Transnational Television in Europe The Role of Pan-European Channels j Jean K. Chalaby A B S T R A C T j This article analyses the pan-European television industry in the context of the debate on globalization. Pan-European channels are a minority of transnational channels that broadcast across Europe. Their emergence over the last two decades has been made possible by a mix of commercial, regulatory and technological factors. Pan-European television channels can be distinguished by their content, type of ownership and market strategy. Since the mid-1990s, many pan-European channels have operated a shift in strategy and have begun to localize their pan-European feed. This article identifies four types of localization: local advertising, dubbing or subtitling, local programming and the local opt-out. Taking Eurosport and MTV as examples, I have illustrated the practices of localization and explain why some channels engage more in this than others. Localization can be seen as evidence of the vast differences that persist between national cultures. However, I have argued that localization facilitates the process of globalization because it allows transnational media players to overcome cultural diversity and operate efficiently in a multinational environment. j Key Words media globalization, pan-European television (PETV), practices of localization, transnational television Introduction The objective of this article is threefold. It analyses the growth of panEuropean television channels over the past 20 years and examines the Jean K. Chalaby is lecturer in the Department of Sociology, City University, Northampton Square, London EC1V 0HB, UK. [email: [email protected]] European Journal of Communication Copyright © 2002 SAGE Publications (London, Thousand Oaks, CA and New Delhi), Vol 17(2): 183–203. [0267–3231(200206)17:2;183–203;023692] 183 EUROPEAN JOURNAL OF COMMUNICATION 17(2) corporate practice of localization, discussing this development in the context of the debate about media globalization. The first and second sections contextualize the growth of panEuropean television (PETV) in recent broadcasting history. The emergence of pan-European channels is related to the twin processes of decentralization and transnationalization of television that are redefining the relationship between the medium and the nation-state. European broadcasting has developed at infra- and supra-national levels during the past 20 years and today a host of local and transnational channels complement and challenge national broadcasters. The third section explores the field of pan-European television. PETV channels are a specific type of cross-border channel that have a panEuropean distribution. (Many transnational channels are only distributed in a handful of countries.) The article concentrates on the 17 most prominent transnational channels that are pan-European in scope and distinguishes them on the grounds of their content, type of ownership and market strategy. The fourth and fifth sections focus on localization as a growing corporate strategy in the PETV industry. In the mid-1990s, many leading PETV channels began to split their pan-European feed to adapt their programmes to local audiences. This article details four ways of localizing a feed, from the local advertising window to the local opt-out. I have used British Eurosport as an illustration of a local opt-out and MTV as a case study of a pan-European network that has launched several opt-outs. The fifth section analyses the reasons why some channels are more deeply engaged in the process of localization than others. Finally, this article argues that the growth of the PETV industry is a significant step in the process of media globalization in Europe. It interprets localization as a globalizing practice that helps cross-border channels to remain competitive in a multinational environment. Decentralization and transnationalization in European television Until the early 1980s, television broadcasting in Europe had a strong territorial and national bias. With few exceptions, European broadcasters were national in scope.1 The national broadcaster’s signal covered the length and breadth of the national territory, from the nation’s capital to the remotest parts of the countryside. In many cases, such as France, there was a state monopoly on broadcasting, giving further control to the government of the national airwaves (Brochand, 1994). Foreign broad184 CHALABY: TRANSNATIONAL TELEVISION IN EUROPE casters were not allowed to transmit on the national territory and attempts to do so were seen as breaches of national sovereignty. Since the 1980s, two developments in television have concurrently redefined its relationship with the nation-state. First, the process of decentralization has seen the development of television at an infra-national level. Throughout Europe, complex local and regional television broadcasting systems have emerged. The development of regional television networks has always had political underpinnings and, in the case of Spain, was the result of wide-ranging constitutional reforms (Mateo, 1997). These networks emerged out of the pre-existing national – and public – broadcasting structures. On the other hand, local television stations that are today thriving in Greece, Italy and Germany were commercial ventures from the onset (Garitaonandı́a, 1993; Barca, 1999; Moragas Spà et al., 1999). Second, television has been going through a process of transnationalization, as it has developed at a supra-national level. There are several facets to this evolution, including the expansion of the international television trade and the growth of transnational media corporations (Herman and McChesney, 1997; Thussu, 2000). This article deals with a third aspect of the process, that is, the increasing number of channels that reach audiences across national boundaries. Transnational television in Europe The first cross-border television channels were launched in Europe in the 1980s. Two decades on, there are more than 100 transnational channels operating across Europe and approximately 80 of them hold a licence from the British Independent Television Commission (ITC, 2001). The ITC is a popular regulator because ITC licences are cheap (£250) and simple to obtain. One of the main conditions is that broadcasters must be based in the UK, making London the European centre for transnational television. They are also easily retained provided licensees follow the regulator’s fairly lax programme code. ITC rules on sponsorship and advertising are less rigid than those of most European countries, thus allowing ITC licensees to circumvent national regulations in the countries in which they broadcast. Some channels registered with the ITC have escaped censorship in their countries of origin in this way, as is the case with several Arab channels. European cross-border television is essentially composed of ethnic channels that service a specific diaspora. They include SAT-7, an Arab Christian channel based in Oxfordshire, TVBS, broadcasting Chinese 185 EUROPEAN JOURNAL OF COMMUNICATION 17(2) news and entertainment, ZEE TV, providing Indian news, movies and entertainment, and Sima TV, on Persian news and culture. Ethnic channels are best described as multinational because they rarely have a total pan-European coverage. Typically, they have a strong distribution in the countries where the diaspora is based and do not market themselves elsewhere. For instance, channels such as MATV or Star Plus and Star News concentrate on the Asian British market. Among the transnational channels that are pan-European in scope, 17 are particularly prominent.2 They have a strong distribution in at least five European countries and a commitment to international expansion. These are: Arte, BBC Prime, BBC World, Bloomberg, Cartoon Network, CNBC, CNN International, Discovery, Euronews, Eurosport, Fox Kids, MTV, National Geographic, Sky News, TV5, Universal Studios Networks and VH1. All but five of the channels are registered with the ITC; Arte, Euronews, Eurosport, TV5 and Universal Studios Networks hold their licence from the Conseil Supérieur de l’Audiovisuel, the French broadcasting regulator. On average, these channels broadcast to 24 European territories and are received in nearly 40 million European households (M&M Europe, 2000). The growth of PETV has been triggered by several factors. European public service broadcasters have launched several PETV channels. They operate them either single-handedly (BBC World and BBC Prime), jointly with other public service broadcasters (Arte and TV5), or with commercial operators (Euronews and Eurosport). Public service broadcasters have a variety of reasons to get involved in PETV. They may want to optimize an existing catalogue of programmes or television rights, as was the case with BBC Prime and Eurosport. The sports channel was launched by members of the European Broadcasting Union (EBU) in 1989 as an outlet for broadcasting sports competitions, for which they held television rights but did not have space to broadcast from their own home channel.3 European public broadcasters also wished to be present in the international news market. Both BBC World and Euronews were launched in answer to CNN. The BBC launched World Service Television in 1991, followed by BBC World in 1995, when it realized that it could use its existing correspondents and international news bureaux to rival CNN.4 Euronews was launched in 1993 by EBU members – with the backing of the European Union – in response to CNN’s dominance of the Gulf War.5 International television in Europe has also benefited from the formation of a global media industry and the growth of transnational media corporations, such as AOL-Time Warner, Viacom and Disney 186 CHALABY: TRANSNATIONAL TELEVISION IN EUROPE (Herman and McChesney, 1997). These conglomerates operate some of the most successful brands in PETV, including CNN, MTV and Fox Kids. They are involved in PETV because global expansion is high on their agenda.6 American-based media corporations map out aggressive strategies to expand outside the US and see Europe as a good opportunity to increase the revenue percentage generated outside their home market. They also have the capital, corporate ethos, expertise and content library to operate television channels on a transnational basis. The growth of PETV has been facilitated by regulatory changes. Deregulation throughout the 1980s and 1990s liberated broadcasting in many European countries, leading to a steep increase in commercial operators and loosely regulated cable and satellite services. This has facilitated cross-border and cross-media ownership as well as the international trading of television content (Galperin, 1999). The integration of the European media market is backed by the European Commission. Its main initiative in broadcasting regulation, the Television Without Frontiers Directive, was adopted in October 1989 and came into effect in 1991. Its objective has been to facilitate the free flow of audiovisual products across Europe and create a European audiovisual space (Collins, 1999). It has been qualified as ‘ground-breaking’ by the Independent Television Commission because of its impact on cross-border broadcasting in Europe.7 Article 2 prevents member states from restricting the transmission of television broadcasts originating from other member states. As a result, pan-European channels need only respect the regulations of the European nation from whom they hold their licence. In practice, PETV channels registered with the ITC in London can advertise alcohol and tobacco products in France, insert commercials into children’s programming in Sweden and flout Germany’s strict sponsorship rules. Finally, PETV would not exist without communications satellites. They alone have made possible the cross-border transmission and reception of television channels (Collins, 1992; Winston, 1998: 276–304). At first, satellite channels were only available to the public via cable providers. In the late 1980s, spacecraft became powerful enough to carry television channels that could be received at home on small parabolic antennae.8 Direct-to-home satellite broadcasting helped to multiply the number of channels available to European households, and break the monopoly of terrestrial – and national – broadcasters (Tunstall and Machin, 1999: 200–14). There are several satellite communications systems currently operating in Europe. The largest, ASTRA, is operated by the Luxembourg-based Société Européenne des Satellites. It comprises 187 EUROPEAN JOURNAL OF COMMUNICATION 17(2) an 11-strong fleet of satellites transmitting more than 1000 television and radio channels to 87 million European households.9 Today, the powerful combination of satellite and cable networks feeds the rapid expansion of European transnational television as cable connections allow millions of households to receive cross-border programming and channels at a low cost. The pan-European television industry The PETV industry is barely 20 years old. Several pan-European channels were launched in the course of the 1980s and those that have survived to this day are among the best established. The French-language channel, TV5, started transmission in 1984. CNN, the first 24-hour news channel, began broadcasting in the US in 1981 and expanded to Europe four years later (Flournoy and Stewart, 1997: 1–14). Music Television (MTV) was launched in 1981 and began a European service in July 1987. In 1989, Sky News and Eurosport were launched by Murdoch’s News International, the latter in conjunction with the EBU.10 Most other PETV channels were founded in the 1990s, including Arte (1991), Euronews (1993), BBC Prime and BBC World (1995), CNBC (1995) and National Geographic (1997). PETV channels are available to viewers via cable, satellite bouquets, digital platforms and, less frequently, terrestrial television. Thus, in most countries, their distribution only marginally exceeds the rate of penetration of pay-television. Within the 15 countries of the EU, nearly one television household out of two subscribes to either cable or satellite services (see Table 1). Access to pay television follows a north/south divide in Europe. Subscription rates are particularly high in countries like Germany (88.9 Table 1 Cable and satellite reception estimates in Europe, 1999 (thousands of households) TV households Cable television Direct-to-home satellite Total cable and satellite EUR 15a 142,715 EUR 34b 233,337 42,424 29.7% 63,053 27% 26,277 18.4% 33,567 15.4% 67,793 47.5% 95,058 40.7% a Includes the 15 member states of the EU. Includes the 34 member states of the European Audiovisual Observatory. Source: European Audiovisual Observatory (2000: 56–7). b 188 CHALABY: TRANSNATIONAL TELEVISION IN EUROPE percent), Belgium (95.8 percent) and the Netherlands (96.9 percent), while they stand at 5.1, 8.4 and 17.7 percent in Greece, Italy and Spain respectively (European Audiovisual Observatory, 2000: 56–7). Cable is the most common mode of delivery of pay-television in northern Europe, while direct-to-home satellite broadcasting prevails in the south. PETV channels have also begun to sign agreements with local broadcasting companies to gain access to terrestrial television. These deals give them access to a host channel during a specified part of the day. In Italy, MTV shares a terrestrial channel with Television Monte-Carlo, boosting its local distribution to 15 million homes. Euronews has access to terrestrial channels on a ‘partial-time’ basis in 12 European countries. Arte, the French-German high-brow cultural channel, transmits on the fifth terrestrial channel in France from 7 p.m. to 3 a.m., making it accessible to 89 percent of French television households. The mean full-time distribution of the 17 PETV channels (excluding the part-time distribution) is 38.7 million European households. BBC Prime has the lowest distribution (8.2 million households), while MTV is received in more than 90 million households across Europe. Among the other PETV channels that exceed the mean distribution, Eurosport is received in 88.3 million European homes, CNN in 73.2 milllion, TV5 in 65 million, Arte in 61.9 million and BBC World in 50 million (M&M Europe, 2000). The audience for PETV channels is extremely small and their market share rarely passes the 1 percent mark. For instance, in Britain, CNN’s audience share was recorded at 0.1 percent for the 12 months of 2000, that of Discovery at 0.5 percent, Eurosport at 0.3 percent, MTV at 0.4 percent and Sky News at 0.3 percent. The total audience share of the PETV channels that broadcast in the UK amounts to 2.2 percent (ITC/ BARB, 2001). In Western Europe, this figure is only exceeded in France and Italy, thanks to the part-time distribution deals of Arte and MTV in these countries. Arte alone reaches 3 percent of the total viewing audience in France and MTV gets 1.4 percent of market share in Italy (European Audiovisual Observatory, 2000: 270, 321). The actual viewing figures of PETV channels must be accounted for in tens of thousands of viewers rather than in the millions who watch national television every day. Classifying PETV channels There are three ways of classifying PETV channels: by content, ownership and market strategy. In terms of content, PETV channels fall into two main categories: information and entertainment. Six PETV channels 189 EUROPEAN JOURNAL OF COMMUNICATION 17(2) broadcast news and factual programming on a 24-hours basis – seven days a week: BBC World, Bloomberg, CNBC Europe, CNN International, Euronews and Sky News. All the other channels bar two are entertainment oriented. Discovery Networks Europe (nine channels altogether) and National Geographic specialize in factual entertainment, Universal Studios Network comprises three movie channels, MTV and VH1 are two music television channels and Cartoon Network and Fox Kids compete for children’s eyeballs. Neither TV5 nor Arte fall into a specific category. TV5, the international French-speaking channel, mixes news, documentaries and magazines with live sport transmissions. Arte has a narrow cultural remit and specializes in documentaries, arthouse cinema and high-brow talk shows. PETV channels tend to be controlled by two types of media organization: they are either public service (and European) broadcasters or private (and American-based) corporations. Public service broadcasters are involved in six channels: Arte, TV5, BBC Prime, BBC World, Euronews and Eurosport. Arte is a joint venture between the French and German public broadcasters and TV5 is controlled by a consortium of French, Swiss, Belgian and French Canadian public channels. BBC Prime and BBC World are the only other PETV channels entirely controlled by a public service broadcaster. The ownership arrangements of Euronews and Eurosport mix public and commercial partners. Euronews was launched in 1993 by 11 members of the EBU, later joined by a further eight members. They still own 51 percent of the Lyon-based channel, while the remaining 49 percent is in the hands of the London-based news production company ITN (Machill, 1998; Purvis, 1999). Eurosport was a joint public/commercial operation at the onset, as News International was EBU’s launching partner in 1989. The partnership did not last long and Murdoch withdrew when Sky merged with its rival, British Satellite Broadcasting, the following year (Collins, 1998: 659). Eurosport is currently jointly owned by members of the EBU consortium and France’s main free-to-air commercial channel, TF1. The other PETV channels are controlled by commercial consortia dominated by American-based media corporations. Cartoon Network and CNN are both owned by Turner Broadcasting System, which is a division of the AOL-Time Warner empire. Fox Kids Europe is part of Fox Family Worldwide, acquired by Disney from News Corporation in July 2001. News Corporation retains an interest in Sky News via its British subsidiary BSkyB. Murdoch’s conglomerate also hold shares in the National Geographic channel with NBC, which itself operates CNBC 190 CHALABY: TRANSNATIONAL TELEVISION IN EUROPE with Dow Jones. Both music channels, MTV and VH1, belong to Viacom – the world’s third transnational media corporation – with revenues in excess of US$23 billion in 2000. Discovery Channel is an all-American joint venture and Bloomberg Television is independently owned by its American parent company, Bloomberg LP. Universal Studio Networks is the only commercial concern in PETV that does not involve an American-based company, belonging to the French utilities and media group Vivendi-Universal. Finally, PETV channels can be differentiated by their market strategy. The elitist strategy employed by the group of broadcasters including Bloomberg, BBC World, CNBC and CNN involves targeting the top 5 percent of European households by income and, more specifically, the business community. The other PETV channels aim at a larger public, although none of them compete for the mass audiences that are still the preserve of national broadcasters. They tend to remain in a particular niche market, aiming at a specific age group or interest, such as sports or music. Some of them retain an upmarket bias but cast their net wider, focusing on the top quarter of European households by income.11 PETV channels subscribe to audience surveys that reflect their marketing priorities. They need harmonized pan-European data and an upmarket universe, omitting surveys like Peoplemeter – the television industry standard – because its sample sizes are inadequate for measuring audiences among small target groups. The most currently used survey in the PETV industry is the European Media and Marketing Survey (EMS), which evaluates the viewing habits of Europe’s 20 percent wealthiest households. The four channels with the most exclusive strategy subscribe to Europe 2000, which has a universe of 10.8 million individuals, or 4.2 percent of the adult European population. Europe 2000’s researchers only interview people in a professional or executive occupation who earn more than US$45,000 per year (BBC World, 2001). A change of corporate strategy: the drive for localization Pan-European television broadcasting presents corporate players with the difficulties associated with operating in a multinational environment. They must commercialize programmes and channels that appeal to publics across cultural and linguistic divisions. Until the early 1990s, broadcasters involved in PETV opted for a ‘globalist’ strategy. They adopted the view of contemporary marketing literature of a ‘world 191 EUROPEAN JOURNAL OF COMMUNICATION 17(2) cultural convergence’ (e.g. Levitt, 1983), and worked under the assumption that national cultures were in a process of homogenization, sharing an increasing number of elements in common. Businesses that focused on these similarities could reap the rewards of cultural homogenization and save on operating costs by commercializing in a similar fashion a single brand across the globe (Morley and Robins, 1995: 15). Channels such as CNN, MTV and Eurosport applied this marketing strategy to international television and tried to sell a standardized content in as many territories as possible. MTV, true to its advertising slogan, ‘One planet – one music’, broadcast the same music in the same language – English – across the world (Roe and De Meyer, 2000: 150–1). These channels were progressively confronted with the limitations of their marketing model when their audience figures stubbornly remained at insignificant levels. CNN and MTV were soon faced with regional 24-hour news channels and local music television stations that copied their format. These new competitors outdid them because they communicated in the local language and had a better understanding of their audience. Progressively, cross-border players awoke to the reality of national boundaries as cultural and linguistic markers and realized that there were limits to the exportability of their programmes. They recognized the need for readjusting their commercial strategy in order to operate successfully in an environment as culturally diverse as Europe. Gradually giving up their pan-European content strategy, they split their continental feed and began to adapt programmes to local audiences. Since the mid-1990s, localization has become increasingly widespread in the PETV industry.12 It consists of adapting an international channel to a local audience with the aim of making it more palatable to that public. Different aspects of a cross-border feed can be localized, either separately or conjointly (see Table 2). The initial step in the localization ladder is the introduction of local advertising windows. Twelve channels are able to insert commercials for a specific territory (e.g. Germany) or region (e.g. Scandinavia) in their pan-European feed. Most often, local advertising windows include at least the five European key markets: Germany, France, UK, Italy and Spain. This flexibility allows channels to give their clients three options: they can either buy a local campaign and advertise in one country/region, they can opt for an international campaign and advertise in selected territories, or they can buy a whole pan-European campaign. Local advertising windows offer many advantages. For instance, advertisers can run locally produced advertising spots simultaneously 192 CHALABY: TRANSNATIONAL TELEVISION IN EUROPE Table 2 Levels of localization in PETV Local advertising windows Local languages Local programming services Local opt-outs Bloomberg, Cartoon Network, CNBC, CNN International, Discovery, Eurosport, Fox Kids, MTV, National Geographic, Sky News, Universal Studios Networks, VH1 Arte, Bloomberg, Cartoon Network, CNBC, CNN International, Discovery, Euronews, Eurosport, Fox Kids, MTV, National Geographic, Universal Studios Networks Bloomberg, Eurosport, MTV Cartoon Network, CNBC, CNN International, Discovery, Eurosport, Fox Kids, MTV, National Geographic, Universal Studios Networks, VH1 Sources: M&M Europe (2000: 24–5); interviews (see notes); company websites. across Europe, ensuring that a pan-European campaign is always relevant to local markets. This technique is used by advertisers like Nestlé, who sell the same product under different names in different countries. PanEuropean campaigns can also be staggered in time. Advertisers can start a campaign in the Netherlands in June, run it in Scandinavia in July and carry it through across Europe during the following months. Movie companies use this technique to time their promotion campaigns according to the movies’ release dates. Cross-border channels can also be localized by means of translation. Twelve channels either dub or subtitle their programmes according to their audience, content and resources. Euronews, Eurosport and the two children’s channels, Cartoon Network and Fox Kids, use dubbing exclusively and are available in 6, 18, 8 and 12 languages respectively. Discovery network (16 languages) and National Geographic (8 languages) combine dubbing and subtitling. They use subtitles in the territories in which English is widely spoken and understood, such as the Netherlands and Scandinavia, and dub their programmes in countries such as France, Poland and Italy. Five PETV channels remain monolingual: BBC Prime, BBC World, Sky News and VH1, which broadcast in English, and the French-speaking TV5. The introduction of local programming is a more sophisticated and expensive form of localization. It involves the split of a pan-regional feed and the insertion of devolved programming for one or several 193 EUROPEAN JOURNAL OF COMMUNICATION 17(2) territories. A regional programming window can last anything from a few minutes to several hours per day. Eleven channels use this technique in a variety of ways. CNN broadcasts two 15-minute programmes per day in Germany, Spain and Turkey. CNBC broadcasts devolved news bulletins in Scandinavia, Turkey and the UK. Cartoon Network and Fox Kids transmit devolved daily programmes in six and nine territories respectively. The local opt-out represents the ultimate level of localization. It does not merely entail local programming within an international feed but the launch of a separate local channel with fully regionalized operations and production facilities. Local staff are hired to adapt international content and produce programmes exclusively for the local market. Opt-outs also necessitate specific marketing investments because they are rebranded as local channels. Only two European networks have so far decided to launch opt-outs: Eurosport and MTV. Eurosport was the leading PETV channel in terms of distribution in the 1990s, but although very successful in Central and Eastern Europe, it experienced difficulties in the more competitive West European markets. Towards the end of the decade, many sports-dedicated channels were launched and free-to-air terrestrial channels were substantially increasing their sports offering (Proctor, 1999/2000). The competition prompted Eurosport to launch devolved channels in France in 1998 (France Eurosport) and Britain the following year (British Eurosport). Their panEuropean feed continues to service the other European markets. British Eurosport provides an excellent illustration of a local optout. It employs in excess of 50 collaborators and has its own production facilities in Langley, West London. Localization is carried out at the marketing and programming levels. Market surveys showed that Eurosport had a foreign connotation in Britain and, as a consequence, the British feed is now promoted as a British channel.13 Foreign commercials have been banned and, at one stage, the logo of the British opt-out displayed the Union Jack. Eurosport’s greatest effort of adaptation to the British market is through programming itself. The British opt-out produces its own sports news bulletins, which are broadcast four to five times a day and are anchored by two presenters. The studio-based bulletins constitute a major improvement from the original feed. In the pan-European version, the news is commented by a voiceover because the images need to be simultaneously presented in up to 18 languages. The presenters provide a British face to British Eurosport and have allowed the channel to bid for a local identity. 194 CHALABY: TRANSNATIONAL TELEVISION IN EUROPE British Eurosport sends its own reporters to major international sports events in order to make the pan-European coverage more relevant to the British audience.14 It dispatched a 10-strong team to the Olympic Games in Sydney in August 2000 and broke from the European feed several times a day during its 24-hour coverage to broadcast its own profiles of British athletes, special news reports and magazines. Coverage of the same international sports event can vary between European and British feeds because of the different selection of games and competitions. Both channels may schedule the same ATP tennis tournament simultaneously but show only those games that are most relevant to their respective audiences (e.g. Tim Henman and Greg Rusedski for British Eurosport). British Eurosport has begun to buy its own television rights. The European feed shows many sports such as biathlon and Nordic skiing that attract little interest in Britain. In order to compete with the domestic sports channels, British Eurosport needed to increase its offering of the country’s three core sports: football, rugby and cricket. Thus, it bought the rights to Heineken Cup Rugby in 1999. Eurosport’s investments in Britain show how heavily competitive markets are unsustainable for pan-regional channels. Audience tastes and interests differ from one country to another, making it impossible for an international feed to be of equal interest everywhere. In the era of multichannel platforms, cross-border channels continuously run the risk of being outdone by local competitors who copy their format but can better meet the audience’s interests. This phenomenon has forced MTV to completely overhaul its international strategy. MTV: from universalism to local realism MTV began broadcasting in Europe in 1987. From the launch of its European channel until the mid-1990s, the management did not feel the need to localize its pan-European feed. The business model of the music channel was based on the expansion of distribution figures. Revenue did not come directly from consumers but from the cable operators who paid MTV to carry the prestigious brand on their network. MTV managers also believed that the appeal of their product was universal. They thought that language was not an issue because most Europeans, especially youngsters, spoke English.15 The playlist remained heavily dominated by Anglo-American music and more than 80 percent of the music videos shown on MTV Europe were of either British or American origin (Roe and De Meyer, 2000: 147). 195 EUROPEAN JOURNAL OF COMMUNICATION 17(2) This model came to an end in 1994, when MTV realized they were losing viewers to channels that were being launched in key European territories. The strongest challenge came from VIVA, a German music channel that began broadcasting towards the end of 1993 and was soon dominating the music television market in German-speaking countries. Other channels were launched in Scandinavia, the Netherlands (TMF), Italy (Video Music and TMC2) and France (M6). These copied the MTV format but provided the content in the local language and played music that was much closer to local tastes than MTV’s playlist.16 Their success made MTV realize that it had to change its modus operandi. It abruptly ended its pan-European approach and decided to localize its programming.17 The first opportunity presented itself in Italy, where MTV was given access to a channel by a cable operator on condition that it programmed local music. The music channel hired local staff and VJs, opened local production facilities in Milan and launched the first devolved service of its pan-European feed at the end of 1995.18 MTV Italy’s success was immediate and within a year the head office had decided to split the European network into three channels. They became MTV North, which covered most of Europe, including Scandinavia, the UK, the Netherlands, Benelux, France, Spain, Greece and Portugal, MTV Central, servicing Germany, German-speaking Switzerland and Austria, and MTV Italy. In 1997, MTV UK and Ireland was launched and MTV North was split into MTV Nordic, covering Scandinavia, and MTV European, servicing the remaining 22 European territories without a dedicated service. The music channel began its second phase of localization in 2000 by launching four localized editions: MTV Poland, MTV Spain, MTVf, covering France and French-speaking Switzerland, and MTV NL in the Netherlands. MTV is today the most localized pan-European network, having launched six country-specific and two region-specific channels (MTV Central and MTV Nordic). MTV Europe has established a devolved management structure. Local MTV channels are independent and are being equipped with their own production facilities. They have the freedom and ability to produce their own shows and develop their own schedules. Local staff are valued for their knowledge of the market and can give audiences whatever is popular. MTV channels also produce their own promotional material and run their own marketing campaigns. They aim to develop their own identity in order to build up local loyalty to the channel. Their only obligation is to ‘be true to the MTV brand’.19 However, unlike purely local channels, MTV channels are part of a network that converges on 196 CHALABY: TRANSNATIONAL TELEVISION IN EUROPE Table 3 Percentage of music genre on four MTV devolved channels Mainstream pop Rock Black music Dance Other MTV UK MTV Nordic MTV Central MTV Italy 33.5 23.8 33.0 8.1 1.6 38.6 12.7 29.4 18.3 1.0 14.7 9.9 63.7 11.4 0.4 45.7 17.3 11.7 18.8 6.6 Source: Roe and De Meyer (2000: 153). occasion, bringing its schedules together for European or even global events such as the MTV Awards. MTV channels look and sound increasingly different. Researchers have found significant differences between MTV UK, Nordic, Central and Italy in terms of programme type, music type and origins of artist in samples of programme taken between November 1998 and February 1999 (see Table 3). For instance, non-stop video clips represented 48 percent of programming on MTV UK, 22 percent on MTV Nordic and 66 percent on MTV Central, while non-music programmes represented 26 percent of MTV UK’s schedule, 50 percent of MTV Nordic and 13 percent of MTV Central (Roe and De Meyer, 2000: 153). The authors also report important variations in music genres. Variations between MTV channels are set to increase and MTV’s management aims to make them ‘100 percent different’.20 There are 140 music channels currently broadcasting in Europe, forcing MTV to be responsive to local audience tastes. Approaches to localization Localization is not practised in the same way or pursued with the same energy by all PETV channels. The first reason that accounts for these differing approaches is that several channels pursue an international agenda of some sort. Thus, intensive localization would contradict their purpose. BBC World and CNN International specialize in international news and have adopted a global approach to their trade. CNN has introduced short news bulletins in three European languages but BBC World maintains that there is a market for an international news channel purely in English.21 Euronews is committed to a unique feed throughout the continent because ‘Europe is part of its remit’.22 European issues and political life figure prominently in the channel’s news agenda. Arte shares Euronews’ European vocation. Established as a result of the Franco197 EUROPEAN JOURNAL OF COMMUNICATION 17(2) German treaty of 2 October 1990, its objective is to create a European cultural channel. The agreements of cooperation signed by Arte with several public broadcasters over the past five years are helping it meet its goal. The channel’s European dimension is further emphasized by the current relocation of its headquarters to Strasbourg. Finally, TV5 provides a link between different francophone communities and promotes the French language and francophone culture worldwide. The channel underlines the international dimension of francophonia and, thus, localization would dilute its mission. It is also apparent that news channels are less localized than those that are purely entertainment driven. It has been argued that news travels more easily across borders than entertainment programmes because it is less deeply rooted in one culture (Morley and Robins, 1995: 63). Thus, entertainment loses more from one country to another and necessitates more adaptation than news to remain relevant to local audiences. News channels also have the advantage of aiming at an elite audience among which English is spoken and understood. By way of contrast, Fox Kids and Cartoon Network cannot communicate with children except in their own language. Finally, channels controlled by European public service broadcasters are less engaged in the process of localization than those backed by transnational media corporations. The majority of the channels with an international agenda have a connection with public service broadcasting. In addition, resources create a line of division between the cash-poor public service broadcasters and the more affluent commercial channels that can afford localization.23 BBC World, BBC Prime and Euronews barely cover operating costs and do not have the resources to localize.24 Eurosport is the most localized channel involving public service broadcasters. Significantly, it is the sports channel’s commercial backer, TF1, that has pushed for localization.25 Commercially owned channels are given the resources to localize provided they can justify expenses to their shareholders. They are not hindered by a political agenda and need only to maximize revenue. Conclusion: local music – global strategy What is the significance of European transnational broadcasting in the process of media globalization? Can the practice of localization signify a homogenized global media culture that is failing to materialize? This article argues that PETV channels must be seen as an important stepping-stone in the ongoing process of globalization. 198 CHALABY: TRANSNATIONAL TELEVISION IN EUROPE First, the emergence of the PETV industry itself is significant in the history of broadcasting. National broadcasters are no longer the sole players in European broadcasting and have to prosper alongside television channels that operate increasingly efficiently in a multinational environment. PETV channels have attracted nearly US$0.5 billion in advertising revenue in 2000 and half of this revenue comes from clients who have bought local campaigns that could have been carried by national broadcasters (M&M Europe, 2000: 18). While national broadcasters face weak advertising revenues, the PETV client base is in constant expansion because modern brands are developed on an international basis. A campaign on transnational television gives them instant international exposure. PETV clients can take advantage of the ITC code to bypass strict national regulations on advertising and sponsorship (see third section). Pan-European television is a key component of the regional broadcasting system that is developing in Europe and which forms an intermediary level between the national and global levels. It comprises, in addition to pan-European television channels, a regional distribution network for television news and programmes (the EBU’s Eurovision News Exchange), and a network of corporate players who have forged alliances across the continent (Hjarvard, 1998; The Economist, 11 December 1999: 61–3).26 The regional level constitutes a first foothold for the transnational corporations that wish to penetrate European markets. Europe is a first step towards localization for international channels such as CNN, MTV and Fox Kids that have begun broadcasting on the continent with a pan-European feed. Transnational corporations also elect a regional head office – usually London – from which they can direct their countryspecific operations. The necessity for localization can be interpreted as evidence of the limits of cultural globalization and the vast differences that persist between regional or national cultures. On the other hand, localization accelerates the process of globalization, notably because it allows global players to operate in a multinational environment. Such strategies have been devised to overcome cultural diversity, to remain competitive in a plethora of markets, to challenge national broadcasters and to finance international expansion. The music may become local but the expansion plan remains global. Localization is not about turning an international channel into a local one. It consists of adapting the international to local culture while retaining its global flavour. When CNN International broadcasts in 199 EUROPEAN JOURNAL OF COMMUNICATION 17(2) German the channel retains its American identity and distinctive news treatment. There is an American flavour to all MTV local channels if only because a fair percentage of the music remains Anglo-American, despite the growing diversity of its playlists (Roe and De Meyer, 2000: 153). Localized channels have an ambivalent relationship to the local. They incorporate some elements of local culture but within an international framework. While adapting to local tastes they also make global culture (and/or American in the case of MTV, CNN or Fox Kids) more accessible to local audiences. As Richard Godfrey, the MTV Networks Europe senior vice-president explains, local MTV channels retain an ‘international/American sort of glamour’ but viewers get it in a ‘digestible form’.27 Localized channels are not so much a ‘hybrid’ cultural form incorporating the local and the global – as is sometimes suggested – than a bridge that helps the global reach the local. PETV participates in cultural globalization also through advertising. Transnational music and film companies are the biggest category of advertisers on PETV, spending more than US$31 million in the first six months of 2000 (M&M Europe, 2000: 18). Cultural commodities are increasingly sold and distributed on an international basis and PETV channels provide a convenient platform from which to reach young and affluent consumers across borders. PETV channels facilitate international trade. The bulk of companies that advertise on PETV are transnational corporations that own international brands. They include Ford, Toyota, Adidas, Nike, Universal Music and Columbia Tristar Films (M&M Europe, 2000: 18). American and Asian clients often find Europe too complex a market and use PETV channels to access its key markets simultaneously. The PETV industry has created a body, the European TV Research Group, which specifically addresses the research and marketing needs of those clients.28 PETV channels constitute a significant step in the process of media globalization. Localization facilitates its development, allowing crossborder channels to remain competitive in a multinational environment and transnational corporations to finance their international growth. Localization needs to be placed in the context of globalization as an unfinished project. Despite the growing presence of the artefacts of a commodified world culture in the media, local differences force global television channels to integrate segments of local culture in order to remain relevant to local audiences. Localization may be deemed a necessity by virtue of local differences, but it is this fact that makes globalization into a tangible reality every day. 200 CHALABY: TRANSNATIONAL TELEVISION IN EUROPE Notes The author wishes to thank the interviewees for their time and cooperation. 1. The main exceptions are the nations that have a regional or federal political system, such as Germany and Switzerland (see Garitaonandı́a, 1993). 2. There are more pan-European channels among those servicing specific international niche audiences, such as the adult entertainment market. 3. Agnès Pierret, sport news producer, European Broadcasting Union, interview with the author, Eric Darras and Dominique Marchetti, 16 June 2000. 4. Jeremy Nye, head of research and planning, BBC World, interview, 20 July 2001. 5. The European authorities did not want an American channel to dominate the international news market in Europe. Sonia Marguin, research marketing manager, Euronews, interview, 11 May 2001. 6. For instance, Mel Karmazin, president of Viacom, the company that controls MTV and VH1, stated in June 2001 that ‘One of our highest priorities is to expand globally’ (cited in Grimes, 2001). 7. Louise Thorley, programme manager, ITC, interview, 2 August 2001. 8. ASTRA 1A, launched in December 1988, was the first satellite with such capabilities and a footprint over Europe. 9. See www.ses-astra.com 10. Other attempts to establish pan-European television services in the 1980s include EBU’s Eurikon and Europa, News International’s Sky Channel and ITV’s Super Channel (Collins, 1998). 11. Errol Pretorius, director of advertising sales at the National Geographic channel, encapsulates the commercial philosophy of this group of players in the PETV industry: ‘Don’t count the people you talk to, talk to the people who count. I’d rather talk to a thousand people who can afford to buy a new Volvo, than talk to a million people who can’t.’ Interview, 14 August 2001. 12. Daya Thussu has observed a similar trend in several other media markets, notably in South Asia (Thussu, 2000: 184–99). 13. Vickie Perdersen, commercial controller, British Eurosport, interview, 24 May 2000. 14. Richard Copeman, senior news producer, British Eurosport, interview, 15 May 2000. 15. Richard Godfrey, senior vice-president, MTVNE, interview, 17 April 2001. See also Burnett (1996: 96). 16. While MTV tries to please a pan-European audience, local channels were able to include local artists on their schedule and to select from the international repertoire only those titles that their audience liked. 17. Richard Godfrey, senior vice-president, MTVNE, interview, 17 April 2001. 201 EUROPEAN JOURNAL OF COMMUNICATION 17(2) 18. Jamie Caring, talent and music coordinator, MTVNE, interview 12 March 2001. 19. Richard Godfrey, interview, 17 April 2001. 20. Richard Godfrey, interview, 17 April 2001. 21. Jeremy Nye, interview, 20 July 2001. 22. Sonia Marguin, interview, 11 May 2001. 23. Localization is expensive and significantly increases operating costs (Cable and Satellite Europe, September 2000: 46). 24. Jeremy Nye, interview, 20 July 2001; Sonia Marguin, interview, 11 May 2001. 25. Arjan Hoekstra, Deputy Managing Director, British Eurosport, interview, 6 June 2000. 26. 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