Technological Revolution Changing the Basic Rules of Media Economics - Essay Example

? Political Economy of Media Does the technological revolution change the basic rules of media economics? The technological advancement in the 21st century has had a positive impact on the media economics. A study carried out in over 200 European cities shows that the economic growth was higher in the cities that embraced technology. The era we are in now is marked by globalization technological revolution and democratization, all these areas in one way or another impact media and communication. McChesney observes that the technological revolution does play a defining role in the media industry. He also looks at the economic and cultural globalization and their relation with the global commercial market (2001, p.1). The global commercial media do promote cultural globalization. McChesney looks at the technological revolution that is defined mainly by the radical development in computing and digital communication. He concludes that the cultural globalization and economic globalization would be impossible without global commercial media. Technological revolution has made the media empire lucrative and realistic; this new image of the media company is one that was unimaginable in the past. The emerging technologies in the media economics play a role in encouraging competition among the media companies. In pursuit for profits and economy improvement media, companies embrace the new technology in the market to ensure that they provide satisfactory service to their consumers (McChesney, 2001, p.3). The relation between media economy, technological revolution can be better understood if we consider the role of advertising. Advertising is a business expense that large firms invest in to commercialize their business. The concept of globalization was made possible through advertising, the media benefits from advertising in the sense that three quarters of the earning from advertising is for the media company. The internet for instance is one of the technological advancement that has been embraced by the media company. McChesney observes that companies like the AT&T, Microsoft, telefonica, and AOL have become media players. The integration of the media system, telecommunications and the computer industries forms a global communication system. It is true that the global media plays a crucial role in the promotion of expansion of global and regional sale of goods and services; the global media functions to promote cultural industry. Patrick looks at the cultural industry in the age of globalization and concludes that culture is increasingly being shared. Many nations concentrate on transitioning cultural industries and national interests. Grant states that the cultural industry exists to enforce the capitalist ethos. He describes that culture is a tool for the capitalists to exercise control of an individual’s consciousness. Let us consider television as a part of the culture industry. The television has changed the society these days. However, Grant does not view the change as revolutionary but rather as a progression. It is, however, through the television, that advertising has been made a vital part of marketing by many industries. The media achieve the success of advertising when cultural expectations are aligned with the investors’ expectations, the purpose of technological innovators and the goals of entrepreneur ism. Technology has seen the penetration of various cultures into the mainstream. It is necessary to note that culture forms the spirit and soul of the every nation. It is also crucial to note that culture also forms the foundation of national development. Yan lei suggest that there is a relationship between culture and economic growth. This he concluded after carrying out various studies that explained the impact of culture on economic development, and technology (2008.p.23). Lin yei observes the cultural industry contribution to the Guangdong province, and he compares it to the contribution by the other industries such as agriculture, and the industrial industry. Lin yei states that the cultural industry the gap that exist between the contribution of agriculture and industrial industry combine to that of cultural industry was relatively small. The contribution of the service sector and the cultural sector was almost the same; therefore, the study suggested that the services sector and the cultural centre should be developed vigorously in the region of Guangdong. This suggestion was aimed at promoting steady and rapid economic growth (2008, p. 32). The study results of the Guangdong region showed that the cultural industry was relatively stable, and it is not affected by the roles of the other industries. The promoting of culture in consumer behaviour is a culture as a contribution to economic growth. Cultural activities do play a central in the promotion of economic development. The focus of utilising culture in the fostering of economic development should start by making culture a part of the people. People should be aware of the roles played by culture in the promotion of economic growth as well as its contribution to social stability and the unity of the people. The impact and footprint company look into the creative and cultural industry. The cultural and creative industry is made up of many departments among them is: Advertising, cultural heritage, crafts, music, performing arts, visual arts, music, literature and design. The cultural industry in promoting the economy of a country does offer employment to the citizens of a country. In the United Kingdom, the creative and cultural industry does contribute 24.8 billion pounds as GVA to the U.K economy. From the year 2004 to 2006, the creative and, cultural industry, has shown a rise in the employment rate, in the industry. Kong states, in the last 30 years, the United States and Western Europe the cultural activities’ have proven significant in the regeneration of the economy. Kong explains that the relationship between culture and economics facilitated either hampered or enhanced by policy. The relationship between culture and economics is dialectical in the sense that local cultures contribute to the nature of the economy activity. The economic activity is also a part of the culture generating, and innovation in places. Many governments have realised the connection between culture and economy and have resorted to harness this linkage in order to reap the benefits. This they achieve by formulating and implementing policies that support this linkage. Cultural industries are known to be flexible innovative creative, they are known to exist at the intersection between the local and global economies. The growth of industries in a cultural industries sector can guarantee employment for a significant number of the population. The cultural industry ones developed also guarantees stimulation of the ancillary industries; it also ensures the renewal of urban sector. The cultural industry also ensures that the image of a given region is improved. This also ensures that the place could be made better for people to live and work (Kong, 2000, p.5). The development of cultural industries also ensures the development of intra-urban cultural synergies. This occurs because these sectors interact with each other in an intensive manner. These industries draw on similar labour and material resources this also include design and images rooted in the local urban context. Specialists also consider a high cultural profile would attract relocation by a company seeking to attract skilled professional. Kong suggests that cultural industries can be used as a symbol of innovation and modernity. He states that a successful cultural economic policy represents the new image of that city. Kong looks at the modern economic formations and concludes that image is more like a currency of itself. Cities that possess the same competitive advantage focus on areas such as the educational level, skills level, the quality of schooling, and lastly the cultural facilities and resources (2000,p.6). the cultural activities could also attract people back to downtown regions making the consumer developments more profitable. The connection between economic potential and cultural policies is always linked to cultural consumption. A change in the cultural consumption and social class is a definite rise in the consumption of cultural products. Kong examines that the growing competition in the post-industrial economy prompted many governments to look into their cultural policies. This also meant concentrating on mining of the benefits of cultures for economic gain. Cultural policy has been used extensively to guide place marketing in the modern business areas. Looking into the 1980s and 1990s cultural policy became an indispensable tool in capital globalisation (Booth and Boyle, 1993, p.22). Kong states that, the effect of cultural economic policies on the creation of wealth and employment is relatively small. He observes that even if the job does exist they are low paying jobs. The negative side is that firm in the cultural industries usually has a high failure rates. Kong observes that the number of cities that are successful as cultural cities are countable. For a successful economic growth, Kong suggest culture needs to be linked with policies on education, training research and development. The economic success of cities depends on the advanced industries and services that utilize the high-quality human resources with specialized skills and knowledge. Kong discourages against measuring cultural policies based on income acquired and the employment generated. He says that a cultural policy should target on the improvement of the quality of life community development and social cohesion. The idea behind fostering a cultural policy is based on the understanding of local cultural resources and viewing the cities as local cultural entities. The cultural entities represent the place where people meet talk share ideas and desires. This is where identities and lifestyle are formed all this is achievable if once the cultural social and political life’s of the members of the city is revitalised. To achieve these suggestions put forward recommend that art should be made a part of peoples live each day both socially and economically. This action translates that an art is converted to a form investment rather than a subsidy. For many societies, culture has been viewed as an untapped economic development resource. The state of Michigan under the department of history made the realization that the cultural resources could leverage significant tax revenue, provide exceptional paying jobs as well as create a sustainable enterprise. The Michigan state observed that, in order for the cultural department to reach its full potential they needed to develop a research based practice and management, grow entrepreneurship and jobs, support cultural magnets, build human capital, grow partnership and collaboration (2005, p.2). The Michigan state as an excellent example states that the cultural heritage is an essential component of a healthy and vibrant Michigan economy. The cultural industry in the Michigan state does produce direct economic benefits jobs, a strong tax base tourism revenue and downtown and neighbourhood renewal. The cultural industry in this state also plays a key role in attracting and retaining people and businesses essential to Michigan’s participation in the economic growth of the country. This cultural industry focuses on knowledge creativity and innovation. The Michigan state in collaboration with the HAL collaborated to create cultural economic online tool. This provides real time market, and influences research that can be used by the state, individual, cultural institutions, and communities. This shows the connection between the technological revolution culture and the economy (Department of History, 2005, p.6). Encouraging the development of cultural magnets is achievable by the development of cultural institutions and centres where artists, creative workers meet share ideas about their work. This does help in holding the people and businesses together. The benefit that the state of Michigan gets from this is they define the state of Michigan, draw tourists thus furthering the economic growth. A cultural magnet can be developed by developing an image of the region This is done by combining the cultural and natural heritage drawn from community based discussion. Attracting tourist to the region is possible by carrying out a market research based development and the delivery of destination quality experiences. In order to achieve the attraction of business, the cultural resources are used to create an environment to attract the new businesses and retain the existing ones, then finally the development of a cultural resource trust fund centre; this provides loans for grants and venture capitals to boost the cultural industry. Developing of an economy, that nurtures creativity, and talents, does help in the growth of their entrepreneurial skills and personal income. They market their creative products as well as fully engage, in their abilities in communities to strengthen the local economies. In the state, of Michigan, the cultural economic development is a crucial component of an effective strategy to strengthen Michigan’s economy, contribute to the common ethical and see to it has enhanced the community and quality of life. The united nations observe that the information economy, knowledge and creativity among the powerful engines driving the economic growth. A global study showed that the creative industry, accounts for 7% of the world’s gross domestic product, and the rise proves to be consistent. Creativity is increasingly gaining recognition as a key asset driving the economic growth as well as determining the successful incorporation into a fast changing world economy. The united nations suggest that the nurturing of creativity can help open up new opportunities for developing countries; this will help to increase their shares of world trade (2004, p.3). The bureau of public information looks at cultural industries as the bearers of identity values. The cultural industries are also seen as holding the meaning and factors of economic and social development. This department suggest that the promotion and preservation of cultural diversity must contribute to the encouragement in the development of cultural industries that can produce both local and worldwide impacts. Organizations have emerged that support the strengthening of cultural industries an excellent example is the global alliance for cultural diversity. The organizations work in developing countries and countries in transition. The organization enables the growth of local markets and accessibility to worldwide markets. This accessibility to markets allows for sustainable development. The organization usually partners with other sectors to see to the development of the cultural industry. The organization, which was founded in 2002, has been successful to have over 500 members. Let us conclude this discussion by acknowledging that it is clear that does make a significant contribution to the economic growth of a country, every country should strive to integrate cultural development and practice. They should also use the cultural role to promote economic development. Integrating culture into the development of the society helps in boosting the cultural industry. The development of cultural industry attracts tourists as well as attracts investors in the society. The development of the cultural industries ensures employment in the society. This also attracts the use of technology to in the promotion of the cultural industry. Culture also plays a vital role in contributing to social stability and the unity of the people. Culture is powerful in the sense that it determines both individual and collective, the ways of perceiving thought and values. Culture is crucial in the sense that it defines all levels of communication in the corporate society. A focus on culture ensures daily routine and sense making that is a process of building identities and sharing realities in organizations. Then culture in one way or another helps in the focussing of ignored issues such as assumptions. The understanding of the culture of any organisations allows for clear understanding of the managers and leaders of the organizations. 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