enhancing media competitiveness in the caribbean
TRANSCRIPT
ENHANCING MEDIA COMPETITIVENESS IN THE CARIBBEAN
Dr. Justin RamDirector
Economics DepartmentOctober 24, 2016
Caribbean Broadcasting Union47th Annual General AssemblyHavana, Cuba
Outline
1. Macro-economic Developments in the Caribbean2. Competitiveness in the Caribbean – Doing Business
Indicators3. The Global Media Industry4. The Caribbean Context5. Opportunities6. Next Steps
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
2011 2012 2013 2014 2015 2016
4.2
3.5 3.3 3.43.1 3.1
6.3
5.34.9
4.6
4.04.2
4.9
3.2 3.0
1.3
-0.1-0.5
1.5
0.9
1.6
2.2
1.4 1.4
GDP Growth World Emerging Markets and Developing EconomiesLatin America and the CaribbeanBMCs
Source: World Economic Outlook, October 2016
Competitiveness in the Caribbean
Most Caribbean countries rank in the bottom half of the Doing Business rankings
Jamaica
Dominica
Bahamas
, The
Belize
Guyana
1
21
41
61
81
101
121
141
161
181
Doing Business Rankings (2009 vs 2016)DB 2009DB 2016
Source: World Bank Doing Business
Distance to Frontier relatively stable in 2016; Average 43 points from Frontier
Source: World Bank Doing Business
Haiti
Surina
me
Guyan
a
Grenad
a
St. Kitts
and N
evis
Belize
Barbad
os
St. Vinc
ent a
nd th
e Gre.
..
Baham
as, T
he
Antigu
a and
Barb
uda
Domini
can R
epub
lic
Domini
ca
Trinida
d and
Tobag
o
St. Luc
ia
Jamaic
a0
10
20
30
40
50
60
70
80
90
100
Distance to Frontier (2010 vs 2016)DB 2010 DB 2016 DTF
Countries at different levels;clusters in starting a business and trading across borders
-19
1
21
41
61
81
101
121
141
161
181Doing 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
Star
ting
a B
usin
ess
Con
stru
ctio
n Pe
rmits
Get
ting
Elec
-tr
icity
Reg
iste
ring
Prop
erty
Get
ting
Cre
dit
Prot
ectin
g M
inor
ity In
-ve
stor
s
Payi
ng
Taxe
s
Trad
ing
Acr
oss
Bor
-de
rs
Res
olvi
ng
Inso
lven
cy
Enfo
rcin
g C
ontr
acts
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.
Social Media
Global Media and Entertainment spending of US$1.8 trillion in 2016
Source: Mc. Kinsey and Co. 2015 Global Report
Global Media and Entertainment spending of US$1.8 trillion in 2016
Source: Inside Scoop, Intel, 2013
Shift in Global Media to Digital Media – Redefining Business Models
vs.
NOWTHEN
Global Trends in E&M Industry
Global spending in E&M is growing
more rapidly than GDP (5.1% CAGR)
Youth Movement – strong correlation between under-35
population and growth in E&M
industry
Cultures and Tastes in Content remain Steadfastly Local
Source: PWC Report 2016-2020
Digital Advertising is the fastest growing category in the industry
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Total Global Media Spending (US$M)
2009 2015
Source: Global Media Report 2015, Mc. KinseySource: Global Entertainment and media outlook 2016-2020, PwC, Ovum
Digital media – new opportunities
On average, 6.1 hours per day ononline media
Source: GlobalWebIndex, 2014; Global Social Media Trends 2015, European Publishers Council
Top 10 media companies
Liberty Media Corp. (Englewood, Col. USA); 11.2b; at No. 12
Scope for Change in the Caribbean
CHANGE THE MEDIA
CHANGE THE WORLD
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
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
Source: ICT-Pulse.com
Lowest and Highest Advertised Download Speeds and the Corresponding Best Rates in Select Caribbean Countries
Monthly Internet Plan (2 Mbps)Caribbean Countries 2015 vs May 2016
Source: ICT-Pulse.com
2015 2016
Broadband subscription in CDB’s Borrowing Member Countries and Latin America
Source: ICT-Pulse.com
2001 2003 2005 2007 2009 2011 2013 20150
5
10
15
20
25
30
35
40
45
50
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)
Broadband Subscription in CDB’s Borrowing Member Countries and Latin America
Source: World Bank
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
5
10
15
20
25
30
Latin America Mobile Subscription Per 100Argentina 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
Fixed Broadband subscription in the United States and Singapore
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
5
10
15
20
25
30
35
Fixed Broadband Subscription Per 100 United States Caribbean small states
Pacific island small states Singapore
Connected by Mobile Technologies (avg. 1 cell per person)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-30
20
70
120
170
220BMC 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
Connected by mobile technologies (avg. 1 cell per person)
Source: ICT-Pulse.com
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-30
20
70
120
170
220
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
Mobile subscription inin the United States and Singapore
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
20
40
60
80
100
120
140
160
180
Mobile Subscription Per 100United States Caribbean small states Pacific island small states
Singapore
Online streaming: The media is the new business frontier
Radio Moving to Online Streaming in the Region
Anguil
laArub
a
Barbad
os
Cayman
Islan
ds
Domini
ca
Guada
loupe
Haiti
Martini
que
St. Kitts
and N
evis
St. mart
in
Surina
me
Turks a
nd C
aicos
Islan
ds0
5
10
15
20
25Approx. 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
Case of Barbados TODAY:Is New Media the Future?
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
Caribbean television: Cable from the US
Source: Digicel Barbados Facebook Source: FLOW Barbados Facebook
Where does Caribbean media fit?
Source: IMDb.com
• 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
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
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 NoQualifications required by law/regulation for an individual to practice as journalist
No No Yes NoAnti-concentration/anti-trust rules or laws on media ownership for domestic private and foreign companies
No No Yes NoCross-media ownership limitations for domestic private and foreign companies
No No No NoExistence of legal provision for access to information held by the state
Yes No Yes Yes
Source: UNESCO, 2013
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
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
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
Thank You!
Anguilla
Antigua
Bahamas
BarbadosBeliz
e
British
Virgin Isl
ands
Cayman Isl
ands
Dominica
Grenada
GuyanaHaiti
Jamaica
Monsterra
t
St. Kitt
s and N
evis
St. Lucia
St. Vince
nt and th
e Grenadines
Suriname
Trinidad and Tobago
Turks and Caico
s-1
0
1
2
3
4
5
Average GDP Growth Rates 2011-2016
Additional Slides
Antigua
Bahamas
BarbadosBeliz
e
Dominica
Grenada
Guyana
Haiti
Jamaica
St. Kitt
s and N
evis
St. Lucia
St. Vince
nt and th
e Grenadines
Suriname
Trinidad and Tobago
-10
-8
-6
-4
-2
0
2
4
6
8
10
Primary Balance (% of GDP)2015 2016 e