Growth Strategies of Media Companies: Efficiency Analysis

Autores/as

DOI:

https://doi.org/10.5294/pacla.2020.23.1.7

Palabras clave:

Administración de comunicaciones, economía de la comunicación, fusión, adquisiciones, competencia, comercio internacional, digitalización

Resumen

Estrategias de crecimiento de las empresas de medios: análisis de eficiencia

Estratégias de crescimento das empresas de mídia: análise de eficiência

Este artículo analiza las principales opciones estratégicas de las empresas de medios y entretenimiento sobre qué hacer para crecer — internacionalización o diversificación — y cómo hacerlo — crecimiento orgánico e inorgánico — en un contexto de competencia cada vez mayor. Identificamos correlaciones entre dichas estrategias y tres pilares básicos del proceso de toma de decisiones de los gerentes: crecimiento, rentabilidad y endeudamiento. Se concluye que las fusiones y las adquisiciones pueden generar un rápido crecimiento pero son costosas en términos de Retorno sobre el Capital de Inversión (ROIC) y generalmente aumentan el apalancamiento de la empresa. Por consiguiente, la vía inorgánica no podría ser la mejor opción para las empresas con dificultades para acceder al capital o para negocios muy cíclicos. Adicionalmente, se identifica que la integración vertical genera un ROIC más bajo que la integración horizontal, y se muestra cómo las estrategias de internacionalización aumentan la rentabilidad de las empresas audiovisuales. Se analizan los indicadores básicos de 50 empresas cotizadas en el sector que cumplen con tres criterios necesarios para nuestro estudio: transparencia de datos, tamaño suficiente de la empresa y una cierta trayectoria que nos permitiría estudiar las consecuencias de las estrategias escogidas durante largos períodos de tiempo, al menos 15 años. Se estudia la evolución de las empresas entre los años 2010 y 2016 con métricas de la base de datos de Thomson Reuters. En ese último año, representaron el 88 por ciento de los ingresos mundiales de televisión.

To reference this paper / para citar este artículo / para citar este artigo

Medina, M.Sánchez-Tabernero, A., & Larrainzar, A. (2020). Growth strategies of media companies: Efficiency analysis. Palabra Clave, 23(1), e2317. DOI: https://doi.org/10.5294/pacla.2020.23.1.7

Recibido: 12/11/2018

Aceptado: 13/02/2019

Online: 13/12/2019

* Spanish Government fund: Reasons to consume fiction and entertainment audiovisual contents in the Spanish market  CSO2015-64615-R (MINECO/FEDER)

Descargas

Los datos de descargas todavía no están disponibles.

Biografía del autor/a

Mercedes Medina, Universidad de Navarra

Marketing and Media Management Department

School of Communication

Citas

Albarran, A. B., & Dimmick, J. (1996). Concentration and economics of multiformity in the communication industries. Journal of Media Economics, 9(4), 41–50. DOI: https://doi.org/10.1207/s15327736me0904_3

Aldrich, H., & Auster, E. R. (1986). Even dwarfs started small: Liabilities of age and size and their strategic implications. Research in organizational behavior, 8, 165–186. Retrieved from https://psycnet.apa.org/record/1988-12412-001

Allocca, M. A., & Kessler, E. H. (2006). Innovation speed in small and medium‐sized enterprises. Creativity and Innovation Management, 15(3), 279–295. DOI: https://doi.org/10.1111/j.1467-8691.2006.00389.x

Ansoff, I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113–124. Retrieved from http://sgpwe.izt.uam.mx/files/users/uami/sppc/13O/Gestion_y_Control_Estrategico_I/Lectura_10._Ansoff_Igor_Strategies_for_Diversification.pdf

Buzzell, R. D., Gale, B. T., & Sultan, R. G. (1975). Market share — a key to profitability. Harvard Business Review, 53(1), 97–106. Retrieved from https://hbr.org/1975/01/market-share-a-key-to-profitability

Carayannis, E. G., & Rakhmatullin, R. (2014). The quadruple/quintuple innovation helixes and smart specialisation strategies for sustainable and inclusive growth in Europe and beyond. Journal of the Knowledge Economy, 5(2), 212–239. DOI: https://doi.org/10.1007/s13132-014-0185-8

Carman, J. M., & Langeard, E. (1980). Growth strategies for service firms. Strategic Management Journal, 1(1), 7–22. DOI: https://doi.org/10.1002/smj.4250010103

Carvajal, M., & García Avilés, J. A. (2008). From newspapers to multimedia groups: Business growth strategies of the regional press in Spain. Journalism Practice, 2(3), 453–462. DOI: https://doi.org/10.1080/17512780802281198

Casero-Ripollés, A., & Izquierdo-Castillo, J. (2013). Between decline and a new online business model: The case of the Spanish newspaper industry. Journal of Media Business Studies, 10(1), 63–78. DOI: https://doi.org/10.1080/16522354.2013.11073560

Chalaby, J. K. (2016). Television and globalization: The TV content global value chain. Journal of Communication, 66(1), 35–59. DOI: https://doi.org/10.1111/jcom.12203

Chalaby, J. (2018). Hedging against disaster: Risk and mitigation in the media and entertainment industries. International Journal of Digital Television 9(2), 167–184. DOI: https://doi.org/10.1386/jdtv.9.2.167_1

Chan-Olmsted, S. M., & Chang, B. H. (2003). Diversification strategy of global media conglomerates: Examining its patterns and determinants. The Journal of Media Economics, 16(4), 213–233. DOI: https://doi.org/10.1207/s15327736me1604_1

Chon, B. S., Choi, J., Barnett, G., Danowski, J. A., & Joo, S. H. (2003). A structural analysis of media convergence: Cross-industry mergers and acquisitions in the information industries. Journal of Media Economics, 16(3), 141–157. DOI: https://doi.org/10.1207/s15327736me1603_1

Coad, A., Daunfeldt, S. O., Hölzl, W., Johansson, D., & Nightingale, P. (2014). High-growth firms: Introduction to the special section. Industrial and Corporate Change, 23(1), 91–112. DOI: https://doi.org/10.1093/icc/dtt052

Cronin Jr., J. J., & Page Jr., T. J. (1988). An examination of the relative impact of growth strategies on profit performance. European Journal of Marketing, 22(1), 57–68. DOI: https://doi.org/10.1108/eum0000000005268

D’Annunzio, A. (2017). Vertical integration in the TV market: Exclusive provision and program quality. International Journal of Industrial Organization, 53, 114–144. DOI: https://doi.org/10.1016/j.ijindorg.2017.05.002

Doyle, G. (2018). Television production: Configuring for sustainability in the digital era. Media, Culture & Society, 40(2), 285–295. DOI: https://doi.org/10.1177/0163443717717634

Doyle, G. (2015). Multi-platform media and the miracle of the loaves and fishes. Journal of Media Business Studies, 12(1), 49–65. DOI: https://doi.org/10.1080/16522354.2015.1027113

Esser, A. (2016). Challenging US leadership in entertainment industries? The rise and sale of Europe’s international TV production groups. International Journal of Communications, 10, 3585–3614. Retrieved from https://ijoc.org/index.php/ijoc/article/view/4809

Evens, T., & Donders, K. (2016). Mergers and acquisitions in TV broadcasting and distribution: Challenges for Competition, industrial and media policy. Telematics and Informatics, 33(2), 674–682. DOI: https://doi.org/10.1016/j.tele.2015.04.003

Gutiérrez-Rentería, M. E., & López Hernández, C. E. (2014). La convergencia digital propicia convergencia entre industrias: principales empresas que participan en el mercado de capitales concentran los mayores ingresos en 2013. Revista de Comunicación 13, 144–162. Retrieved from https://dialnet.unirioja.es/servlet/articulo?codigo=4875645

Hendriks, P. (1995). Communications policy and industrial dynamics in media markets: Toward a theoretical framework for analyzing media industry organization. Journal of Media Economics, 8(2), 61–76. DOI: https://doi.org/10.1207/s15327736me0802_6

Jung, J., & Chan-Olmsted, S. (2005). Impacts of media conglomerates’ dual diversification on financial performance. Journal of Media Economics, 18(3), 183–202. DOI: https://doi.org/10.1207/s15327736me1803_2

Kerr, J., & Slocum, J. W. (1987). Managing corporate culture through reward systems. The Academy of Management Executive, 1(2), 99–107. DOI: https://doi.org/10.5465/ame.1987.4275817

Kolo, C., & Vogt, P. (2003). Strategies for growth in the media and communications industry: Does size really matter? International Journal on Media Management, 5(4), 251–261. DOI: https://doi.org/10.1080/14241270309390041

Krugman, P. (1980). Scale economies, product differentiation, and the pattern of trade. The American Economic Review, 70(5), 950–959. Retrieved from https://www.jstor.org/stable/1805774

Lawler, E. E. (1997). Rethinking organization size. Organizational Dynamics, 26(2), 24–35. DOI: https://doi.org/10.1016/s0090-2616(97)90003-6

Makidies, C. C., & Williamson, P. J. (1994). Related diversification, core competences and core performance. Strategic Management Journal, 15(S2), 149–165. DOI: https://doi.org/10.1002/smj.4250151010

Matsusaka, J. G. (2001). Corporate diversification, value maximization, and organizational capabilities. The Journal of Business, 74(3), 409–431. DOI: https://doi.org/10.1086/321932

Medina, M., Sánchez-Tabernero, A., & Arrese, A. (2016). Content as products in media markets. In G. F Lowe & C. Brown (Ed.), Managing media firms and industries. what’s so special about media management? (pp. 243–261). Heidelberg, Germany: Springer-Verlag. DOI: https://doi.org/10.1007/978-3-319-08515-9_14

Medina, M., & Herrero, M. (2013). Keys to monetize social media in the audiovisual business. In M. Friedrichsen, & W. Mühl-Benninghaus (Eds.), Handbook of social media management value chain and business models in changing media markets (pp. 311–325), Berlin, Germany: Springer. DOI: https://doi.org/10.1007/978-3-642-28897-5_18

Noam, E. (2016). Who owns the world’s media? Media concentration and ownership around the world. Oxford, UK: Oxford University Press. DOI: https://doi.org/10.1093/acprof:oso/9780199987238.001.0001

Ofcom. (2017). International communications market report. Retrieved from https://www.ofcom.org.uk/research-and-data/multi-sector-research/cmr/cmr-2017/international

Oliver, J. (2014). Dynamic capabilities and superior firm performance in the UK media industry. Journal of Media Business Studies, 11(2), 57–78. DOI: https://doi.org/10.1080/16522354.2014.11073580

Papadakis, V. M., & Thanos, I. C. (2010). Measuring the performance of acquisitions: An empirical investigation using multiple criteria. British Journal of Management, 21(4), 859–873. DOI: https://doi.org/10.1111/j.1467-8551.2009.00671.x

Peltier, S. (2004). Mergers and acquisitions in the media industries: Where failures really unforseeable? Journal of Media Economics, 17(4), 261–278. DOI: https://doi.org/10.1207/s15327736me1704_2

Picard, R. (2014). Twilight or new dawn of journalism?: Evidence from the changing news ecosystem. Journalism Studies, 15(5), 1–11. DOI: https://doi.org/10.1080/1461670X.2014.895530

PwC. (2016). Global entertainment and media outlook 2016–2020: A world of differences. PwC. Retrieved from https://www.pwc.com.tr/tr/industry/entertainment-media/outlook-global-entertainment-and-media-outlook-2016-2020.pdf

Roos, J., & von Krogh, G. (2016). Managing strategy processes in emergent industries: The case of media firms. Heidelberg, Germany: Springer.

Sánchez-Tabernero, A., & Carvajal, M. (2002). Media concentration in the European market. New trends and challenges. Pamplona, Spain: Servicio de publicaciones de la Universidad de Navarra.

Schlesinger, P., & Doyle, G. (2015). From organizational crisis to multi-platform salvation? Creative destruction and the recomposition of news media. Journalism, 16(3), 305–323. DOI: https://doi.org/10.1177/1464884914530223

Schmalensee, R. (1981). Economies of scale and barriers to entry. Journal of political Economy, 89(6), 1228–1238. Retrieved from http://www.jstor.org/stable/1837192

Schwartz, H., & Davis, S. M. (1981). Matching corporate culture and business strategy. Organizational Dynamics, 10(1), 30–48. DOI: https://doi.org/10.1016/0090-2616(81)90010-3

Stigler, G. J. (1958). The economies of scale. The Journal of Law and Economics, 1(1) 54–71. DOI: https://doi.org/10.1086/466541

Storper, M. (1989). The transition to flexible specialisation in the US film industry: external economies, the division of labour, and the crossing of industrial divides. Cambridge Journal of Economics, 13(2), 273–305. DOI: https://doi.org/10.1093/oxfordjournals.cje.a035094

Urgellés, A. (2017). From attention to engagement in the battle for the audiences. In M. Medina (Ed.), Current and emerging issues in the audiovisual industry (pp. 97–117). London, UK: ISTE-Wiley. DOI: https://doi.org/10.1002/9781119384632

Van Kranenburg, H. & Ziggers, G. W. (2018). Mergers and acquisitions and their performance. In A. Albarran, B. Mierzejewska & J. Jung, Handbook of media economics and media management (pp. 201–218). New York, NY: Routledge.

Verhoeven, M., von Rimscha, M. B., Krebs, I., Siegert, G., & Sommer, C. (2018). Identifying paths to audience success of media products: The media decision-makers’ perspective. International Journal on Media Management, 20(1), 51–77. DOI: https://doi.org/10.1080/14241277.2017.1402019

Wirtz, B. W. (2001). Reconfiguration of value chains in converging media and communications markets. Long Range Planning, 34(4), 489–506. DOI: http://dx.doi.org/10.1016/S0024-6301(01)00066-8

Wirth, M. & Bloch, H. (1995). Industrial organization theory and media industry analysis. Journal of Media Economics, 8(2), 15–26. DOI: https://doi.org/10.1207/s15327736me0802_3

Yoo, C. S. (2002). Vertical integration and media regulation in the new economy. Yale Journal on Regulation, 19(1), 171–295. Retrieved from http://digitalcommons.law.yale.edu/yjreg/vol19/iss1/5

Publicado

2019-12-13

Cómo citar

Medina, M., Sánchez-Tabernero, A., & Larrainzar, A. (2019). Growth Strategies of Media Companies: Efficiency Analysis. Palabra Clave, 23(1), 1–38. https://doi.org/10.5294/pacla.2020.23.1.7

Número

Sección

Artículos