Enhancing Media Competitiveness in the Caribbean

ENHANCING MEDIA COMPETITIVENESS IN THE CARIBBEAN

Dr. Justin RamDirector

Economics DepartmentOctober 24, 2016

Caribbean Broadcasting Union47th Annual General AssemblyHavana, Cuba

Outline

1. Macro-economic Developments in the Caribbean2. Competitiveness in the Caribbean – Doing Business

Indicators3. The Global Media Industry4. The Caribbean Context5. Opportunities6. Next Steps

Average growth of 1.5 % over the past 5 years; high debt

0

20

40

60

80

100

120

140

Debt to GDP(General Government Gross Debt)

2015 2016

2011 2012 2013 2014 2015 2016

4.2

3.5 3.3 3.43.1 3.1

6.3

5.34.9

4.6

4.04.2

4.9

3.2 3.0

1.3

-0.1-0.5

1.5

0.9

1.6

2.2

1.4 1.4

GDP Growth World Emerging Markets and Developing EconomiesLatin America and the CaribbeanBMCs

Source: World Economic Outlook, October 2016

Competitiveness in the Caribbean

Most Caribbean countries rank in the bottom half of the Doing Business rankings

Jamaica

Dominica

Bahamas

, The

Belize

Guyana

1

21

41

61

81

101

121

141

161

181

Doing Business Rankings (2009 vs 2016)DB 2009DB 2016

Source: World Bank Doing Business

Distance to Frontier relatively stable in 2016; Average 43 points from Frontier

Source: World Bank Doing Business

Haiti

Surina

me

Guyan

a

Grenad

a

St. Kitts

and N

evis

Belize

Barbad

os

St. Vinc

ent a

nd th

e Gre.

..

Baham

as, T

he

Antigu

a and

Barb

uda

Domini

can R

epub

lic

Domini

ca

Trinida

d and

Tobag

o

St. Luc

ia

Jamaic

a0

10

20

30

40

50

60

70

80

90

100

Distance to Frontier (2010 vs 2016)DB 2010 DB 2016 DTF

Countries at different levels;clusters in starting a business and trading across borders

-19

1

21

41

61

81

101

121

141

161

181Doing Business Indicators 2016

Antigua and Barbuda

Bahamas, The

Barbados

Belize

Dominica

Dominican Republic

Grenada

Guyana

Haiti

Jamaica

St. Kitts and Nevis

St. Lucia

St. Vincent and the Grenadines

Suriname

Trinidad and Tobago

Star

ting

a B

usin

ess

Con

stru

ctio

n Pe

rmits

Get

ting

Elec

-tr

icity

Reg

iste

ring

Prop

erty

Get

ting

Cre

dit

Prot

ectin

g M

inor

ity In

-ve

stor

s

Payi

ng

Taxe

s

Trad

ing

Acr

oss

Bor

-de

rs

Res

olvi

ng

Inso

lven

cy

Enfo

rcin

g C

ontr

acts

Media: All channels that carry news and information

MEDIA

COMMUNICATION

ENTERTAINMENT

PUBLIC EDUCATION

INFORMATION

Media is the most popular tool of communication.

We now know refer to the world as a “global village” because of media, and its role in connecting people worldwide.

The importance of media in nation-building cannot be neglected.

Social Media

Global Media and Entertainment spending of US$1.8 trillion in 2016

Source: Mc. Kinsey and Co. 2015 Global Report

Global Media and Entertainment spending of US$1.8 trillion in 2016

Source: Inside Scoop, Intel, 2013

Shift in Global Media to Digital Media – Redefining Business Models

vs.

NOWTHEN

Global Trends in E&M Industry

Global spending in E&M is growing

more rapidly than GDP (5.1% CAGR)

Youth Movement – strong correlation between under-35

population and growth in E&M

industry

Cultures and Tastes in Content remain Steadfastly Local

Source: PWC Report 2016-2020

Digital Advertising is the fastest growing category in the industry

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Total Global Media Spending (US$M)

2009 2015

Source: Global Media Report 2015, Mc. KinseySource: Global Entertainment and media outlook 2016-2020, PwC, Ovum

Digital media – new opportunities

On average, 6.1 hours per day ononline media

Source: GlobalWebIndex, 2014; Global Social Media Trends 2015, European Publishers Council

Top 10 media companies

Liberty Media Corp. (Englewood, Col. USA); 11.2b; at No. 12

Scope for Change in the Caribbean

CHANGE THE MEDIA

CHANGE THE WORLD

How Does the Caribbean Compare / Compete in the Global Media Industry

Weaknesses

Lack of data

Media associations at various stages of

organizational strength

Broad focus on media/press freedom

Limited Focus on Innovation and Digital Economy

Opportunities

Online models; news, streaming radio and

television

Relatively high mobile penetration rates in the Caribbean;

Local Content;merger with Creative Industries

Caribbean Media Landscape Shaped by ICT

  Population % Pop. Internet Users, Penetration Users Facebook

( 2015 Est. ) of World 30-Nov-15 % Population % World 15-Nov-15

Caribbean 42,108,083 0.6% 17,656,562 41.9% 0.5% 9,721,980

Rest of the World 7,217,794,160 99.4% 3,348,604,594 46.4% 99.5% 1,505,482,170

World Total 7,259,902,243 100.0% 3,366,261,156 46.4% 100.0% 1,515,204,150

Source: Internet World Stats

Caribbean Internet Users and Population Statistics - 2015

Source: ICT-Pulse.com

Lowest and Highest Advertised Download Speeds and the Corresponding Best Rates in Select Caribbean Countries

Monthly Internet Plan (2 Mbps)Caribbean Countries 2015 vs May 2016

Source: ICT-Pulse.com

2015 2016

Broadband subscription in CDB’s Borrowing Member Countries and Latin America

Source: ICT-Pulse.com

2001 2003 2005 2007 2009 2011 2013 20150

5

10

15

20

25

30

35

40

45

50

BMC Fixed Broadband Subscriptions Per 100 Anguilla

Antigua & Barbuda

Bahamas

Barbados

Belize

British Virgin Islands

Cayman Islands

Dominica

Grenada

Guyana

Haiti

Jamaica

St. Kitts and Nevis

St. Lucia

St. Vincent and the Grenadines

Suriname

Trinidad & Tobago

Virgin Islands (US)

Broadband Subscription in CDB’s Borrowing Member Countries and Latin America

Source: World Bank

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150

5

10

15

20

25

30

Latin America Mobile Subscription Per 100Argentina Aruba

Bolivia Brazil

Chile Colombia

Costa Rica Cuba

Curacao Dom Rep

Ecuador El Salvador

Guatamela Honduras

Mexico Nicaragua

Paraguay Peru

Puerto Rico Uraguay

Venezuela Panama

Fixed Broadband subscription in the United States and Singapore

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150

5

10

15

20

25

30

35

Fixed Broadband Subscription Per 100 United States Caribbean small states

Pacific island small states Singapore

Connected by Mobile Technologies (avg. 1 cell per person)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

-30

20

70

120

170

220BMC Mobile Subscriptions Per 100 Anguilla

Antigua & Barbuda

Bahamas

Barbados

Belize

Bermuda

British Virgin Islands

Cayman Islands

Cuba

Dominica

Grenada

Guyana

Haiti

Jamaica

Montserrat

St. Kitts and Nevis

St. Lucia

St. Vincent and the Grenadines

Suriname

Trinidad & Tobago

Source: ICT-Pulse.com

Connected by mobile technologies (avg. 1 cell per person)

Source: ICT-Pulse.com

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-30

20

70

120

170

220

Latin America Mobile Subscription Per 100 Argentina

Aruba

Bolivia

Brazil

Chile

Colombia

Costa Rica

Cuba

Curacao

Dominican Republic

Ecuador

El Salvador

Guatemala

Honduras

Mexico

Nicaragua

Paraguay

Peru

Puerto Rico

Uruguay

Venezuela, RB

Cayman Islands

Panama

Mobile subscription inin the United States and Singapore

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150

20

40

60

80

100

120

140

160

180

Mobile Subscription Per 100United States Caribbean small states Pacific island small states

Singapore

Online streaming: The media is the new business frontier

Radio Moving to Online Streaming in the Region

Anguil

laArub

a

Barbad

os

Cayman

Islan

ds

Domini

ca

Guada

loupe

Haiti

Martini

que

St. Kitts

and N

evis

St. mart

in

Surina

me

Turks a

nd C

aicos

Islan

ds0

5

10

15

20

25Approx. No. of Online Radio Stations Internet Radio

Increase in Talk Shows

Active Civil Society in Dialogue

Increase Live Coverage

of Key Events

Local Content Remains Low

Case of Barbados TODAY:Is New Media the Future?

Live Streaming: Listening to music or watching video in real time

Video Streaming Starting price

Netflix $9 per month

Hulu $8 per month

Amazon Instant Video

$99/year or 7.99/month

Sling Orange $20 per month

Playstation Vue $50 per month

Crackle Free

Funny or Die Free

Twitch Free

Vevo Free

Music Streaming Starting Price

Spotify $10 per month

Apple Music $9.99 per month

YouTube Free

Tidal $9.99 per month

Pandora Free

Sound Cloud Free

WiMP 5

Simfy 4

TuneIn Radio Free

Caribbean television: Cable from the US

Source: Digicel Barbados Facebook Source: FLOW Barbados Facebook

Where does Caribbean media fit?

Source: IMDb.com

• IT Investment• PC ownership• Broadband penetration• Internet Protection• Mobile Penetration

ICT Support Systems

• Business Environment• Human Capital• Infrastructure• Legal Environment• Research and

Development

Competitiveness: “The Set of Institutions, Policies and Factors that Determine the Level of Productivity of a Country – (WEF)

Competitiveness in the Caribbean

Legislation/ Regulations Infrastructure/ Technology

Broadcasting Regulations Cost of Broadband

Freedom of Press Legislation Access to Internet

Piracy Telecoms Liberalisation

Broadcasting Laws New Technology (fibre optics)

Defamation Laws

Cyber-security

Data protection legislation

Copyright/Patents

Licensing

Competitiveness in the Caribbean Affected by Legislative and Infrastructure Shortfalls

5 out of 20 Caribbean Community Countries Have Freedom of Information law

Regulations / Law Trinidad and Tobago Dominica Dominican

Republic Jamaica

Legal guarantees in place to assure the confidentiality of journalists' sources

No No Yes NoQualifications required by law/regulation for an individual to practice as journalist

No No Yes NoAnti-concentration/anti-trust rules or laws on media ownership for domestic private and foreign companies

No No Yes NoCross-media ownership limitations for domestic private and foreign companies

No No No NoExistence of legal provision for access to information held by the state

Yes No Yes Yes

Source: UNESCO, 2013

Media and development potential in the Caribbean

Expansion of Networks

Entertainment Industry

Economic Growth

• Reduced Cost• Innovation (media content

including music, film and local content)

• Local content development• Niche markets• Small Business

Development

• Creative Industries development

• Merger of Creative Industries with Media

• Human Capital Development

Data is at the Heart of the Media

Predicting what audiences want

Increasing acquisition and retention

Scheduling optimisation

Ad targeting

Content monetization and new product development

The Way Forward

Develop a Highly Skilled Workforce; CT Enabled, and Solutions Oriented

Investment in ICT Infrastructure; Reducing the Cost of Access to ICT

Legislative Reform

Small Business Development; Micro Financing

Support for Innovation, Research and Development

Development of Standards

Data Collection

Local Content Regulations

Broadcasting Regulations

Ease of Access to Information – Electronic Data

Thank You!

Anguilla

Antigua

Bahamas

BarbadosBeliz

e

British

Virgin Isl

ands

Cayman Isl

ands

Dominica

Grenada

GuyanaHaiti

Jamaica

Monsterra

t

St. Kitt

s and N

evis

St. Lucia

St. Vince

nt and th

e Grenadines

Suriname

Trinidad and Tobago

Turks and Caico

s-1

0

1

2

3

4

5

Average GDP Growth Rates 2011-2016

Additional Slides

Antigua

Bahamas

BarbadosBeliz

e

Dominica

Grenada

Guyana

Haiti

Jamaica

St. Kitt

s and N

evis

St. Lucia

St. Vince

nt and th

e Grenadines

Suriname

Trinidad and Tobago

-10

-8

-6

-4

-2

0

2

4

6

8

10

Primary Balance (% of GDP)2015 2016 e