and communication technologies since 2002
“Avanza” (Spanish for “move forward”) is a plan for the development of a knowledge and information society that was established by the Government in 2005 as a consequence of a Senate initiative. 5 billion euros
Conference of the European Media Management Association (EMMA) 2017
Gent, May

14. PUBLIC POLICIES AND INSTITUTIONS TO PROMOTE INDUSTRY INNOVATION
New laws in 2005, 2010 and 2013
Law of urgent measures for the development of DTT, liberalization of Cable Television and promotion of pluralism (10/2005): designed to help broadcasting sector grow
In 2010, a General Law of Audiovisual Communication (LGCA) was signed in order to adapt Spain’s broadcasting sector to the EU Directive 89/552
Law 14/2013 (September 27) supports entrepreneurs and their internationalization
Conference of the European Media Management Association (EMMA) 2017
Gent, May

15. PUBLIC POLICIES AND INSTITUTIONS TO PROMOTE INDUSTRY INNOVATION
The Ministry of Economy and Competitiveness created CDTI (Centre for the Development of Industrial Technology), a public entity to fund innovation and technology development
Creation of technology clusters: Barcelona, Madrid, Basque Country & Navarra are interesting examples
A lively debate about a “Google tax” as part of the controversial project of the Law of Intellectual Property
The online platform Filmotech was created under the initiative of Spanish producers to fight piracy.
Conference of the European Media Management Association (EMMA) 2017
Gent, May

16. PUBLIC POLICIES AND INSTITUTIONS TO PROMOTE INDUSTRY INNOVATION
Ministries in charge
The Ministry of Economy starts including Competitiveness in its name, assuming research & I+D (2011).
A “Digital Agenda” for Spain is approved (2013).
The national Government creates the Ministry of Energy, Tourism and Digital Agenda (2016).
It is the first time that the Digital Agenda is part of a Cabinet-level position which might signal an increasing political will to develop ICT in the country.
Conference of the European Media Management Association (EMMA) 2017
Gent, May

17. DISCUSSION: OUR CRITICISMS
A culture of innovation as the goal
Governments have been quite active at promoting media industry innovation through regulation. But…
The right implementation of laws requires the use of metrics and indicators
Most policies focused just on the introduction and mastering of new technology
Tools that may produce short-term effects have been used: subsidies to the introduction of new technologies, tax exemptions, measures to decrease bureaucracy, new technical standards…
More long-term policies have been neglected: in-depth and lasting change depends on the adoption of a culture of innovation
Conference of the European Media Management Association (EMMA) 2017
Gent, May

18. DISCUSSION: OUR CRITICISMS
Low levels of concentration but a lack of opportunities for new players
Public policies focused on increasing competitiveness by setting limits to competition and fostering Digital Terrestrial Television (DTT)
The support of DTT and the accompanying increase in the number of channels available for free have been successful and, in general (being Google in the advertising market the most notable exception), levels of concentration are relatively low
However, the analogue switch off has failed to give opportunities to new entrants
DISCUSSION: OUR CRITICISMS
Conference of the European Media Management Association (EMMA) 2017
Gent, May

19. DISCUSSION: OUR CRITICISMS
More policies in telecommunications
Actions have favored more innovation in the telecommunications sector than in the media, as public action has been more oriented to technologies than to contents
A knot of public initiatives and institutions make the promotion of innovation and entrepreneurship less dynamic and efficient for our industry
Foster the growth of stronger media labs and city technology media clusters, following successful international experiences
Conference of the European Media Management Association (EMMA) 2017
Gent, May

20. DISCUSSION: FINAL WORDS
The road to change
The digital transformation entails a need to train the workforce and improve the formation of talent to navigate new market realities
The news media industry entrepreneurship problems are part of a larger problem: it is still quite difficult and relatively expensive to create a company and hire people
We also recommend policies that facilitate a more entrepreneurial spirit and make entrepreneurs’ lives easier
Conference of the European Media Management Association (EMMA) 2017
Gent, May

21. THANK YOU AND WE LOOK FORWARD TO ALL YOUR COMMENTS AND SUGGESTIONS!
Francisco J. Pérez-Latre @perezlatre
Alfonso Sánchez-Tabernero