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Gringos Bearing Grifts

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Topic:  Multinationals advance on national media

Source: GGN.

Globo its 50%  share in zap, an online classified advertising site. Senior executives of the São Paulo media group explained that the intention of the move was to “focus on our principal brand, and maintain the same reputation for digital transactions.”

Now, as part of its 140th anniversary celebration, the ESP announced the acquisition of a real estate start-up, a forum for debating trends in the industry that will award the Challenge Prize Estado for the best advertising campaigns appearing in its pagesthe during the year.

That is all it said and all that has been accomplished so far.

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Up until the 1990s, the Estadão was champion of the classifieds and real estate listings, and its Jornal da Tarde focused on auto classifieds. The Folha de S. Paulo lagged behind in the real estate category, just as its Diário de São Paulo in the unsed car market.

Today there are many classified ad sites and the real estate brokerages  have even been mounting their own Web sites.

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In the U.S., local media groups have lost out to the Internet in the areas of classifieds and national ad campaigns.

And this far from the only threat on the horizon for Brazilian media groups.

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On TV, sports broadcast rights, an important element of building audience, shows that large international media groups have taken over and now dominate the sports channels in the principal nations the of Latin America.

A study published by the (ESP) TV columnist, Cristina Padiglione, shows how this is true. Only in Brazil and Chile do the leading attractions remain national — SporTV (Globo) and CDF Premium.

The remaining sports channels have been pushed aside by the new arrivals, especially Fox Sports and ESPN.

And furthermore: Only in Brazil and Colômbia are national sports channels in the top ten of cable programming.

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It is only a matter of time before analog television will be obsolete. Globo reports R$ 16.2 billions in revenues per year. It competes with News Corp, which controls Fox; ABC Disney, owner of  ESPN; and Time Warner which acquired Esporte Interativo and exclusive rights to the Championship League, both of which are substantially larger.

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After the Second War, the internationalization strategy of the principal American groups went hunting for associations or partnerships with national media groups. Open to air TV, which required political influence in order to obtain concessions while legislation on foreign investment blocked independent operators.

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In the era of the Internet and cable TV, the barriers to entry have fallen.

Today, foreign groups such as BBC, Reuters, Bloomberg and El País are competing on a level playing field with Brazilian news outlets and produce a journalism markedly superior than our work in recent years. New[s]Corp, which operates Fox, Disney (ESPN), and Time Warner are advancing rapidly, putting an end to historic relations between Globo and FIFA and the CBF.
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This strategy of internationalization was conceived of years ago. Now, other prominent publication, such as The New York Times, Financial Times and others have begun to expand beyond their respective home markets and will shortly post Web sites in Portuguese …
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Just one more threat in a jungle full of tigers and lions that go by the name of Google and Facebook.

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