DIGITALITY
BY KIDENDEI SEGERETI

The rise of digital has completely remodelled the media sector. Media convergence is a reality. The boundaries between traditional media and digital media are ever more blurred.

For example, social media are hosting more and more professionally-made content and are an increasingly important route to news.

Take the Discover feature of the instant messenger Snapchat, housing content from both broadcasters and publishers.

Or the recent agreement between Facebook and some publishers, allowing them to offer their content directly on the platform and sharing or letting them manage advertising revenues.

The Reuters Institute for the Study of Journalism just published these days shows that in countries like Germany, France, UK, Italy, and Spain Facebook is increasingly the vehicle to deliver news.

The same report also shows that a significant proportion of young people no longer wait to watch the evening television news. They prefer to find out what is going on as it happens from a multiple source of online media sources.

Messaging services are also increasingly prominent: one-quarter of Spanish internet users said they have read, watched or discussed news on WhatsApp.

Traditional and new media are quickly converging into a larger, predominantly-digital media environment.

Physical boundaries – including among national media markets – are becoming less relevant, thanks for instance to mobile technologies.

The good news is that Europe has a very strong and high-quality media sector. In such a mutable context, we only need to make sure that media are up to speed as regards innovation and that our regulatory framework is adapted to the new environment. I will therefore focus my intervention on three main aspects:

1. Implications for media businesses

New players join the market, new hybrid services become ever more popular, and a huge quantity of audiovisual content is available. This can bring new ways of monetising content, new sources of advertising revenue and new possibilities to reach out to consumers directly and through innovative methods. New market niches and opportunities for international development become available

• There are also challenges. Established models and practices might have to be re-assessed. And some players are struggling more than others to adapt.e with you some thoughts about the implications of media convergence for media businesses;

• Secondly, I will present the work the Commission has undertaken towards a regulatory modernisation for the digital single market, including for audiovisual media services;

• Finally, I'll say a few words about the importance of preserving media freedom and pluralism.

One of the challenges is to keep up to speed as regard innovation. I refer in particular to the necessity of investing more in research and technology innovation.

2. The regulatory framework

The EU Digital Single Market Strategy

The Digital Single Market (DSM) Strategy that the Commission unveiled on 6 May will lead to a more integrated EU market, with better services at better prices and more choice.

In monetary terms, bringing down digital barriers within Europe could contribute an additional EUR 415 billion to European GDP.

The Strategy revolves around three main pillars:

o        improving access to online goods and services across Europe.

o        digital networks and innovative services.

o        maximizing the growth potential of the Digital Economy.

3. Media freedom and pluralism

I would like to conclude by mentioning a crucial value for the EU: media freedom and pluralism.

Whether a media outlet is so-called traditional or online, media practitioners will always have to be warranted the right to report facts and offer their views and opinions.

Political pressure, economic hardship, physical attacks against journalists, restrictive legislation, and a general financial crisis in the sector all influence the media's ability to operate freely.