THE INFLUENCE OF GLOBALIZATION ON

THE CREATIVE MEDIA INDUSTRY

Student: Casey Jerson

Student No. 13788
Course Code: FD1109
Submission Code: PR
Table of Contents

Title Page

Introduction 2

The Influences of Globalization on the

Creative Media Industry
Positive and Negative Impacts of Globalization 3

Implications of Globalization on the Creative Media Industries 4

Conclusion 7

Bibliography 9

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Introduction

Globalization is a process by which international and regional societies; cultures

and economies are becoming unified and function together. The process has
always had a stigma of being a movement supported by mega corporations to
gain larger financial profits by extending their commodities of goods and
services across their own borders reaching and supplying a larger market, while
exploiting the labour resources of third world countries to save on labour costs.

This process is usually recognized as being driven by a combination of

economic, technological, socio cultural, political and biological factors. (Sheila L.
Croucher)

But through out the years different scholars have found different meanings for
globalization as it refers to the transfer, adaptation, and development of values,
knowledge, technology, and behavioral norms across countries and societies in
different parts of the world. The typical phenomena and characteristics
associated with globalization include growth of global networking (e.g. internet,
world wide e-communication, and transportation), global transfer and interflow in
technological, economic, social, political, cultural, and learning areas,
international alliances and competitions, international collaboration and
exchange, global village, multi-cultural integration, and use of international
standards and benchmarks. (CHENG, 2000)

 
 
 

 
 

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The Influence of Globalization on the Creative

Media Industry

The process of globalization has always had major beneficial impacts on

different industries, some negative and some positive, most would say that the
positives outweigh the negatives but from where I stand I see globalization as a
razor blade equally sharp on both its positive and negative ends and in the case
of the creative media industries the negative is as severe as cancer and as we’ll
see later on, these industries in particular do suffer from a cancer which was
greatly broadened through the process that is globalization.

Positive and Negative Impacts of Globalization

Globalization is seen as a catalyst in creating various opportunities for persons,
societies, cultures, organizations and countries alike. Globalization is creating
numerous opportunities for sharing knowledge, technology, social values, and
behavioral norms and promoting developments at different levels including
individuals, organizations, communities, and societies across different countries
and cultures. In particular, the advantages of globalization may include the
following; Global sharing of knowledge, skills, and intellectual assets that are
necessary to multiple developments at different levels; Mutual support,
supplement and benefit to produce synergy for various developments of
countries, communities, and individuals; Creating values and enhancing
efficiency through the above global sharing and mutual support to serving local
needs and growth; Promoting international understanding, collaboration,
harmony and acceptance to cultural diversity across countries and regions; and
Facilitating multi-way communications and interactions, and encouraging multi-
cultural contributions at different levels among countries. (Cheng, 2000)

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But at the same time, it is potentially creating serious negative impacts on the
indigenous developments the following are some disadvantages of globalization;
Increasing the technological gaps and digital divides between advanced
countries and less developed countries that are hindering equal opportunities for
fair global sharing; Creating more legitimate opportunities for a few advanced
countries to economically and politically colonize other countries globally;
Exploiting local resources and destroying indigenous cultures of less advanced
countries to benefit a few advanced countries; Increasing inequalities and
conflicts between areas and cultures; and Promoting the dominant cultures and
values of some advanced areas and accelerating cultural transplant from
advanced areas to less developed areas. (Cheng, 2000)

Implications of Globalization on the Creative Media Industries

These industries enjoy all the positive impacts of globalization, me being a film
student shall be making references to the film or motion video as the main
creative industry of topic; through globalization it is possible for Hollywood and
Bollywood movies to be exported and imported around the world freely. This
creates a broader market for production studios, which they are able to benefit
from through global trade laws of commodities; via migration and immigration
the creative media industry has benefited greatly because now it means that
creative media companies can outsource persons. This means that
professionals in the relevant fields can be hired from almost anywhere on the
globe and being able to share technological advancements has helped all
industries; reason for this is technology today is heading down the road of
convenience, man being able to either make something automated which was a
manual process before (which can make this task cheaper) or man making an
automated process better. Now with the integration of technological minds
within the industry (film) the creation of better high quality digital cameras are
emerging more and more. (In the future these may replace conventional film
cameras thus reducing the cost of film production) Global Sharing via the
Internet and Global WANs (Wide Area Networks) has added the film industry

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greatly in many ways no longer do we need courier services to distribute film
projects and materials from one country to another the use of secure WANs via
technological globalization has eliminated the geographical distance between
countries and studios.

However despite all its benefits globalization supports and spawns the biggest
cancer that the creative media industry face ‘Piracy’. Of all the industries that
have been revolutionized by the rise of digital technology and the global Internet,
few have been hit as hard as the content industries—the producers of music,
movies, television programs, software, video games, books, photos, and
periodicals. (Daniel Castro, Richard Bennett and Scott Andes)

This is largely influenced by globalization, via the globalization process we see

massive sharing of technological knowledge between countries this sharing of
knowledge has facilitated a boom in the rise of faster internet connectivity so
persons can share faster and easier. Now almost in all corners of the globe you
can find a computer and those with available internet connection can simply go
online and with a few clicks of their mouse find free digital content in the form of
music, movies video games, ect.

It does not take a genius to see that online distribution of free digital content is
costing the creative media industry millions if not billions; this substantial revenue
loss due to piracy totally out-weighs all the positive impacts of globalization on
the industry.

While the exact cost of piracy is difficult to measure, the impact is substantial,
one estimate found that the U.S. motion picture, sound recording, business
software, and entertainment software/video game industries lost over $20 billion
dollars in 2005 due to piracy, and retailers lost another $2 billion, for a combined
loss of over $22 billion. (Stephen, Siwek.189)

Piracy within the industry exist in two forms online piracy and physical piracy,
both types are clearly noted as a cancer eating at the profits of the industry.
Piracy not only causes revenue loss but job loss as well, with the music industry

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being the most impacted by the rise in piracy due to the nature of the size of
digital music files it is far easier to download and share music over various types
of internet connections even slow ones.

The recording industry has been hardest hit thus far, because digital song files
are small enough to transmit quickly, even over relatively slow Internet connec-
tions. In 2005, music piracy was associated with the loss or lack of realization of
over 12,000 jobs in the sound recording industry in the United States. It is
estimated that the United States recording industry and related industries in
2006 lost over $3.5 billion to online piracy and approximately $1.5 billion in
physical piracy. (Stephen, Siwek.188)

However hopeless the fight against ‘Piracy’ may seem the industry has taken
legal strategies to help curb this problem, such as getting the courts to pass
legislature prosecuting individuals, organizations and companies that share
pirated copyrighted content. Other anti-piracy solutions are content identification
with technology such as watermarking and fingerprinting. These are said to be
highly accurate but maybe a bit costly to implement.

In some cases content owners work with Internet Service Providers (ISPs) to
help combat digital piracy, the ISPs send out notices on the content owners
behalf warning Internet users of copyright infringement. If the user does not
adhere to the notice sent additional warnings may be issued and incremental
punishment, this punishment can ultimately result in the termination of the user’s
Internet service by the ISP. This is known as the “three strikes system” which is
either online or about to come online in countries such as the United Kingdom
and France.

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Conclusion

Whereas we see Globalization is this grand global process which has broken
down borders of neighbouring countries to facilitate free trade and movement of
people and cultures alike, enabling persons to share and communicate more
easily, enabling organizations and corporations to gain larger market shares
while reducing their cost of labour we should also note that where there is
smoke there is fire and globalization is that fire which while impacting positively
on many industries it ignites the very deadly cancer eating away at the livelihood
of the creative media industry.

Widespread piracy over the Internet seriously harms artists, the famous and
struggling alike, who create content, as well as the technicians who produce it. It
ultimately also hurts law-abiding consumers who must pay higher prices for
content, enjoy less content, or pay higher prices for Internet access to
compensate for the costs of piracy. (Daniel Castro, Richard Bennett and Scott
Andes)

Piracy has almost eliminated the ability of content owners and producers to be
able to create an online market share for themselves as it is extremely difficult to
compete with a free market, this is another avenue of revenue which may never
be realized by some content producers due to this cancer called ‘Piracy’

The rise of the broadband Internet and cheap storage has led to an explosion of
digital piracy (the copying of digital content without the rights holder’s
permission). Piracy has significant costs in terms of lost jobs and higher prices
for law-abiding citizens. While there is no silver bullet for stopping piracy, there is
a large array of “lead bullets” that collectively can significantly reduce digital
piracy. These include teaching consumers that digital piracy is unethical and

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illegal, applying technical means to stop piracy, and engaging in stronger
enforcement of the legal rights of content owners. (Daniel Castro, Richard
Bennett and Scott Andes)

In closing I would like to include that ‘Piracy’ can and will never be completely
wiped out, however it can be reduced but to do so many steps and actions
need to be taken on both sides of the field (that is producer and consumer). On
the producer side we can see the implementation of a wide array of technical
solutions as well as stronger and more aggressive enforcement of the laws on
legal rights of copyright holders. On the consumer side a change in their social
behaviour towards ‘Piracy’ and its effects on the industry.

On a future note the involvement of Governments worldwide to help clamp

down on ‘Piracy’ I believe would be a major aid to the industry, as they cannot
fight this battle alone. Governments should not only pass legislature to help the
fight with ‘Piracy’ but also include stiffer penalties as well, if caught pirating either
digital or physical. As it stands now some countries enforce strict laws and
penalties if caught pirating on a physical level which aids the industry but only on
a small scale as digital piracy cost the creative media industry more revenue
loss, it is imperative to me that they join the fight against digital piracy and
enforce strict penalties on those websites, organizations and individuals who
support, aid and facilitate the sharing of digital content without the permission of
the copyright holders. I believe that only then shall we see a dramatic curb in
‘Piracy’ on a whole and the realization of revenue gain or less revenue loss and
jobs for the industry.

(Word Count: 1942)

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Bibliography

Bhagwati, Jagdish. (2004). “In Defense of Globalization”. Oxford, New York:

Oxford University Press.

From this source I was able to gain the necessary knowledge of what is
globalization and some of the more positive impacts of globalization in countries,
societies and cultures alike.

Cheng, Y.C. (2000). A CMI-Triplization Paradigm for Reforming Education in the

New Millennium. International Journal of Educational Management. 14(4), 156-
174. 

From the above source I was able to attain the knowledge of a deeper
understanding of the globalization process, its effects on the education system
and the advantages and disadvantages of globalization.

Croucher, Sheila L. (2004). “Globalization and Belonging: The Politics of Identity

in a Changing World”. Rowman & Littlefield. p.10

In this text I was able to gain a definition of globalization, some of it’s many
impacts, on countries and politics and how it is evolving the world as the
globalization process continues.

Wang, Shujen. (2003). “Recontextualizing Copyright: Piracy, Hollywood, the

State, and Globalization”. Austin, Texas: University of Texas Press

From this source I gained the knowledge of how globalization breeds ‘Piracy’
which eats at the hearts of the creative media industry, I also learnt what
measures are being out in place to combat ‘Piracy’.

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Stephen Siwek, “The True Cost of Copyright Industry Piracy to the U.S.
Economy,” Policy Report 189, The Institute for 6. Policy Innovation, September
2007.

From this text I was able to get the statistical data of the impacts of digital and
physical piracy on the creative media industry, also I gained the knowledge of
the fight between copyright owners and ‘Piracy’.

Stephen Siwek, “The True Cost of Sound Recording Piracy to the U.S.
Economy,” Policy Report 188, The Institute for Policy Innovation, September
2007.

In the above text I was able to gain the knowledge of the multiple cost of ‘Piracy’
on the sound recording industry, I was also able to gain statistical data on the
estimated loss of revenue and job loss.

Daniel Castro, Richard Bennett and Scott Andes “Steal These Policies:
Strategies for Reducing Digital Piracy” The Information Technology & Innovation
Foundation, December 2009. Available at: http://www.itif.org/files/2009-12-
15.DigitalPiracy.pdf (Accessed: 03.01.10)

From this source I was able to attain the extended knowledge of how ‘Piracy’ is
affecting the creative media industry particularly in the US and through the rise
of broadband Internet globally, worldwide digital piracy is at an increase.

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