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Chapter 7: Radio (30629.0K) - McGraw-Hill

Chapter 7: Radio (30629.0K) - McGraw-Hill

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Media Probe<br />

Reality—What a Concept<br />

The biggest trend in international television for the last five<br />

years has been reality television—shows such as Survivor,<br />

American Idol, and Big Brother—and the company that’s<br />

responsible for many of them is the London-based FreemantleMedia,<br />

part of the huge Bertelsmann media conglomerate.<br />

Although Freemantle did not invent the reality format,<br />

the company was its leading promoter and is now raking in<br />

money from 263 shows in 37 countries. Like MTV, Freemantle<br />

learned that the key to international success was to find a<br />

concept with global appeal and tailor it to local tastes. For<br />

example, the dream of going from rags to riches seems to be a<br />

universal one and is behind Freemantle’s greatest success—<br />

American Idol, as it’s known in the United States.<br />

The “idol” concept began in Great Britain as the brainchild<br />

of Simon Fuller and Simon Cowell who envisioned a talent<br />

show but with built-in drama that lasted for weeks and<br />

finally ended with a nationwide election. The governmentchartered<br />

British Broadcasting Corporation (BBC) wanted<br />

nothing to do with the show, but the commercial network ITV<br />

picked it up and called it Pop Idol. The program became the<br />

biggest phenomenon to hit Britain since the Beatles.<br />

Even with its success in Britain, the idol concept almost<br />

never made it to the United States. The ABC network refused<br />

it, and the Fox network was cool to it until the daughter of<br />

Rupert Murdoch, the boss of the company that owns Fox, told<br />

her father about the show’s huge popularity in the United<br />

Kingdom. Murdoch asked that Fox executives take another<br />

look. They did, and American Idol aired in 2002 and became a<br />

big hit in the United States.<br />

Freemantle conquered other countries as well. There’s<br />

Belgian Idool, Portugal Idolos, Deutschland Sucht den Super-<br />

Star in Germany, a Pan-Arabic SuperStar in the Middle East,<br />

and even SuperStar KZ in Kazakhstan. In all, the idol concept<br />

is in 30 countries, and income from the program boosted Freemantle’s<br />

revenues to more than a billion dollars in 2004.<br />

Freemantle’s promotional strategy is also notable. The<br />

local TV network spends the money promoting and creating a<br />

pop star, and then BMG, the music division of the Bertelsmann<br />

organization, signs the winner to a recording contract and<br />

takes in the resulting revenues. The debut album of Clay Aiken<br />

(American Idol, 2003) sold more than 2.5 million copies, generating<br />

about $40 million in income for BMG. In addition, much of<br />

the voting for idol contestants is done using text messaging. In<br />

some countries, Freemantle has worked out a deal to share<br />

the income with the local cell phone company from the huge<br />

number of messages generated by the program.<br />

What’s the next universal concept that Freemantle is betting<br />

on? It’s a program called How Clean is Your House? with<br />

two women who tackle the dirtiest cleaning jobs in the country.<br />

Naturally, Freemantle is working on a sponsorship deal<br />

with companies that manufacture household-cleaning products.<br />

The program has already identified its American target:<br />

college fraternity houses.<br />

On the set of CNN<br />

International. During<br />

its news broadcasts,<br />

CNN International<br />

links together<br />

anchorpersons from<br />

CNN bureaus all over<br />

the world.<br />

■ The Economist, also based in London, carries financial news and analysis. Readily available in<br />

the United States, the weekly is printed in Virginia, London, and Singapore. It reaches about<br />

800,000 readers.<br />

■ The Wall Street Journal’s international editions reach about 1 million people, mainly in Europe,<br />

Asia, and South America.<br />

Other papers that enjoy international status are the New York Times, Le Monde (France),<br />

El País (Spain), The Times (Great Britain), The Statesman (India), and Al Ahram (Egypt).<br />

The international flow of news is dominated by global news agencies. Reuters, Associated<br />

Press, Agence France-Presse, and ITAR-TASS are the biggest, but in recent years more<br />

specialized news organizations, such as the New York Times Syndicate and the Los Angeles<br />

Times Syndicate, have also become important.<br />

As far as magazines are concerned, Reader’s Digest publishes more than 49 international<br />

editions that are distributed to<br />

about 19 million readers in<br />

nearly 200 countries. Time<br />

Warner, in addition to publishing<br />

the international edition of<br />

Time, which is distributed in<br />

about 190 countries, also<br />

publishes Asiaweek and a<br />

newsweekly in Chinese. The<br />

international edition of<br />

Newsweek reaches about a halfmillion<br />

readers. Hearst Maga-<br />

396

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