Reflection paper requirement for COMM04
Media Conglomerate; Horizontal Integration and Vertical Integration in PH Media
Resa Salvador (March 2016)
Philippine media is
influenced by many elements, but among these, the dominant wins.
Media conglomerate is a company that owns huge
numbers of companies in various mass media (publishing, television, radio,
movies, and the Internet) that endeavor for policies and facilitate its control
of the markets within its country and across the globe. On the other hand,
horizontal integration consists of companies that acquire a similar
company in the same industry while, companies that acquire a company that
operates either before or after the acquiring company in the production process
is vertical integration.
Viva
Communications Inc. has become one of the most dynamic showbiz conglomerates
this season. Among other major creative gambits, Viva has hit the headlines. (Philippine daily inquirer,
March 2015)
Viva Communications Inc. (also known as Viva Entertainment Inc.) is a
Filipino-owned entertainment company based in Quezon
City and Pasig City, Philippines and was founded in 1981 by
Vicente "Vic" del Rosario, Jr. Division includes: Viva Films, Viva Television, Viva
International Pictures (VIP), Viva Artists Agency, Viva Live (formerly Viva
Concerts & Events), Ultimate Entertainment (OOMPH! Radio), Viva Interactive,
Viva Cable TV, Viva Sports, Viva Video, Inc. (Viva Communications' home video
subsidiary), Viva Video City, Viva Music Group (VMG includes Viva Records, Vicor Music
Philippines, Terno
Recordings), Verje Music Publishing (VMP) ,Harmony Music Publishing, Amerasian
Recording Studios, and Viva Publishing Group.
Viva Communications Inc. spring not from a
technology driven age, particularly the digital mediums and the internet, such present
era became a developmental challenge for the company to take risks. The company
stretched its arms for developments through horizontal integration and vertical
integration (which occur in most of their strategy) by partnering, buying, creating
and making alliance companies helpful for its purpose - entertainment.
Since movies are not the only source of
entertainment, which in the history of the company is its main amusement organ,
according to a report of GMA News.TV, IPVG Corp. and Viva Communications Inc. formed a joint venture
company last 2009 that will engage in interactive gaming and content
distribution and other forms of entertainment.
IPVG, which is into information technology and telecommunications, online
computer games and business process outsourcing, will provide Squirt Media $1
million worth of hosting and development of online game portal, billing
integration and other services with the hardware that come with the services.
While Viva Communications will give $1 million worth of its video, audio and
stock photos of current and future productions and with the talent services of
artists and actors under its contract. This fact proves the Viva tactics.
VIVA has also
formalized joint venture with Cignal TV last
year (Manila Times, August 2015). The company diversified its publication (not
just of music) but stories from mainstream E-Books flipping it to the screen
(to edified Books) making a hit to the mainstream audience. An example is the Dairy ng Panget in 2014.
According
to Anup Shah in his article in 2009, the idea of corporate media itself may not
be a bad thing (considered bad because of the abusive monopolization, the
domino effect with companies, and the limiting of choice for the audience) for
it can foster healthy competition and provide a check against governments.
The
Philippine media strive to compete with the world and time’s challenges that in
return, leads to improvement and economic growth for the benefit of the
majority (just like what the VIVA did). In terms of the use of media power in
politics, politicians becomes publicized according to their will and the voters
gain information and education.
However,
the concern is when there is a concentration of ownership due to the risk of
increased economic and political influence that can itself be unaccountable.
Although
Entertainment is quite different with news (performing as a watchdog and
mouthpiece, for it has greater concern on the state of the government, and
other roles) it is still a part of the Philippine media and affects the
country’s politics and economy and vice versa, positively and negatively;
beneficiary or not.
In
news, particularly the press, newspapers are merely mouthpieces of their
owners. (The Lords of Press, 1999). This is justified by the individual cases
of Publisher Emilio Yap, who’s described by the MB editors as authoritarian,
and Razon of Manila Standard.
It
is questionable that as a press, it is regulated mostly by business men and not
those who are literate of the purpose; the right and good of journalism.
Ideally, newspapers are not published even if they lose money because their aim
is not profit but influence.
The
ownership interests may affect what is and is not covered. Stories can end up
being biased or omitted so as not to offend advertisers or owners. The ability
for citizens to make informed decisions is crucial for a free and functioning
democracy but now becomes threatened by such concentration in ownership.
Media
Conglomeration and Horizontal and Vertical Integration affects the three key
elements in the Philippine Media: (1) The Company itself by either
strengthening or deteriorating it. (2) The proprietors and their workers’ (in a
publication, particularly the editors as the Lord of the Press presents) relationship
and as an individual (conflict of interest between self and profession), and (3)
The destination of the creation these companies produce (in line with the press,
“those who do not realize what’s behind the screaming headlines and
editorials”) that may enlightened or blinded.
The sad yet the
truth and one thing in common in Philippine media, may it be entertainment,
news or any genre in any purpose, is the proprietorship that tends to reduce
the diversity of media voices and puts great power in the hands of a few
companies.
We
may believe that we are moving along the Libertarian theory because of the
exercise of the press freedom, but digging deeply the kind media we have, the
existence of authoritarian implementation is undermining the Philippine media
For
now, I realized that this country even though exercises press freedom and
always voices out the Art.4 Sec. 3 of PH Constitution, which I formerly
believed as the most powerful element in the media; the fact is, power is not
anchored to this, or in any credibility, but to the one who has power over it,
the dominant proprietors.
Sources:
Cornel,
S.S. (1999, April-June). The Lords of the Press. The Investigative Reporting
Magazine, Vol. V No.2.
Evan,
T. (n.d).What is the difference between horizontal integration and vertical
Rubio, R.A. (2009, March 19).IPVG, Viva Communications form
joint venture
Shah,A.Media
Conglomerates, Mergers, Concentration of Ownership.(2009, January 2).
Retrived from
http://www.globalissues.org/article/159/media-conglomerates-mergers-concentration-of-ownership.
Torre, N.U. (2015, March 14).Viva makes waves on
multiple platforms. Philippine Daily
Inquirer. Retrieved from
http://entertainment.inquirer.net/165483/viva-makes-waves-on-multiple-platforms.
Cignal TV, Viva to launch
new entertainment channel. (2015, August 8). Manila Times.
Retrieved from
http://www.manilatimes.net/cignal-tv-viva-to-launch-new-entertainment-channel/207529/.
Viva Communications.(2016). In Wikipedia the Free
Encyclopedia. Retrieved February
2016, from
https://en.wikipedia.org/wiki/Viva_Communications.
