Cultural dimensions of online vs. offline media competition: an application of niche theory

ABSTRACT

Using 50 countries’ media-market panel data from 2012 to 2016, this study examines changes in the global media industry caused by the development of the Internet and assesses the influence of cultural factors on these changes. In the light of niche theory, an analytical method of measuring the competition among media, this study analyzes gradual changes in the online and offline media markets. By using Hofstede’s cultural dimensions as a lens for analyzing cultural factors affecting Internet displacement effects, this study finds that culture is one of the critical factors affecting online vs. offline competition.

KEYWORDS:

• Online vs. offline
• media competition
• displacement effects
• niche theory
• cultural dimensions

Acknowledgments

This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government(MSIP) (No. NRF-2020S1A5A2A03041480). This work was partly supported by Hankuk University of Foreign Studies Research Fund of 2020.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

¹ The assumption is that since the length of time in a day does not change, individuals spend less time on traditional media or other activities because they are allocating this time to new media.

² The concept of functional displacement suggests that displacement effects occur when new media offer the functions of existing media in more effective ways.

³ Section 3.1.1. further discusses the population and resource dimensions used in this study.

⁴ Hofstede has continually updated the figures for each country’s cultural dimensions on his homepage (https://www.hofstede-insights.com/product/compare-countries/).

⁵ In terms of average media revenue across the 50 countries in our sample, the proportion belonging to television (subscription and broadcasting) is, on average, 40.7%; the proportion belonging to magazines is 10.9%; the proportion belonging to newspapers is 20.4%; and the proportion belonging to radio is 4.2%. All four types of media generate both advertising and content revenues.

Additional information

Notes on contributors

Sung Wook Ji

Sung Wook Ji is Associate Professor in the Media Communication Division at Hankuk University of Foreign Studies. He was previously (Visiting) Assistant professor at Michigan State University and Southern Illinois University, Carbondale. His primary research interests center on the interdisciplinary intersections of Mass Communication, Economics, and ICT Policy. He is interested particularly in the social and economic impact of new media technologies on the media industry, and how these technologies are shaping the media industries and society. His research has been published in several peer reviwed journals including Journal of Media Economics, The Information Society, Review of Industrial Organization, Telecommunications Policy, and Journalism & Mass Communication Quarterly.

Junwon Lee

Junwon Lee is a researcher in the Media and Communication Research Institute at Hankuk University of Foreign Studies. His research interests include the digital media ecosystem and communication strategies. He is also analyzing companies' digital marketing strategies such as performance marketing or data-driven marketing as a researcher at DMC Media, South Korea.