Authors
Abstract
Received in: 07/14/2013
Accepted in: 10/20/2014
Introduction: to select a foreign market is one of the most critical decisions for video media firms, which the media managers make to outline the policies for their internationalization process. Any error in selecting the right target country/market can have long-term consequences on the firms’ future success. The media industry in Iran also has some unique characteristics that require accurate analyses of the market. It is based on this axiom that we outlined the objective of this paper to be an identification of the factors affecting selection of global markets for video media products. We then came up with a model that could best fit such objective. To test the model with statistical techniques, data from 29 Iranian Video Media firms were used. We then distributed some 100 questionnaires among managers and professionals not only in person but also through electronic means to collect the necessary data. For analytical purposes, we used multiple regression method in order to test the research hypotheses, i.e., factors such as content adaptation and the characteristics of the target country affect how the media select a market. Some of the results showed that all components of the host country, exporting companies, the competitive situation and content adaptation have a significant, positive impact on the selection of the target market. While the overall effect of the specific characteristics of the host country showed to be higher compared to other variables, the adaptation of content appeared to be the most effective when selection of the target foreign market is concerned.
Theory and Methodology: almost all media firms have entered global markets over the last century; however, some of them certainly have not yet standardized their market selection models. Intensive research conducted on global market selection in the manufacturing sector indicates how important these models are. In media economics research, only a few studies on the media selection of global markets are available. For example, Chan-Olmsted et al. (2008) which supports early theories of internationalization, found that economic environment, geographical proximity, technological infrastructure, and market size influenced the selection of foreign market. In addition, they show that countries with better economic environments, implementation of intellectual property rights, political rights, larger market size and cultural differences, and language similarity seem to import more heavily video media products from the United States. Similarly, Picard (2003) argued that in order for a company to successfully benefit from global markets, it is necessary for the company to accommodate a variety of factors that influence such expansion. Certain environmental and market factors are necessary for multimedia businesses to operate effectively. The businesses also must accommodate content requirements as they expand their markets and they must ensure that internal resources and structures are available.
We have assumed a strategic approach in this research to address its problematic. Our objective is to contribute to the body of knowledge in this field and to answer the question of how media firms undertake selection of a country for their marketing purposes. How can we construct a country selection model (CS-model)? Besides the steps in construction, it is necessary to consider the role of pre-decision and context factors, especially corporate principles, goals and strategies, and also to take into account the international experience of managers, who have the decision-making power. We also need to take into consideration the correcting function of the model. Based upon literature review, key strategic factors are determined as four groups: host-country characteristics, firm-specific factors, competitive situation and content adaptation.
It was based on this model that the necessary data were collected from 29 Video Media firms in Iran. Then, we distributed 100 questionnaires in person and through electronic means among managers and professionals. Using some regression technique, the study has confirmed a positive and meaningful relationship between dependent (international market selection) and independent (key factors) variables.
Findings and discussion: In short, this study identified four main types of factors that affect media firm’s development at international locations; the first group consists of the host-country characteristics such as market potential, accessibility, media infrastructure and supporting capabilities, the second group consists of the firm-specific factors such as organizational and managerial capabilities, the third group consists of the competitive situation such as market structure and business environment, and the forth one consists of the content adaptation such as social and cultural adaptation. Also, results show that content adaptation has the highest effect on the international market selection in media industries.
The media companies need to consider local market circumstances and content adjustment while in the process of internationalization of their products and services. Film producers and broadcasters have long understood that information and entertainment in domestic language(s) and their media content that reflects a more local culture and lifestyle – or at least the ones that do not offend local culture – is/are more attractive and successful in encouraging audiences and consumers to purchase it. The first strategy in meeting content requirements is thus to consider an adjustment to the language of the foreign markets in which a firm would like to operate. The video media industries have accommodated this through translation of their products into major languages (dubbing), or promote subtitling, voicing over and/or adding narration. Although the five largest language groups in the world include Chinese, Hindi, and Arabic, they are not among the five following languages in which most audio-visual materials are translated: English, French, German, Japanese, and Spanish. These languages are used because they provide better access to markets that are currently larger or more lucrative.
Finally, it should be noted that media products are closely related to a society’s tradition and culture. As this study has shown, localization plays a key role in global media companies’ operations. These types of companies have to localize their products to some degree in the international media markets. Less cultural distance (e.g., common language and culture) may improve the demand for imported media contents from certain countries, as well as reduce risks for the product exporters from those countries. In fact, since each media market is unique in its own way, it has become increasingly common among international media operators to tailor their product offerings to local demands.
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