Outsourcing in the UK television industry: A global value chain analysis

Chalaby, J. (2018). Outsourcing in the UK television industry: A global value chain analysis. Communication Theory,

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Abstract

The aim of this study is twofold. First, it identifies outsourcing as a growing trend in the media industries: as leading media corporations integrate vertically and invest in segments that increase their asset specificity, they are also withdrawing from other segments and delegating a growing number of tasks to suppliers. This article uses the United Kingdom as a case study to demonstrate that while broadcasters are investing in TV content production, they are also stepping away from technology investments and media delivery tasks. It is a significant phenomenon that contributes to redefine the scope of companies whose engineering know-how was part of their core activity. Then, this article analyses the consequences of outsourcing as it contributes to vertical disintegration and the formation of global value chains in the media industries. It is also creating power asymmetries between lead firms and suppliers that have an impact on the type of M&A activities these companies pursue . The second contribution is theoretical in scope, as this article aims to state a case for GVC analysis in media and communication studies, showing the benefits of placing the evolution of the media industries in the context of long-term trends in the world economy.

Publication Type: Article
Additional Information: This is a pre-copyedited, author-produced version of an article accepted for publication in Communication Theory following peer review. The version of record Chalaby, J. (2018). Outsourcing in the UK television industry: A global value chain analysis. Communication Theory, is to be available online athttps://academic.oup.com/ct
Publisher Keywords: Global value chain (GVC) analysis, Media industries, Media globalization; Outsourcing, Segmentation, Vertical disintegration
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HE Transportation and Communications
Departments: School of Arts & Social Sciences > Sociology
URI: http://openaccess.city.ac.uk/id/eprint/20162

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