ABBM4303 Broadcast Management - Cmay19 (MREP)

ABBM4303
Broadcast Management
Copyright © Open University Malaysia (OUM)

ABBM4303
BROADCAST
MANAGEMENT
Dr Hamisah Zaharah Hassan
Mohd Khir Den
Prof Dr Rahmah Hashim
Dr Ramachandran Ponnan

Project Director: Prof Dr Widad Othman
Open University Malaysia
Module Writers: Dr Hamisah Zaharah Hasan

Universiti Putra Malaysia
Mohd Khir Den

Televisyen Pendidikan (TVP)
Kementerian Pelajaran Malaysia
Prof Dr Rahmah Hashim

Dr Ramachandran Ponnan
Radio Televisyen Malaysia (RTM)
Moderator: Dr Ramachandran Ponnan

Radio Televisyen Malaysia (RTM)
Enhancer: Raja Nor Aminah Raja Ayob
Developed by: Centre for Instructional Design and Technology

First Edition, November 2008

Second Edition, December 2011 (HBCM4303)
Third Edition, April 2019 (MREP)
Copyright © Open University Malaysia (OUM), April 2019, ABBM4303
All rights reserved. No part of this work may be reproduced in any form or by any means without
the written permission of the President, Open University Malaysia (OUM).

Table of Contents
Course Guide xi–xvi
Topic 1 Overview of Broadcast Management 1

1.1 Telecommunications and Broadcasting 2
1.1.1 What is Telecommunications? 2
1.1.2 What is Broadcasting? 3
1.2 What is the Meaning of Management? 6
1.2.1 What is Telecommunications Management? 6
1.3 Management Study Approach 7
1.3.1 Functional Discipline 8
1.3.2 Management Science 8
1.3.3 Human Achievement 8
1.4 Telecommunications Management Components 9
1.4.1 Telecommunications Management Skills 10
1.4.2 Telecommunications Management Function 12
1.5 Telecommunications Management Roles 19
1.5.1 Interpersonal 20
1.5.2 Information 21
1.5.3 Decision-making 22
1.6 Types of Management Occupations 23
1.7 Telecommunications and Leadership 26
Summary 27
Key Terms 28
References 28

iv  TABLE OF CONTENTS
Topic 2 Telecommunications Management Theories 29

2.1 Development of Management Theories 30
2.2 Classical Perspective 39
2.2.1 Scientific Management 39
2.2.2 Bureaucratic Management 41
2.2.3 Administrative Management 43
2.3 Behavioural Perspective 45
2.3.1 Human Relations Movement 47
2.3.2 Human Resource 48
2.3.3 Behavioural Science 52
2.4 Quantitative Perspective 53
2.4.1 Management Science 54
2.4.2 Operations Management 55
2.4.3 Management Information System (MIS) 55
2.5 Contemporary Perspective 56
2.5.1 Contemporary Management 57
2.5.2 Management by Objectives (MBO) 59
2.5.3 System Approach 60
2.5.4 Contingency Theory 61
2.5.5 Japanese Management Approach (Theory Z) 61
2.6 Other Management Styles 65
2.7 Telecommunications Organisation Management Model 67
Summary 70
Key Terms 71
References 71
Topic 3 Electronic Media, and Information and Communications 72

Technology (ICT)
3.1 Electronic Media 74
3.2 Information and Communications Technology (ICT) 76
3.3 Aims of Telecommunications Management 79
3.4 Main Activities of a Media Organisation 83
3.4.1 Development 83
3.4.2 Production 84
3.4.3 Distribution 85
3.4.4 Display 85
3.5 Electronic Media Landscape 86
3.5.1 Radio Broadcasting 87
3.5.2 Television Broadcasting 89
3.6 Development of Television Broadcast in Malaysia 92
Summary 95
Key Terms 96
References 96

TABLE OF CONTENTS  v
Topic 4 Telecommunications Industry Structure 98

4.1 Telecommunications Industry Structure 99
4.1.1 What is a Market Structure? 99
4.1.2 Types of Market Structure 99
4.1.3 Telecommunications Organisation 102
4.2 Market Structure Elements 103
4.2.1 Sellers Concentration 104
4.2.2 Product Differentiation 104
4.2.3 Barriers to Entry 105
4.2.4 Buyers Concentration 106
4.2.5 Growth in Demand 106
4.3 Market Behaviour Principle 107
4.3.1 Price Determination Policy 107
4.3.2 Quality Control Policy 108
4.3.3 Competitive Policy 108
4.4 Market Achievement 109
4.4.1 Efficient Use of Resources 109
4.4.2 Stability of Prices and Employment 110
4.4.3 Fair Deal for All 110
4.4.4 Growth, Strategy and Planning 110
4.5 Levels of Industry Development 115
4.5.1 Level I: Introduction 115
4.5.2 Level II: Growth/Development 116
4.5.3 Level III: Maturity 116
4.5.4 Level IV: Decline 116
Summary 117
Key Terms 118
References 118
Topic 5 Management of Educational TV Broadcasting 119

5.1 History of Educational Television (ETV) 120
5.1.1 Transformation in Educational TV 121
5.1.2 Bahagian Teknologi Pendidikan (BTP) Ministry of 123
Education Malaysia
5.2 Effects of Changes in Broadcasting Policy 125
5.3 Organisational Structure of Bahagian Teknologi 127
Pendidikan (BTP)
5.3.1 Educational TV Sector 127
5.3.2 Engineering Service Sector 128
5.4 Establishment of Bahagian Teknologi Pendidikan (BTP) 128
5.4.1 Producer 129
5.4.2 Cameraman 130
5.4.3 Audio Technician 130

vi  TABLE OF CONTENTS
5.4.4 Lighting Technician 131

5.4.5 Editor 131
5.4.6 Technical Producer 132
5.4.7 Video System and Camera Control Unit (CCU) 132
Technician
5.4.8 Video Mixer 133
5.4.9 Graphic Designer 133
5.4.10 Photographer 134
5.5 EDUWEBTV 135
5.5.1 EDUWEBTV Module 136
Summary 144
Key Terms 145
References 145
Topic 6 Marketing and Sales Management 147

6.1 Marketing and Sales Management in the Broadcasting 148
Sector
6.2 Advertising Industry 149
6.2.1 Advertisers 150
6.2.2 Advertising Agencies 151
6.2.3 Stations 153
6.2.4 Station Agents 157
6.2.5 Media Planners 158
6.3 Media Objectives 161
6.3.1 Impression 162
6.3.2 Gross Rating Point (GRP) 163
6.3.3 Access 164
6.3.4 Frequencies 165
6.4 Factors Influencing Media Selection 166
6.5 Ratings 169
6.6 Media Product Promotion 170
Summary 170
Key Terms 171
References 171

TABLE OF CONTENTS  vii
Topic 7 Cable/Satellite Broadcasting System 173

7.1 Cable TV Broadcasting System 176
7.2 Cable TV System Structure 176
7.2.1 Headend Point 177
7.2.2 Distribution Network 177
7.2.3 Receiving Equipment (House Drop) 177
7.3 Cable TV Business 178
7.3.1 Cable TV Stations 179
7.3.2 Producer/Provider of Cable TV Programmes 179
7.4 Cable TV System Management 181
7.5 Responsibilities of a Cable TV Manager 183
7.5.1 Cable TV Programmes 183
7.6 Satellite Broadcasting 187
7.7 Components of Communications Satellite 190
7.8 Direct Broadcasting Satellite (DBS) 192
Summary 193
Key Terms 194
References 195
Topic 8 The Future of Telecommunications Management 196

8.1 Development of the Telecommunications Sector in Malaysia 197
8.2 Regulation 200
8.3 Globalisation Impact in Telecommunications 202
8.3.1 Change in Local Media 203
8.3.2 Telco and Celco Sectors 203
8.3.3 Broadcasting Sector 204
8.4 Expansion of the Global Telecommunications Industry 206
8.5 The Future of Telco and Celco 208
8.6 External Challenges 210
8.7 Future Challenges of the Broadcasting Industry 213
8.7.1 Competition in Broadcasting Media Environment 214
8.7.2 National Broadcasting Digitalisation Project 219
8.7.3 Digital Broadcasting Advantages 220
8.8 Challenges to the Broadcasting Manager 221
8.8.1 Implication of Digitalisation Project 221
8.8.2 Roles of Manager in Facing Future Challenges in 224
Broadcasting Industry
Summary 226
Key Terms 227
References 228

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COURSE GUIDE  xi
COURSE GUIDE DESCRIPTION

You must read this Course Guide carefully from the beginning to the end. It tells
you briefly what the course is about and how you can work your way through the
course material. It also suggests the amount of time you are likely to spend in order
to complete the course successfully. Please refer to the Course Guide from time to
time as you go through the course material as it will help you to clarify important
study components or points that you might miss or overlook.
INTRODUCTION
ABBM4303 Broadcast Management is one of the courses offered at Open
University Malaysia (OUM). This course is worth three credit hours and should be
covered over eight to 15 weeks.
COURSE AUDIENCE
This course is offered to all learners taking the Bachelor of Communication
programme. This module aims to impart knowledge on management theory and
practices specifically in the telecommunications and broadcasting sectors
including human resource management, equipment, scheduling of programmes,
advertising and marketing, and organisational relationships with external
community and agencies.
As an open and distance learner, you should be acquainted with learning

independently and being able to optimise the learning modes and environment
available to you. Before you begin this course, please ensure that you have the
right course material, and understand the course requirements as well as how the
course is conducted.

xii  COURSE GUIDE
STUDY SCHEDULE
It is a standard OUM practice that learners accumulate 40 study hours for every
credit hour. As such, for a three-credit hour course, you are expected to spend 120
study hours. Table 1 gives an estimation of how the 120 study hours could be
accumulated.
Table 1: Estimation of Time Accumulation of Study Hours
Study
Study Activities
Hours
Briefly go through the course content and participate in initial discussions 4

Study the module 64
Attend 3 tutorial sessions 6
Online participation 15
Revision 16
Assignment(s), Test(s) and Examination(s) 15
TOTAL STUDY HOURS ACCUMULATED 120
COURSE LEARNING OUTCOMES

By the end of this course, you should be able to:
1. Explain the principles of management in telecommunications and
broadcasting;
2. Identify challenges, barriers and problems of management in the
broadcasting organisations; and
3. Apply the theories of telecommunications management and management
strategies in telecommunications/broadcasting industry/companies.

COURSE GUIDE  xiii
COURSE SYNOPSIS
This course is divided into eight topics. The synopsis for each topic is presented
below:
Topic 1 focuses on the definition of concepts used in the course, such as the
definition of telecommunications, broadcasting and management. Learners are
also exposed to important components of telecommunications management.
Topic 2 looks at managerial aspects from the academic perspective, focusing on

management theories in general. Management theories are considered essential in
this context so that learners can apply it in the actual organisational climate.
Topic 3 exposes learners to the participants involved in the broadcasting and

telecommunications industry. Discussions in this topic are about activities of
media and ICT industries, as well as requirements of the telecommunications
industry pertaining to managerial aspects.
Topic 4 discusses the important elements of the telecommunications industry

including market structure, behaviour, market performance and media maturity.
Topic 5 introduces one of the participants in the national broadcasting industry

which is educational television (ETV). ETVÊs participation is rather different from
other public and private media organisations because of its different target
audience and working styles. ETV is discussed in this course to allow learners to
differentiate its role as one of broadcasting participants which is equally important
in broadcasting and telecommunications development.
Topic 6 discusses the marketing and sales process regarding broadcasting and
telecommunications industry. Essential elements in marketing and sales
aspects are advertising and advertising agencies, as well as the ratings aspect
which is emphasised by media planners and the management of broadcasting
and ICT industry.
Topic 7 introduces cable TV and satellite TV broadcasting systems, which are

technologically innovative products that enable communications satellites to be
easily used without being assessed by terrestrial TV. Communications satellites
have facilitated information dissemination, entertainment and interactive
communications between the participants of national, regional and global
telecommunications industry.

xiv  COURSE GUIDE
Topic 8 discusses up-to-date media and telecommunications scenario as well as

various challenges currently facing the new media management. These challenges
must be handled wisely as the nation is moving to greater heights to achieve
Vision 2020.
TEXT ARRANGEMENT GUIDE

Before you go through this module, it is important that you note the text
arrangement. Understanding the text arrangement will help you to organise your
study of this course in a more objective and effective way. Generally, the text
arrangement for each topic is as follows:
Learning Outcomes: This section refers to what you should achieve after you have
completely covered a topic. As you go through each topic, you should frequently
refer to these learning outcomes. By doing this, you can continuously gauge your
understanding of the topic.
Self-Check: This component of the module is inserted at strategic locations

throughout the module. It may be inserted after one sub-section or a few sub-
sections. It usually comes in the form of a question. When you come across this
component, try to reflect on what you have already learnt thus far. By attempting
to answer the question, you should be able to gauge how well you have
understood the sub-section(s). Most of the time, the answers to the questions can
be found directly from the module itself.
Activity: Like Self-Check, the Activity component is also placed at various

locations or junctures throughout the module. This component may require you
to solve questions, explore short case studies, or conduct an observation or
research. It may even require you to evaluate a given scenario. When you come
across an Activity, you should try to reflect on what you have gathered from the
module and apply it to real situations. You should, at the same time, engage
yourself in higher order thinking where you might be required to analyse,
synthesise and evaluate instead of only having to recall and define.
Summary: You will find this component at the end of each topic. This component
helps you to recap the whole topic. By going through the summary, you should be
able to gauge your knowledge retention level. Should you find points in the
summary that you do not fully understand, it would be a good idea for you to
revisit the details in the module.

COURSE GUIDE  xv
Key Terms: This component can be found at the end of each topic. You should go
through this component to remind yourself of important terms or jargon used
throughout the module. Should you find terms here that you are not able to
explain, you should look for the terms in the module.
References: The References section is where a list of relevant and useful textbooks,
journals, articles, electronic contents or sources can be found. The list can appear
in a few locations such as in the Course Guide (at the References section), at the
end of every topic or at the back of the module. You are encouraged to read or
refer to the suggested sources to obtain the additional information needed and to
enhance your overall understanding of the course.
ASSESSMENT METHOD
Please refer to myINSPIRE.
REFERENCES
Abbot, D. (1999). Cutting edge advertising. Singapore: Prentice-Hall.
Albarran, A. B. (2016). Management of electronic media (6th ed.). Belmont, CA:

Cengage Learning.
Craft, J. E., Leigh, F. A., & Godfrey, D. G. (2001). Electronic media. Melbourne,
Australia: Wadsworth Thomson Learning.
Dominick, J. R., Messere, F., & Sherman, B. L. (2004). Broadcasting, cable, the
Internet and beyond: An introduction to modern electronic media (5th ed.).
Boston, MA: McGraw-Hill.
Eastman, S. T., & Klein, R. A. (2006). Media promotion and marketing for
broadcasting, cable and the web (5th ed.). Burlington, MA: Focal Press.
Gershon, R. A. (2001). Telecommunications management: Industry structures and

planning strategies. Mahwah, NJ: Lawrence Erlbaum Associates Publishers.
Green, J. H. (2001). The Irwin handbook of telecommunications management (3rd

ed.). New York, NY: McGraw-Hill.
Gross, L. S. (2009). Electronic media: An introduction (10th ed.). Boston, MA:

McGraw-Hill.
Sherman, B. L. (1995). Telecommunications management: Broadcasting/cable and

the new technologies (2nd ed.). New York, NY: McGraw-Hill.
xvi  COURSE GUIDE
TAN SRI DR ABDULLAH SANUSI (TSDAS) DIGITAL

LIBRARY
The TSDAS Digital Library has a wide range of print and online resources for the
use of its learners. This comprehensive digital library, which is accessible through
the OUM portal, provides access to more than 30 online databases comprising
e-journals, e-theses, e-books and more. Examples of databases available are
EBSCOhost, ProQuest, SpringerLink, Books247, InfoSci Books, Emerald
Management Plus and Ebrary Electronic Books. As an OUM learner, you are
encouraged to make full use of the resources available through this library.

Topic  Overview of
Broadcast
1 Management
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Define telecommunications, broadcasting and management;
2. Describe the three approaches of telecommunications study and three
components of telecommunications management;
3. Explain the roles and responsibilities of a media or communications
manager in a telecommunications organisation; and
4. Discuss the relationship between telecommunications and leadership.
 INTRODUCTION
Hello and welcome to ABBM4303 Broadcast Management. In this first topic, you
will be introduced to the concepts of basic telecommunications and management.
Then, we will look at the meaning of management in the context of the
telecommunications industry and the approaches of telecommunications study.
After that, you will also be exposed to the components of telecommunications

management; roles and responsibilities of a media or communications manager;
two types of management occupations; as well as the relationship between
telecommunications and leadership.
Take note that in this module, the telecommunications field will also include
broadcasting and multimedia communications. So are you ready to continue?
Let us start the lesson!

2  TOPIC 1 OVERVIEW OF BROADCAST MANAGEMENT
1.1 TELECOMMUNICATIONS AND

BROADCASTING
What crosses your mind when the word „broadcasting‰ is mentioned? Do you
have any idea? Let us look at the meaning of telecommunications first before we
delve into the concept of broadcasting.
1.1.1 What is Telecommunications?

Generally, the term „telecommunications‰ is made up of two words, which are
„tele‰ and „communications‰. In Greek, „tele‰ means long distance. So what does
telecommunications really mean?
Telecommunications refers to communication at a long distance.

Gershon (2001)
We also often find the prefix „tele‰ in words such as telephone, telegram, telefax,
teletext, television, teleprinter, teleprompter, teleconference and teleport. What is
the meaning of each of these concepts? All of these refer to the use of networks and
communications at long distances.
When we communicate, we exchange ideas and information through writing,

talking, speaking and using non-verbal signals. If the communications
involves long-distance communications, the telephone, facsimile machine and
others are used.
In fact, there are individuals who can communicate with other people without any
equipment but through what is called telepathy, which uses thought and spiritual
channels. However, this is hard to prove empirically.
Therefore, we can conclude that telecommunications refers to the science and

technology of communications, which channel or transmit signals
electronically through communications satellite cables, telephones, telegraphy,
radios or televisions.

TOPIC 1 OVERVIEW OF BROADCAST MANAGEMENT  3
Sherman (1994) regards telecommunications organisations as private and public

organisations which are particularly involved in the business of developing,
publishing, distributing and showing of programmes with elements of
entertainment and information to the public through electronic media, that is, non-
print media.
Thus, in this course, the term „telecommunications‰ refers to two meanings:

(a) Electronic media (radio, television, online media); and
(b) Common carriers, such as people, companies or carriers/channels of tangible
products such as communications satellites, broadcasting equipment and fibre
optics or intangibles, such as information super corridors.
1.1.2 What is Broadcasting?

Now, let us look at the definition of broadcasting according to Foster (1978).
Broadcasting is the dissemination of audio or video content to a dispersed

audience through any electronic mass communications means, but most
commonly one using electromagnetic spectrum (radio waves), in a one-to-
many model.
Foster (1978)
Take note that the various definitions of broadcasting depends on the importance
and uniqueness of this field to us.
In general, broadcasting is interpreted as the channels for transmitting

information, entertainment, education and economic resources (see Figure 1.1).

Figure 1.1: General definition of broadcasting
The concept of broadcasting may have a different meaning for different

individuals and organisations. The difference in the meaning will depend on the
extent of its importance to an individual or an organisation. In other words, our
perception towards broadcasting is influenced by our position in the field of
broadcasting.
Let us look at Table 1.1, which explains various meanings of broadcasting from
several individuals with different posts or positions in the broadcasting industry.
Table 1.1: Various Meanings of Broadcasting from

Several Individuals with Different Positions in the Broadcasting Industry
Position Definition of Broadcasting
Shareholders They may define broadcasting from the economic viewpoint,

that is whether this field will earn them profits or not.
Advertiser An advertiser who sponsors a broadcasting programme will

regard broadcasting as a medium to attract a target audience
and increase its source of funds.
Manager The manager of a broadcasting station will regard broadcasting

as a source of income or professional prestige.

Creative person For a creative person, broadcasting is a platform to highlight

talents and a stepping stone to create a reputation and achieve
success in his or her career.
Broadcasting workers For workers such as broadcasting reporters, scriptwriters or

publishers, broadcasting is a medium to highlight their skills,
besides achieving their career ambitions.
Other participants Other participants in the broadcasting industry will think in

terms of profits that they may obtain in the form of power,
popularity, finance and so on.
SELF-CHECK 1.1
Define telecommunications and broadcasting.
ACTIVITY 1.1
1. Make a list of anything you may relate to in broadcasting. Check
the list. Will the concepts be consistent with the importance of
broadcasting in your life activities?
2. In 2003, Astro began airing a reality television show called

Akademi Fantasi (Figure 1.2).
Figure 1.2: Akademi Fantasia

Source: https://www.mysumber.com/wp-
content/uploads/2014/08/Akademi-Fantasia.jpg

For the participants, this programme was a platform to highlight

their singing talent and earn the opportunity to become a popular
singer. For the management of Astro and the sponsors, the
programme was a lucrative source of income for their
organisations.
As a viewer, what can you conclude about the broadcasting

industry when it comes to the airing of reality shows like Akademi
Fantasia?
1.2 WHAT IS THE MEANING OF

MANAGEMENT?
Did you know that management originates from the Latin term „manus‰ that
means hand? Originally, the term referred to the task of looking after and training
a horse.
Later, management has gradually been applied to the task of managing, training,
governing, directing and influencing other people (Sherman, 1994).
On the other hand, a manager is the individual in an organisation whose task is to

plan, organise, motivate and control his or her staff.
1.2.1 What is Telecommunications Management?

Now, let us look at the definition of telecommunications management.
Telecommunications management refers to the ability to supervise,

motivate and handle equipment with low expenses.
Did you know that this task is for a media manager? His or her responsibility is to
efficiently run a media station from the aspect of human resource management
and handling of production studio equipment.
Therefore, a successful media manager is a person who is able to manage the

human resource department efficiently, besides understanding the technical
aspects of using station equipment.

Take note that when dealing with the theory of telecommunications management,
focus will be given on both micro and macro aspects. What are micro and macro
aspects? Let us look at Figure 1.3 to know more.
Figure 1.3: Two aspects of telecommunications management theory
SELF-CHECK 1.2
Differentiate between micro and macro aspects in the theory of
telecommunications management.
1.3 MANAGEMENT STUDY APPROACH

Did you know that there are three main approaches in the management study?
These three main approaches are explained in Table 1.2.
Table 1.2: Three Approaches of Management Study
Approach Focus
Functional discipline Outlining the tasks and roles of a manager.
Management science Emphasising on the complex organisational behaviour.
Human achievement Giving encouragement and facilitate achievement by staff.
Source: Sherman (1994)
These three approaches are further elaborated in the next subtopics.

1.3.1 Functional Discipline

Did you know that this aspect outlines the tasks, roles and responsibilities of a
media manager? Through the guidelines of a functional discipline, a media
manager understands the functions that must be performed. To ensure the
performance of responsibilities of a successful media manager, he or she must
carefully examine the characteristics and skills required for a successful manager
as a guide.
However, even though the manager is encouraged to study the experience and
skills of an experienced manager, he or she should not necessarily follow the old
style of management where he or she is given a management responsibility in
order to be a successful manager.
1.3.2 Management Science

Through management science, the emphasis is given to a complex organisational
behavioural structure. Thus, the media manager should understand that the
organisational success depends on the workersÊ excellence.
1.3.3 Human Achievement

Take note that human achievement emphasises individual roles in an organisation.
Therefore, the aim is to manage workersÊ motivation, loyalty, satisfaction and to
encourage individuals to think of both individual and organisational goals.
Briefly, this approach states that the media manager is responsible for encouraging
workers to achieve excellent job performance.
Last but not least, a media manager also needs a deeper understanding about the
components of telecommunications management. This will be explained in the
next subtopic.
ACTIVITY 1.2
Select one broadcasting company and one large organisation (not in

the telecommunications industry) in Malaysia. Make a list of the
similarities and differences in telecommunications organisational
management compared with the other organisation. Post your answer
on the myINSPIRE forum.

1.4 TELECOMMUNICATIONS MANAGEMENT

COMPONENTS
Telecommunications management is divided into three components, namely:
(a) Skills;
(b) Functions; and
(c) Roles.
According to Sherman (1994), skills are involved with technical, human and
conceptual aspects. As for the functions, they consist of planning, organising, staff
placement, controlling and innovation.
Last but not least, there are three roles of telecommunications management which
are interpersonal, information and decision-making. Examples for these three
roles are listed in Table 1.3.
Table 1.3: Examples of Roles in Telecommunications Management
Role Examples
Interpersonal  Figurehead
 Leader
 Mediator
Information  Supervisor
 Information disseminator
 Spokesperson
Decision-making  Distributor
 Judge
 Consultant
Take note that our next discussion will focus on the skills and functions only.
The third component (roles) will be elaborated further in Subtopic 1.5.

1.4.1 Telecommunications Management Skills

Now, let us look at Figure 1.4 which shows you three skills that a successful media
manager must possess.
Figure 1.4: Three fundamental media managerÊs skills
As the telecommunications industry is characterised by technology, technological

innovation cannot be avoided. Therefore, a manager handling a telecommunications
organisation or systems should have a high understanding of the technical aspects
and up-to-date equipment needed by the station.
In addition, media managers should understand the basics of radio waves, signal
transmissions and recording systems as well as media equipment and
broadcasting technology so that it will be easy for them to perform their duties
excellently. Table 1.4 provides a more detailed elaboration regarding the three
important aspects of a media managerÊs skills.

Table 1.4: Three Important Aspects of a Media ManagerÊs Skills
Skill Description
Technical skills This includes understanding and being able to efficiently use
production equipment such as the camera and editing machine.
If his or her specialisation is in information technology, then he or
she should be an expert in handling information technology and
always keep abreast of the latest knowledge in the field.
Human skills This includes skills to interact as a leader with subordinates and
with other people in the organisation.
High human skills enable the media manager to generate a high level
of productivity and build a good working relation in the
organisation. This is not limited to the management group only, but
also includes non-management staff and those in support groups.
The ability to handle human matters is also important because there

are various groups of staff in the broadcasting station. These groups
include professional management groups, creative staff (scriptwriter
and director) as well as support group (production crew).
Conceptual skills This skill refers to the intellectual ability and intelligence in making
decisions. This also relates to the skill of understanding intra-
organisational and inter-organisational relations either in the
telecommunications industry, broadcasting and/or ICT at the
community and international levels.
Every production will face various problems. Therefore, a manager

should be smart in handling problems either relating to human
resource or marketing matters.
In addition, a managerÊs performance is also evaluated from the aspect of his or

her skills in:
(a) Identifying, selecting and accessing certain and appropriate information for
the organisation; and
(b) Using available resources to achieve organisational goals.
SELF-CHECK 1.3
Explain three important aspects of a media managerÊs skills.

1.4.2 Telecommunications Management Function

As stated before, there are five telecommunications management functions.
Can you still recall? Let us look at Table 1.5 which explains more on the
telecommunications management functions.
Table 1.5: Five Telecommunications Management Functions
Staff
Planning Organising Controlling Innovation
Placement
 Plan  Organise  Recruit  Prepare  Introduce

organisational and standards new
 Train
objectives coordinate equipment
 Communications
tasks  Evaluate
 Decide on how standards
to achieve
 Measure
objectives
achievement
 Ways to
 Correct errors
achieve
objectives
These five functions are further discussed as follows:
(a) Planning
What does planning mean?
Planning is the process by which one identifies a task to be attempted,

develops the most effective methods of obtaining the desired objectives
and prepares to overcome unexpected difficulties with the appropriate
resources in hand.
David (2011)
In the planning process, a manager considers the station objectives and ways
of handling the station in achieving the objectives.
In addition to the three roles highlighted by Sherman (1994), David (2011)

added that managers need to prepare a contingency plan with adequate
resources should undesired circumstances arise.

At this stage, planning is focused on:
(i) What is to be implemented?
(ii) How to implement?
(iii) Who will implement it?
(iv) What to do when difficulties arise during implementation?
For instance, if we refer to a television station, the manager will consider

what form of programmes will be broadcasted. If he or she decides to
broadcast a news programme, various questions need to be considered such
as who should be entrusted to read the news and how much should be
charged for advertisements? In addition, the manager also needs to think
what will be the contingency plan should the news programme fail to attract
a large number of viewers.
Planning enables the manager to collect the resources needed and exercise
tasks in the most efficient way. In addition, planning requires the manager
to make forecasts and expectations to achieve the stationÊs objectives.
A successful telecommunications manager normally possesses the ability to

make a good forecast. For example, in the early history of establishing RCA
in the US, David Sarnoff in 1916 was able to predict the potential of the radio
music box. Similarly, Charles Dolan was successful in realising his idea of
establishing HBO, while Ted Turner established the Cable News Network
(CNN) (see Figure 1.5).
Figure 1.5: Ted Turner

In addition, planning ensures that the company can be prepared for all
unforeseen eventualities and for all changes that might be required. Figure 1.6
provides a short history of the Cable News Network (CNN).
Figure 1.6: A short history of Cable News Network or CNN
(b) Organising
Organising in the context of management is a function in which the
coordination and integration of human, physical, financial and information
resources take place for the achievements of the planned objectives.
In addition, Sherman (1994) explains this function as distributing and

coordinating tasks in the corporation or organisation to ensure a maximum
level of efficiency in the efforts to achieve planning objectives. Since the job

of coordinating and distributing tasks is not easy, especially in the

telecommunications industry which has many varied job specifications,
organising has to be done based on the following:
(i) Organising the organisational structure by applying a specific
organisational model, coded job descriptions, clear evaluation, an
established procedure to present dissatisfactions and so on.
(ii) The formation of departments for each particular function in the
organisation. For example, a television station has a specific
department or division for scheduling, sales, engineering, news,
promotion, public affairs, research and so on.
(iii) Delegation of responsibilities by the management to the executives.
Good management of expertise is essential at each management level.

Through the organising process, the manager identifies tasks and
coordinates responsibilities within the organisation. Therefore, it is essential
for a media manager to identify responsibilities and ensure that those
responsible perform such tasks.
The field of telecommunications needs the participation of many parties,

such as accountants, researchers, engineers, planning executives,
salespersons and others. To facilitate the cooperation of all parties, task
organisation should be done structurally, that is through the use of a clear
model to evaluate problems should they arise. In the structural organisation,
each member of the staff is given details of his or her responsibilities through
a specific flowchart.
Besides that, it is also through this system that tasks are distributed according
to unit or departmental functions. The existence of different departments
requires a systematic delegation of task. Let us look at Figure 1.7 which
shows you an example of an organisational chart.

Figure 1.7: An example of an organisational chart
(c) Staff Placement

Besides creating the structure of organisation, a media manager is also
responsible for recruiting new staff and executives, as well as providing
training for them.
What is staffing? David (2011) regards staffing as a management function

that includes activities such as recruiting, interviewing, evaluating,
rewarding and dismissing employees. Until recently, the number of
graduates in the field of media and communications study has been
increasing and this has provided an opportunity for stations to get new and
a highly qualified workforce. However, some inexperienced graduates may
not be prepared to accept work requiring technical and conceptual expertise.
Therefore, a media manager must think of new ways of recruiting staff, that
is, either by searching for new talented staff or by advertising the job as a
high-paying job. For instance, Hitz.fm in Malaysia sponsored nationwide
voice tests in order to get talented and interested news readers.
The job of a media manager is not only limited to recruiting and providing
training to the staff but also to motivate and influence them to accomplish
specific objectives (David, 2011). When new recruits join the company, they
need to be provided with clear roles and responsibilities as well as
expectations from the management for them to perform well.

(d) Controlling
What is controlling? Controlling is a function in which the management
undertake those activities in the previous functions to make sure the actual
operations conform to the planned operations (David, 2011).
Organisational control is a communications function. In this case, the

management should explain the corporate goals to the staff and determine
how organisational goals may be achieved. This function includes the
following tasks:
(i) Specifying organisational standards, that is, in quantitative and
qualitative terms. For example, in television broadcasting landscape
currently participated by various stations, standards include
advertising income, audience access and outreach;
(ii) Informing, explaining and disseminating information regarding
standards widely depend on organisational facilities and formats;
(iii) Measuring performance with standards through several modes of
feedback (formally and informally); and
(iv) Correcting any diversion or any action which is not consistent with
organisational vision.
To fulfil controlling responsibility, management should explain the

corporate vision and stationÊs vision to all levels of the organisation. This
process is essential in ensuring that the staff understands the stationÊs
expectation and needs.
(e) Innovation
Telecommunications is a field which is generally exposed to innovation. The
creation of new equipment is not only aimed at replacing the functions of old
equipment, but also to upgrade them. Innovation may happen either by
involving internal or external aspects. This element is essential for the
development of the station and the management must follow this
development and quickly accept or adapt to any technological innovation
which is important for the organisation.
The ability to innovate as well as encourage the culture of innovation is an

essential element for the survival of the broadcasting organisation competing
in a fast moving industry. Innovation could be as big as introducing a
technology breakthrough or as small as improvising the current products
and services. For example, many broadcasting companies such as Astro have
ventured into mobile business by offering their mobile application versions.
Astro GO is one example of such innovation (Figure 1.8).

Figure 1.8: Astro GO mobile application

ACTIVITY 1.3
1. You might have heard of and/or watched the programme
Pengacara Jemputan Nona on TV3. This is an example of an
effort by the top management of a television station in trying to
get new faces to handle programmes produced by the station.
Can you think of any other ways which the television stations
can use for the purpose of searching for new talents?
2. Most organisations do not measure and compare individual

performance as managers believe it would create confrontations
among staff. They prefer to avoid these confrontations and this
is the common lack of skills among managers. In your view,
what are the best methods managers can pursue in conducting
individual performance review?
1.5 TELECOMMUNICATIONS MANAGEMENT

ROLES
In telecommunications management, a chief executive officer (CEO) plays three
main roles in developing the organisation. His or her roles are depicted in
Figure 1.9.
Figure 1.9: Three roles of the chief executive officer (CEO)

As for Table 1.6, it shows you the roles of telecommunications management.
Table 1.6: The Roles of Telecommunications Management
Interpersonal Information Decision-Making
 Leader  Information  Change agent

 Responsibility to manage disseminator  Delegator
structure and functions  Monitor  Decision-maker
 Figurehead  Spokesperson
 Special tasks
 Communicator/mediator
 Horizontal/vertical
communication
These three roles are further explained in the next subtopics.
1.5.1 Interpersonal
From the interpersonal aspect, the chief executive officer acts as the organisational
leader. He or she is responsible to ensure the smooth management with respect to
structure and functions. In certain situations, the organisational leader is seen as
the carrier of organisational image. Normally, situations arise when they perform
tasks outside the organisation.
Besides that, a leader is also a mediator or communicator of communication

networks both horizontally or vertically inside or outside the organisation.
The tasks of a manager relating to interpersonal aspects are as follows:
(a) Leader
A manager is responsible to lead his or her organisation. He or she must
create good relationships with subordinates or workers and effectively
communicate with all staff and workers in the organisation. A manager and
organisational leader must ensure that the organisational functions and
efforts of the entire staff are always heading in the right direction.
(b) Figurehead
A manager is regarded as a chief executive who carries out official
responsibilities for the organisation, whether the tasks have legal or social
implications.

Therefore, he or she will always be seen as a representative of the

organisation in official functions. For example, the general manager of ABC
Network will represent his or her organisation in celebrating the sultanÊs
birthday in his or her state; the chief engineer of station XYZ will represent
his or her organisation in a regional telecommunications conference and a
marketing manager will play his or her role in entertaining a potential
customer for the organisation.
(c) Liaison
A manager is regarded as a communication channel for the organisation.
As a communicator between telecommunications organisations, he or she
plays an important role to maintain network relationship and provide
assistance and information to certain parties outside the organisation.
1.5.2 Information
Did you know that one of the important aspects of responsibilities handed to the
manager of a media and telecommunications organisation is the responsibility
related to the process of acquiring, collating and presenting information?
In this role, the manager needs to present information to the audience both within
and outside the organisation. In this case, his or her role is divided into three parts,
as explained in Table 1.7.
Table 1.7: Three Roles of a Manager Regarding Information
Role Task
Monitor A manager has to monitor and examine his or her communication

environment to identify if there is anything that may benefit the
organisation and its staff. To carry out the function successfully, the
manager normally subscribes to published materials relevant to his
or her area and becomes a member of an organisation or association
which is active in his or her field of specialisation or skill.
Disseminator After getting important and meaningful information from internal

or distributor and external sources, the manager presents the information in a
meeting or a formal or an informal gathering, through a memo or
letter, notice board or bulletin board, online and so on.
Spokesperson Consistent with his or her role as an information disseminator, the

manager is a spokesman for the organisation in an internal or
external function or as a writer preparing and delivering the contents
of statements, speech text or an editorial for the organisationÊs
official newsletter.

1.5.3 Decision-making
Generally, a media manager has a big responsibility as a decision-maker.
In managing this function, he or she is responsible to think and decide on the
following (see Figure 1.10).
Figure 1.10: Questions to be considered by a manager in making decisions
The examples are as follows:

(a) The manager of a radio station A needs to think of the stationÊs format, what
kind of music is to be aired, which DJ should be assigned, what is the total
cost for a 30-second spot advertisement and so on.
(b) The manager of a cable TV station X needs to decide what kind of
programme his or her station should provide, how to charge the service cost
and also how to market the services nationwide.
If a conflict arises among the staff, the manager acts as a judge to ensure the conflict
is addressed in the best possible manner without causing dissatisfaction among
the parties involved.
Besides that, there may also be a conflict occurring outside the organisation, which
needs to be handled by the manager. For example, a problem with a shareholder
who is not satisfied with the broadcasting station.

Principally, the decision-making tasks of a manager are (see Table 1.8).
Table 1.8: The Decision-making Tasks of a Manager
Task Description
Allocator The manager divides the allocation of funds, time, equipment or

labour force to units, divisions or branches in the organisation. He
or she should be seen as wise in creating and encouraging
innovation so that the organisation always maximises the potential
of its staff.
Adjudicator The manager has to study and solve conflicts or disputes. He or she
must think of preventive measures besides preparing to face the
possibility of the occurrence of any difficult or tense situation.
Negotiator An organisational leader is regarded as a man who will come

forward to negotiate matters relating to the organisation either
formally or informally, on technical issues, administrative matters,
trade union matters, either internally or externally.
For example:
The former CEO of Media Prima TV network, Datuk Ahmad Farid Ridzuan is one
example of a credible manager. While carrying out his duties in the organisation,
not in view of the public, he would create good rapport with his staff from all
levels. For instance, when TV3 was busy touring the nation with the Sure Heboh
programme, Datuk Farid was always seen together with his production crew.
At that time, he was the symbol for TV3Ês corporate image.
SELF-CHECK 1.4
Explain three main roles of a chief executive officer.
1.6 TYPES OF MANAGEMENT OCCUPATIONS

Did you know that there are two types of management occupations? They are
vertical and horizontal. What is the difference between them?
Vertical dimension refers to the hierarchical management levels as shown in

Figure 1.11.

Figure 1.11: Vertical management structure
Meanwhile, the horizontal dimension refers to functional areas or managerial

responsibilities as shown in Figure 1.12.
Figure 1.12: Horizontal dimension hierarchy

Now, let us look at the tasks and responsibilities of a manager in the horizontal
dimension as explained in Table 1.9.
Table 1.9: Tasks and Responsibilities of a

Functional Manager, General Manager and Project Manager
Task Responsibility
Functional manager This is a manager in a specific area or aspect in the

organisation. This function includes supervision of
individuals with special expertise such as human resource
manager, marketing manager, financial manager, accounting
manager, engineering manager, production or operations
manager, quality manager and others.
General manager Responsible for the whole organisation or one particularly

large sub-unit, covering many specialised fields.
Project manager Coordinate efforts involving individuals in several different

organisational units but are involved in a particular project.
ACTIVITY 1.4
Read and summarise a biography of a well-known CEO of a media

company that you know. Provide examples of all the leadership
aspects you have previously learned to reflect his or her leadership
qualitites. Share your findings with your coursemates in the
myINSPIRE forum.

1.7 TELECOMMUNICATIONS AND

LEADERSHIP
Before we end this topic, let us have a discussion on telecommunications and
leadership. Firstly, let us read a quotation about leadership in Figure 1.13.
Figure 1.13: A quotation about leadership

Source: Burns (1978)
In this quotation, Burns (1978) regards a leader as someone who holds the power
centre. According to him, power is divided into two parts:
(a) Power of management or implementation; and
(b) Power to manage change or transformation.
Power of the first type takes place when a leader takes the initiative to create a
relationship with another person in order to exchange something of value.
The power to manage occurs when a person (or several persons) interacts with
another (or several persons) such that the leaders and their followers improve
themselves in terms of motivation and morale.
In any telecommunications organisation (including broadcasting), the

management plays an important role in determining the direction of the
organisational achievement in the market. The management is normally assisted
directly or indirectly by groups of researchers, market analysts, lawyers,
accountants and others. Thus, in this course, the focus is on the roles of the media
and communications managers, especially in telecommunications. This is because
a leader determines the rise and fall of an organisation.
ACTIVITY 1.5
After studying this topic, draw a mind map to illustrate
telecommunications management. Share this with your coursemates in
the myINSPIRE forum.
• Telecommunications refers to the science and technology of communications,

which channel or transmit signals electronically through communications
satellite cables, telephones, telegraphy, radios or televisions.
 Broadcasting is the dissemination of audio or video content to a dispersed

audience through any electronic mass communications means, but most
commonly one using the electromagnetic spectrum (radio waves), in a one-to-
many model.
 Management is defined as the task of managing, training, governing, directing

and influencing other people.
 Telecommunications management refers to the ability to supervise, motivate

and handle equipment with low expenses.
 The three main focus in the management study approach are functional
discipline, human achievement and management science.
 The three components of telecommunications management are skills,

functions and roles.
 In telecommunications management, a chief executive officer (CEO) plays

three main roles in developing the organisation namely delivering and
disseminating information, interpersonal and decision-maker.
 There are two types of management occupations namely vertical dimension

and horizontal dimension.
 In any telecommunications organisation (including broadcasting), the

management plays an important role in determining the direction of the
organisational achievement in the market.

Broadcasting Planning
Functions Roles
Functional discipline Skills
Horizontal Telecommunications
Human achievement Telecommunications management
Management Vertical
Management science
Bartol, K. M., & Martin, D. C. (1991). Management. New York, NY: McGraw-Hill.
Burns, J. M. (1978). Leadership. New York, NY: Harper & Row.
David, F. R. (2011). Strategic management: Concepts and cases (13th ed.). Upper
Saddle River, NJ: Pearson.
Foster, E. S. (1978). Understanding broadcasting. Boston, MA: Addison-Wesley.

planning strategies. Mahwah, NJ: Lawrence Erlbaum.
Sherman, B. L. (1994). Telecommunications management: Broadcasting cable and

Thompson, J. (1999). The media and modernity. In H. Mackay & T. OÊSullivan

(Eds.), The media reader: Continuity and transformation (pp. 12–27).
London, England: Sage.

Topic Telecommunications
Management
2 Theories
LEARNING OUTCOMES
1. Describe the development of management theories;
2. Identify four management perspectives and their approaches; and
3. Discuss the telecommunications management model.
 INTRODUCTION
In Topic 1, we have been exposed to several explanations on telecommunications,
broadcasting and management. Now in this topic, we will focus specifically on
management and its theories.
Why must we understand management theories? One of the reasons is that

management theories allow us to know what is relevant in the context of
organisational management. Management theories also enable us to understand
workersÊ relations, managers, employers and environments in the current
situation and in the future. In addition, this topic will focus on the
telecommunications environment in particular.
We will learn several management approaches and perspectives so that we may

apply or identify any approach or perspective which is most appropriate to be
implemented in a telecommunications organisation.
Last but not least, management theories help to make an organisation more
efficient, effective and viable in a complex, challenging and changing environment.
Let us continue with the lesson.
30  TOPIC 2 TELECOMMUNICATIONS MANAGEMENT THEORIES
2.1 DEVELOPMENT OF MANAGEMENT

THEORIES
The management theories which we are going to learn are the past ideas proposed
by several management figures that often observed, tried, tested, approached and
applied their theories in their respective era and environment.
Early efforts on formal management theories began in the early 19th century
especially by Robert Owen (1771–1858) and Charles Babbage (1792–1871). Owen is
noted for his innovative ideas on human relations (see Figure 2.1).
Figure 2.1: Robert Owen
As for Babbage, he is known for his research on operations, profit-sharing plan

and job specialisation (see Figure 2.2).
Figure 2.2: Charles Babbage

TOPIC 2 TELECOMMUNICATIONS MANAGEMENT THEORIES  31
In the West, Owen and Babbage are known as the pre-classical figures (Bartol &
Martin, 1998) in management strategy.
Besides Owen and Babbage, there are two more figures noted as early experts of
management strategy namely:
(a) Machiavelli – An early political philosopher during the Renaissance era; and
(b) Sun Tzu – An ancient Chinese philosopher from more than 2,000 years ago
(see Figure 2.3).
Figure 2.3: Sun Tzu is one of the foremost Chinese philosophers

Source: www.taiuchi.org/aussi_texte23.htm

The 20th century, saw the emergence of several management approaches, each one
taking into account changes in era and requirements considered relevant to that
time. Let us look at Figure 2.4 which shows you the development of management
theories since the 1900Ês.
Figure 2.4: Development of management theories since the 1900Ês

Take note that in this module, we will take into account four 20th century
management perspectives as shown in Figure 2.5.
Figure 2.5: Four 20th century management perspectives
Each of the four management perspectives is heralded by several management

figures. Each of them has a special rationale as to why they used different
management approaches. Let us look at Table 2.1 which provides a brief
explanation for each of the management perspectives.

Table 2.1: Four Management Perspectives
Management
Perspective Focus Figure(s)
Type
Classical (focus on Bureaucratic  Aims at improving  Max Weber

management effectiveness of
efficiency) management in
organisations.
 Emphasising
management
rationality and not
acting arbitrarily.
 Relying on
guidelines of
procedures, rules,
hierarchy and
division of labour
is clear and
detailed.
Problems: Rigid
procedures create red
tape, delay decisions,
organisation unable to
change fast enough to
adapt to requirements
of the environment and
sometimes imbalance
exists.
Scientific  Aims at getting the  Frederick

best work Winslow Taylor
methods.  Frank Gilbreth
Problems: Lack of
 Lillian Gilbreth
labour force and ways
of improving workersÊ  Henry Gantt
performance.
Administrative  Information flow is  Henri Fayol

essential because  Chester Barnard
organisation is a
system of
communications.

Management
Type
Behavioural Human  Organisational  Mary Parker

relations behaviour; making Follett
decisions in  Herbert Simon
organisation.
 Abraham
 Management Maslow
models.
 Douglas
 Hierarchy of needs McGregor
theory.
 Renesis Likert
 Theory X and
Theory Y.  Frederick
Herzberg
 David C.
McClelland
Quantitative Management  Using scientific  H. Dodge

science management  Ronald Fisher
approach such as
mathematical  Russell Ackoff
methods, statistical  Thornton C. Fry
methods and other
analytical methods
to make
management
decisions.
 Capital asset
pricing model
(CAPM).
Operations  Using scientific  Patrick Blackett

management approach such as
combination of
statistics and
metronomic theory
to manage
organisational
operations system.

Management
Type
Management  Integrating Not identifiable

information computer system
system (MIS) (hardware,
software, network
and recording
media) in
organisational
management to
assist decision-
making process
and organisational
competitive
strategy.
Contemporary Contemporary  American  W. Edward

management management, that Deming
is, productivity
improvement.
Management by  MBO concept, that  Peter Drucker

objectives is, management
(MBO) strategic decisions
are developed
through
interactions and
cooperation of
management and
staff.
 Federal
decentralisation
concepts.

Management
Type
Systems  To synthesise and  Ludwig von

approach integrate various Bertalanffy
management  Frement E. Kast
approaches as and James E.
coherent and Rosenzweig
cohesive
management  W. Richard Scott
theory.
 All organisational
components are
inter-related and
interact with the
environment.
 Organisations are
open systems.
Contingency  Focusing main  Alfred D.

approach attention on Chandler
performance of  Paul R.
each person and Lawrence
practising and Jay W.
management in Lorsch
controlling
organisational
environment.
 Viewing conflict as
inevitable but
manageable.
Japanese  Combination of  William Ouchi

approach teamwork and
individual efforts.
 Theory Z.

Did you know that management science which applies quantitative perspective is
also known as operational research (OR) which is multidisciplinary? In the business
world, management science is equivalent to quantitative management (QM),
management science (MS), decision science (DS) or operations management (OM).
However, in the 21st century, management perspectives can no longer be easily

categorised as in Table 2.1 due to the tendency to apply various management
approaches (old and new) simultaneously.
Our next discussion will focus more on these four management perspectives.
ACTIVITY 2.1
1. „SapuraÊs driving entrepreneurial spirit has always relied on the
teamwork and commitment of its employees to propel to the
forefront of technology. Taking its rightful place on the world stage
amongst the other leaders in technology, we at Sapura understand
that our technology is as good as the imagination – that the mind
is the ultimate tool. A tool that unlocks the floodgates of
innovation. This is the world of Sapura. A world that combines
technology and imagination, making anything possible.‰
These words were extracted from one of Sapura Holdings
publication in 1997. From the extract, can you identify the
management approach practiced by Sapura Holdings in that year?
2. To what extent can management theories help us in understanding

the management policy of a telecommunications organisation in
Malaysia? Discuss this matter in the myINSPIRE forum.
SELF-CHECK 2.1
According to management theorists, management perspectives are

divided into four perspectives. Name these four perspectives. Give an
example of an organisation in Malaysia for each perspective.

2.2 CLASSICAL PERSPECTIVE

The classical perspective (1890s–1920s) focuses on a rational and scientific
approach to management study. The main objective is to make the organisation an
efficient machine. There are three types of approaches in classical perspective as
shown in Figure 2.6.
Figure 2.6: Three approaches in the classical perspective
These three approaches will be explained further in the next subtopics.
2.2.1 Scientific Management

Scientific management is applied in the era of P-Economy and emphasises
productivity. What is the main focus of this approach? The main focus is on the
interaction between workers and machines. At the same time, the focus is on
efforts to improve organisational productivity through efficient work methods
and job specification for each worker.
However, there was only one problem with this approach which was lack of labour
force, especially skilled labour.
Among the foremost scientific management figures are Frederick W. Taylor, Frank
Gilbreth and Lillian Gilbreth, as well as Henry Gantt. Frederick Taylor (1856–1915)
was an American engineer and he is known as the father of scientific management.
How could an engineer be involved in organisational management aspects?

To further understand TaylorÊs situation at the time, you can read the book entitled
Management by K. M. Bartol & D. C. Martin (1998). Let us read a short extract
about Taylor from the book (see Figure 2.7).

Figure 2.7: A short extract on Frederick Taylor

Source: Bartol & Martin (1998)
Taylor carried out a „time-and-motion study‰ to identify productivity problems at

the workplace. Then, he implemented a differential rate system and tried to
revolutionise work management to resolve workersÊ and management problems.
Now, let us look at four principles of scientific management outlined by Taylor

(see Figure 2.8).
Figure 2.8: Four principles of scientific management

The scientific work management was successful in producing products much

faster than expected by Taylor.
However, workers and trade unions disagreed with the approach, as they were
worried that production efficiency would exhaust workers doing the jobs to be
done and thereby they would be discharged.
As a result, many workers joined the trade unions, reinforced their doubts and lost
their trust on management, which consequently worsened management-labour
relations for several decades. Henry Gantt (1861–1919) used to work with Taylor,
but later reiterated that the differential rate system was not so successful in
generating a high level of motivation among workers.
Consequently, Gantt introduced a new system called financial incentive system

for high performing workers and a bonus for supervisors who were able to
produce a high production level among workers. His way of awarding the rewards
was to record each workerÊs progress and then announce to the public using what
is called the Gantt chart, which is a graphic aid for project planning, scheduling
and controlling.
Last but not least, Frank B. Gilbreth (1868–1924) and Lillian M. Gilbreth (1878–1972)
were a husband-and-wife team who first made the effort to develop scientific
management methods. Frank and Lillian Gilbreth carried out fatigue-and-motion
studies to eliminate the rate of fatigue in the workplace. Their attention was on the
ways of improving welfare and morale of workers. By using film cameras, Frank
and Lillian looked for the most economic movement to improve work performance
and thereby reduce fatigue, because in their conception, movement and fatigue were
inter-related. Based on study findings, they proposed that movements should be
reduced to eliminate fatigue while working.
2.2.2 Bureaucratic Management

Bureaucratic management can be attributed to Max Weber (1864–1920), a German
sociology professor and political economist (see Figure 2.9). In fact, he was given
the title of the father of modern sociology.

Figure 2.9: Max Weber

Source: webserv.nhl.nl
In the aspect of organisational management, Weber stated that bureaucracy is the

most rational and logical structure for large organisations. As for in the context of
time and era, the bureaucratic concept presented by Weber has a different
implication compared with the negative connotation related to the current
bureaucracy. In addition, WeberÊs bureaucratic management model was able to
further develop large organisations such as Ford Motor Company in the early 20th
century.
Weber identified three types of authority and they are:

(a) Rational authority (based on laws, procedures and rules);
(b) Top executives authority; and
(c) Charismatic authority (possessing natural attributes able to inspire the
devotion and respect of others to him or her).
Now, let us look at bureaucratic management criteria. There are several criteria
identified by Weber to ensure an effective administration namely:
(a) Clear roles of authority and leadership responsibilities in management;
(b) Executives or managers are free to act and they are only subject to
organisational rules and laws;
(c) Promotions should be based on expertise, efficiency and seniority, not on
cronyism and nepotism;
(d) Clear division of labour, that is according to job specification;

(e) Executives are subject to strict discipline and display control in carrying out
their duties;
(f) All administrative actions and decisions must be recorded;
(g) Written rules and procedures are equally applied to all individuals; and
(h) Separate the owners and management.
However, the weakness of the bureaucratic model is that it is not flexible in terms
of procedures and rules that must be obeyed, because it ignores the social and
human processes in an organisation.
2.2.3 Administrative Management

What is the focus of administrative management perspective? Administrative
management focuses on internal affairs and activities of organisation. The pioneer
of administrative theory is Henri Fayol (1841–1925) who came from France. He
emphasised organisational principles and administrative functions, which he
defined as follows (Bartol & Martin, 1998):
Administration or management is planning, organising, commanding,

coordinating and controlling.
There are 14 management principles suggested by Fayol. Let us look at Table 2.2
which explains all of FayolÊs management principles.
Table 2.2: Fourteen Management Principles by Fayol
Principle Description
Division of labour According to job specialisations.
Authority The right to give directions and power to be obeyed.
Discipline Based on respect and conformity.
Unity of command A worker receives command from a leader only.
Unity of directing A leader makes a plan for a group activity with a

common objective.
Subordination of individual Placing public interest above individualÊs interest.

interest

Remuneration Wage payments depend on many factors.
Centralisation Depends on situation and formal communications

channels.
Chain of authority Formal communications channels.
Order A resource is available in the right place at the right time.
Equity Staff is treated well and fairly.
Personnel tenure It requires good human resource planning to avoid high

turnover among workers.
Initiative Workers are expected to work hard and sincerely.
Esprit de corps Unity yields strength, harmony and teamwork.
You may find it difficult to memorise all the 14 principles. Do not worry, Figure 2.10
may help you to memorise them.
Figure 2.10: FayolÊs 14 principles of management

However, in the 1990s, rapid competition in the world market caused several
organisations to change from the bureaucratic approach which was regarded as
slow and inflexible to a more dynamic approach.
ACTIVITY 2.2
1. Give three distinct differences between scientific management,
bureaucratic management and administrative management
approaches.
2. Name one figure for a management approach you have learnt

under the classical perspective.
Post your answer in the myINSPIRE forum.
SELF-CHECK 2.2
State the 14 management principles by Fayol.
2.3 BEHAVIOURAL PERSPECTIVE

Now, let us move on to behavioural perspective. Behavioural perspective
(beginning in the 1920s) is a management perspective which emphasises on the
importance of management understanding of various factors that influence
human behaviour in an organisation.
Did you know that there are three approaches that use the behavioural
perspective? Let us look at Figure 2.11 for the answer.
Figure 2.11: Behavioural perspective

The proponents for behavioural perspective are Mary Parker Follet and Chester
Barnard. These two people are the main founders of management from the
perspective of human behaviour. They emphasised human behaviour, workersÊ
needs, workersÊ attitudes in the workplace, climate, social interaction and
group dynamics.
Mary Parker Follet (1868–1933) was a philosopher and political scientist (see
Figure 2.12).
Figure 2.12: Mary Parker Follet

Source: www./infed.org
She stressed the importance of human issues, ethics, power and good relations
between management and workers, including the effects of environmental factors
such as politics, economics and biology. She put forward the integration concept,
that is, a management strategy seeking to settle conflict by satisfying both parties.
The second figure, Chester I. Barnard, (1886–1961) shown in Figure 2.13,

introduced the theory of acceptance of authority, that is, a worker may choose to
follow or not to follow a direction from the management.

Figure 2.13: Chester I. Barnard
According to him, managers should treat their workers well, as the acceptance of
authority by workers is the main determinant of organisational success. In his book
entitled The Functions of Executives (1938), Barnard discussed three universal
elements that must be available in organisational management:
(a) Communications;
(b) Readiness to serve; and
(c) Common goals.
2.3.1 Human Relations Movement

What does human relations mean?
Human relations refers to how managers interact with their subordinate staff.
If the management is able to attract workers to produce better output of work, then
the management is said to have effective human relations.
Human relations movement developed to a wider extent due to several series of

studies known as the Hawthorne studies. Fritz J. Roethlisberge and W. J. Dickson
(1939), who were sociologists from Harvard University, carried out three series of
experiments at Western Electric Company, in Hawthorne and Chicago between the
years 1924 and 1933. The aim of the study was to study the relationship between
physical conditions (lighting) and productivity and workersÊ satisfaction.
Study results show that productivity kept on improving as lighting at the

workplace become brighter. What is surprising is that productivity kept on
increasing although the light was then made dimmer. Researchers concluded that
productivity increased because workers got good treatment and received special
attention of the researchers, not because of the specific factors being studied. This
phenomenon is known as the Hawthorne effect (Rubin & Babbie, 2001).
2.3.2 Human Resource

The main activists of this movement combined job design with motivation theory.
Among the figures linked to this approach were Abraham Maslow and Douglas
McGregor.
Abraham Maslow (1908–1970) was the first psychologist to formulate a motivation

theory based on human needs (see Figure 2.14).
Figure 2.14: Abraham Maslow
He made three assumptions, that is:

(a) Human beings will never be fully satisfied;
(b) Human beings behave based on certain aims to be achieved; and
(c) Human needs are classified into a hierarchical structure in accordance with
importance, that is, from the lowest to highest level.

Let us look at Figure 2.15 which shows you the MaslowÊs hierarchy of needs.
Figure 2.15: MaslowÊs hierarchy of needs

Source: http://web.utk.edu/~gwynne/maslow.htm
These needs are further explained in Table 2.3.
Table 2.3: Five Hierarchy of Needs by Maslow
Need Description
Physiological Basic needs such as water, air, food, sleep and sex. When these basic
needs are not fulfilled, human beings will feel pain, angry,
uncomfortable and so on. After they are fulfilled, human beings will
think of fulfilling other needs.
Security Psychological needs which are fulfilled due to home stability,

harmonious feelings, peace and security of living place.
Social The need to belong and be accepted as a club member, member of

a work team, family and so on.
Esteem Involves two needs: the need to be appreciated and recognised after
completing a job; and the need to be known and given attention.

Self-actualisation Aspiration to fulfil oneÊs potentials. A person who has achieved his
needs at levels 1 to 4, wishes to maximise his or her potential by
seeking knowledge, aesthetical experiences, spiritual peace and
involvement in voluntary works and so on.
Now, let us move on to Douglas McGregor (1906–1964) (see Figure 2.16).
Figure 2.16: Douglas McGregor
McGregor was a United States social psychologist who was related to the human
relations approach. He is well known for his Theory X and Theory Y which
describe human behaviour as a result of organisational management styles. Let us
look at Table 2.4 for Theory X characteristics and the differences with Theory Y.
Table 2.4: Theory X versus Theory Y Approach
Theory X Theory Y
 Managing staff using force or threat,  Based on ultimate concept of

imposing barriers, penalty or job authority.
termination.  Corporate objectives and ways of
 An influential management style at achieving them transpire from top
the beginning of the Industrial executive thoughts and visions.
Revolution.  ManagersÊ goals are to create work
 Good work is paid off by wage environment where staffÊs personal
increases, while bad work will be goals are consistent with
followed with delayed promotion and organisational goals.
pay rise, even dismissal.  Related to humans and their needs
approach.

 Loss of energy, morale and incentive  Managers try to influence

to work diligently due to fatigue (high subordinates with best motivatorÊs
burnout rates). Close relation between assumptions by involving satisfaction
newly emerging media transaction in terms of basic human physical and
and the military (strong fortress for psychological needs – status, sense of
Theory X) satellite and other respect, recognised and appreciated.
telecommunications companies also  Rewards are not in financial terms,
have long ties with defence contracts. but may be in emotional and spiritual
Many first generation managers learnt forms.
about radio, television, films while in
the military service.  Management is rather loose and
informal. Staff are encouraged to be
 Handling broadcasting or cable creative, motivated and not
system requires fast and immediate structured to produce new products
decision-making. Media managers and services.
need to make a lot of decisions daily
and immediately and they are
pressured by time factor (Theory X
approach was deemed to be best
suited for telecommunications/
media/broadcasting functions).
Generally, McGregor sees two types of managers, as follows:
(a) Theory X type of managers who believe workers must always be forced,
controlled, directed and threatened with punishment so that they may not
ignore their responsibilities; and
(b) Theory Y managers who are of the opinion that human beings may show
their commitment to work objectives, while the commitment is a function of
rewards. In general, a worker will accept and look for responsibilities. In
Theory Y management, imagination and creativity is widely distributed, but
workersÊ potentials are not utilised fully.
The practices of Theory X may be easily found in organisations practicing scientific

management, especially in the 1950Ês.
However, the principles of Theory X and Theory Y are still being used in the
management of several organisations today.

2.3.3 Behavioural Science

This approach highlights human behavioural theories based on scientific methods
and learning based on the fields of sociology, psychology, anthropology,
economics and other disciplines to understand workersÊ behaviour and interaction
in organisations. Among the researchers related to behavioural science are Renesis
Likert (1903–1981) (see Figure 2.17) and Frederick Herzberg.
Figure 2.17: Renesis Likert
Likert is more inclined to support organisational leadership concepts which pay

attention to workersÊ welfare and the process of interpersonal communications in
bureaucratic organisations. In his conceptual framework, Likert identified four
types of management (see Figure 2.18).
Figure 2.18: Four types of management system

Source: http://www.ibilce.unesp.br/courseware/research/theories3.htm

The four systems shown in Figure 2.18 would result in different effects. System 1
is related to exploitative and authoritative; autocratic leader; who discourages
feedback. While System 2 is more benevolent but authoritative; the manager is
more sensitive than in System 1. System 3 is changing to be consultative and
involves discussion with workers. Lastly, System 4 expects to be participative,
where management involves workers in decision-making.
According to Likert, System 4 is the most effective, because it is able to generate

a high level of performance, sense of responsibility and motivation among the
workers of the organisation as compared to System 1, which may result in
reduced group loyalty. In fact, System 1 may even generate more conflicts and
reduced productivity.
ACTIVITY 2.3
Discuss in the myINSPIRE forum on what is meant by each of the

following concepts.
(a) Acceptance of authority (f) Theory Y manager

(b) Theory X manager (g) Benevolent system
(c) Consultative system (h) Work-centred leader
(d) Participative system (i) Hierarchy of needs
(e) Hawthorne effect (j) Exploitative system
2.4 QUANTITATIVE PERSPECTIVE

Did you know that quantitative perspective emerged in the early 1940s during the
Second World War? It focused on the use of mathematics, statistics and
information support devices to support management in making decisions and
thinking of the strategy on how to make the organisation more effective.
At the beginning, this perspective was used by the British Army for the purpose
of handling ships and bombs. Figure 2.19 depicts the quantitative perspective
approach (Bartol & Martin, 1998).

Figure 2.19: Three approaches of quantitative perspective
These three approaches are further explained in the following subtopics.
2.4.1 Management Science

The management science approach aims at solving problems arising from the
consequences of the Second World War. For example, it helped solve the problem
on how to move equipment and people quickly and efficiently. This approach was
made by the efforts of mathematicians, physicists and other scientists to be applied
to large firms.

2.4.2 Operations Management

The field of operations management is focused on the physical production of
products and services. The aim is to solve manufacturing problems. The
commonly used methods are:
(a) Forecasting;
(b) Inventory modelling;
(c) Linear and non-linear programming;
(d) Queuing theory;
(e) Scheduling;
(f) Simulation; and
(g) Break-even analysis.
2.4.3 Management Information System (MIS)

The pioneers of the management information system (MIS) created the system to
provide relevant information to managers at appropriate time and costs. In
addition, the creation of high speed digital computers had made a big contribution
to management in terms of decision-making process.
SELF-CHECK 2.3
What are the three management approaches according to quantitative

perspective? Give an example of a telecommunications organisation
using this approach in Malaysia, if any.

2.5 CONTEMPORARY PERSPECTIVE

Contemporary perspective emerged during the 1950s to 2000. Let us look at
Figure 2.20 that shows you the contemporary perspective approach.
Figure 2.20: Five approaches in contemporary perspective
These five approaches are further explained in the following subtopics.

2.5.1 Contemporary Management

One contemporary management figure is W. Edwards Deming (1900–1994) (see
Figure 2.21).
Figure 2.21: W. Edwards Deming
He was an American statistics expert and the pioneer of quality movement. Japan
herself regards Deming as the main influence behind her post-war economic
miracle. One of his well-known books is Out of the Crisis (1984).
There are several management criteria as outlined by Deming, and they are:
(a) Creating the commitment to continuously improve product and service
quality;
(b) Using new philosophy created by the Japanese;
(c) Terminating reliance on group inspection;
(d) Stopping awarding of contracts based on lowest price;
(e) Always improving the process of planning, production and service;
(f) Using modern methods for in-service training;
(g) Electing leaders with intention of helping others to produce improved work;
(h) Eliminating fear and encouraging effective two-way communications;
(i) Eliminating barriers between areas of departments and staff;

(j) Throwing away notices/memos/reminders for workforce because they will

only bring in resistance;
(k) Encouraging a sense of pride with work output;
(l) Encouraging lifetime learning and self-improvement for all levels of
employees; and
(m) Outlining top management commitment to implement all of these principles.
One more contemporary management figure is Peter F. Drucker (1909–2005),

a well-known American management guru (see Figure 2.22).
Figure 2.22: Peter F. Drucker
He was born in Vienna, Austria in 1909. He believes that a person cannot manage
change but can always stay one step ahead. Among his principles are:
(a) Apply scientific management;
(b) The key to productivity and effectiveness is decentralisation;
(c) Give emphasis to quality personnel management;
(d) Training, educating and developing future managers;
(e) The key to successful decision-making is high quality information;
(f) Emphasise marketing;
(g) Make long-term planning;
(h) Apply management by objective;

(i) Apply management based on results;

(j) Profit-based organisation is seen as a social and human structure, not as an
economic entity;
(k) In the new information era, focus should be on information, not on
technology; and
(l) Information workers are capital assets, not costs, but information workers
must manage themselves and their own careers.
2.5.2 Management by Objectives (MBO)

Now, let us move on to management by objectives (MBO). Did you know that this
approach is used by several organisations to facilitate efforts in fulfilling
organisational goals and planning by managing several objectives? MBO is used
to involve both management and workers at lower levels in order to set goals at
various layers of the organisation.
The person who introduced MBO was Peter Drucker. According to Bartol and
Martin (1998), the first organisation to apply MBO was General Electric, US.
The MBO process involves six steps (Bartol & Martin, 1998) as shown in Figure 2.23.
Figure 2.23: Six steps of MBO
As in other approaches, MBO also has advantages and weaknesses. The MBO
approach can fail because of the following reasons:
(a) Lack of support from the top management;
(b) Weak formulations of objectives or goals; and
(c) Poor communications skills among managers who have to implement the
system.

2.5.3 System Approach

System theory was first proposed by Ludwig von Bertalanffy in 1928 but it was
never applied by any organisation till today. The system approach looks at an
organisation as a unified system and it has a purpose, as well as inter-related
divisions. This means, an activity in one segment may affect the others.
There are several characteristics of system approach which affect management

(see Table 2.5).
Table 2.5: Five Characteristics of System Approach
Characteristic Description
Open system A system which continues to interact with the environment.
Closed system A system which does not interact with the environment.
Entropy A tendency for a system to die off (eliminated).
Differentiation A tendency for an open system to be more complex.
Synergy The ability of an organisation to achieve a higher level of success

if it functions/becomes active as a stable team and not as
separate groups.
Did you know that there are five components in a system approach? These are
explained in Table 2.6.
Table 2.6: Five Components in a System Approach
Component Description
Input Equipment, human beings, finance or information resource

which are used to produce products or services.
Transformation process Use of production technology to transform input into

output.
Output Goods, services or other types of output.
Feedback Information about results and organisational status.
Environment Including social, political and economic influences.

2.5.4 Contingency Theory

Did you know that the contingency approach is also known as a situational
approach? This approach was developed by managers, consultants and
researchers who sought to apply concepts of several main approaches in managing
the actual situations.
In this approach, the functions of managers are to identify which technique can
give the best contribution to achieve management goals in particular conditions,
climate and time. The contingency approach holds on to the view that the
suitability of a management action would depend on the following factors:
(a) Environment;
(b) Strategy;
(c) Organisational design;
(d) Technology; and
(e) Leadership.
The effectiveness of a manager to manage would depend on the extent of his or

her ability to adapt his or her management styles to the change in environment.
2.5.5 Japanese Management Approach (Theory Z)

Theory Z, which is a Japanese management approach, is a combination of Theory X
and Theory Y. It was presented by William G. Ouchi (1943–present) (see Figure 2.24)
based on a Japanese industrial organisational perspective.
Figure 2.24: William G. Ouchi

According to Ouchi, Theory Z organisation is egalitarian, providing all staff with

the right to participate in organisational matters and emphasises the development
of positive interpersonal relations between employer and staff (Sherman, 1994).
The practice of Theory Z involves the following:

(a) Authority is still clear and not sacrificed; and
(b) Manager still makes planning and influence policy decisions. Compared to
management styles of Theory X and Theory Y, Theory Z management is
considered as democratic (see Figure 2.25).
Figure 2.25: Comparison of Theory X, Theory Y and Theory Z

Source: http://ollie.dcccd.edu
In general, organisations practising Theory Z attempt to do the best by applying

both the Japanese and American management practices. Table 2.7 explains more
on the principles of Theory Z.

Table 2.7: Theory Z Principles
Subject Description
Integrity In the Japanese industrial model, a manager must get

workersÊ trust in terms of his or her integrity as a manager and
product integrity (a manager with integrity is believed to act
consistently, treating secretary and executives respectfully,
approaching subordinates with the same value and
understanding when he or she is with family members).
Company/organisational Company policy is clear from the beginning. Manager must

philosophy audit and examine the actual philosophy.
Participation at all levels All levels of management must be involved.

Communications and openness is practiced at all levels.
Structure, incentive, Some elements of structure are still needed. Incentives are
rewards needed as a motivation and to maintain interests in Z
approach and improve workersÊ quality of life. Examples of
incentives include, sharing profit, continuous training for
workers, workersÊ benefits, self-enrichment plan, maternity
leave, childcare centres and gymnasium/sports facilities.
Interpersonal skill Quality circles ă round table discussions where all levels of
organisation, i.e. from top management to subordinates,
discuss a product openly.
Continuous evaluation Done either informally (self-evaluation) or formally

(through an objective test).
Organisational health must be monitored monthly, weekly
or daily.
Trade unions Trade unions must be involved fully in the company/

participation organisation.
Employment stability Company/organisation is encouraged to limit workers

dismissals and accept short-term loss. In critical conditions,
workers are willing to receive smaller pay and committed
and experienced workers will repay employersÊ kindness
by not quitting jobs, be more loyal and attempt to raise
companyÊs profits.
Long-term evaluation Staff gain and organisational goals will be achieved in the
and promotion long term. Promotion is defended.
Wider career paths Japanese, German and Dutch firms recognise managers
with many experiences and understand their tasks in the
firms in different sections. Even without promotions, they
have high morale, are fresh, confident and satisfied.

Last but not least, Sherman (1994) has also compared Theory X and Theory Y with
Theory Z (see Table 2.8).
Table 2.8: Comparisons between Theory X, Y and Z
Theory X Theory Y Theory Z
 On the average, an  Most individuals do not Type A (American):

individual does not like hate work. Physical  Works for the short
work and would avoid and mental efforts in term.
working. work are natural. Rest
must be done.  Makes own decisions.
 Most individuals need
to be forced, controlled,  An individual will  Individual
directed and threatened exercise self-control, is responsibility.
with punishment to committed and possess  Fast evaluation and
make them work to self-direction to achieve promotion.
achieve organisational the given goals.
 Explicit and formal
goals.  External control and control.
 On average, individuals threats are not the only
 Specialised career
want to be directed, try ways to ensure goal
paths.
to stay away from accomplishment.
responsibilities, not  Segmented interests.
 Commitment to goal
ambitious and what achievement is a
they like most is a function of awards/ Type Z (modified
feeling of job security. presents which satisfy American):
self-respect and self-  Works for the long
realisation. term.
 When conditions are  Consensus decisions.
satisfactory, on average
an individual may learn  Individual
to accept and seek out responsibility.
responsibilities.  Slow evaluation and
 Many people have high promotion.
creative ability and  Implicit and informal
high level of innovation control, with explicit
in solving and formal control.
organisational
 Moderately specialised.
problems.
 Career paths.
 The intellectual
potentials of  Holistic interests
individuals are only including family.
partly used in most
organisations.

Type J (Japanese):
 Lifetime work.
 Consensus decisions.
 Slow evaluation and
promotion.
 Implicit and informal
control.
 Not specific career
paths.
 Holistic interests.
SELF-CHECK 2.4
Select one of the approaches under contemporary perspective.
(a) Who is the figure presenting the theory?
(b) What is the essence of the theory?
ACTIVITY 2.4
After following management approaches used in the 20th century,

what other approaches do you know? In your view, what is the most
suitable approach that should be applied by a telecommunications
organisation in the 21st century? Discuss this matter in the
myINSPIRE forum.
2.6 OTHER MANAGEMENT STYLES

Other than the approaches already discussed, there are still some other current
management styles that are being applied in organisations today. Other current
management styles are explained further in Table 2.9.

Table 2.9: Other Management Styles
Management Style Description
Management by coaching and  Managers look at themselves as trainers of the

development workers.
Management by competitive edge  Individuals and groups in the organisation

compete among themselves to achieve the best
accomplishment.
Management by consensus  Managers build a system to enable every

individual worker to produce output.
Management by decision models  Decision-making is based on future

expectations generated not in actual conditions,
but based on artificially-created conditions.
Management by exception  Managers distribute jobs to subordinates and

will interfere when necessary only.
Management by information  Managers depend on data which is generated

systems internally in the organisation to assist them in
performing their tasks efficiently and keep on
communicating among themselves.
Management by interaction  Emphasising communications and combination

of male and female energy, as well as
integration of all human aspects (mental,
emotional, physical and spiritual).
 Creating powerful, energetic and highly
productive labour force.
Management by matrix  Managers study variables outlined in the matrix

to understand its inter-relationships, cause-and-
effect relation that may exist and other choices.
Management by objectives  Organisation sets several objectives and then

managers determine the objective for each
worker.
Management by organisational  Managers often try to improve communications

development and labour relations.
Management by performance  Managers look for a high performance levels

with quality through motivation and labour
relations.
Management by styles  Managers adapt the approach to fulfil the

requirement of each condition.

Management by walking around  Managers walk around the organisation/

company to personally feel workersÊ and
operations environment.
 Managers also meet workers and listen to their
opinions.
Management by work  Managers always find ways to facilitate work

simplification process and reduce expenses.
ACTIVITY 2.5
Select one of the current management perspectives and name a local
organisation applying such a style. Share your findings in the
myINSPIRE forum.
2.7 TELECOMMUNICATIONS ORGANISATION

MANAGEMENT MODEL
Before we end this topic, let us look at Table 2.10 which lists several external and
internal factors that influence telecommunications organisation management.
Table 2.10: Two Factors Influencing Telecommunications Management
Factor Description
External forces  CustomersÊ tastes and priorities.

 CompetitorsÊ programmes and sales policies.
 Regional and state agencies, and local authorities/legal
agencies.
 Commercial supporters (customers, advertising agencies,
advertisers, station representatives, investors).
 Networks, syndicators, consultants, programme suppliers.
 Industry supporter groups, research/rating services,
equipment suppliers and so on.
 Pressure groups, lobbyists, trade associations, industry
associations.
 Trade unions and professional associations such as artists,
singers, musicians and so on.
 Technological change and ICT innovation.
 Economic change.

 Population pattern changes/movement.

 Human rights.
 Audience fragmentations.
Internal forces  Ownership.
 Budgets and financial policies.
 Organisational structure.
 Staff/workers factor.
 Scheduling/programme policies.
 Sales policies.
 Promotion policies/public relations.
 Media management.
 Myths versus friction/conflict.
 Education, affirmative actions, equal employment
opportunities.
 White men, male world.
 Typical American image.
 Organisation man.
 „Training ground‰.
Keep in mind that telecommunications management works in a changing

environment consistent with telecommunications technological change,
governmental policies, economic market, human resource and so on. This complex
and competing environment is depicted in Figure 2.26.

Figure 2.26: Telecommunications department environment

Source: Green (2001)
SELF-CHECK 2.5
List five external and internal forces that influence telecommunications
management.

• Management theory which started to appear formally in the 19th century

continued to develop in the 20th century and now it is being adapted to the
changing environment of the 21st century.
 The four management perspectives are classical perspective (1890s–1920s),

behavioural perspective (beginning in 1920s), quantitative perspective (early
1940s) and contemporary perspective (1950s–2000).
 Classical perspective has three approaches namely scientific management,

administrative management and bureaucratic management.
 Behavioural perspective has three approaches namely human resource,

behavioural science and human relations movement.
 Quantitative perspective consists of management science, operations

management and management information system.
 Contemporary perspective has five approaches namely contemporary

management, management by objectives (MBO), system approach,
contingency theory and Japanese management approach.
 Other management styles are management by coaching and development,

management by competitive edge, management by consensus, management
by exception and management by matrix.
 There are several external and internal factors which are considered influential
on telecommunications organisational management have been presented in
the telecommunications management model.

Administrative management Management information system (MIS)

Behavioural perspective Management science
Bureaucratic management Operations management
Classical perspective Quantitative perspective
Contemporary perspective Scientific management
Contingency approach System approach
External factors Telecommunications management model
Hawthorne effect Theory X
Internal factors Theory Y
Japanese management Theory Z
Management by objectives (MBO)
Bartol, K. M., & Martin, D. C. (1998). Management (3rd ed.) New York, NY:
McGraw-Hill.
Green, J. H. (2001). The Irwin handbook of telecommunications management

(3rd ed.). New York, NY: McGraw-Hill.
Rubin, A., & Babbie, E. (2001). Research methods for social work (4th ed.). Belmont,
CA: Wadsworth/Thompson Learning.


Topic  Electronic
Media, and
3 Information and
Communications
Technology
(ICT)
LEARNING OUTCOMES
1. Explain the concepts of electronic media, and information and
communications technology (ICT);
2. Identify the aims of telecommunications management and two
causes for its failure; and
3. Describe four main activities of a media organisation and four
electronic media landscapes.
 INTRODUCTION
Broadcasting industries which are still using old hardware and software are now
facing stiff competition from industry participants who have already applied
digital technology. This means a media manager needs to be sensitive to changes
that occur and to always conduct research to update his or her knowledge about
recent technology in his or her field of expertise.

TOPIC 3 ELECTRONIC MEDIA, AND INFORMATION AND COMMUNICATIONS  73
TECHNOLOGY (ICT)
Since 1968, David Sarnoff (1891–1971) (see Figure 3.1), a pioneer writer in the
television broadcasting industry in the United States has been expecting rapid
changes to occur in the broadcasting industry.
Figure 3.1: David Sarnoff

Source: https://en.wikipedia.org/wiki
He outlined the characteristics of a media manager as follows (extracted from

Sherman, 1994):
The needs of the time will bring forth perhaps a new type of executive, trained in
a manner not always associated with the requirements of business management.
He will have to reckon with the constant changes in industry, the changes that
scientific research is bringing. He will have to be able to approximate the value of
technical development, to understand the significance of research.
Sarnoff's prediction turned out to be a reality. Today, media organisations must be

run by media managers who not only have dynamic personalities but are also
competitive and able to deal with changes that are challenging and rapidly taking
place in the field of broadcasting and telecommunications.
SELF-CHECK 3.1
Do you still remember what you learnt in Topic 1? Before you
continue reading, try to explain the meaning of telecommunications.
Clarify the meaning in your own words.

74  TOPIC 3 ELECTRONIC MEDIA, AND INFORMATION AND COMMUNICATIONS
TECHNOLOGY (ICT)
3.1 ELECTRONIC MEDIA

The electronic media landscape exists in the wide and dynamic telecommunications
industry environment. Therefore, to define electronic media, discussions must be
widened to include the telecommunications environment. If you can recall, the
definition of telecommunications had already been discussed in Topic 1.
With regards to electronic media, and the information and communications

technology (ICT) landscape, our discussions are not only limited to electronic media
organisations, such as radio stations and terrestrial television such as RTM, TV3,
NTV7 and Radio IKIM but also includes all industry participants using satellite
communications system to broadcast programmes such as radio network and Astro
(including NHK, ABC, CNN, BBC World, STAR TV, Al-Jazeera and others).
Besides radio and television, the electronic media landscape also includes new and
old telecommunications industry participants (such as Telekom Malaysia Berhad,
Maxis, AT&T, IBM, Apple, Samsung and others) which operate at national and
international levels.
Telecommunications organisations include commercial organisations (profit

oriented) and non-commercial organisations (non-profit oriented) either owned by
public agencies, privately owned or owned by non-profit organisations (NPO).
These telecommunications organisations are involved in the development,

production, distribution and display of entertainment and information
programmes to the public through electronic media and ICT (Gershon, 2001;
Sherman, 1994).

TECHNOLOGY (ICT)
What are communications technologies used as electronic media? Let us look at

Figure 3.2 which shows you several communications technologies which are
used today.
Figure 3.2: Communications technologies
Now, a popular hybrid electronic media is smartphones. Many media

organisations have taken the initiative to take advantage of this recent trend by
creating the mobile application version of their websites. This is a necessary and
sensible move as studies have suggested that on average, people spend about four
hours and more in a day with their smartphones. People love smartphones not
only because they can use them to do anything; read news, socialise, listen to
music, take pictures, but also because of their small size which makes them
convenient to be used anytime and anywhere.

TECHNOLOGY (ICT)
Many news broadcasting companies such as CNN and BBC have introduced their
own mobile applications both in Android and iOS versions (see Figure 3.3).
Figure 3.3: CNN and BBC mobile applications
Data from PEW Research Center suggests that 38 per cent of Americans read their
news online compared to just 20 per cent for newspapers. The majority, however,
still opt to watch their news on television with 57 per cent but the majority of the
people in this category are above 50 years old.
How about Malaysia? In our country, the transformation of the media landscape
was initiated in 2011 when Media Prima announced several senior management
appointments within the group (Roslina Abdul Latif, Wan Amizah Wan Mahmud
& Ali Salman, 2013). The Media Prima Chairman during that time, Datuk Johan
Jaaffar explained that the changes were in line with the group's effort to strengthen
its editorial operations with emphasis on alternative platforms such as online,
mobile and related products.
3.2 INFORMATION AND COMMUNICATIONS

TECHNOLOGY (ICT)
The combination of the two aspects of science and technology (S&T) has brought
various changes in our community. When scientists and technologists create and
produce new ideas and discoveries, then technological innovations take place.
The diffusion of technological innovation brings about changes not only in science
and technology but also to everyone in the community, from family units,
community and local community to the participants in the global environment.

TECHNOLOGY (ICT)
Did you know that S&T development followed with the diffusion of technological
innovation largely involves the communications processes? Figure 3.4 illustrates
the flow of communications in assisting the development of S&T and the
emergence of information and communications technology (ICT).
Figure 3.4: Science, technology and its use

Source: Juggenheimer (1972)
Figure 3.4 shows the existence of a vertical communications process either through
an upward or downward flow between science and technology as well as between
technology and use. This movement may happen fast or slowly. Every movement is
related to the three elements (science, technology and use). It is through the
combination of the three elements that the creation of information and
communications technology (ICT) takes place, which is being made use of by the
community today.
Keep in mind that throughout the history of communications technology, we have

seen communications from wire to wireless and back to wire, and early business
patterns provided the foundation for today's industry. You can get further
clarification on the pattern of changes in electronic media by referring to the book
titled Electronic Media by Craft, J. E., Leigh, F. A. and Godfrey, D. G. (2001).

TECHNOLOGY (ICT)
Changes taking place in the ICT field largely influence and affect the current
electronic media landscape. Now, the ICT technology media, such as satellites, fibre
optics, the Internet and computers, have changed the way people interact, transact,
receive, distribute and process information and knowledge. ICT has also caused
boundaries among countries to become less apparent.
In Malaysia, the development of technology began during the period of rapid

modernisation (1982–2003). With the Vision 2020 formulated in 1991 which aimed
to transform Malaysia into a fully developed country, a mega project known as the
Multimedia Super Corridor (MSC) was launched in 1996 (Juliana Abdul Wahab,
2006). Malaysia has since developed into becoming an information and
communications technology hub. To support this mega project, MalaysiaÊs first
satellite television known as Astro was introduced in 1996 (see Figure 3.5).
Figure 3.5: All Asia Television and Radio Company (Astro)

is the first satellite television in Malaysia
Source: www.astro.com.my
Astro has been able to offer a more „revolutionary‰ viewing experience for
consumers. This was made possible by the introduction of new technology in the
communications industry. AstroÊs customers can currently enjoy various
interactive TV and multimedia services such as video on demand (pay per view),
games, chatting and Internet banking which were not available in the „television
market‰ previously (Juliana Abdul Wahab, 2006).
ACTIVITY 3.1
From your reading so far, discuss in the myINSPIRE forum on how
science and technology can bring changes in the community.

TECHNOLOGY (ICT)
3.3 AIMS OF TELECOMMUNICATIONS

MANAGEMENT
In general, media organisations and ICT operate with the objective of making
profits and generating income. In facing competitive conditions in the media
industry, the telecommunications industry now needs a media manager who can
identify and think of the following questions:
(a) What are the most popular products or services among the consumers?
(b) What are the most economical methods for the process of production and
distribution of a product or service?
(c) Does the product or service have the potential for profit generation?
The media landscape is full of colourful success stories as well as failures due to
failures of management of the media products and services. These failures are
normally due to two factors, as shown in Figure 3.6.
Figure 3.6: Two causes of telecommunications management failures
These two factors are further explained in the next sections.
(a) Making Inaccurate Predictions of Audience Tastes

Some management of organisations think the audiences will accept without
question whatever product or service is offered to them through the media.
In short, the management made inaccurate predictions of their audience
preferences. Can you still recall Mega TV (see Figure 3.7)?

TECHNOLOGY (ICT)
Figure 3.7: Mega TV station

Source: https://www.youtube.com/watch?v=ECL81DnBQIQ
Mega TV used to provide pay television services to the audiences in

Malaysia. The management of Mega TV expected the broadcast it offered
(five channels) would get the desired response from audiences, especially
because the cost of subscription to nearly 50 channels on Astro (a competitor)
was much higher.
Unfortunately, the unattractive package offered by Mega TV coupled with

poor transmission proved to be costly for Mega TV as it started to lose its
clients. This was made worse by the 1998 economic downturn which caused
Mega TV to experience serious financial problems and the station was
struggling to maintain high quality service (Juliana Abdul Wahab, 2006).
Consequently, Mega TV had to stop its operations in 2001 due to inability to
get a cost-effective response that could pay for the operational costs of the
station.
(b) High Cost of Maintenance

Let us look at one example of high cost of maintenance. Can you recall
MetroVision (see Figure 3.8)?
Figure 3.8: MetroVision station

Source: https://www.silverkreatif.com

TECHNOLOGY (ICT)
When MetroVision began its operation in September 1994, audiences in the

Klang Valley knew something different was being offered compared to the
then operating television stations, which were TV1, TV2 and TV3. Although
the new station received a good response in the beginning, financial factors
caused the operations of the station to stop as it was unable to compete
against other television stations which were more appealing and had
nationwide broadcasts.
There were two factors contributing to its closure. Firstly, operational costs
were found to be too high compared to the income generated. Secondly, the
area of broadcast coverage for MetroVision was limited and restricted to the
Klang Valley only. As a result, MetroVision could only survive for seven
years (1994–2002) in the media market.
When discussing the topic of electronic media organisational management, we

need to discuss the audience because the objective of electronic media is to
distribute information, education and entertainment to the audience.
However, not all of the electronic media broadcasts are targeted to the public
audience. Did you know that there is a private electronic media station which
implements the concept of narrowcasting, that is operating for specific audience
only? So how do they survive? To generate income, the station charges a fee to the
clients to get the broadcast service. Although private and non-private stations aim
at meeting public demand, the private stations need to take into account various
needs and tastes of the audience.
Generally, non-private stations must conform to governmentÊs rules. This occurs

in Malaysia too. Privately owned stations such as Sistem Televisyen (M) Berhad
(TV3) is facing a rather different kind of pressure compared to Radio Televisyen
Malaysia (RTM) which is owned by the government.
Electronic media and telecommunications management aims at marketing and

distributing the use of products and services to gain profits. The experiences of
Mega TV and MetroVision stations proved that the mission of operations of a
media organisation to highlight merely good values without taking a business
model appropriate with the environment usually ends up with a financial loss.
Emphasis on the profit aspect may cause non-commercial broadcasts to be unable

to play an effective role in the telecommunications landscape in Malaysia. When
an industry participant emphasises too much on profit, it seems that it is not
concerned with non-commercial goals such as creating an informed and
knowledgeable society.

TECHNOLOGY (ICT)
SELF-CHECK 3.2
1. Explain the aims of telecommunications management.
2. Summarise the causes of failure of telecommunications management.
ACTIVITY 3.2
1. From the customerÊs point of view, what attractive features should
newly established private TV stations offer in order to compete
with Astro?
2. What type of pressure is faced by RTM but not by TV3? What type
of pressure is more focused towards TV3 as compared to RTM?
3. Below is a newspaper extract taken from The Star, 6 October 2004:
ETV FAILURE: A-GÊs report: Most schools do not watch

educational programmes.
PETALING JAYA: The Educational Television (ETV) programme,
which costs the Government millions of ringgit each year, has
failed to meet its objective because most schools are not utilising
the facility.
What is your view on the excerpts of the newspaper article? If you

are a non-commercial media manager, what is your strategy so
that your organisation may still achieve success without
emphasising financial profit? Discuss this matter with your
coursemates in the online forum of myINSPIRE.
4. Find out through the Internet why TV9 temporarily stopped its
broadcast in January 2005 and what happened next.

TECHNOLOGY (ICT)
3.4 MAIN ACTIVITIES OF A MEDIA

ORGANISATION
Now, let us look at the main activities of a media organisation. Did you know that
the media industry transactions involve four main activities? These four activities
are listed in Figure 3.9.
Figure 3.9: Four main activities of a media organisation
These four main activities of a media organisation are further explained in the next
subtopics.
3.4.1 Development
Did you know that the music recording industry began to expand with the
invention of a talking machine or phonograph by Thomas A. Edison in 1877? The
machine was improved by Emile Berliner and was called a gramophone. Berliner,
together with Eldridge Johnson, marketed the gramophone for domestic use.
However, the gramophone was only affordable for the elite. Only in 1927, the
electrical gramophone could be sold to the public and 104 million gramophone
disks were sold (Wilson & Wilson 2001).
Early development of radio broadcasting is related to such names as Guglielmo

Marconi, R. E. Fessenden, Lee de Forest and David Sarnoff either as inventors of
telecommunications and broadcasting technology or professional practitioners
who built up careers in the broadcasting field.
As for television, the prominent figures include electronic experts such as Paul
Nipkow, Vladimir Zworykin and P. T. Farnsworth (Wilson & Wilson, 2001).
The development of electronic media highlighted several changes in the use of

wireless equipment. Trade fairs sponsored annual displays and introduced
various new telecommunications equipment to the public.

TECHNOLOGY (ICT)
Now, there are many kinds of micro equipment such as mini microphones, mini
cameras, mini recorders which are of high quality, digital and suitable for
broadcast. The steadfastness of the European and American inventors in
producing new gadgets is now being largely taken over by innovators and
inventors from Asia, especially Japan and South Korea.
To know in detail the history of music recording, radio and television industry,
you can refer to these books on mass media:
(a) Biagi, S. (2013). Stamford Media/impact: An introduction to mass media
impact (11th ed.). Stamford, CT: Cengage Learning.
(b) Wilson, J. R., & Wilson, S. R. (2001). Mass media, mass culture: An
introduction (5th ed.). Boston, MA: McGraw-Hill.
3.4.2 Production
Companies involved in the production of electronic media are more interested in
producing consumer electronic products such as television sets, radios, compact
disc devices, video recorders and various types of mobile phone equipment.
At the beginning of the media industry, American companies were the main
producers of electronic media equipment. Now, Japan and South Korea are more
innovative, creative and have high technology.
However, from the aspect of media programme production, the United States still
succeeds in leading the global market with the production of films, television
programmes, music and fashion preferred by youngsters.
This condition bothers the world community which is worried about the spread of
the country's ideology into local community cultures. In reality, this already exists
in the 21st century.
As a result, we find that there are many foreign companies sharing ownership of
the local media organisations. For example, Rupert Murdoch, the owner of a media
organisation News Corporation originating from Australia, now owns various
print and electronic media in many parts of the world including Sky Broadcasting
in UK, Fox Corporation in the United States and STAR TV in Hong Kong. In the
United States, News Corporation competes with three main American television
networks, NBC, CBS and ABC. Let us read a brief history of Fox Broadcasting
Company in Figure 3.10.

TECHNOLOGY (ICT)
Figure 3.10: A brief history about Fox Broadcasting Company

Source: Dominick et al. (2003)
In addition, Sony Corporation, owned by Japan, has taken over Columbia Pictures,
TriStar Pictures and CBS Records, while Matsushita owns a majority share in MCA
and Universal Press.
3.4.3 Distribution
Distribution and dissemination in the telecommunications industry have been
carried out by multinational and international companies which strive to meet the
needs and tastes of producers and consumers, not only domestically but also for
the global audience. The broadcasting industry in the United States clearly shows
this relationship through television programmes from the three main channels
(ABC, CBS and NBC) to affiliate stations in small towns.
Besides the large organisations, there are also companies like Viacom and Unistar
which distribute programmes for the world market.
3.4.4 Display
This fourth level requires the telecommunications manager to plan and
implement display or broadcasting to attract the attention of its consumer
audience. With the development of new technology, product display nowadays
is no longer limited to media owners, managers, programme producers but also
includes listeners and viewers.

TECHNOLOGY (ICT)
Now, communications rooms of media organisations have turned into a place to

broadcast a product direct to the consumers. To perform the task, a media room is
designed in a way to enable programmes to be broadcasted from the station to homes.
Therefore, it is no wonder if the media station is now equipped with a wide screen,
a quality video camera and a high quality sound system. Such quality recording
has led to the falling rate of cinema viewing some time ago. This situation has also
influenced the broadcasting industry.
Now, companies cooperate to produce made-for-TV movies. ViewersÊ experience

in the comfort of their own homes now has replaced their habit of viewing films
in cinemas.
SELF-CHECK 3.3
Explain four main activities of a media organisation.
ACTIVITY 3.3
1. BroadcastAsia is a good example of an exhibition showcasing

telecommunications products and services. The
telecommunications exhibition held in Singapore displayed
equipment such as cameras, editing equipment, microphones
and various other gadgets. Visit its website for more information
on its latest exhibition at https://www.broadcast-asia.com. In
your view, what other equipment could have also been
displayed at BroadcastAsia in Singapore?
2. Observe the media organisations in Malaysia. Briefly discuss the

four basic activities of a media organisation by including an
example of a local media organisation for each of the activities.
3.5 ELECTRONIC MEDIA LANDSCAPE

At the early stage of the broadcasting industry, there were only a few radio and
television stations. Now, the electronic media landscape has changed and portrays
a complex situation with the growth of many new stations including Web radio
and Web television stations.

TECHNOLOGY (ICT)
The current electronic media landscape can be viewed from four different aspects
as elaborated in Table 3.1.
Table 3.1: Current Electronic Media Landscape
Functions Software Product Hardware

 Entertainment  Television  Radio stations  Video
 Information channels  Television equipment
 Cable channels stations  Audio
 Pay television  Cable systems equipment
 Pay viewing  Satellite service  Satellite
parabolic
 Online channels  Video texts
 Telephone
 Teletexts
 Computer
 Websites
 Smartphones
 Mobile
applications
3.5.1 Radio Broadcasting

Did you know that radio broadcasting would not have started without the efforts
of the famous inventor, Guglielmo Marconi (see Figure 3.11)?
Figure 3.11: Guglielmo Marconi

Source: https://upload.wikimedia.org
He was the person who first identified the potentials of the radio as a long distance
communications channel. In the beginning, the use of radio was limited to
communications equipment in ships. During the Second World War, the use of
radio was specially allocated to military needs. After the war, radios were used as
an entertainment channel and for getting information.
TECHNOLOGY (ICT)
In the beginning, the use of radio was limited to users within the reach of a
frequency between 30 to 300kHz (kilohertz) only. Radio signals were broadcasted
through amplitude modulation or AM modulation wave.
The rapid growth of radio stations throughout the US had made the Federal
Communications Commission (FCC) introduce the radio channel classification.
Table 3.2 shows you the general radio channel classification in the US.
Table 3.2: Classification of AM Radio Channels in the United States
Classification Features
Classification I  Dominant
 Clear broadcasting
 Has specific frequencies
 There are stations which operate till now
Classification II  Clear, dominant broadcast

 Broadcast limit at midnight
Classification III  District stations
Classification IV  Local broadcasting stations
With this classification, it is easier for the FCC to monitor the performance of
thousands of stations existing in the US. To get more information regarding the
Federal Communications Commission, you can browse http://www.fcc.gov.
Another radio broadcasting frequency is frequency modulation or FM. This is a

higher frequency for an area of 88 to 108 megacycles/sec (now called megahertz
or MHz). The use of FM frequency requires a wave that links the broadcasting
tower directly to the radio sets in every household in the US. FM station
classification is guided by the antenna power and operational power. Most radio
stations operate using FM. Its classification is as shown in Table 3.3.

TECHNOLOGY (ICT)
Table 3.3: Classification of FM Radio Stations in the United States
Classification Features
Classification A  Using low broadcast of 50kW
 Maximum distance of 30 miles
Classification B  Able to operate till 50kW power
Classification C  Able to operate till 100kW power
Source: Craft et al. (2001)
Class B and Class C stations are preferred by the management of radio FM

stations companies which normally concentrate on city areas by erecting high
towers to ensure their broadcasts reach the target audience. For example, the
broadcasting tower owned by Shamrock Broadcasting located in Atlanta,
Georgia, is 1,794 feet high.
By 1945, radio had become the most popular medium for both entertainment and
news, but looming on the horizon was a new medium that threatened to render radio
obsolete which is television.
ACTIVITY 3.4
MalaysiaÊs space is now crowded with various radio waves being used
by numerous stations. Find out through the Internet on how many radio
stations operate in Malaysia. Where are the operational locations of
these stations? Share your findings in the myINSPIRE forum.
3.5.2 Television Broadcasting

Telecommunications technologies developed rapidly after the Second World War
and the FCC began to issue licenses for television broadcasting. Priority was given
to stations operating using VHF (very high frequency). Most stations in the
beginning were also owned by large radio network organisations.
In the beginning, most of these stations broadcasted entertainment programmes.

The popularity of these relatively new media at the early stages attracted many
entrepreneurs to reap profits from television stations, forcing the FCC to freeze
license issuance temporarily, from 1948 till 1952. Now, there are hundreds of
television stations in the United States.

TECHNOLOGY (ICT)
However, the main stations that lead the television broadcasting are American
Broadcasting Company (ABC is owned by Walt Disney), Columbia Broadcasting
System (CBS is owned by Viacom), National Broadcasting Company (NBC is
owned by General Electric), Fox Television (owned by News Corporation) and a
few other well-known cable and satellite stations including Home Box Office
(HBO) and Cable News Network (CNN).
Other than these main television stations, there are also several independent
stations either owned by an organisation or several organisations with no relation
to traditional channels. Public broadcasting began with the operation of public
broadcasting service (PBS) which operates not for profit. The aim is to provide
exposure on education, culture and human relations programmes such as Nova
and Sesame Street. There are 350 stations in the United States operating as public
broadcasting stations. PBS does not pay the stations for broadcasting programmes
prepared, but the stations sign a contract to broadcast them.
In the United States, television is an important medium for entertainment and

information. A total of 99 per cent of the households in the United States have
televisions, and approximately 89 per cent having recording machines
(VCR/VTR). On average, each household receives more than 40 channels and
televisions are in use for seven hours a day.
Besides television broadcasting, the media landscape includes cable television, pay
cable, subscription television (pay to view), master-antenna satellite television and
direct broadcast satellite. Table 3.4 shows you the types of television broadcasts in
the United States.
Table 3.4: Types of Television Broadcast in the United States
Type of TV Broadcast Description
Cable television  Late 1940s.

 Covering the hinterland areas which do not get
television broadcast. Each building subscribing to
cable television service must be installed with cable
coaxial connected to building receiving the broadcast.
Video  Popular around the 1970s.

 Video recorder enables viewers to record television
broadcast for viewing again.
Pay cable  Additional channels only for viewers who subscribe

(pay per view television) television.
 Examples: HBO, Showtime, Cinemax, ESPN.

TECHNOLOGY (ICT)
Master-antenna television  SMATV company provides television broadcast for

satellite (SMATV) viewers to a subscribing region/building through the
company. Satellite parabola is installed on a building
area to receive transmission which can be received by
viewers in the building.
Multichannel multipoint  Broadcast is transmitted through microwave

distribution service transmission.
(MMDS)
 A transmission device is installed on a building, which
subsequently retransmits the wave to clients.
Direct broadcast satellite  Using parabola installed on the rooftop of a house to

(DBS) receive broadcast transmitted from satellite.
Smart TV  „A‰ rated Internet and interactive Web 2.0.
The most recent technological innovation in television is smart TV (see Figure 3.12).
Figure 3.12: Smart TV
Smart TV is a technological integration between computers and flat screen

televisions. Besides the original features of television sets provided through
traditional broadcasting media, smart TV allows users to experience Internet TV,
online interactive media and on-demand streaming media.
In the United States, about 29 per cent of the total households owned a smart TV
in 2017. These people are presented with a wide range of programmes to choose
from, with the latest estimate of about 1,800 TV stations in the US market alone.
The transition from traditional TV to smart TV can already be seen since these past
few years, as people start to search for more interactive entertainment. This
includes an increase in the subscription of video-on-demand services such as

TECHNOLOGY (ICT)
Netflix and its Asian counterpart iflix. This transition suggests that the Internet has
started to steal audiences from the traditional TV as people are spending more and
more time online.
3.6 DEVELOPMENT OF TELEVISION

BROADCAST IN MALAYSIA
Last but not least, let us look at the development of television broadcast in
Malaysia. The history of broadcasting media development particularly radio is
closely related to the British colonial era, i.e. on 1 April 1946. Radio broadcasting
activities at the time centred on Caldecott Hill, Singapore but beginning on
1 January 1959, two years after our country obtained independence from the
British, Radio Malaya began operations from Kuala Lumpur. As for Television
Malaysia, it began its broadcasting operations on 23 December 1963 in the Klang
Valley.
Six years later, a second channel was launched to fulfil the governmentÊs
broadcasting objectives. With that, Radio and Television Malaysia (RTM) operated
as a public broadcaster under the Broadcasting Department of Malaysia. After the
implementation of the National Privatisation Policy in 1983, private television
channels, beginning with TV3, followed by several terrestrial television stations
started. Technological development has consequently enabled the operations of a
satellite television station, i.e. Astro. Astro was officially launched on 1 October
1996 and is one of 89 broadcasting stations operating in the Asia Pacific.
Astro is owned by MEASAT Broadcast Network Systems (MBNS) Sdn Bhd. The
shareholders of MBNS include Khazanah Nasional Berhad, Amanah Saham
Bumiputera and Usaha Tegas Entertainment Systems Sendirian Berhad. MBNS is
one of the subsidiaries of Astro All Asia Networks (a holding company) which
offers services in terms of entertainment and information including television and
radio satellite programmes, karaoke channel, interactive games, pay-per-view
films, video-on-demand and others. Information services include data delivery,
broadcasting of television and radio programmes in the form of information and
interactive television services such as banking, shopping, long distance learning,
the Internet and others.
MBNS has spent more than RM800 million to build its broadcasting centre called
All Asia Broadcast Centre (ABC) situated in Taman Teknologi Malaysia, Bukit
Jalil, Kuala Lumpur, that lies within the Multimedia Super Corridor (MSC). ABC
is the heart of MEASAT operations for Malaysia and its other markets in the world.
At ABC, programmes received from other satellites in the world will undergo
various processes such as dubbing, subtitling, editing, digitalising, bits rate
reduction, error correction, digital modulation and changes to code.
TECHNOLOGY (ICT)
MEASAT Broadcast is a consortium licensed by the Government of Malaysia to

operate multimedia broadcasting service in Malaysia. MBNS uses MEASAT
(Malaysia East Asian Satellite) satellite system. Satellite television broadcast would
not have been possible without MEASAT.
The owner and operator of MEASAT I and II is Binariang Sendirian Berhad which
has changed its name to Maxis Communications Sendirian Berhad. The owners of
MBNS consist of a group of shareholders who also have shares in Maxis
Communications. The principal shareholder is Ananda Krishnan, the owner of
Syarikat Usaha Tegas Sendirian Berhad.
Astro services are based on subscription. The programmes are broadcasted

through television channels in various languages and radio channels in digital
format are produced by local television stations, local producers and purchased or
imported from foreign owners/producers. Astro programmes are broadcasted in
Malay, English, Mandarin, Tamil, Arabic and other languages.
MEASAT 1 and MEASAT II are owned by Malaysia. MEASAT 1 was launched on

13 January 1996 in Kourou, French Guiana while MEASAT II was launched on
14 November 1996 also in French Guiana. MEASAT I and II are satellites of hybrid
model HS376 made by Hughes Corporation, in the United States. Both satellites
use C-band and Ku-band frequencies, and they are able to reach India, East Asia
and the eastern region of Australia. They are capable of providing
telecommunications services and data services. Both satellites are also capable of
providing 112 digital TV and DTU (direct-to-user) radio networks. MEASAT III
was launched 2006 in Kazakhstan.
Astro television channels clearly portray the participation of global media such as
CNN, BBC, HBO, STAR, Hallmark, ESPN, Al-Jazeera, Cinemax, TVB, ABC, NBC,
Disney, Bloomberg, Fox Network and so on. Astro has also involved global
participants such as ST Teleport Pte Ltd, Hawaii Pacific Teleport, Philips and
Nokia, which supply services, hardware, and/or digital technology to MBNS. In
addition, Astro in Malaysia has penetrated 67 per cent of the total households and
there were about five million Astro TV viewers in 2016 (Astro Malaysia Holdings
Berhad, 2016).
AstroÊs broadcast can also be accessed by viewers in India, the Philippines,

Vietnam, Taiwan, Laos, Cambodia, Brunei, Indonesia and parts of Australia. Radio
Astro (comprising ERA, MY FM, hitz.fm, MIX FM and Light & Easy) is followed
by 8.7 million listeners per week and able to attract 74 per cent of the total amount
of advertising budget for radio (see Table 3.5).

TECHNOLOGY (ICT)
Table 3.5: Financial Position of Astro 2016 (RM Million)
Aspect *FY15 *FY16
Revenue 5,231 5,475

Television 4931 4987
Radio 261 296
Others 39 192
Total Number of Viewers of Astro TV ('000) 4,429 4,818
Total Number of Listeners of Astro Radio ('000) 12,935 12,758
*FY: Financial year
Source: Astro Malaysia Holdings Berhad (2016)
Since the early 2000, Astro has been pioneering many revolutionary initiatives in
MalaysiaÊs broadcasting picture. In 2009, Astro launched Astro B.yond which
offered the first HD service in Malaysia. The following year, Astro became the first
company to launch 3D broadcast in Malaysia and Southeast Asia for the 2010
World Cup (Astro Malaysia Holdings Berhad, 2016).
Since 2015, Astro has been facing fierce competition from a number of online
video platforms such as Hooq, iflix and Netflix which aim to take advantage of
the growth in online media consumers. These new competitors aspire to serve
the digital native segment that demands a more customised viewing experience
and seeks new types of content genres such as user-generated videos. To cope
with this intense competition, Astro launched Astro On Demand in 2016. On
Demand allows users to have access to free content including complete seasons
of TV series, both from local and international offerings (Astro Malaysia
Holdings Berhad, 2016).
ACTIVITY 3.5
Using the Internet, list out the names of television channels operating
in Malaysia and state the years in which they started operating.
In your view, is the total number of existing channels sufficient for

audiences in Malaysia? Discuss this matter in the myINSPIRE forum.

TECHNOLOGY (ICT)
• Electronic media organisation refers to commercial and non-commercial

organisations which are involved in the development, production,
distribution, display of products and services which provide entertainment
and information to the public channelled electronically.
 Some communications technologies are computer with Internet, satellite

communications, Web TV and satellite TV.
 In the recent two decades, the broadcasting and telecommunications field

has changed its appearance due to technological development in
telecommunications, computer and microelectronics which has left its mark in
the field of telecommunications and broadcasting media.
 Media organisations and ICT operate with the objective of making profits and
generating income.
 There are two causes for telecommunications management failure: making

inaccurate prediction of audienceÊs tastes and high cost of maintenance.
 The four main activities of a media organisation are development, production,

distribution and display.
 The four components of electronic media landscape are functions, software,

product and hardware.
 The history of broadcasting media development, particularly radio, is closely

related to the British during the colonial era (April 1946). On 1 January 1959,
Radio Malaya began operations from Kuala Lumpur, while Television Malaysia
broadcasting began its operations on 23 December 1963 in the Klang Valley.
 Six years later, a second channel was launched to fulfil the governmentÊs
broadcasting objectives. With that, Radio and Television Malaysia (RTM)
operated as a public broadcaster under the Broadcasting Department of
Malaysia.
 Private television channels, beginning with TV3, followed by several terrestrial

television stations started. Later, technological development has consequently
enabled the operations of a satellite television station named Astro.

TECHNOLOGY (ICT)
Development Information and communications technology

(ICT)
Display
Media organisations
Distribution
Product
Electronic media
Production
Functions
Software
Hardware
Astro Malaysia Holdings Berhad. (2016). Annual report 2016. Retrieved from
https://acmkenti-coprd.s3.amazonaws.com/astrocorporate/media/docs/
investor-relations/financial-information/annual-reports/amh-fy16-annual-
report-eng.pdf?ext=.pdf
Craft, J. E., Leigh, F. A., & Godfrey, D. G. (2001). Electronic media. Belmont, CA:
Wadsworth Thomson Learning.
Internet and beyond: An introduction to modern electronic media (5th ed.).
Juggenheimer, D. W. (1972). Future communication, technological advances and

their principal implication for advertising (Unpublished doctoral
dissertation). University of Michigan, Michigan, US.
Juliana Abdul Wahab. (2006). Communication technology and the television

industry in Malaysia. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/
download?doi=10.1.1.474.8836&rep=rep1&type=pdf

TECHNOLOGY (ICT)
Roslina Abdul Latif, Wan Amizah Wan Mahmud, & Ali Salman. (2013).
A broadcasting history of Malaysia: Progress and shifts. Asian Social Science,
9 (6), 50–57.

Wilson, J. R., & Wilson, S. R. (2001). Mass media, mass culture: An introduction
(5th ed.). Boston, MA: McGraw-Hill.

Topic Telecommunications
Industry Structure
4
LEARNING OUTCOMES
1. Describe telecommunications industry market structure, types and
its market structure elements;
2. Explain the market behaviour principle and its types; and
3. Discuss four areas of achievement in the telecommunications
industy and four levels of product life cycle.
 INTRODUCTION
This topic will discuss the telecommunications industry structure by focusing on
market structure elements, market behaviour, market achievement and media
maturity level, i.e. product life cycles.
In addition, this topic highlights the various market structures in the

telecommunications industry. Why do you need to learn these? Understanding
these elements is important as it will help you as a media manager to develop
strategies, particularly in terms of products and services.
Besides formulating their own strategies, media managers will be able to

understand competitorsÊ strategies which in turn will help the company to be one
step ahead of the competitors. So are you ready to discover more about this topic?

TOPIC 4 TELECOMMUNICATIONS INDUSTRY STRUCTURE  99
4.1 TELECOMUNICATIONS INDUSTRY

STRUCTURE
Let us look at the definition and types of telecommunications industry structure in
this first subtopic.
4.1.1 What is a Market Structure?

Let us look at the definition of market structure first.
Market structure refers to the characteristics of the market economy which

affect the behaviour of organisations.
Sherman (1995) emphasised the importance of examining market structure,

market behaviour and market achievement in the telecommunications industry.
As for Gershon (2001), different market structures form different patterns of

organisational behaviour.
Besides that, the economy also affects the formation of a market structure. This
means a free economic system which encourages competition forms a structure
which is not the same with a monopolistic economy.
4.1.2 Types of Market Structure

There are many types of market structure but the three most common types are
monopoly, oligopoly and perfect competition.
(a) Monopoly
What does monopoly mean?
Monopoly refers to the conditions in the market which are controlled or

dominated by a product seller.
In a monopolistic environment, markets are imperfect such that companies

offer products or services that are dissimilar from one another. This means
there is only one company that offers a specialised product or service in the
industry. A monopolist is the only firm that offers a particular product or

100  TOPIC 4 TELECOMMUNICATIONS INDUSTRY STRUCTURE
service in a particular industry and hence influences the price movements of

the product or service. A monopolist usually has the competitive advantage
by being the first mover in the industry. Being a pioneer would allow the
company to have the resources to thrive in the industry.
This creates difficulties for new players to enter into the market as they need
to sacrifice a huge amount of money to compete with the monopolist who
has already established its presence in the market.
In our country, for example, the main provider of electricity for the whole
nation is only Tenaga Nasional Berhad (TNB). Previously, Radio Televisyen
Malaysia was the main source of national broadcasting until Sistem
Televisyen (M) Berhad (TV3) began its operation and broke the monopoly.
In the monopolistic category, the organisation providing the service acts to

control costs. Product quality is based on the organisationÊs own measurement
because customers have no choice but to switch to another provider.
Besides that, the monopolistic conditions do not provide room for reform. When
these conditions happen, the organisation will feel that its product is sufficient
without any desire to improve product development or offer new services.
(b) Oligopoly
What is oligopoly?
Oligopoly is a market situation which portrays the involvement of a few

dominant sellers in the industry.
An oligopolistic market structure occurs when there are a small number of

key players in an industry and represent the majority of the market share.
The nature of the products/services offered are generally the same but firms
usually try to differentiate their products and services from those of their
competitorsÊ by adding specialised features. This type of market structure
can be seen in the mobile telecommunications provider industry in Malaysia
which is currently dominated by three key players – Celcom, Maxis and Digi.
Industries practising the oligopolistic system can also be seen in the United
States. For example, television broadcasting in the US comprises a few main
networks known as The Big Four, i.e. ABC, CBS, NBC and Fox, while the
telephone industry is dominated by names like AT&T, WorldCom and
Sprint.

(c) Perfect Competition

The third type of market structure is perfect competition. What does it mean?
Perfect competition means there are several organisations providing the

same product or service.
In a perfectly competitive market, each player has the same amount of

information and resources and has adequately fair percentage of market
shares. There are many firms offering the same products or services in the
market, hence, prices of products and services are very competitive. The
products and services offered are usually perfect substitutes and thus,
customers have the ability to switch from one brand to another. Can you
name a few examples of perfect competition?
Let us look at Table 4.1 which summarises the comparison among monopoly,
oligopoly and perfect competition.
Table 4.1: Three Types of Telecommunications Industry Structure
Perfect
Aspect Monopoly Oligopoly
Competition
Seller concentration A single firm Several firms A large number of

owning/controlling dominate firms compete in
a type of product or product/service in the open market.
service in the the market/
market/industry. industry.
Product Product/service Products differ There are various

differentiation with same image slightly and not choices and unique
and/or brand. important. images of a
particular.
Barriers to entry Cost is the main Economy of scale is Dominant old

barrier because the main barrier organisation and
transaction requires because of long product/service
huge sum of period required excellence which
capital. gain profits. was long
established
becomes a
challenge to new
competitors.

Buyer Focus is on total Depends on large Stiff competition

concentration number of buyers number of buyers raise problem of
to get advertising to get high buyer
returns/income. economic returns. fragmentation.
Fixed costs Technological Technological Needs high

(continuous innovation cost will innovation forces investment amount
expenses for raise budget costs purchase of new to face competition.
equipment) but it is hardware/software
unavoidable (retooling) and
although there is no raise costs to attract
competition. investors and
audience
successfully.
Demand growth High consumer In Demand growth is

(levels of demand raise telecommunications a big challenge to
producersÊ/ demand for industry, industry
customersÊ product/service continuous demand participants. Can
demand) and profit, or vice is no longer certain. attract customersÊ
versa. Demand growth is interest through
a big challenge to product/service
industry offered.
participants.
Last but not least, let us look at the definition of market behaviour and market
achievement in Table 4.2.
Table 4.2: Definition for Market Behaviour and Market Achievement
Market Behaviour Market Achievement
Company policy regarding product and Economic output that is the ability to
competitorsÊ strategies to capture a achieve maximum profit.
market.
4.1.3 Telecommunications Organisation

Now, let us move on to telecommunications organisation. What does it include?
Telecommunications organisation includes electronic media organisations which
transact in producing information and entertainment to be broadcasted to the
audience. This means electronic media organisations depend on income from the
creative products of their task force and decisions made by the editorial group. The

transactions depend on strategies in selling and distribution of products and

services relating to information and entertainment.
SELF-CHECK 4.1
1. Define market structure and its types.
2. Differentiate between market behaviour and market achievement.
4.2 MARKET STRUCTURE ELEMENTS

Now, let us examine the market structure elements. Firstly, what does market
structure elements mean?
Market structure elements refer to the relationship between buyers and

sellers in the market.
This structure influences organisational behaviour in the market. There are five
elements in the market structure as shown in Figure 4.1.
Figure 4.1: Five market structure elements
These five elements are elaborated further in the next subtopics.

4.2.1 Sellers Concentration

What does sellers concentration mean?
Sellers concentration is defined as the total number of sellers of a product or

service in the market.
Sellers concentration also takes into account competitive factors taking place in the
market and the effects of competition on quality and cost of services rendered.
In addition, sellers concentration can also be measured by looking at the

percentage of gross income received by the largest organisation in the industry.
4.2.2 Product Differentiation

What does product differentiation mean?
Product differentiation is the degree of difference between products

produced by one firm and those produced by another firm in the same
industry.
In the entertainment media industry, there is a tendency to produce differentiated

products. Therefore, stations would display various brands to highlight the
uniqueness and distinction of their products compared to the competitors.
As an example, TV3 previously used the slogan „Duniamu TV3‰ (TV3 is Your
World) as its broadcasting strategy. As for RTM, the channelÊs slogan is „Teman
Setia Anda‰ (Your Loyal Friend).
Now with competition from several other stations, each of them has to strengthen
their position by building a new branding image. Each station will attempt to
create something different to ensure that their own product is distinct from those
of other stations. These broadcasting stations also create an image or identity in
various ways including the broadcasted programmes, music used, emblems,
scheduling as well as selection of newscasters on duty.

ACTIVITY 4.1
Which mobile service provider do you use? Find some friends that use
different mobile service providers, i.e, Celcom, Maxis or Digi and try
to compare the products and services that they offer. What are the
main product features that your mobile service provider offers? What
about its competitors? Share your findings in the myINSPIRE forum.
4.2.3 Barriers to Entry

What does barriers to entry mean?
Barriers to entry refers to the extent competition is limited or barred by the

industry.
Generally, new firms cannot compete with long established media organisations
because the older organisations already have expertise and a loyal audience. What
are the factors that prevent the entry of a new participant in an industry? There are
various barriers to entry. Among them are as follows:
(a) Absolute Cost Barrier

There are certain industries which require a huge sum of capital and usage
of sophisticated equipment. This condition hinders new firms from entering
the market.
(b) Scale of Economy Barrier

There are also businesses requiring a certain period of time to obtain profit.
This condition requires patience on the part of businessmen to wait for the
time to reap their profit. This happens in the media industry. The firms
owning media stations cannot reap instant profits because they have to first
invest a large amount of capital for the stationÊs infrastructure, as well as
train skilled human resources in their own respective fields. An example is
the cable television MegaTV which required a large amount of capital but
still took as long as five to seven years before generating profits.
ACTIVITY 4.2
Discuss in the myINSPIRE forum the advantages Astro have that

makes it difficult for other competitors to compete in the same market.

4.2.4 Buyers Concentration

What does buyers concentration mean?
Buyers concentration refers to the total number of potential buyers to buy

the products produced.
If there are more buyers, it means higher profits will be gained. This makes
buyers concentration a critical factor. Conversely, a low number of buyers will
not only affect profit adversely but also raise the problem of continuing the
business activities.
Basically, we see television stations broadcasting programmes to millions of

viewers but that does not necessarily mean the broadcasted programmes may
reach the target audience. The determinant is the customers who have a choice
whether to view the programmes or not.
Besides the efforts to attract audiences, television and radio stations also sell
advertising space to business clients to generate income through programme
sponsoring. A large audience, closely related to programme ratings, is a criterion to
get advertising purchase by the advertisers. This is also a contributing factor why
we are exposed to advertising whenever we watch television or listen to the radio.
4.2.5 Growth in Demand

The last element in telecommunications market structure is growth in demand.
What does it mean?
Growth in demand refers to the level of producer and consumer demand for
the product and service produced by the industry.
In principle, a rising demand would lead to an increase in income and profit. This
becomes an indicator for station programme ratings and popularity levels of a
radio or television station.

ACTIVITY 4.3
In your view, how can the increase in number of television stations

affect the growth in demand? Will the increased number of stations
create viewer fragmentation? Discuss this in the myINSPIRE forum.
SELF-CHECK 4.2
Define the five elements in the market structure.
4.3 MARKET BEHAVIOUR PRINCIPLE

As discussed before, the formation of an industry is through market structure and
market behaviour. In whatever form of market economy, the main principles of
the public and private sectors are making profit and increasing market share.
Besides that, the market structure can also be seen from the policy of the
organisation towards its clients and competitors. The issue of market behaviour
can be seen through three types of market behaviour which are:
(a) Price determination policy;
(b) Quality control policy; and
(c) Competitive policy.
These three behaviours are further explained in the next subtopics.
4.3.1 Price Determination Policy

In theory, a competitive market will be able to attract consumers with purchasing
power to set the market price. However, as the telecommunications industry is
more inclined to practice an oligopolistic system, there is interdependence among
the firms. This means, if a firm reduces its price, other firms will also reduce it.
Besides, the firms will agree on a fixed price. This factor is referred to as price
fixing. Such a practice takes place because producers collude to limit production
of products and limit the entry of new firms.

4.3.2 Quality Control Policy

The second component of market behaviour principle is product quality control.
In a monopolistic system, consumers have no choice but to buy from a single
source. In fact, quality maybe ignored. In an oligopolistic system, however, the
approach used is through the agreement of all production firms involved. If a party
improves its quality, then others will follow.
However, all firms in the industry will first discuss quality improvement.
Normally the firm which raises the price in the market is called a product leader.
Media organisations will spend a large sum of money in order to ensure they
become a product leader.
4.3.3 Competitive Policy

Although competitive practices are implemented in the telecommunications
industry particularly broadcasting, there are also forced practices by legal
agencies. This is done by making policies and laws to hinder the growth of
competition. The following extract (Figure 4.2) is an example of how competitive
policy is hindered in the broadcasting industry.
The historic relationship between broadcasters and cable television provides a good
example. Between 1952 and 1977, US broadcasters and television/film supported a
number of regulatory measures designed to limit the growth of cable television.
In principle, broadcasters were concerned about programme siphoning; that is the
ability of the cable industry to siphon programming intended for broadcast use.
Broadcasters were concerned that cable programmers would feature the said
programming on cable and thereby fragment the viewing audience and inflate the
cost of programme acquisition.
Figure 4.2: An example of competitive policies hindered in the broadcasting industry

Source: Gershon (2001)
ACTIVITY 4.4
Discuss in the myINSPIRE forum on how do price determination

policy, quality control policy and competitive policy affect television
stations in Malaysia from the aspect of their own programme
production.

4.4 MARKET ACHIEVEMENT

Did you know that the success of the telecommunications industry is measured by
comparing potential achievement in four areas? What are these four areas? Let us
look at Figure 4.3 for the answer.
Figure 4.3: Four areas of market achievement
These four areas are further explained in the next subtopics.
4.4.1 Efficient Use of Resources

In an ideal situation, an industry is deemed to be efficient if it succeeds in getting
a high income using a given sum of resources. The industry is considered
successful if it can stabilise prices and product achievement by covering a large
number of customers. In addition, an efficient industry is able to provide products
and services to customers.
As for the supply and demand relationship, it explains the ratio between product
turnover and product costs.
Therefore, to ensure success in the telecommunications industry, the management

must be efficient. For example, in ensuring there is no wastage in terms of unused
technical equipment, old equipment should be replaced, updated or repaired.
Besides that, the management must take into account the human resource aspect,
which is sufficient and with no wastage taking place.

4.4.2 Stability of Prices and Employment

Stability factor plays an important role in assisting the broadcasting industryÊs
success. When product prices rise, handling costs will also rise. This rise will have
an impact on advertising cost. Consequently, the rise in advertising costs would
help raise the profitability of the station.
Did you know that employment patterns in the broadcasting industry are more
stable compared to product prices? We often hear about workers being
dismissed; however, it is obvious that the workforce in this field is growing and
expanding in total.
4.4.3 Fair Deal for All

Did you know that at the early stage of broadcasting activities, females found it
difficult to participate in the broadcasting industry? However, times have changed
and we find there is more female involvement in the broadcasting industry, while
getting fairer deals from the employers.
Female involvement in the field is not only limited to the task of hosting
programmes but more of them work behind the scenes either as producers,
directors or scriptwriters.
4.4.4 Growth, Strategy and Planning

In order for a company to thrive in an ever-changing and competitive market, the
management team should ensure that the company could withstand the
competitive threats and optimise on their competitive advantages. Managers need
to continuously plan the companyÊs strategic moves to ensure the businessÊ
prosperity in the long term.
Therefore, planning is a critical aspect for a telecommunications company to grow

as it is evident that the industryÊs picture is rapidly changing from time to time
due to factors such as technological breakthroughs and new customer preferences.
There is a wide range of strategies that managers can choose from to steer the
company towards long-term growth. However, the three most common strategies
used are integration, development and diversification. These three strategies are
further explained as follows:

(a) Integration
In pursuing an integration strategy, a telecommunications company can
choose to move either horizontally or vertically (see Table 4.3).
Table 4.3: Two Types of Integration Strategy
Horizontal Integration Vertical Integration
It is when a telecommunications company It is when a telecommunications company

owns several businesses of the same value owns different businesses in the same
or serve the same function. For example, a chain of production and distribution. For
television broadcasting company can example, besides owning the studios in
expand its business by venturing into Hollywood, the 20th Century Fox also
other means of broadcasting. It can also owns the cinemas, TV channels and DVD
diversify to other forms of media like rental shops. They own parts of chain so
magazine, radio and newspaper. Pursuing that they can make money from every
this strategy would mean that the part of it. Vertical integration allows
company can reach its existing customers telecommunications companies to reduce
via many forms of media as well as secure costs and improve efficiency through
new customer base from each of its media decreased transportation expenses and
branch. This will boost the companyÊs reduced turnaround time.
revenue and promote growth. For
example, Media Prima owns various forms
of media such newspapers, production
studio, TV channels, advertising agency
and so on.
Let us look at Figure 4.4 which gives an example of vertical integration.

Figure 4.4: An example of vertical integration


(b) Development
Telecommunications firms can choose to further improve their revenue
streams by focusing on product and market development. These two areas
are further elaborated in Table 4.4.
Table 4.4: Two Areas of Development
Product Development Market Development
It is when a company seeks to increase Through market development, a

sales by offering improved or modified telecommunications company can extend
currents products or services (David, its influence to a wider market. For
2011). Telecommunications companies example, Astro took advantage of the
pursue this kind of strategy simply to meet popularity of its reality show programmes
new customer demands or current trends. such as Akademi Fantasia and Raja Lawak
For example, Astro introduced the Astro by making the shows available in Brunei,
Go to allow its customers to watch its Singapore and Indonesia. By doing this,
content anytime and anywhere. Astro expanded its customer base in
international markets which can
potentially open up new business
opportunities in the future.
(c) Diversification
Telecommunications companies can also opt for diversification strategies.
The two main diversifications strategies are related and unrelated
diversification.
(i) Related Diversification

Related diversification is when companies pursue business ventures
which possess value chains that are similar and have competitively
valuable cross-business strategic fits (David, 2011). For example, Walt
Disney ventured into diversification by acquiring the American
Broadcasting Company (ABC), which then introduced its new television
properties branch, the Disney-ABC Television Group. In Malaysia, Astro
ventured into e-commerce by launching Go Shop in 2015.
(ii) Unrelated Diversification

Businesses are considered unrelated when they do not have similar
value chains and no competitively valuable cross-business
relationships exist (David, 2011). Telecommunications firms pursue
unrelated diversification strategy by acquiring other firms in different
industries in hopes to get a greater return on investments.
In the United States, the larger television stations such as CBS,
expanded its business to the music industry through CBS Records.

Even in our country, TV3Ês management attempted to diversify its

activities by spreading the companyÊs wings and establishing a
subsidiary known as Grand Brilliance Sdn Bhd (now called Primeworks)
to produce films, handled by directors, scriptwriters, crew and actors as
well as marketing experts financed by the company itself.
Briefly, the planning aspect plays an important role in ensuring

organisational operations success, particularly the operations of
electronic media station in the broadcasting industry. Failure of a
station may occur without good planning. This condition can be
observed in the cable television industry. The effect of bad planning
has led to the failure of cable television stations such as MegaTV.
Figure 4.5 shows an example of how General Electric Corporation

implemented the diversification principle.
Figure 4.5: The main divisions of General Electric Corporation (1998)

ACTIVITY 4.5
Make a brief research of the number of staff in the news room of two
local television stations. Mention the most visible aspects as a result of
your comparison. Share your findings in the myINSPIRE forum.
SELF-CHECK 4.3
Differentiate between horizontal and vertical integration.

4.5 LEVELS OF INDUSTRY DEVELOPMENT

Lastly, let us look at the levels of telecommunications industry development. The
level of industry development can be explained by the product life cycle theory.
The product life cycle illustrates the stages in which a product or service is
introduced, developed and eventually removed from the market. The cycle is
broken into four stages: introduction, growth, maturity and decline (see Figure 4.6).
Figure 4.6: Four levels of industry development
These four levels are further explained in the next subtopics.
4.5.1 Level I: Introduction

Did you know that this phase of the cycle is usually the most expensive for a
company to launch a new product or service? Today, the size of the market is small
as the new product or service was pretty much non-existent before. At this stage,
consumers are sceptical of the products offered.
Normally, producers try to attract consumers by distributing product samples.

At this level also the industry activities are focused on research and development,
that is, carrying out research on various aspects. For example, before producing a
programme, a producer researches the market trends, that is by viewing and
listening to audienceÊs preferences.

Stations must be sensitive to the wants and needs of their target audience. There
are various methods of research carried out, such as observation and discussion of
focus groups. These methods assist the stations to identify suitable products to be
offered to the audience.
Research is also closely related to the use of new equipment. Before the station uses
a new type of equipment, the management will carry out a research to ensure that
it will raise productivity.
4.5.2 Level II: Growth/Development

At this stage, consumers start to show their interest on the product or service. This
phase is typically characterised by a strong growth in revenues and profits.
Producers will be wise enough to ensure the products they produce have their own
distinctive features. Producers will create a differentiating factor to make the
products look different from the competitorsÊ products.
In the telecommunications industry, radio, television stations and online media

undergo their own level of development. During this period of development, it is
common for telecommunications companies to further promote their products and
services through many means of marketing, such as appointing celebrity
ambassadors or sponsoring mainstream events.
4.5.3 Level III: Maturity

Products existing at the maturity level are already well known. Thus, the main task
for companies at this stage is to maintain its market share and competitiveness. In
ensuring that, firms will usually raise its marketing activities by sponsoring more
high-rated events.
In addition, firms also need to consider improving or modifying its existing

products or services which might give them a competitive advantage. Keep in
mind that innovation plays a vital role to keep the firm competitive in the market.
4.5.4 Level IV: Decline

Did you know that products which have a long presence in the market may
undergo a decline? A companyÊs product or service may experience its declining
stage due to factors such as the introduction of new or better products, rapid
change in technology and changing consumer trends and preferences.

In the broadcasting industry, the best example is how well known television stations
in the United States such as ABC, CBS and NBC experienced pressure when a new
company called Fox competed to capture audiences and was able to raise its
popularity in a brief period by offering programmes wanted by the audience.
SELF-CHECK 4.4
Describe the four levels of industry development.
• Market structure refers to the characteristics of the market economy which

affect the behaviour of organisations.
 The three most common types of market structure are monopoly, oligopoly
and perfect competition.
 Market structure elements refer to the relationship between buyers and sellers
in the market.
 The five elements in market structure are sellers concentration, product

differentiation, barriers to entry, buyers concentration and growth in demand.
 The formation of an industry is through market structure and market

behaviour. Three types of market behaviour are price determination policy,
quality control policy and competitive policy.
 The four areas of achievement in the telecommunications industy are efficient

use of resources, stability of prices and employment, growth and planning, and
a fair deal for all.
 The four levels of product life cycle are introduction, delevopment, decline and
maturity.

Barriers to entry Market achievement

Buyers concentration Market behaviour
Competitive policy Market structure
Decline Maturity
Determination policy Monopoly
Development Oligopoly
Diversification Perfect competition
Efficient use of resources Product differentiation
Fair deal for all Quality control policy
Growth and planning Sellers concentration
Growth in demand Stability of prices and employment
Horizontal integration Vertical integration
Introduction
Burns, J. M. (1978). Leadership. New York, NY: Harper & Row.
David, F. R. (2011). Strategic management: Concepts and cases (13th ed.). Upper
Saddle River, NJ: Pearson.
Foster, E. S. (1978). Understanding broadcasting. Boston, MA: Addison-Wesley.

planning strategies. Mahwah, NJ: Lawrence Erlbaum.


Topic  Management of
Educational
5 TV
Broadcasting
LEARNING OUTCOMES
1. Describe the history and management structure of an educational
television (ETV) organisation;
2. Explain effects of changes in broadcasting policy;
3. Elaborate on the organisational structure and establishment of
Bahagian Teknologi Pendidikan (BTP); and
4. Discuss the EDUWEBTV as the newest technology in ETV.
 INTRODUCTION
Educational television (ETV) is one of the television broadcasting industryÊs
participants in Malaysia. However, as a television station, the functions and roles
of ETV are very different from commercial television stations such as TV3, ntv7,
TV8, Astro and TV Alhijrah. Therefore, this topic aims at explaining ETV
development in Malaysia since it was established in 1972 till now.
ETV is subject to the authority of the Ministry of Education, Malaysia, while the
public broadcasting station is handled by the Ministry of Information, Malaysia
and privately owned broadcasting stations come under the authority of the
Ministry of Energy, Communications and Multimedia. Target audience and goals
of ETV are also different from those of publicly and privately owned stations.

120  TOPIC 5 MANAGEMENT OF EDUCATIONAL TV BROADCASTING
This topic will focus only on the broadcasting management of ETV and not on
educational radio organisation. This is because educational radio service was
terminated in December 1994 after operating for about 28 years. So are you ready
to discover more? Let us continue with the lesson.
5.1 HISTORY OF EDUCATIONAL TELEVISION

(ETV)
Can you still remember Educational Television or ETV? Have you ever watched
it? ETV was introduced in 1972 together with the establishment of Bahagian
Perkhidmatan Sebaran Pendidikan (PSP), Ministry of Education of Malaysia.
Now, PSP is known as Bahagian Teknologi Pendidikan or the Educational
Technology Division (ETD).
In general, the aim of establishing ETV was to give equitable and quality
educational opportunities to all schools through the television media. Specific
targets of ETV are the disadvantaged group of students who are largely found in
rural areas and in the hinterland.
ETV programmes were first broadcasted on TV2 in 1972, simultaneously with the
official launching by the second Prime Minister of Malaysia, that is, the late Tun
Abdul Razak Hussein. Since its launch 30 years ago, ETV has undergone several
changes as a result of:
(a) Changes in broadcasting and educational policies;
(b) Rapid development in information technology and communications; and
(c) Changes taking place in the social and organisational environments.
What remains fixed and unchanged is ETVÊs target audience. Table 5.1 shows you
the total target audience for ETV in 2004.
Table 5.1: ETV Target Audience (2004)
ETV Specific Total Target Audience Total Schools/

Targets Students Teachers Colleges
Primary schools 3,044,797 179,622 7557
Secondary schools 2,093,645 130,372 1962
Teachers colleges - - 23
Source: Policy Planning and Educational Research Division (2004)

TOPIC 5 MANAGEMENT OF EDUCATIONAL TV BROADCASTING  121
Programmes broadcasted on ETV are bought from private companies or produced

by joint ventures between ETV and outside parties. ETV produced approximately
48 specific programmes for the use of urban and rural schools in Malaysia. Besides
that, there are 88 programmes with general audience as the target audience.
5.1.1 Transformation in Educational TV

According to an article as stated in Utusan Malaysia (1996), in line with the growth
of advertising technology in Malaysia in the year 2000, Educational TV moved to
the paid channel in Astro and broadcasted from 9.00am to 5.00pm. This was
intended to get educational TV programmes that have better quality with regards
to its contents and technical aspect.
The involvement of Astro seemed to be giving a breath of fresh air to educational

TV broadcast that was previously rather limited to its own produced programmes.
The collaboration with Astro enables students not only to enjoy programmes
produced by Bahagian Teknologi Pendidikan (BTP), Ministry of Education but
also four other educational channels. Those channels include Discovery, National
Geographic, Disney, CNN and programmes from Multimedia Technology
Enhancement and Operations (see Figure 5.1).
Figure 5.1: Educational TV package in Astro

Source: https://btpnns.gov.my/pkgbatukikir/images/
Umum_Semasa/SALURAN_KAMPUS_ASTRO.jpg

However, since Astro did not renew the contract with ETV on 31 December 2006,
Channel 13 that broadcasted Educational TV had been changed to NHK World
that was later moved to Channel 963 and it is now Channel 398. ETV was then
rebroadcasted on free channel which was the private channel, TV9 on 3 January
2007 until it ended on 31 December 2008.
According to Fatimah Syahida Jusuh (2006), even though ETV has been broadcasted
for free, a few issues arose. One of the issues is the adjustment of schedules of
Educational TV and schools. There are repeated shows at 1.00pm until 5.00pm;
however, it also depends on the school session and its packed subject schedule.
Thus, a thorough planning should be done in adjusting the school schedule with
that of Educational TV schedule. This issue can be regarded as one of the factors
that led to less response from the schools for ETV programmes.
Since the issue of scheduling has been a challenge, Educational TV had been
changed entirely to the EDUWEBTV website in 2009. This website completely uses
Internet access in order to access educational videos that are uploaded by those
teachers involved (see Figure 5.2).
Figure 5.2: EDUWEBTV

Source: http://www.eduwebtv.com/

5.1.2 Bahagian Teknologi Pendidikan (BTP) Ministry

of Education Malaysia
Did you know that Bahagian Teknologi Pendidikan (BTP) was previously known
as Bahagian Perkhidmatan Sebaran Pendidikan until 1988? The rebranding was to
include the school resource service centre which is suitable with its role as a body
that is coordinating all programmes and activities that are relevant with
educational technology. It started with four main functions including:
(a) Visual-audio service (in the 1950s);
(b) Radio channel service to schools (in the 1960s);
(c) Educational TV broadcast service to schools (officially launched by YAB Tun
Haji Abdul Razak bin DatoÊ Hussein, MalaysiaÊs Prime Minister on 19 June
1972); and
(d) Educational resource service.
In 2002, BTP had expanded to 11 sectors and eight main functions when the usage
of educational technology was focused on ICT in implementing teaching and
learning as well as school management.

With the implementation of Projek Rintis Sekolah Bestari in 1999 which was one
of the seven prime applications in the Multimedia Super Corridor, BTP
continuously lead the transformation of intelligent generation via the
Pembestarian Sekolah programme.
On 21 April 2006, BTP had received the MS ISO 9001:2000 Quality Management
Systems-Requirements certification. This system is implemented to ensure the
services and products created by BTP have the required quality standard.
Capacity building and instructional management through inculcating educational

technology has been an important mission of BTP. Its role now is not only to
coordinate but to encourage the planned integration of various media and
educational technology to strengthen the teaching and learning processes in line
with their motto Teknologi untuk Pendidikan Bestari (Bahagian Teknologi
Pendidikan, 2019a).
(a) Vision and Mission of BTP

What is ETVÊs vision?
To lead the transformation of an intelligent generation through

resources and educational technology.
What is BTPÊs mission?
(i) Drive the human capital development that cultivates the use of
resources, integrates educational technology and practices lifelong
learning.
(ii) Develop individual potential through quality textbooks.
(iii) Lead the countryÊs book industry through fostering reading

culture within Malaysian (Bahagian Teknologi Pendidikan, 2019b).

(b) BTP Objectives

They are as follows (Bahagian Teknologi Pendidikan, 2019c):
(i) To ensure textbooks attain recognised quality standards based on the
specified quality control process.
(ii) To ensure textbooks are supplied to schools within the stipulated
timeframe.
(iii) To develop quality learning materials and integrate educational
technology to further increase students and teachers access to
knowledge.
(iv) To identify suitable educational technology alternatives to be used by
students and teachers.
(v) To improve management and resource centre efficiency in order to
enhance the quality of teaching and learning.
(vi) To promote a reading culture among the students.
(vii) To ensure all schools achieve the level of smart schools.
SELF-CHECK 5.1
1. What are the four original functions of BTP?
2. State two main objectives of BTP.
5.2 EFFECTS OF CHANGES IN BROADCASTING

POLICY
Did you know that ETV is subject not only to legal rules and controls of the
Ministry of Education of Malaysia but must also take into account the
requirements of the Ministry of Information and the decisions of the MinistersÊ
Council as a whole? These legal agencies and controls have clearly influenced
ETVÊs development from 1972 till now.
Let us look at Table 5.2 which shows you the development of ETV in terms of total
broadcasting time for a day and a week. For about 27 years (1972 till 1998), ETV
broadcasted for four days at particular times on RTM TV2.

Table 5.2: Development of ETV
Total Broadcast Total Broadcasting

Year Day of Broadcast
Time a Day Time in a Week
1972–1992 8 hours 32 hours Monday–Thursday
1992–Oct 1997 7 hours 28 hours Monday–Thursday
Nov 1997–
5 hours 20 hours Monday–Thursday
May 1998
Jun 1998–
Dec 1999
Jan 2000–
Dec 2004
However, since January 1999, RTM no longer broadcasts ETV through TV2
channel because at that time, RTM was still implementing its organisational
corporatisation policy.
Due to changes in RTMÊs policy, ETV had to find other channels to broadcast its
programmes to the target audience. As you can see in Table 5.2, it clearly shows a
reduction in ETV broadcasting time from eight hours a day (1972 till 1992) to four
hours a day in 2004.
Therefore, the Ministry of Education of Malaysia sent the Minister of EducationÊs

memorandum No: 508/2186/99 to MinistersÊ Council on 1 September 1999. As a
result, the MinistersÊ Council meeting agreed that after December 1999, ETV
should be channelled through private broadcasting stations using satellite
broadcasts, i.e. Astro.
With the change in broadcasting policy, ETV organisations were given new
conditions as follows:
(a) To produce programmes conforming to international broadcasting standards;
(b) Ensure quality audio, video and programme contents so that they can attract
viewersÊ interests;
(c) Ensure existence of high quality research elements in each of its presentations;
(d) To improve programme quality in accordance with total broadcasting time
so that repetitions of broadcasting are not too frequent; and
(e) To produce quality ETV programmes.

In the efforts to improve production quality, ETV sector has given focus and
attention to the following matters within the period of five years (2003 till 2007):
(a) Organisational structure;
(b) Establishment;
(c) Types of programmes and acquisitions;
(d) Programme evaluation;
(e) Training and human resource development; and
(f) Equipment and facilities.
5.3 ORGANISATIONAL STRUCTURE OF

BAHAGIAN TEKNOLOGI PENDIDIKAN
(BTP)
As stated before, ETV was established under the Bahagian Teknologi Pendidikan
of the Ministry of Education. ETV tasks are handled by two sectors:
(a) Educational TV sector; and
(b) Engineering sector.
These two sectors are further explained in the next subtopics.
5.3.1 Educational TV Sector

This sector is responsible to ensure TV programmes conform to the following:
(a) Curriculum requirements in terms of content (knowledge, skill and value);
and
(b) Academic requirements (thinking and creative skills as well as teaching and
learning which can attract studentÊs interests).

5.3.2 Engineering Service Sector

This sector is responsible for handling the shooting tasks and maintenance of
equipment. Take note that the organisational structure of BTP is different from
administrative management of other divisions in the Ministry of Education. It has
its own work structure enabling it to operate smartly and is guided by a systematic
work flow.
5.4 ESTABLISHMENT OF BAHAGIAN

TEKNOLOGI PENDIDIKAN (BTP)
The BTP team consists of several crew members including the following (see
Figure 5.3).
Figure 5.3: BTP production team
The roles of each crew members are further elaborated in the next subtopics.

5.4.1 Producer
What are the tasks of a producer? A producer is responsible for the following tasks:
(a) Producing various ETV programmes based on curriculum, general
programmes, educational news and interludes either for direct telecast or
recording;
(b) Carrying out needs research and preparing concept papers for programme
series;
(c) Attending preparation panel meetings and scriptwritersÊ briefing;
(d) Examining and working on scripts to make production scripts;
(e) Writing own script for camera script;
(f) Identifying, screen testing and training qualified artists to take part, then
determine clothing, make up, set and props;
(g) Holding production meetings with officers and staff involved so that they
can contact outsiders and individuals to get their cooperation to ensure the
success of a programme;
(h) Leading a shooting team and be responsible to each member of the external
shoot team;
(i) Doing his own reconnaissance of surroundings and conditions of the place
or location of shoot;
(j) Holding external shoot meetings;
(k) Doing sufficient rehearsals before external/studio shooting;
(l) Carrying out directing of external and in-studio shoots;
(m) Attending preview of a programme before it is broadcasted;
(n) Responsible to improve previewed programmes to upgrade programme
quality;
(o) Determining artists/scriptwriters payment involved according to treasury
approvals;
(p) Preparing programme production reports; and
(q) Carrying out tasks issued from time to time.

5.4.2 Cameraman
Now, let us move on to the task of a cameraman. A cameraman is responsible for
the following tasks:
(a) Handling single camera production (SCP) and multiple camera production
(MCP) for ETV programme production and news coverage in studio and out
of studio together with programme producer as well as providing technical
services;
(b) To create moods through lighting techniques and creativity or camera tricks
in producing quality visuals for ETV programmes;
(c) Ensuring quality of lighting and shooting techniques of a recording and
coverage of ETV programme to achieve broadcasting standards;
(d) Carrying out maintenance jobs and testing of equipment under his care so
that they are always in good order; and
(e) Attending preview after completion of shooting.
5.4.3 Audio Technician

An audio technician is responsible for the following duties:
(a) Handling audio equipment during recording and direct telecast of ETV
programmes in and out of studio;
(b) Designing techniques of using microphone to suit recording location and
direct telecast of ETV programmes;
(c) Ensuring that audio quality always conforms to the specified broadcasting
standards;
(d) Making installation of radio equipment and testing the system in order to
record the audio properly;
(e) Attending previews of ETV programmes before being edited to identify
audio quality according to broadcasting standards;
(f) Attending preview sessions of ETV programmes, which have been edited,
to identify audio quality according to broadcasting standards before the
programmes are broadcasted; and
(g) Giving views to the producer from the aspect of audio equipment usage
techniques to suit them to programmes being recorded.

5.4.4 Lighting Technician

The tasks and responsibilities of the lighting system technician are as follows:
(a) Handling lighting equipment for production of ETV programmes in and out
of studio;
(b) Designing lighting to suit the forms of ETV programmes in and out of studio;
(c) Determining that lighting equipment is always functioning well and safe to use;
(d) Ensuring lighting quality conforms to broadcasting;
(e) Doing reconnaissance together with technical producer at specified locations
to determine lighting system positions before recording is carried out;
(f) Attending preview of edited ETV programmes to identify that lighting
quality always conforms to broadcasting standards;
(g) Making sure installation of lighting equipment before rehearsal and
recording is carried out; and
(h) Giving views to producer and set designer on use of set materials and artists
clothing colour to get the right lighting quality that exactly conforms to
broadcasting standards.
5.4.5 Editor
What are the tasks of an editor? An editor is responsible for the following tasks:
(a) Accepting the edit list and materials for editing as well as scripts from the
producer;
(b) Viewing materials selected by the producer;
(c) Selecting visuals according to series;
(d) Compiling visuals according to script and creativity;
(e) Editing;
(f) Always discussing with the producer during editing process;
(g) Ensuring quality of audio and video conforms to broadcasting standards;
(h) Attending preview sessions;
(i) Making corrections based on preview;

(j) Compiling and arranging effects according to producerÊs wishes;

(k) Preparing broadcasting tapes according to broadcasting standards; and
(l) Making reports when damage occurs.
5.4.6 Technical Producer

The tasks and responsibilities of a technical producer are as follows:
(a) Organising work flow of technicians and staff under his or her care before
and during recording in and out of the studio;
(b) Ensuring audio and video systems are working well during recording and
also determining the quality of audio and video conforms to specified
broadcasting standards;
(c) Doing reconnaissance together with the producer to selected locations to
determine camera position, audio system, lighting and electric power supply
for recording coverage using multiple camera production (MCP);
(d) Ensuring all recording equipment requirements are sufficient and
functioning well according to the recording and broadcasting order;
(e) Supervising technicians and staff tasks under his or her care while recording
and direct telecasts are being carried out;
(f) Giving views to the producer before and during recording, relating to
technical matters especially camera work, lighting, audio and audio mixing
technique; and
(g) Attending previews of edited ETV programmes to identify production
quality especially from technical aspects before broadcasting.
5.4.7 Video System and Camera Control Unit (CCU)

Technician
Video system and camera control unit (CCU) technicians are responsible for the
following tasks:
(a) Installing of video system equipment for ETV programmes in and out of
studio before recording is made;
(b) Testing equipment so that the system can function well;

(c) Determining video system functions well conforming to broadcasting

standards;
(d) Giving technical views to the technical producer about the use of recording
equipment needed in and out of studio either for recording or direct telecast;
(e) Handling camera control unit (CCU) equipment during recording or direct
telecast in and out of studio;
(f) Determining the source of video signal has a satisfactory quality conforming
to specified standards; and
(g) Attending preview of edited ETV programmes to identify video quality is at
a high level according to broadcasting standards.
5.4.8 Video Mixer

As for the video mixer, his or her tasks and responsibilities are as follows:
(a) Handling video mixer equipment for ETV recording and direct telecast;
(b) Mixing video sources from various sources to make a good video picture
before being recorded;
(c) Designing effects available in the equipment to use as material for improving
ETV programmes; and
(d) Giving views to the producer on the use of video mixing equipment.
5.4.9 Graphic Designer

The tasks and responsibilities of a graphic designer are as follows:
(a) Giving ideas, designing and producing graphic and animation materials for
ETV programme production, namely:
(i) Illustrations, diagrams, charts and maps;
(ii) Electronic graphics using caption generator;
(iii) Printed caption for labelling;
(iv) Sequence animation;
(v) Calligraphy;

(vi) Models, dolls and special effects; and

(vii) Artistic elements for set construction.
(b) Giving ideas and producing cover graphics design and layout for desktop
publishing:
(i) Preparing layout work for production of books, brochures, flyers,
posters, leaflets and banners;
(ii) Preparing slides layout for presentations using LCD projector; and
(iii) Preparing book cover design, VHS and CD boxes.
(c) Contributing ideas, designing set model or backdrop and supervising

graphic works and artistic elements for studio, auditorium and external
shooting needs.
(d) Improving mastery and preparation about techniques and production of

graphic design, layout, animation, computer graphic and TV graphic
production techniques using multimedia.
(e) Managing and maintaining equipment in the control of design and staging unit.
5.4.10 Photographer
Last but not least, a photographer is responsible for handling the following:
(a) Planning activities of photographing for ETV sector and the whole ETD;
(b) The process of producing photographs for the purposes of the production of
ETV programme, multimedia, leaflets, posters and others;
(c) Making efforts for storage and systematic records;
(d) Evaluating photographic works in terms of quality, suitability and
effectiveness;
(e) Participating in external and in studio shooting activities with the objective
of recording a suitable scene for producing teachersÊ guide book;
(f) Making inspection and evaluation of photographic equipment;
(g) Maintaining the photographic room; and
(h) Checking stocks of equipment and tools as well as making orders or making
replacements.

SELF-CHECK 5.2
1. Explain briefly the tasks and roles of a producer.
2. How can a graphic designer assist in a programme production?
3. How should the tasks of an editor be carried out?
ACTIVITY 5.1
Find out through the Internet, three tasks of an assistant programme
producer (SA) in ensuring a well-run shooting process. Post your
answer in the myINSPIRE forum.
5.5 EDUWEBTV
Now, Educational TV has completely shifted from being a TV channel to an official
KPM website which is EDUWEBTV. Bahagian Teknologi Pendidikan (BTP)
introduced this EDUWEBTV as the main channel to improve further the usage of
educational TV channel among students and school teachers.
One of the advantages of Educational TV in the form of a website is that it gets to be

used widely and can be accessed anytime and anywhere. The teaching by teachers
who previously used CD-ROM can also be converted to online material (Johari
Hassan & Nor Hafizah Sulaiman, 2009). EduwebTV has four channels, namely:
(a) Curriculum channel;
(b) E-guru portal channel;
(c) Current affairs channel; and
(d) Educational radio portal channel.
The total materials at EduwebTV are 2,404 videos and 401 audio materials. For
example, there are a total of 900 programme videos based on curriculum at
EduwebTV. The existing subjects for primary and secondary schools are Malay,
English, Mathematics, Science, History, Physics, Biology, Linus and Pre-school.

5.5.1 EDUWEBTV Module

EDUWEBTV uses the online learning method. By using virtual method or virtual
learning environment (VLE), teachers are able to come up with ideas for learning
and facilitation (PdPc) in the Frog VLE interactive platform, in line with the current
growth of science and technology (see Figure 5.4).
Figure 5.4: Frog VLE interactive platform

Source: https://frogasia.com/en/1bestarinet/
The Director of Institut Pendidikan Guru Kampus Ilmu Khas (IPGKIK), Dr. Mohd.
Suhaimi Mohamed Ali states that „TodayÊs practice of learning needs creativity
and technology to attract studentsÊ interest‰ (Utusan Online, 2018). By using
virtual method for learning or virtual learning environment (VLE), this PdPc
practice will meet the characteristics of 21st century learning.
EDUWEBTV has a module which was created to assist teachers in actualising the
virtual learning programme (see Figure 5.5).

Figure 5.5: EDUWEBTV module for teachers

Source: https://drive.google.com/file/d/0B3Yse8Vi9lrPYTZnbmpHU1AwTEE/view
This was created and written by 10 teachers who have wide experiences in their
respective fields. The approach of the moduleÊs writing is easy to understand and
apply. This moduleÊs contents are a guide for online and offline video editing that
saves cost and time. It explains how to create educational videos by using basic
equipment such as audio and visual equipment. This module also covers how to
apply PdPc digitally and utilising interesting appraisal methods. There are several
chapters in this module teaching on the methods and gadgets including:
(a) Mirroring Technique

What is mirroring technique?
Mirroring technique is a wireless connection technique from (using)

smart devices to projector or television.
Teachers can apply PdPc by using smart devices to display the content and
correct studentsÊ mistakes quickly.

To start the learning and facilitation process, teachers must connect the wireless
projector with devices such as smartphone, tablet, laptop and computer
(Saripah Ahmad et al., 2017). There are two ways to connect. First, by using
wireless devices and secondly, by using an application called Air More.
Wireless connection uses Windows, Android, iOS and MacOS operation
systems as follows (see Table 5.3).
Table 5.3: Wireless Devices for Two Different Operating Systems
Windows/Android iOS/MacOS
 Microsoft wireless display adapter  Apple TV

(WDA)
 Mini screen beam

 Ezcast
 Ezcast  Any cast

 Any cast  Miracast
 Miracast
(b) Digital Ink

Did you know that the use of digital ink is capable to replace the application
of traditional white board in class? This is because white board is static, not
interesting and requires a long time for teachers to write on it. In addition,
using marker pen can also cause allergic reaction to some of the teachers and
it has an unpleasant smell.
Digital ink technique is suitable to be used in class because it eases the
teachersÊ learning and facilitation. Furthermore, in terms of cost savings,
it saves the usage of marker pen, white board eraser, highlighter pen, paper
and pencil. It also helps to save time for teachers in preparing learning aids
and able to display dynamic and interesting interactive media. Figure 5.6
shows the use of digital ink in action.

Figure 5.6: Digital ink in classroom

Source: http://www.sinarharian.com.my/
(c) Basics of Shooting

Teachers in Malaysia are provided with various facilities such as tools and
services related to PdPc. With the provided facilities, it helps teachers to
record PdPc material themselves to be uploaded in EDUWEBTV.
What are the steps of shooting? Table 5.4 summarises the four steps of basic
shooting.
Table 5.4: Four Steps of Basic Shooting
Step Task
Early planning  Storyboard

 Schedule and workforce
 Tools
 Shooting location
 Talent
 Costume and prop

Pre-shooting  Storyboard
 Schedule and workforce
 Tools
 Shooting location
 Talent
 Costume and prop
Shooting  Preparation
 Shooting
Post-shooting  Wrap up
 Transferring data/recording
 Editing
As for technical aspect, it is divided into eight subjects as explained in

Table 5.5.
Table 5.5: Eight Subjects from the Technical Aspect of Shooting
Subject Description
Camera handling Shots taken must be suitable for showing, i.e. non-vibrating
picture (steady shot). From the continuity aspect, a good shot
has no jump shot, red visual or overexposure.
Visual quality It must be synchronised with the demand of script content. For
example, there are close-ups and mid-shots. It must not also
be soft-focus and must be clear for viewing. A high visual
resolution must not have any error. A good visual quality has
the following features:
 Clear, bright and conforming to broadcasting standard.
 Not jumpy.
 Has a good continuity and so on.
Editing quality There is continuity of story, there is no jump shot, insert,

appropriate pictures and use of attractive and suitable visual
effect. Audio mix is also evaluated following broadcasting
standards.

Quality of graphic Graphic writing may use graphics that can be read from a
art/set reasonable distance. Animation/illustration is made well and
clear. There are also attractive set and props, as well as
appropriate colour scheme that fits with programme
presentation.
Lighting quality Precise lighting, not soft-focus, appropriate with the presented
scene. There is no electronic effect, white wash and so on.
Quality of sound effect Using natural, clear and suitable sound effect, consistent with
and dialogue the object being shot and correct sound perspective.
Music quality Using background music or a music that is suitable with

visuals to bring out the right mood.
Overall technical Overall comments on technicality are whether it is qualified

quality for broadcasting/conforms technical aspect. If improvement is
needed, it must be noted precisely.
(d) Video Editor

After the shooting ends, all materials and recording will be edited by using
YouTube Creator Studio (see Figure 5.7).
Figure 5.7: YouTube Creator Studio
This application is free. What are the advantages of this application besides
being free? The advantages of using YouTube Creator Studio are as follows:
(i) Minimum computer equipment;
(ii) No capacity limitation for uploaded video;
(iii) Software installation is not required for video editing;

(iv) Saves time to export video; and

(v) Final product is saved automatically in Video Manager.
(e) Green Screen

Did you know that the Chroma key technique is also known as blue screen
or green screen? Green screen is a technique where photos are taken with
green background and it is a technique by combining two objects such as a
picture or video and then the green background will be inserted with a
different background such as a house, building and so on (see Figure 5.8).
Figure 5.8: Chroma key or green screen technique

Source: https://www.pinterest.com/pin/489203578252147862/?lp=true
This green screen method can be used by teachers to make a more interesting
and effective PdPc video.

(f) Google Classroom

Last but not least, teachers and students can use Google Classroom without
hassle, and at the same time make it interesting and effective (see Figure 5.9).
Figure 5.9: Google Classroom application

Source: https://play.google.com
What is special about Google Classroom is that this application can be accessed
not only by using a personal computer or laptop but it can also be accessed through
gadgets such as mobile phone either by using Android or iOS system operation
for iPhone or iPad (Saripah Ahmad et al., 2017).
SELF-CHECK 5.3
1. State the subjects that are evaluated from the technical aspect
of shooting.
2. Explain how the shooting process is carried out.
ACTIVITY 5.2
You can read more on the EDUWEBTV module at
https://bit.ly/2U5ADB8. Create your own Google Classroom by
following the instructions given in the module.

• Educational Television (ETV) was introduced in 1972 together with the

establishment of Bahagian Perkhidmatan Sebaran Pendidikan (PSP), Ministry
of Education of Malaysia. Now, PSP is known as the Bahagian Pendidikan
Teknologi.
 ETV programmes were first broadcasted on TV2 in 1972.
 In the year 2000, Educational TV had moved to the paid channel in Astro and
broadcasted from 9.00am to 5.00pm.
 However, since Astro did not renew the contract with Educational TV on
31 December 2006, it was then rebroadcasted on a free private channel, TV9 on
3 January 2007 until it ended on 31 December 2008.
 Now, Educational TV had been changed entirely to the EDUWEBTV website

in 2009.
 ETV is subject not only to legal rules and controls of the Ministry of Education
of Malaysia but must also take into account the requirements of the Ministry
of Information and the decisions of the Ministers' Council as a whole.
 Educational TV was established under the Educational Technology Division

(ETD) of the Ministry of Education. ETV tasks are handled by two sectors
namely educational TV sector and engineering sector.
 Bahagian Teknologi Pendidikan (BTP) team consists of several crew members

such as producer, cameraman, audio technician, editor and photographer.
 BTP introduced EDUWEBTV as the main channel to improve further the usage
of educational TV channels among students and school teachers.
 EDUWEBTV uses virtual learning environment (VLE) which helps teachers to

come up with ideas for learning and facilitation (PdPc) in Frog VLE interactive
platform.

Bahagian Teknologi Pendidikan (BTP) Engineering sector

Educational Television (ETV) Online learning
Educational TV sector Virtual learning environment
(VLE)
EDUWEBTV
Bahagian Teknologi Pendidikan. (2019a). Moto. Retrieved from

http://btp.moe.gov.my/article/85
Bahagian Teknologi Pendidikan. (2019b). Visi & misi. Retrieved from

http://btp.moe.gov.my/article/83
Bahagian Teknologi Pendidikan. (2019c). Objektif Bahagian Sumber dan Teknologi

Pendidikan. Retrieved from http://btp.moe.gov.my/article/91
Fatimah Syahida Jusuh. (2006). Penggunaan TV Pendidikan dalam pengajaran dan

pembelajaran di kalangan guru-guru di empat buah sekolah bestari di negeri
Johor. Retrieved from http://www.fp.utm.my/epusatsumber/pdffail/
ptkghdfwp2/p_2006_6851_a857d35608af4523b3941048f5ed2acc.pdf
Johari Hassan, & Nor Hafizah Sulaiman. (2009). Penggunaan TV Pendidikan dan
EDUWEBTV dalam kalangan guru sekolah menengah di sekitar bandaraya
Johor Bahru, Johor. Retrieved from http://eprints.utm.my/id/eprint/
10321/2/Nor_Hafizah_Binti_Sulaiman.pdf
Kreativiti guru dalam PdPc. (2018, January 1). Utusan Online. Retrieved from
http://www.utusan.com.my/pendidikan/kreativiti-guru-dalam-pdpc-
1.582460#ixzz5FRjr2qPC retrieved 23 April 2018.
Policy Planning and Educational Research Division, Ministry of Education

Malaysia. (2004). Quick facts 2004. Putrajaya, Malaysia: Ministry of
Education Malaysia.

Saripah Ahmad, Roiamah Basri, Kamarulzamri Bakar, Abd Rahman Ali Bashah,
Zafarul Islam Mohamed Idris, Mohsen Miskan, Muhammad Saffuan Jaffar,
Azharul Faiz Zainal Abidin, Zainal Mohd Zabir, & Rosmin Kamari. (2017).
Modul multimedia dalam PdPc STEM abad 21. Cyberjaya, Malaysia:
Kementerian Pendidikan Malaysia.


Topic  Marketing
and Sales
6 Management
LEARNING OUTCOMES
1. Describe marketing and sales management in the broadcasting sector;
2. Explain advertising industry and its key players; and
3. Discuss media objectives and factors influencing media selection,
ratings and media product promotion.
 INTRODUCTION
In the current global economy, the telecommunications industry emerges as a field
to integrate various elements such as entertainment, information and
communications services. Information dissemination is implemented through
various distribution media.
Albarran, Chan-Olmsted and Wirth (2005) have listed several current information
distribution channels such as the use of broadband, traditional broadcasting, cable
televisions, telephones, the Internet, wireless communications and satellites.
There are various changes taking place in the telecommunications sector and these
developments have also changed the telecommunications landscape. Besides that,
the changes taking place in information and entertainment aspects are also
shaping a new face in the broadcasting world. For example, the production of
television reality programmes which is broadcasted in large numbers currently
combines traditional production with the use of new media, such as the mobile
phone. This development shows the active involvement of the audiences and
increases the advertising income of the television station.

148  TOPIC 6 MARKETING AND SALES MANAGEMENT
Therefore, this topic will discuss the marketing and sales process which is related
to the broadcasting industry. Keep in mind that our discussion is focused on the
marketing and advertising elements. So are you ready to discover more? Let us
start with the lesson!
6.1 MARKETING AND SALES MANAGEMENT

IN THE BROADCASTING SECTOR
One aspect that differentiates between broadcasting industry transactions and
other industries is the aspect of the product being offered to the consumers and
audience. Here the product refers to an invisible product, a product that cannot be
valued or measured physically. On the other hand, the products involved in the
industry are products such as public taste, art or picture.
The sale of a space in print media has visible characteristics, i.e. the advertiser can
keep a newspaper cutting or the magazine publishing the advertisement, but the
sale of airtime cannot be seen or is intangible. One unique quality about airtime
sales is that if a time space is not purchased by the advertiser, that space will be
gone, lost and eliminated.
The product meant in the broadcasting industry is the sale of airtime. Even though
the time transaction does not have a physical characteristic that can be seen or held,
this does not mean that the product has no special term as in other visible products.
For media sales agents, they use a term called „spot‰. Time space or spot is
measured based on the total advertisement broadcast time, i.e. 10 seconds,
15 seconds, 30 seconds or 60 seconds for each sales unit.
In general, unsold time space for an advertisement is included in the inventory similar
to what is done to other unsold products stacked on the racks in the supermarkets.
A radio station broadcasts for 20 hours a day with an average of 10 advertisement

broadcasts per hour. This means, every day the station must broadcast two
thousand 60 minute advertisements or four thousand 30 minute advertisements.
Without the sale of a spot, the station will suffer a loss of income.
Therefore, usually the sale is made in a package form. Allocation of spot packages
is prepared by taking into account the total broadcasted advertisement hours for
periods of several weeks or months.

TOPIC 6 MARKETING AND SALES MANAGEMENT  149
The broadcasting sector revenue grew by two per cent in 2016, which constitutes
pay TV services (Astro) and free-to-air (FTA) TV (Media Prima Group) having
contributed MYR6.48 billion to the total communications and media industry
revenue in that year. This reflects an increase of 2.2 per cent from MYR6.34 billion
in 2015. Such growth was attributed to pay TV, which posted higher contribution
from its advertising and home shopping segment.
In 2016, FTA TV revenue remained unchanged at MYR0.9 billion. FTA TV which

derives revenue from advertising has experienced a dip since 2013 at MYR1.01
billion. The decline is due to the change in media consumption habits. This posed
challenges to FTA TV service providers as advertiser share alternative advertising
platform, offering target marketing and audience engagement (MCMC, 2016).
6.2 ADVERTISING INDUSTRY

Advertising concept began with Volney PalmerÊs initiative who acted as a
salesman for advertising space (Keshishoglou & Aquilia, 2005). Now, the activity
is taken over by the media planners who combine systematic calculation methods
to buy time of advertising broadcast through broadcasting media.
In the early stages of advertising industry development, names such as N. W. Ayer

& Son, J. Walter Thompson and others are the agencies who have explored the
advertising industry. At present, big names such as McCann-Erickson, Young &
Rubicam, and Ogilvy & Mather are among the well-known international
advertising agencies.
Changes taking place in the advertising industry leave effects on the functions of
advertising agencies. Although advertisers have wide opportunities to broadcast
messages about their own products or services, each broadcast is subject to
advertising codes of ethics.
Based on the Industry Performance Report conducted by MCMC (2007),

advertising expenses in Malaysia has shown an increment of five per cent in the
first quarter of 2005. It was found that the five top categories which have
contributed to the increase were the interactive service of mobile phones, mobile
telephone lines services, housing estates, government institutions and airline
companies. The telecommunications industry continued to drive up local
advertising expenses. Turnover value was expected to reach MYR5 billion for the
year 2005, making the advertising industry an important contributor to the
national economy. The following subtopics describe the key players behind this
industry.

6.2.1 Advertisers
Who are the advertisers?
Advertisers refer to organisations who spend for investment purposes by

using media with the objective of promoting products produced or services
rendered.
Most major advertising agencies are known as full-service agencies. They establish
advertising objectives for companies with products or services to sell (Gross, 2009).
Advertisers are the main players who supply advertising financial resources.
Advertisers may also produce products or render services (Belch & Belch, 2001).
Among local names who are large advertisers include Celcom, Petronas, Malaysia
Airlines and others, while the large international advertisers include Pepsi, Nike
and McDonaldÊs (see Figure 6.1).
Figure 6.1: Large local and international advertisers

Most small advertisers are local advertisers who carry out their own advertising
activities. On the other hand, for large organisations, activities to advertise
products or services are managed by advertising agencies.
The total advertising spending in Malaysia rose by 22 per cent in the first half of
2008 amounting to MYR2.9 billion from the same period in 2007. Advertisements
spent on the Internet medium in the first half of 2008 was worth MYR14.9 million.
Traditional medium still drives the bulk of advertising spending in Malaysia.
Newspapers have the largest portion with the total amount of advertising
spending reaching MYR1.6 billion, a growth of 16 per cent from the first half of
2007. The Advertising Standards Authority (ASA) Malaysia believes that,
advertising spending can reach MYR6 billion or 11 per cent growth from
MYR5.4 billion in 2007. This growth is expected to come from outdoor media and
digital advertising and the growing potential in TV and creative production
(MCMC, 2009).
Although the amount spent is indeed large for Malaysian standards, when
compared with advanced countries such as the United States, the amount is rather
small. Advertising expenses in the United States in 1999 till 2000 amounted to
USD111 billion (OÊGuinn, Allen & Semenik 2003).
6.2.2 Advertising Agencies

Now, let us move on to advertising agencies. What does it stand for?
The American Association of Advertising Agencies (AAAA) defines an

advertising agency as a free organisation which is represented by creative staff
who produce, prepare and publish advertisements.
Dominick (2002)
According to Shimp (2007), an advertising agency is a company which is operating

to assist advertisers prepare advertising messages to be presented by the
advertisers to the public audience. Among others, the advertising agenciesÊ roles
are to prepare various services such as:
(a) Conducting a research;
(b) Preparing creative services; and
(c) Implementing media planning.

When discussing advertising agencies, names such as J. Walter Thompson,

McCann-Erickson, BBDO and Young & Rubicam are among international
advertising agencies who are well known and are operating in Malaysia. Most of
these agencies develop close relationship with the advertisers (also known as
clients or customers). Some relationships have been established for decades and
they remain strong till today. The following examples in Table 6.1 indicates close
relationships that have been established by two participants in the advertising
industry.
Table 6.1: Strong Ties between Advertisers and the Agencies
Advertiser Agency Transaction Duration

Unilever J. Walter Thompson 1902–Today
Sunkist Growers FCB 1907–1999
Exxon McCann-Erickson 1912–2000
Del Monte McCann-Erickson 1917–Today
Armstrong BBDO 1917–Today
Chevrolet Campbell-Ewald 1919–Today
General Electric BBDO 1920–Today
Kraft J. Walter Thompson 1922–Today
DuPont BBDO 1929–Today
KelloggÊs J. Walter Thompson 1930–Today
Kodak J. Walter Thompson 1930–1999
Hormel BBDO 1931–Today
Mars/Uncle BenÊs Rice DMB&B 1932–Today
Pontiac DMB&B 1934–Today
Cadillac DMB&B 1935–Today
Dow Chemical DMB&B 1935–Today
MetLife Young & Rubicam 1940–Today
Campbell Soup BBDO 1954–Today
Source: Shimp (2007)
ACTIVITY 6.1
Examine advertisersÊ names in Table 6.1, who are also active advertisers
in our country. Do you know the names of the advertising agencies
listed in the table? Write down the agencies that you recognise from the
list and briefly discuss a few facts about each agency. Share your answer
in the myINSPIRE forum.

6.2.3 Stations
What do stations mean?
Station refers to a media channel used to deliver advertising messages to an

audience.
In the broadcasting industry, stations also refer to electronic media, i.e. television
and radio as well as online media. The media functions as a link between an
advertising organisation (advertisers) and the customers.
How do we select the best media? Media selection for the purpose of advertising
is based on the following four dimensions (see Figure 6.2).
Figure 6.2: Four dimensions of media selection

When discussing the topic of stations, we need to relate it to various media

channels available now. The viewing audience has wide choices. This is not only
due to the media landscape which is so diversified, but also the effect of increase
and diversity of electronic media at the moment.
Let us look at Table 6.2 which explains in detail the four dimensions that are taken
into account to evaluate media which is regarded as the most effective in
delivering advertising messages to customers.
Table 6.2: Various Media Advertising Characteristics
Media
External Direct
Characteristic Internet
Advertisement Mail
Newspaper Magazine Radio TV
Reach High Low High High High High Medium
Frequency High Low High High High Medium Medium
Selectivity Low High High Medium Low High High
Efficiency Medium Low Low High High High Medium
Source: Dominick (2002)
Now, let us look at Figure 6.3 which explains how television programmes can raise
the advertising income of a television station.

Figure 6.3: How television programmes raise the advertising station income
Source: Belch & Belch (2001)

What are the advertising expenses in Malaysia in 2014? Let us look at Table 6.3 for
the answer.
Table 6.3: Malaysian Advertising Expenditure First Half of 2014
Advertising Expenses
Medium
(MYR2.06 Billion)
Newspaper 34%
Television 61%
Source: Dutt (2014)
As we can see in Table 6.3, it shows the total expenses allocated to television media
which is more than the expenses allocated to newspapers. Of the 61 per cent
advertising expenses for television, distribution is made between television
channels TV3, RTM, NTV7, TV9 and others.
Therefore, most stations expect that total advertising expenses which are
channelled to their own stations would be more than those channelled to others.
This situation has caused broadcasting stations to prepare their own targets in
generating income from advertising activities.
The following extract in Figure 6.4 comments on Malaysian advertising

expenditure for the first half of 2014.
Advertising expenditure in Malaysia during January to June 2014 has been estimated as
MYR6.8 billion, reflecting a 14 per cent growth over the MYR5.99 billion achieved during
the comparable first half of 2013.
TV and press (newspapers) commandeered 95 per cent of this advertising revenue, with
pay-TV reflecting the single highest market share 38 per cent followed by press
(newspapers) 34 per cent and free-to-air TV with 23 per cent.
These figures have been gleaned from the latest update from Carat, quoting advertising
expenditure data provided by Nielsen.
Radio obtained three per cent, with magazines and in-store media recording one
per cent each. Cinema recorded a negligible fraction, while the data-provider has
temporarily stopped reporting out of home since January 2014 (according to Carat).
Despite the hype and buzz, Internet ad-expenditure still remains marginal.
Over the past four years, cable/satellite channels (pay-TV) have recorded the most
significant growth, both in revenue MYR volume and % market share. Growing from
20.3 per cent (MYR1.95 billion) in Jan-Dec 2010 to around 36 per cent (MYR4.91 billion)
in Jan–Dec 2013.

For the first time in recent memory, during Jan–Dec 2013, pay-TV (36 per cent) replaced
newspapers (34 per cent) as the medium with the single highest revenue volume and
market share of the Malaysian advertising expenditure pie. Besides quality
programming which is increasingly enticing more appointment viewership, audio-
visual spectacles like the FIFA 2014 World Cup is sure to have enhanced their coffers
during first half of 2014.
Press has grown in MYR volume, driven largely by English newspapers, while
conceding market-share leadership to cable/satellite (pay-TV) channels. Growing from
MYR3.89 billion in Jan–Dec 2010 to around MYR4.57 billion in Jan–Dec 2013. But market
share has declined from 40.4 per cent (in 2010) to 34 per cent in 2013 and first half of
2014.
This is a classic example of decline from star to cash-cow. The rate-of-growth for
newspapers has slowed down, influenced by some vital factors including evolving
reading habits and media convergence.
Ambitious newspapers may have to review their product proposition, content mix and
selling strategies to rejuvenate and accelerate revenue accruals. Recognising the revised
priorities and challenges being faced by media specialists will also deliver dividends.
Figure 6.4: News extract on Malaysian advertising expenditure for the first half of 2014
Source: Dutt (2014)
SELF-CHECK 6.1
State the four dimensions of media selection.
6.2.4 Station Agents

In advanced countries such as the United States of America, United Kingdom and
others, the total number of stations (radio and television) is big. This makes it
difficult for advertising agencies to contact these stations. To simplify the task of
advertising agencies, they contact particular station agents.
How about Malaysia? The situation in Malaysia is rather different because not only
the number of stations is small, they are only concentrated around the Klang
Valley area. Therefore, most advertising agencies have direct contacts with radio
and television stations.

6.2.5 Media Planners

Media selection is done by a media planner with the purpose of establishing brand
stability over a long-term period. Media selection is a complex process of decision-
making in the marketing communications because of many selection choices.
What are the responsibilities of a media planner? A media planner is responsible

in several matters as shown in Figure 6.5.
Figure 6.5: Responsibilities of a media planner
Now, let us move on to media planning process. What does it mean?
Media planning process can be defined as an activity to create a direction of

actions which shows how the advertising time and space is used to achieve
marketing objectives of a product offered or service rendered.
Bovee & Arens (1994), Arens (1998) and Wells et al. (2000) also have the opinion
that media planning is a process to use the media effectively and creatively with
the purpose of delivering an advertising message to target audience at an
appropriate time and place.
As for Belch & Belch (2001), media planning process is defined as a series of
decision-making processes involving delivery of marketing communication
message of a product to a potential and existing consumer.
Therefore, media planning is said to be a continuous activity involving many

processes of decision-making either to be changed, disposed of or used throughout
the time whilst the planning process is carried out.

Continuous activity in the same media results in repetitive reactions in the same
audience. Changing the use of a media to another media will result in continuity
covering wider areas. To schedule advertisement continuously, advertisers may
use three methods, that are, flighting, continuous scheduling and pulsing methods
(see Figure 6.6).
Figure 6.6: Six elements of media scheduling
These three methods are further explained as follows:
(a) Continuous Scheduling

Continuous scheduling or continuity explains how advertising is scheduled
for a campaign period. Continuity is also a strategy and technique used to
schedule advertising in an advertising campaign period. The term refers to the
advertising campaign period and overall message delivery patterns in a given
period of time. Advertising in television and newspaper may be scheduled
simultaneously in a year or may be focused only on a certain season.
Continuous schedule refers to advertising expenses that are considered

relatively stable while an advertising campaign is carried out.
Advertising campaign using this schedule is continued for the whole year.
For example, an advertiser chooses to broadcast an advertisement each week
for 52 weeks or the advertisement is broadcasted each month for
broadcasting once a month for 12 months. Implementation of a stable and
continuous advertising campaign may create brand loyalty.
However, if it is too often it will incur high cost. On the other hand, if it is too
infrequent, it will make an advertisement lose its effectiveness.

What are the factors that must be taken into account when using this method?
The factors to be considered when using this method are advertising cost, type
of a product advertised and the cycle of a product used. Advertisers should
implement a continuous advertising campaign for daily use products in an
effort to assist consumers to make decisions to purchase.
(b) Pulsing
Firstly, what does pulsing mean?
Pulsing refers to the time and space of continuous scheduling but it is

not smooth, i.e. level of advertising is low, followed by intensive level of
activities.
Did you know that pulsing is a popular alternative for continuous

advertising patterns because of a limited budget? There are four types of
pulsing as explained in Table 6.4.
Table 6.4: Four Types of Planning
Pulsing Definition
Seasonal Advertising carried out according to certain seasons such as during

festivals such as Hari Raya Aidilfitri, Chinese New Year and so on.
Occasional A campaign carried out in this method has no relation with any
festival. It is made by taking into account a certain time regularly.
Initial A schedule to initiate a campaign with strong effects.
Progress A schedule created to develop a product or service or to support a

special promotion.
(c) Flighting (Schedule of Advertising Ordering)

According to this pattern of schedule, advertising is carried out at various
levels. Advertisers may implement an intensive advertising activity, which
is then followed by a period of time of which is without any advertising
activity. Most advertising of products for seasonal use is advertised through
scheduling of advertising ordered by this pattern.

ACTIVITY 6.2
By referring to the media scheduling method discussed, make a list of

three advertisements which you have seen on TV and identify the type
of schedule for them.
6.3 MEDIA OBJECTIVES

Did you know that strategy formulation and advertising objectives are important
factors in the media planning process? Media objectives should also be made
suitable with marketing and advertising objectives especially in determining:
(a) The content of advertising message;

(b) Who the audiences are; and
(c) Where their positions are.
So what is media objective?
Media objective means preparing specific objectives for media selection

meant for advertising broadcast.
Besides that, media planners should also think of suitable media channels to
broadcast the message. These guidelines help media planners to:
(a) Focus on the total audience exposed to the advertisements;

(b) Level of advertisement exposure; and
(c) The effectiveness of the advertisement.
The advertisers must ensure the effectiveness of the broadcasted advertisement.

This can be done through advertising effectiveness measurement by measuring
impression, gross rating, access and frequency (see Figure 6.7).

Figure 6.7: Four measurements of advertising effectiveness
What are the aims for advertising broadcast? The aims are to:
(a) Achieve a target audience;

(b) Identify coverage of target audience locations; and
(c) Identify total advertising messages for target audience.
ACTIVITY 6.3
In your opinion, should media objectives be consistent with marketing
objectives? If you feel they should, why do you say that? Justify your
answer in the myINSPIRE forum.
6.3.1 Impression
What does impression mean?
Impression can be defined as the opportunity a person is exposed to certain

programme, news or magazine.
Impression measures audience for a media at or a media mix. For example, assume
the Rindu Semakin Jauh, Samarinda slot is viewed by 100,000 people. Each time
an advertiser uses the slot to broadcast its advertisement, the impression is 100,000.
If the advertiser broadcasts four times, this means the impression is 100,000
multiplied by four, i.e. the value is 400,000.
However, the advertiser usually measures gross impression, i.e. total target
audience based on media channel for each broadcast time. Such calculation is made
because the advertiser refers to the total in general, irrespective of whether a person
is exposed more than two or three times to the advertisement broadcasted.
Understanding the element of impression facilitates a media planner to estimate

whether an advertisement broadcasted in a space or selected time will succeed in
getting audienceÊs attention or not. This factor is essential because the exposure of
an advertisement to the audience can be interpreted as the first step in attracting an
audienceÊs interest to get additional information about the advertised product or
service. A simple example of the calculation is shown in Table 6.5.
Table 6.5: Calculation of Exposure to Advertisement Media
Media Programme Total

Television Samarinda 4,500,000
WWF Championship 16,250,000
Buletin Utama 7,350,000
Total TV exposure 28,100,000
Newspaper Utusan Malaysia 450,000
Berita Harian 1,900,000
Total newspaper exposure 2,350,000
Total exposure 28,100,000 + 2,350,000
Impression 30,450,000
6.3.2 Gross Rating Point (GRP)

Gross rating point (GRP) is simpler for the advertiser to remember exposure
percentage of the audience than remembering gross impression. What is GRP?
Gross rating point (GRP) is the total access multiplied by frequencies and is
used to explain total message influence for a media schedule without taking
into account audience expansion in a period.

For example, if 80 per cent of families having radios is exposed to a Celcom

advertisement at four times on average in a period of four weeks, the gross rating
point will be as follow:
Access × Frequencies = Gross rating point

(80) × (4) = 320 gross rating point
A simple example of GRP (in per cent) is as in Table 6.6.
Table 6.6: Examples of Gross Rating Point (GRP)
Media Programme Access Frequencies GRP
Akademi Fantasia 20 4 80
Majalah Tiga 25 4 100

180
6.3.3 Access
Firstly, what does access mean?
Access is defined as a segment of the total population exposed to the

advertisement messages at least once a week in a determined period, usually
four weeks.
Access is also understood as the percentage of target audience exposed to the

broadcasted advertisement.
How do we determine the scope of an advertising campaign? There are several

factors determining the scope of an advertising campaign. In general, if more than
one media is used for an advertising campaign, more audience will be accessed.
This means that a diversity of media being used for an advertising campaign
would give more opportunities for exposing advertising messages to the audience.
For example, an advertiser advertising a product more frequently in two
magazines gives less exposure as compared to an advertisement published in
various magazines.
Access is calculated as the percentage of unduplicated viewers, exposed at least

once to the advertisement message. Access measures the media ability to attract
different individuals in the target audience.
6.3.4 Frequencies
What are frequencies?
Frequencies are the average total time the customer audience is exposed to
the media, the average of a message reaching a household on or the same
individual at the same time.
Frequency measures a specific media schedule. Frequency also measures the

intensity of a specific media schedule. Normally, frequency is calculated as the
average of the frequency of an individual or a household exposure to the
advertisement messages. Frequency is effective in determining the maximum or
minimum limit of repetition of the advertising messages.
However, as a substitute for the frequency average, media planners use frequency
distribution as it shows the minimum distribution for a potential user to be
exposed to advertising message and also the maximum frequency needed to
measure the effectiveness of the advertisement message.
However, what is troubling the media planners is getting frequency distribution

as it requires special research which takes a long time and involves a high cost.
Frequency may also be explained in two ways – direct percentage or as a cycle.

If frequency is said to be at 3.0 average, it means the potential customer is exposed
three times to the advertisement message within a period of four weeks of the
advertisement broadcasted.
However, not all of the potential customers will be exposed three times, because it
is possible that some may be exposed more than three times, while others may be
exposed less than three times to the advertisement message.
To understand more about the calculation of average frequency you can try to
think of the following problem: If 4,000 out of 10,000 TV viewers view the Petronas
advertisement three times in the period of four weeks, and 4,000 more viewers
watched five times, the average frequency is calculated as follows:
Average frequency = Total access exposure
=
 40, 000 ××3  +  4, 000 ×5 
8, 000
=4

Assume an advertiser advertises an advertisement through a weekly programme by

getting 20 per cent household coverage for four consecutive weeks. In the period of
four weeks the programme acquired 43 per cent coverage. This means the target
audience has the opportunity to view the advertisement as much as 1.9 times.
20 ×4
Frequency = = 1.9
43
ACTIVITY 6.4
Estimate the value or price of an advertisement with a one-page size

in a newspaper. In your opinion, will the size and price factors affect
the selection of media? How about the duration and number of
advertisements? Will they influence the purchase of media? Discuss
these questions in the myINSPIRE forum.
SELF-CHECK 6.2
Describe the four measurements of advertising effectiveness.
6.4 FACTORS INFLUENCING MEDIA

SELECTION
There are many types of expenses that must be thought of and paid for when an
advertiser chooses to advertise in a particular media. Each media has a certain rate
of charge, which is based on various factors. The type of media itself will influence
the advertising costs. For example, advertisements through TV and theatres have
a higher cost of purchase as compared to other media.
Similarly, black and white advertisements have a lower rate of payment for the
space as compared to coloured advertisements in magazines and newspapers.
Production cost is only one of the aspects that must be considered by the advertiser
in the process of media purchase. When making a decision for a media purchase,
the advertiser is responsible to ensure that the selected media is the most
appropriate and the best.

However, in making decisions on media purchase, media planners normally have

no ability to control some factors influencing the media planning process, including
media planning scope, different market potentials, competitorsÊ strategy, customersÊ
buying patterns and various other elements related to the media.
Usually, a media planner would limit an advertisement to an area where the product
is sold. For example, if an advertiser decides to sell a product in a certain region only,
then a local media plan will be used. For a national market, the media plan will be
more general. Problems will arise if a product will be sold at the international level
because each country has its own advertising ethics. An advertisement suitable for
a Western country may not be suitable to be broadcasted through media in Asian
countries. So how do we overcome this problem? To overcome it, media managers
must prepare an appropriate media plan.
Table 6.7 identifies the factors that play a role in influencing media purchase for
advertising purposes.
Table 6.7: Factors Influencing Media Purchase
Media Instrument Factors Influencing Rates and Costs
TV Broadcast  Area of broadcast

 Local/district/national/international  Variety of channels
 Audience size
 Time of broadcast
 Duration of advertisement
 Number of advertisements
Radio Broadcast  Sponsor package

 Local/district/national/international  Production cost
Print Media – Newspaper  Types of advertisement

 Local/district/national/international  Position of advertisement
 Daily/weekly – Page
 Style of advertisement
– Colour
– Graphics
– Text only

Print Media – Magazine  Size of advertisement

 Local/district/national/international – One page and so on
 Weekly/monthly/annually  Number of slots
 Consumers/business/commercial – Frequency
 Male/female  Size and form of audience
 Associations/clubs/companies  Cost of production/advertisement
 Technical/professional  Product quality
 Production cost
The effectiveness of TV advertising is undoubted. TV is a very effective medium

to promote a product, disseminate news and declare information.
However, the cost of TV advertisements often causes it to be monopolised by large

organisations having large incomes. What happens is that the small companies
may not be able to afford to use this medium to advertise? Fortunately, with the
increase in the number of TV stations, there are changes seen in the quotations for
TV advertisement prices. Even small companies are beginning to show their
potential ability to advertise through TV. Besides, the preparation of TV
advertisement packages with attractive reasonable costs will make TV as a
medium to reach a larger audience.
To loosen large companiesÊ monopoly in TV advertising, TV9 has now made initial
steps to give way to most companies to use TV advertisements. This is in line with
the stationÊs aspiration to be a terrestrial TV station who is able to give space to all
parties wishing to advertise on TV.
Let us look at Figure 6.8 which explains TV9Ês concept.
Figure 6.8: TV9Ês concept

Source: Media Prima (2018)

SELF-CHECK 6.3
List the factors influencing media purchase in:

(a) Magazine;
(b) Radio broadcast;
(c) TV broadcast; and
(d) Newspaper.
6.5 RATINGS
How do ratings determine the popularity of a television station? Do you feel
ratings are something that is very important for a television station?
Rating is a normal practice for each media agency whether electronic or print. Due
to its importance to media management, most stations will make sure that their
own stations are placed at high positions because a high rating is an indicator of
the stationÊs popularity among the audiences. This is also an attraction to sell
advertising space.
When discussing the ratings topic, a name which is synonymous with ratings is
AC Nielsen, that is, an agency who prepares research data on ratings. In big
markets, ratings is a frequently changing figure and this situation causes many
stations to try to ensure high positions each time a rating figure is declared.
The same situation takes place in Malaysia. As the number of TV stations increases,
there are a fewer number of advertisements being obtained, because what is visible
is the race to get a high rating position, thereby reaping advertisement profits.
Rating activities are also closely related to audience research activities. Audience
evaluation is also used by the advertisers to get initial feedback about the target
audience to advertise their products or services. From such research, the
advertisers also would be able to identify target audience profiles.
Beside target audience, they will only know about the broadcasted programmes if
the station makes direct announcement. Therefore, as an effort to attract viewersÊ
audience, most stations would promote them to the advertisers.

6.6 MEDIA PRODUCT PROMOTION

Lastly, let us have a discussion on media product promotion. Did you know that
most broadcasting stations sell their advertising time several months ahead of the
programme broadcast? As the programmes are still not broadcasted, both sides, i.e.
the advertisers and the stations will make an estimation by referring to past
programmes to make price quotations.
In the United States, broadcasting stations will make their programme listing
by seasons, at least six months ahead before the beginning of the season. During
the programme listing presentation sessions, advertisers will have the
opportunities to see what programmes will be broadcasted for the next season.
If the previewed programmes are expected to make profits, the advertisers will
buy the prepared time.
This is also implemented by TV3. Several months before branding is broadcasted by

the station, advertisers will be entertained in a special occasion with the objective of
promoting and proposing to the advertisers to work with it.
• Marketing and sales process is closely related to the broadcasting and

communications industry.
 The key players of advertising industry are the advertisers, advertising

agencies stations, station agents and media planners.
 Besides the roles of the advertisers and the advertising agencies,

telecommunications industry (including broadcasting) also plays a rather
important role because both sides need each other. Each has its own particular
role to reap profits, especially the media that becomes the medium to promote
advertisers' products and services.
 Media objective means preparing specific objectives for media selection meant
for advertising broadcast.
 The aim of advertising broadcast is to achieve a target audience, identifying

coverage of target audience locations and identifying total advertising
messages for target audience.
 Among the factors influencing media selection are media planning scope,
different market potentials, competitorsÊ strategy and customersÊ buying
patterns.

 A high rating is an indicator of stationÊs popularity among the audiences. This

is also an attraction to sell advertising space.
 Most broadcasting stations sell their advertising time several months ahead of
the programme broadcast.
 Several months before branding is broadcasted by the station, advertisers will

be entertained in a special occasion with the objective of promoting and
proposing to the advertisers to work with it.
Advertisers Promotion
Advertising agencies Ratings
Continuous scheduling Reach
Efficiency Seasonal pulsing
Flighting Selectivity
Frequency Station agents
Media objectives Stations
Media planners
Albarran, A. B., Chan-Olmsted, S. M., & Wirth, M. O. (2005). Handbook of media

management and economics. London, United Kingdom: Routledge.
Arens, W. F. (1998). Contemporary advertising (7th ed.). Boston, MA: Irwin/

McGraw-Hill.
Belch, G. E., & Belch, M. A. (2001). Advertising and promotion: An integrated

marketing communications perspective (5th ed.). Boston, MA: Irwin/
McGraw-Hill.
Bovee, C. L., & Arens, W. F. (1994). Advertising (5th ed.). Homewood, IL: Irwin.

Dominick, J. R. (2002). The dynamics of mass communication: Media in the digital

age (7th ed.). Boston, MA: McGraw-Hill.
Dutt, P. (2014, August 4). Malaysian advertising expenditure FH 2014. The Sun
Daily. Retrieved from http://www.thesundaily.my/news/1130640
Eastman, S. T., & Klein, R. A. (2006). Media promotion and marketing for
broadcasting, cable and the web (5th ed.). Burlington, MA: Focal Press.

McGraw-Hill.
Keshishoglou, J., & Aquilia, P. (2005). Electronic broadcast media in Singapore and
the region (2nd ed.). Singapore: Thomson.
Malaysian Communications and Multimedia Commission (MCMC). (2007).

Industry performance report 2007 – Collaboration towards enhancing
national competiveness. Retrieved from https://www.mcmc.gov.my/
skmmgovmy/files/attachments/IPR07.pdf

Advertising development in Malaysia – Catching eyeballs in changing
media. Retrieved from https://www.mcmc.gov.my/skmmgovmy/
files/attachments/Ad_Dev_Malaysia.pdf

Digital connectivity – Industry performing report 2016. Retrieved from
https://www.mcmc.gov.my/skmmgovmy/media/General/pdf/IPR-
2016-Digital-Connectivity.pdf
Media Prima. (2018). Television. Retrieved from https://www.mediaprima.com.

my/the-group/television/
OÊGuinn, T. C., Allen, C. T., & Semenik, R. J. (2003). Advertising and integrated
brand promotion (3rd ed.). Australia: Thomson/South-Western.

Shimp, T. A. (2007). Advertising, promotion, and other aspects of integrated

marketing communications (7th ed.) Mason, OH: Thomson/South-Western.
Wells, W., Burnett, J., & Morarity, S. (2000). Advertising: Principles and practice
(5th ed.). Upper Saddle River, NJ: Prentice Hall.

Topic  Cable/Satellite
Broadcasting
7 System
LEARNING OUTCOMES
1. Describe the cable TV broadcasting system, structure and business;
2. Explain five factors that have influenced cable TV system
management and the responsibilities of a cable TV manager; and
3. Discuss satellite broadcasting and its components as well as direct
broadcasting satellite (DBS).
 INTRODUCTION
Did you know that cable broadcasting system was introduced in the United States
in the 1940s? In the early days, broadcasting relied on very high frequency (VHF)
radio waves transmitter to transmit music and talk shows.
In 1996, with the launch of MEASAT-1 satellite, Malaysians were able to subscribe to
direct to home (DTH) pay-TV. Nowadays, the rapid development of the
telecommunications industry has further strengthened the cable broadcasting system.
How many people in the world use cable broadcasting services? It is estimated
that 26 million households use the cable broadcasting services (Keshishoglou &
Aquilia, 2005) and this is further strengthened by the increasing subscription of
video-on-demand (VOD) among cable viewers. Ever since MEASAT Broadcast
Network System Sdn Bhd (MBNS) provides satellite broadcasting services,
5.8 million average users subscribe to these services to enjoy quality hi-definition
(HD) television and radio programmes.

174  TOPIC 7 CABLE/SATELLITE BROADCASTING SYSTEM
Did you know that cable television is also known as community antenna TV
(CATV)? What is cable TV? Generally, cable TV is a TV broadcasting system using
cabled communications. This system was introduced to enable several
communities in certain areas in the United States to get TV broadcast.
Among the reasons they could not receive broadcast signals in the beginning was
because their residential locations were hilly or surrounded by skyscrapers. This
blocked their broadcast signals. One way to receive the broadcast was by using
special antennas channelled to the communities using cable.
Among the first areas to receive cable broadcasting system was Astoria, Oregon.
The cable system was introduced by Ed Parsons (see Figure 7.1).
Figure 7.1: Ed Parsons
The innovative idea came up when he attended a convention sponsored by the

National Association of Broadcasters (USA) in Chicago in 1948. Parsons, who
operated KAST radio station, with an electrical engineering background was
attracted to TV usage.
However, the geographical location of Astoria did not enable it to receive TV

broadcast signals. The nearest TV Station was 125 miles away, i.e. in Seattle,
Washington State. For the purpose of getting TV broadcast, Parsons installed an
antenna on the roof top of Astoria Hotel and joined the cable to his apartment which
had a TV. As a result of his experiment, cable TV system was born (Gershon, 2001).
According to Keshishoglou & Aquila (2005), TV cable began in Ithaca, New York
in the 1950s. Failure to receive TV signals from Syracuse station, i.e. 50 miles away
from Ithaca, gave Anthony Ceracche an idea to use an antenna installed on a hill
near the area, which was connected to private homes.
TOPIC 7 CABLE/SATELLITE BROADCASTING SYSTEM  175
Now, cable TV system is used widely throughout the world. In Singapore, the
cable TV system was started in 1978 by Singapore Cablevision (SCV), owned by
Singapore International Media or SIM.
In Malaysia, the cable TV system began around 1995 when Mega TV began its
broadcasting by charging MYR40 a month as a service cost. Unfortunately, Mega
TV failed to survive in the pay television market in 2001. Eventually with MBNS,
Malaysia was able to provide a better pay-tv broadcasting plan with Astro. Nine
years later, Astro provided Astro b.yond comprising a hybrid direct to home
(DTH) and broadband enable set-top boxes (STBs) and distribution platform for
HD services (see Figure 7.2).
Figure 7.2: Astro b.yond
The possibility of hybrid cable satellite broadcast attracted more cable TV

providers to emerge in the market. In 2012, INJOI, a non-subscription DTH satellite
was launched along with Astro GO, an entertainment service for smartphones,
tablets, personal computers and broadband-based video on demand (VOD).

7.1 CABLE TV BROADCASTING SYSTEM

Initially, cable TV broadcasting system threatened the dominance of conventional
TV stations at its early stage of establishment. However in 1965, the US Congress
imposed a strict regulation to stunt the growth of cable TV broadcasting system.
However, the situation recovered in 1972, when the Federal Communications

Commission (FCC) announced a newer and looser regulation than the existing
one. Thereafter, the cable TV broadcasting system expanded again.
In 1991, there were about seven cable TV stations in the US, giving service to
55 million households. By 2000, cable TV system provided service to 68 million
households. Conditions became more stimulating when cable TV station, ESPN, got
a three-year contract with the National Football League (NFL) (Dominick, 2002).
The increase in the income of cable TV broadcasting system is also one of the
factors that influenced the development of the broadcasting system.
However, the income is still low compared to the income of terrestrial TV system.
The income in 1990 generated by cable TV broadcasting system was USD2 billion
and rose to USD7 billion in 2000 (Dominick, 2002).
7.2 CABLE TV SYSTEM STRUCTURE

How does a cable TV function? What is used to link the TV station and the TV at
the clientÊs home? Let us find out the answer in this subtopic. Firstly, what is
cable TV?
Cable TV system is a telecommunications system using optic cables to link

the TV stations and the televisions at the clientsÊ homes.

Basically, there are three elements used for the purpose of a cable TV broadcast.
The elements are listed in Figure 7.3.
Figure 7.3: Three elements of cable broadcast
These three elements are further explained in the next subtopics.
7.2.1 Headend Point

This element contains antenna and equipment for receiving waves transmitted
from TV stations to be sent to the clients. There are broadcasting stations which
also run cable system management; programmes produced by the stations will be
broadcasted to clients through cable network. This means the stations must be at
the same locations with the headend point.
7.2.2 Distribution Network

Distribution network includes optic cables to be linked from the headend point to
the TV sets at the clientsÊ home. This cable is usually buried along the route to the
area of clientsÊ homes.
7.2.3 Receiving Equipment (House Drop)

The waves received by the headend point will be distributed to the clientsÊ homes.
The receiver has a one-way or two-way feature. Use of optic cable enables cable
stations to broadcast to as many as 500 clients.
Now, cable TV systems use coaxial cables which are mostly made of pure copper
or are wire-coated. This type of cable is found to be better.

Figure 7.4 shows you how these elements work to transmit cable TV broadcast.
Figure 7.4: TV cable network

SELF-CHECK 7.1
1. Define cable TV system.
2. State three elements used for the purpose of a cable TV broadcast.
7.3 CABLE TV BUSINESS

Generally, cable TV systems depend on two mains sources of income, namely:
(a) Subscription fees; and
(b) Advertising.
Most cable TV stations charge subscription fees. Fees imposed are normally
different depending on the subscribed package. Advertising could also support
the cable system income.

However, advertising through cable stations is still low compared to advertising

in free TV stations which have been established for decades.
In addition, in the cable TV business deals, there are two aspects which play
important roles, cable TV stations and producers/providers of cable programmes.
7.3.1 Cable TV Stations

Cable TV stations are responsible to provide cable TV service to clients. Normally,
stations would provide certain programme packages selected by clients. For
example, Unifi offers certain packs for their potential customers to cater to their
interests and affordability (see Figure 7.5).
Figure 7.5: UnifiÊs cable TV packages

Source: https://unifi.com.my/tv/packages/index.html
7.3.2 Producer/Provider of Cable TV Programmes

Programme producers and providers provide programmes to cable TV stations.
TV stations such as NBC, ABC, CBS and others also produce programmes and
become cable programmes producers/providers either for the stationsÊ own use
or for sale to other stations.
Last but not least, let us look at Figure 7.6 which summarises the three cable TV
broadcast systems in Malaysia.

Figure 7.6: Cable TV broadcast systems in Malaysia (Mega TV, ASTRO and UniFi)

ACTIVITY 7.1
Discuss in the myINSPIRE forum why the cost of advertising through

cable stations is still lower compared to advertising in conventional TV
stations. Is it acceptable for the cable TV stations to air advertisements
as the customers are already being charged for their service?
7.4 CABLE TV SYSTEM MANAGEMENT

Cable TV management in the United States signed an agreement with the local
government to conform to all rules and requirements of the Cable Act 1984.
Through the signed agreement, cable management has the right to provide cable
broadcast service for an agreed period.
As in other business systems, cable channel customers also ensure that they get
returns equivalent to programmes subscribed. Besides, they have the right to
change programming systems. Let us look at Table 7.1 which shows you the
development of cable TV in the US.
Table 7.1: Cable TV Development
Year Operation System Client (Million) TV Ownership (%)
1960 640 0.7 1.4

1965 1,325 1.3 2.4
1970 2,490 4.5 7.6
1975 3,366 9.8 14.3
1980 4,048 15.5 20.5
1985 6,600 37.7 43.7
1990 10,200 54.0 58.0
1995 13,000 60.0 63.0
2000 9,947 73.1 70.0

There are five factors that influence cable TV system management. These factors
are shown in Figure 7.7.
Figure 7.7: Factors influencing TV cable system management
Each factor is further elaborated in Table 7.2.
Table 7.2: Cable TV System Management
Factor Description
Sales and The sales and marketing department is responsible to ensure an

marketing increase in total number of new clients as well as that existing clients
remain loyal.
Customer Manager of customer service is responsible for various client matters

service such as taking orders, making installation schedules, managing repair
works as well as attending to inquiries on bills and payments.
Programme Programming manager is responsible to ensure the selection of

suitable programmes. This department is responsible to compile and
schedule programmes for existing channels and TV cable station
service package.
Repair This department is responsible to give support assistance for repair

services works, service to install and upgrade selected programme service.
Client billing The clientsÊ monthly bills are handled by clientsÊ bills department. Staff
in this department are responsible to manage monthly bills of clients,
performing the tasks of client service officers including attending to
telephone calls or counter service.

SELF-CHECK 7.2
State five factors that influence the cable TV system management.
7.5 RESPONSIBILITIES OF A CABLE

TV MANAGER
Generally, a cable TV station manager is responsible for the efficient running of a
cable station. This means he or she is responsible for supervising each department.
A cable TV manager will perform under the supervision of the owner of a cable
TV station or a senior manager.
The task of a cable TV manager is similar to those of a chief executive officer (CEO)
of an organisation because the task requirements of a cable TV manager are also to
coordinate management responsibilities in all aspects such as marketing,
engineering and public affairs. These tasks become a heavy responsibility because
cable TV is a business emphasising on clients.
Whether a cable TV is successful or not depends on clientsÊ ability to subscribe and

renew subscription. To ensure the management of the station achieves success, a
cable TV manager does not only emphasise the total number of clients but is also
concerned with:
(a) Cable TV programmes;

(b) Client service and marketing; and
(c) Cable management and franchise agreement.
7.5.1 Cable TV Programmes

Generally, the efforts to provide cable TV programmes are different from
traditional TV stations. This is because cable TV management must provide
programmes for a greater number of channels, whereas traditional TV stations
must prepare for only one channel.
According to Gershon (2001), cable TV is similar to a magazine. A reader does not

read all articles of the magazines. Therefore, the management must ensure the
content is appealing to all layers of readers. The same thing applies to cable TV.

Viewers do not view all programmes which are broadcasted. Therefore,

management must ensure the creation of a programme package, which is
attractive to viewers. There are four types of cable TV programme services as listed
in Figure 7.8.
Figure 7.8: Four types of cable TV programme services
These cable TV programme services are further explained as follows:
(a) Basic Cable

Basic cable service is a package which must be subscribed if the client is
interested with the programmes from the cable TV offered. In general, basic
service provides additional programmes other than the traditional TV station
channels already included in the package. Basic cable channel is also the
cheapest and has many clients. Most basic cable channels are supported by
income from advertising. Table 7.3 is an example of a basic cable service
prepared by StarHub Singapore.

Table 7.3: Basic Cable Service Offered by StarHub Singapore
Channel TV Programme
World News  CNN

 BBC World
 CNBC – Asia
Education  Discovery Animal Planet

 National Geographic
 Discovery Travel 3 Adventure
Entertainment  AXN
 Hallmark
 MTV SEA
 STAR World
Kids  Cartoon Network

 Nickelodeon
Chinese infotainment  TVBS Asia

 CTI TV
 MTV Mandarin Phoenix
 Chinese Channel
 E City
Chinese entertainment
 Asia Plus
Source: Keshishoglou & Aquilia (2005)
Subscription cost is as follows:

(i) Three groups = SGD20
(ii) Four groups = SGD24
(iii) Five groups = SGD27
(iv) All six = SGD29

(b) Pay Cable (Pay-per-view, PPV)

Pay TV cable service charges an additional fee to clients to get additional
programmes. To use the service, client may subscribe based on monthly
charges or pay to receive certain broadcasted programmes only, that is, what
is normally called pay-per-view (PPV).
In general, sports direct telecast attracts the interest of many clients. Boxing
sport is the highest income generator in the history of PPV, i.e. USD90 million
from boxing match between Holyfield and Tyson in 1997. PPV started in 2000
in the United States with almost 30 million households subscribing to the
service. Table 7.4 shows you the most popular cable service in the US.
Table 7.4: Most Popular Cable Service in the United States (2000)
Channel Cable Client (Million)
HBO 19.2
Encore 9.7
Cinemax 8.9
Showtime 8.1
(c) Information Service

Cable TV provides various services to clients and this includes services such
as home shopping, cable modems and information service. In the mid-1980Ês,
consumers were introduced to a new method of shopping from homes
through home shopping network (HSN). Producers provide product
catalogues as a means of announcing product information. Through
telephone numbers appearing on the TV screen, consumers may make
purchase orders. The same method is available through CJ Wow Shop (TV3)
and Go Shop (Astro) in our country.
(d) Community Access

Most cable TV companies must provide education channels for the
community as well as government affairs channel. Through this channel,
educational and also government information may be announced to the
community. In the United States, Christian Broadcasting Network (CBN)
broadcasts live telecasts from the church to the community.
In Malaysia, cable channels providing community access is a new thing in

the national broadcasting system compared to developed countries which
can afford to provide such facilities. In the United States, for example, even
the City Councils broadcast their meetings to the community.
ACTIVITY 7.2
1. Astro cable TV station also provides selection packages for clients

in Malaysia. Using Table 7.3, list down AstroÊs programmes based
on the categories given.
2. Watch Go Shop or CJ Wow Shop programme on TV. Compare the

shopping experience through TV to conventional method. Post
your answer in the myINSPIRE forum.
7.6 SATELLITE BROADCASTING

Did you know that the concept of satellite use in the aerospace was the original
idea of Arthur C. Clarke, a science fiction writer in 1945? The idea turned into a
reality when USSR launched the first satellite into space on 4 October 1957.
This was followed by Vanguard launched by the United States on 31 January 1958.
Soviet Union then continued with Sputnik II taking along a dog named Laika into
orbit. The first mission which carried an astronaut (Vostok) was also done by
USSR, popularising the name of Yuri Gagarin. This sparked the space race between
the USSR and the United States.
In 1964, it was the United StatesÊ turn to surprise everyone by broadcasting the
Olympics directly from Tokyo via satellite to audiences in the United States and
other nations all over the world.
There are five types of satellites in space and each one has its own distinctive
functions (Figure 7.9).

Figure 7.9: Five types of satellites
Between the 1970s and 1980s, many nations in the world participated in the race
to launch their own satellite into space (see Table 7.5).
Table 7.5: Satellite Development
Year Name of Satellite
1978 Broadcasting Satellite for Experimental Purpose (BSE) – Japan
1979 Experimental Communication Satellite – Japan
1982 INSAT-1A – India

ANIK C3 – Canada
1984 Telecom 1A – France
1985 Intelsat 511 – United Nations (UN)
1988 STS-27R – US
1990 BS 3A – Japan
1993 Hispasat 1B – Spain
1994 Brasilsat B1 – Brasil

Tuksat 1B – Turkey

1995 Apstar 2 – China

Koreasat 1 – South Korea
INSAT-2C – India
1996 PALAPA C1 – Indonesia

MEASAT-1 – Malaysia
Immarsat 3F3 – UK
Hot Bird – France
2006 MEASAT-3 – Malaysia
2009 RazakSAT-1 – Malysia
Figure 7.10 shows the timeline of satellites in Malaysia.
Figure 7.10: Timelines of satellites in Malaysia

Source: http://www.measat.com/satellite.html

Rapid development in satellite technology communications innovation

stimulates several telecommunications companies to launch their own satellites.
For example, RCA (Radio Corporation of America) launched SATCOM I in 1975
and SATCOM 2 in 1976.
Meanwhile, in August 1976, Indonesia launched PALAPA, a telecommunications

broadcasting satellite with the aim of providing telecommunications facilities to
all her 13,677 islands.
7.7 COMPONENTS OF COMMUNICATIONS

SATELLITE
Now, let us look at the components of communications satellite. The satellites used
for telecommunications transmit in two main frequency bands, C-band and
Ku-band. Those in C-band operate between 4 and 6GHz, and those in Ku-band
operate between 11 and 14GHz (Gross, 2009). Figure 7.11 summarises three types
of satellite transmission bands.
Figure 7.11: Satellite transmission bands

Source: http://slideplayer.com/slide/8645244/
As for communications satellite system, it is divided into two parts, aerospace

segment and Earth segment. What are these two segments? Let us find out the
answer in Figure 7.12.

Figure 7.12: Definition of aerospace segment and earth segment
There are three basic components of cable TV satellite, that are;

(a) Parabola antenna;
(b) Earth station; and
(c) Transponder.
A parabola antenna (parabolic dish) is the signal receiver at the clientÊs premise.
The station on Earth functions to receive signals from the satellite and sends signals
to the satellite (uplink and downlink). There are Earth stations that function only to
receive signals, such as TVRO (TV receive only). A transponder is a device for
receiving a radio signal and transmits it as a different signal. Figure 7.13 shows
examples of satellites and parabola antenna.

Figure 7.13: Examples of satellite and parabola antenna

Source: http://www.voyager.in/Communications_satellite;
http://en.wikipedia.org/wiki/Satellite_dish
7.8 DIRECT BROADCASTING SATELLITE (DBS)

Before we end this topic, let us have a brief discussion on direct broadcasting
satellite (DBS). Did you know that DBS is a new alternative to cable TV? DBS
broadcasting can be transmitted through 200 TV channels to many clients in the
whole world.
Did you know that in Malaysia, the system that is carried out by Astro is not 100
per cent DBS? This is because TV signals are „downlinked‰ from the satellite to an
earth station at All-Asia Broadcasting Centre at Bukit Jalil to be monitored before
they are sent back to the satellite to be received by clients.
ACTIVITY 7.3
Find out more on DBS through the Internet. Share your findings in the
myINSPIRE forum.

• The cable broadcasting system was introduced in the United States in the
1940s.
 In Malaysia, the launch of MEASAT-1 satellite allowed Malaysians to subscribe

to direct to home (DTH) pay-TV.
 Cable TV broadcasting system threatened the popularity of conventional TV

stations at the early stage of establishment.
 In 1965, the US Congress imposed a strict regulation to limit the growth of cable
TV broadcasting system.
 However, the situation recovered in 1972, when FCC announced a newer and
looser regulation than the existing one.
 The increase in the income of cable TV broadcasting system is also one of the
factors that influenced the development of broadcasting system.
 Cable TV system is a telecommunications system using optic cables to link the

TV station and the TV at the clientÊs home.
 The three elements used for the purpose of a cable TV broadcast are headend
point, distribution network and receiving equipment.
 Cable TV systems depend on two mains sources of income namely

subscription fees and advertising.
 The five factors that influence cable TV system management are sales and
marketing, customer service, programme, repair services and client billing.
 A cable TV station manager is responsible for the efficient running of a cable

station he or she is responsible for supervising each department.
 Cable TV management has the right to provide cable broadcast service for an
agreed period. As for its customers, they get returns equivalent to programmes
subscribed.
 USSR launched the world's first satellite into space on 4 October 1957. This was
followed by Vanguard launched by the United States on 31 January 1958.

 There are five types of satellites in space namely low earth orbit (LEO),
communications, meteorological, navigational and military satellites.
 The satellites used for telecommunications transmit in two main frequency

bands, C-band and Ku-band.
 A communications satellite system is divided into two parts, that is, aerospace
segment and earth segment.
 Three basic components of the satellite are parabola antenna, Earth station and
transponder.
 Direct broadcasting satellite (DBS) is a new alternative to cable TV. DBS

broadcasting can be transmitted through 200 TV channels to many clients in
the entire world.
Aerospace segment Low earth orbit (LEO)

C-band Meteorological
Cable TV (CATV) Military
Cable TV management Navigational
Client billing Parabola antenna
Communications Programme
Customer service Receiving equipment
Direct broadcasting satellite (DBS) Repair services
Distribution network Sales and marketing
Earth segment Satellite television
Earth station Transponder
Headend point Video on demand (VOD)
Ku-band

Astro Malaysia Holdings Berhad. (2018). About us. Retrieved from

https://corporate.astro.com.my/our-company/about-us
Dominick, J. R. (2002). The dynamics of mass communication: Media in the digital

age (7th ed.). Boston, MA: McGraw-Hill.
Internet, and beyond: An introduction to modern electronic media (7th ed.).
Gershon, R. A. (2001).Telecommunications management: Industry structures and

planning strategies. Mahwah, NJ: Lawrence Earlbaum Associates.
Glatzer, H. (1983). The birds of Babel: Satellites for human world. Carmel, IN:
Howard W. Sams.

McGraw-Hill.
Hamisah Hasan. (1998). Satellite communications: A technical paper. Paper

presented at the Communication Technologies for Development Course,
Communication Department, Faculty of Human Ecology, Universiti Putra
Malaysia, Serdang, Selangor.
Keshishoglou, J., & Aquilia, P. (2005). Electronic broadcast media in Singapore and
the region (2nd ed.). Singapore: Thomson.
Karthigesu, R. (1994). Sejarah perkembangan televisyen di Malaysia (1963–1983).

Kuala Lumpur, Malaysia: Dewan Bahasa dan Pustaka.
Rosli Manah. (2001, October 3). Mega TV tamatkan operasi. Utusan Online.
Retrieved from http://ww1.utusan.com.my/utusan/info.asp?y=2001&dt=
1003&pub=Utusan_Malaysia&sec=Hiburan&pg=hi_05.htm.

Topic The Future of
Telecommunications
8 Management
LEARNING OUTCOMES
1. Describe the development regulation and globalisation impacts of
telecommunications sector in Malaysia;
2. Analyse the expansion of global telecommunications industry and
the challenges in telecommunications and broadcasting industry;
and
3. Value the roles of broadcasting manager in facing future challenges
in broadcasting industry.
 INTRODUCTION
This last topic explains the future of telecommunications management from two
perspectives. The first perspective discusses the impact of globalisation on the
telecommunications industry and the second perspective looks at the challenges
and the future of the broadcasting industry in Malaysia.
Telecommunications environment at the beginning of the third millennium is full

of colour with new technology and new infrastructure which has changed the
patterns of services and technologies that can be supplied. The change is constantly
taking place due to the impact of globalisation. Our discussion in this topic clarifies
the globalisation phenomenon from two viewpoints.

TOPIC 8 THE FUTURE OF TELECOMMUNICATIONS MANAGEMENT  197
Firstly, how this phenomenon makes an impact on the telecommunications

industry. Secondly, how the most recent changes in the broadcasting industry
environment brought with them several challenges and opportunities. Focus is
given on the broadcasting industry preparations to face the broadcasting
digitalisation era and management proposals to make the national project
successful. So are you ready to „predictÊ the future? Let us start with the journey!
ACTIVITY 8.1
Based on your experience and surroundings, can you describe the

relationship between globalisation and the communications industry?
Give one example to support your answer. Post your answer in the
myINSPIRE forum.
8.1 DEVELOPMENT OF
TELECOMMUNICATIONS SECTOR
IN MALAYSIA
Global telecommunications technological development is influencing developing
nations technologically, through applications and related services.
Telecommunications, particularly electronic media, now includes fixed line
telephones and mobile telephones, information and communications technology
(ICT), computers, cable broadcasting, radio and television, the Internet, CD-ROM
and so on (Sherman, 1994). Nowadays, even the daily newspapers have their
online versions (see Figure 8.1).
Figure 8.1: Utusan Online is one example of daily online newspapers

Source: http://www.utusan.com.my/

198  TOPIC 8 THE FUTURE OF TELECOMMUNICATIONS MANAGEMENT
In the advertising industry for instance, new advertising platforms have been
growing rapidly. New means of advertising such as electronic advertising and the
growing popularity of social media as the cheapest and most effective way of
advertising over the last decade has transformed the field of advertising (see
Figure 8.2).
Figure 8.2: Banner advertisement in app is one example of digital advertising
Globalisation has been seen as the biggest contributor to the development of

communications technologies, with giant multinational corporations being an
important influencer that endorse communications technology products and
services around the world (Juliana Abdul Wahab, 2006). Rapid development in the
telecommunications sector with the globalisation phenomenon challenges the
implementation of the national vision but at the same time promises various
opportunities if handled wisely.
The telecommunications sector and broadcasting are the two main entities in the
field of telecommunications in Malaysia, these are the prime movers of national
progress. Now, the broadcasting sector and ICT have developed as
telecommunications entities which are equally important to consumers. From a
consumersÊ point of view, communications service patterns have changed to be

widened further. It includes mass media service concepts in general and personal
communications services specifically. Consumer demand and market forces have
motivated entrepreneurs towards telecommunications services which result in the
combination of telecommunications sector, computerisation and broadcasting (see
Figure 8.3).
Figure 8.3: Structure of information industry

Source: OECD (1992)
In the 1980Ês, the telecommunications sectorÊs roles as a progress mover had begun
to change to become commercial due to the economic policy, telecommunications
policy and broadcasting national policy transformation at that time. The change
has become appropriate due to the development of privatisation policy, and free
market and trade policy of the global telecommunications industry. The growth
and expansion of the telecommunications sector, broadcasting sector and related
support services are vital to manage the globalisation effects.
Globalisation began to be felt through inflows of equity capital and takeovers by

foreign companies and their capital accumulation to build their infrastructure and
to strengthen their position. In this situation, market forces determine the direction
and roles of local telecommunications network which are becoming profit oriented
and defend commercial characteristics.

To manage the problems and challenges in the rapidly changing scenario, several
decisions have been made by the government including the following:
(a) Establishing the Malaysian Communications and Multimedia Commission
(MCMC) under the Ministry of Power, Water and Communications (MPWC)
in 1998. MCMC acts as a coordinator and regulator of the activities of
telecommunications company (telco) and cellular company (celco) as well as
private and public broadcasting sector. Now, MCMC is under the Ministry
of Multimedia and Communications.
(b) Strengthening the Broadcasting Department of Malaysia (RTM) as a public
broadcaster for the peopleÊs interests.
(c) Strengthening the telecommunications industry by issuing licenses to telcos,
radio broadcasting and private TV stations.
ACTIVITY 8.2
Go to MCMCsÊ website at http://www.skmm.gov.my/ and list out
the services provided by MCMC. Post your answer in the myINSPIRE
forum.
8.2 REGULATION
In a meeting between Public and Private Televisions and Radio Broadcasting
Monitoring Coordinating Committee No.2/2005 and No. 3/2005 [Jawatankuasa
Penyelarasan Pemantauan Siaran Awam serta Swasta (JKPPSTRAS)] at the Ministry
of Power, Water and Communications, Malaysia (MPWC), the meeting chairman
reminded the committee members consisting of public officers, and entrepreneurs
of public and private telecommunications companies about their responsibility to
the community. The chairman has also asked the entrepreneurs to cooperate with
MPWC in the matters of self-regulation and conforming to broadcasting guidelines
to achieve common aspirations, as noted below (MCMC, 2005):
(a) Improving the quality of telecommunications services with high technology
which can meet the requirements of the industry and customersÊ tastes.
(b) Strengthening telecommunications infrastructure network which is capable
of facing future global competition and generate national economic growth.
(c) Active in building linkages and learning global telecommunications
development to obtain business opportunities in the international
telecommunications arena.

(d) Always examine multimedia policies and rules, patents rights and
intellectual property governing telecommunications industry for continuous
improvement, besides ensuring that the telecommunications industry helps
to achieve the national vision.
The MCMC platform – as the enforcer of guidelines – has become a place for
complaints, discussions and continuing debates between various parties in the
telecommunications industry who compete to safeguard their own interests.
MCMC makes the effort towards providing a fair and just entrepreneurial
environment as a regulator and prevents the emergence of monopolistic
conditions. MCMC formulates policies and enforces guidelines and rules based on
the Multimedia Act 1998.
In general, MCMC also helps to protect the telecommunications industry from

globalisation pressures for consumersÊ and the countryÊs interests. This is because
consumers need access to quality telecommunications services, which are efficient
and inexpensive. The government is also committed to widen services to all parts
of the country to speed up a community with knowledge (K-society) and to close
the digital divide.
In addition, in the telecommunications arena of the Asian region and the world,
radio and television broadcasting industry participants are concerned with the
expansion of telcos, celcos and other wireless electronic media sectors. This media
development has enabled the partnership of frequency spectrum which is getting
narrower. Division of frequency is clearly very important to each participant in the
industry to deliver their products and services (ABU, 2005).
Last but not least, in a study regarding economic investment and media
globalisation effects in Latin American countries, Waisbord (2002) emphasised
„the importance of process negotiation ⁄process of perpetual negotiation⁄ and
mediate globalisation, outlining its limits and possibilities. States and market
forces continue to be locked in constant battles in which accommodation and
mutual benefits, rather than one-sided victories are the norm.‰

8.3 GLOBALISATION IMPACT IN

TELECOMMUNICATIONS
Did you know that there are two explanations on how the globalisation
phenomenon process can happen in the field of telecommunications? According
to Sherman (1994), globalisation process happens through vertical and horizontal
integration.
Globalisation also can happen from the angle of four dimensions. These
dimensions are listed in Figure 8.4.
Figure 8.4: Four dimensions of globalisation

Source: Abdul Rahman Embong (2000)
The 8th Malaysia Plan clearly outlined the direction and strategy of the national ICT
project, while the 9th Malaysia Plan (2010) enables the Malaysia Broadcasting
Department to implement Broadcasting Digitalisation Project which will benefit the
whole broadcasting industry in Malaysia. The top management of the Ministry of
Information of Malaysia have to exercise a cautious attitude in enforcing in the case
of telecommunications development (including broadcasting and ICT), subject to
current social, cultural and economic conditions (MCMC, 2015).
The stakeholders believe the government still needs additional information and
must learn more about globalisation impact on the field of telecommunications
particularly local broadcasting industry in the context of digital broadcasting
development.

However, the globalisation issue continues to receive special attention from

telecommunications entrepreneurs, media and ICT. In addition, the ways they are
overcoming the globalisation impact are diverse.
8.3.1 Change in Local Media

Local media manager, either in the field of printing, telecommunications,
broadcasting or new media is facing reformation process. They are constantly
looking for solutions to overcome the globalisation impact. Media managers
cannot run away from changes in technology, market competition, policy changes,
culture and consumer needs.
In the local printing sector, for example, Sin Chew Media Corp Bhd succeeded in
strengthening its position through diversification ideology in the field of printing
and business expansion in the country and overseas by means of acquisition of
uncompetitive print media.
The New Straits Times press performed rebranding by changing to a new face in
tabloid form. As for The Sun newspaper, it distributes free copies and relies on
advertising only to continue business.
By increasing the number of readers, the printing sector diversifies its publication
and publicity, i.e. through spreadsheets, Internet, mobile phones and billboards.
Print media management clearly keeps abreast with technological development
and dares to change to deal with market pressure.
8.3.2 Telco and Celco Sectors

In its rebranding plan, Telekom Malaysia (TM) Berhad announced various
development infrastructure and automation training at a cost of MYR9 million as
its strategy (Yap, 2005). The TM Company also continues searching for
opportunities to expand its business and reorganises overseas investment such as
investments in Indonesia, Indochina, Sri Lanka and Asia-Pacific. Such technology
development strategy and business telecommunications is seen as critical in
handling the globalisation impact on the industry.
Local celco companies such as Celcom, DiGi and Maxis continue to expand their
activities. Their new development is 3G with the capability to streaming television
programmes. Astro, pay satellite television broadcaster, exploited the 3G
innovation by providing an additional service platform to all cellular networks
especially to its partner, i.e. Maxis. DiGi becomes the largest prepaid mobile
telephone network with subscription of 5 million by June 2005.

The telecommunications sector together with the ICT sector, as well as small and
medium industry (SME) were active in research activities with Sirim Berhad
incubator programme. This programme has created small entrepreneurs (vendors)
in telecommunications and ICT sectors. Small and medium enterprises (SMEs)
have play an important role and become a catalyst of economic growth in Malaysia
with contribution of 99 per cent of total business establishment in Malaysia and
contribute to 31 per cent of the nationÊs gross domestic product (GDP) while shares
56 per cent of total employment (SME Corporation Malaysia, 2010).
8.3.3 Broadcasting Sector

Kumpulan Media Prima Berhad, owner of TV3 took over Fly FM radio station and
TV9 station which ceased operation because it was incurring losses. Media
observers believe that Media PrimaÊs action of controlling TV9, an existing
broadcasting station, is to avoid the existence of another competitorÊs broadcasting
station (Lim, 2005). In June 2005, Media Prima acquired TV9 and four months later,
the company bought over ntv7. ntv7 station with its branding „Your Feel Good
Channel‰ and its own style of news presentation, MyNews, has begun to attract
its target viewers in towns including Chinese-speaking viewers.
Today, the media conglomerate owns all free-to-air television stations and the
biggest newspaper publishing house, The New Straits Time Press (Juliana Abdul
Wahab, 2006).
TV1 and TV2 as well as 32 public radio stations are owned by Radio Televisyen
Malaysia (RTM). RTM has also performed its rebranding of TV1, TV2 and 32 radio
stations in 2004 and 2005. Keep in mind that RTM service goals as a public
broadcaster is different from private broadcasters. RTM gives priority to its social
obligations to the community where entertainment alone or commercial features
are not the main objectives.
However, RTM is not protected from competition or separated from the

globalisation impact. What happens in the environment of telecommunications is
clear and obvious. Every sector attempts to escape from being overwhelmed by
competitors by widening the scope of its business operations.
If globalisation means industry practice without border entry of hardware,

software products and services without control, then cultural and political
implications will have an impact on the national economy. The entry of more
competitive foreign products will adversely affect local industry.

In addition, in the era of digitalisation, globalisation further widens the gap

between a community with resources and a community without resources,
creating a digital divide.
Waisbord (2002) viewed that globalisation does not have the same impact on all
media in a country. Globalisation may stimulate business development and at the
same time cause a loss of opportunity and local businesses to retrogress. He
identified several criteria that may overcome the globalisation impact to local
management. The criteria are as follow:
(a) Strengthen position in industry with sufficient capital to develop business in
the country and overseas, including in an economic crisis situation.
(b) Having a sufficient audience share (clientele) to achieve ratings and reach,
audience coverage which is attractive to the media planner and sponsor.
(c) Controlling advertising expenses (adex) of telecommunications industry and
sufficient sources of additional income in order to sustain itself in the
industry.
(d) The existence of a regulator which can enforce policies and guidelines which
can protect industry interests from being monopolised by more global and
able entrepreneurs.
ACTIVITY 8.3
TV3 controls most of viewersÊ share in Malaysia. Does this mean that
with the empowerment of private broadcasting stations, there is no
more space for the weak or non-commercial stations? What is your
opinion on this matter? Discuss this issue in the myINSPIRE forum.
SELF-CHECK 8.1
State the four dimensions of globalisation.

8.4 EXPANSION OF GLOBAL

TELECOMMUNICATIONS INDUSTRY
Telecommunications branded products such as iPhone, Samsung or Huawei have
become a common word among telecommunications industry audiences. Products
of these brands have controlled a major share of the telecommunications industry
in Malaysia.
The challenge to the local telecommunications industry is how to take advantage

of the advance of globalisation in Malaysia. Giant companies such as Comcast,
The Walt Disney Company, 21st Century Fox, Sony Corporation, AT&T, CBS
Corporation and Viacom are active global companies in cross-border investment
and own strategic interests in various media industries.
Comcast owns 26 television stations and cable networks in the United States
including USA Network, Bravo, CNBC and Golf Channel. The Walt Disney
Company on the other hand, owns various television networks such as Disney
Channel, ESPN and Freeform and several other radio stations, music, video game
and book publishing companies including Walt Disney Pictures and Pixar
Animation Studios.
These companies are successful in controlling various media through strategic

investment and cross ownership. What can be realised from the activities of these
global companies is that they are dominating the market through horizontal and
vertical integration strategies. Many of these entertainment companies have
vertical integration across various industries and verticals, such as distribution
networks, toys and clothing manufacture and retailing.
Business expansion models through integration activity are also found among
entrepreneurs of the telecommunications industry in Malaysia. Between Telekom
Malaysia (TM) and TV3 they have cross-ownership of interests in print media such
as the New Straits Times Press; telecommunications companies/celco (Celcom),
broadcasting station (TV9 and 8TV) and production and distribution company
(Primeworks). Let us refer to Table 8.1 to know about telecommunications
companies in the country which control various media.

Table 8.1: Domestic Telecommunications Companies Controlling Various Media
Name of Print Film Production/

Broadcasting Telecommunications
Company Media Distribution
1. Telekom
Malaysia
   
2. TV3    
3. U
Television
(Formerly
   
MiTV)
4. Astro    
5. RTM  – – 
U Televison and Astro, i.e. two pay satellite broadcasting stations also have
interests in various media industries. Different from these privately owned
companies, RTM, a government owned station, cannot involve itself in business.
However, under the Ministry of Information, Malaysia, there are agencies

involved in film production such as Jabatan Filem Negara Malaysia while news
services are by Bernama. Now, let us look at two examples of expansion of global
telecommunications industry.
(a) Livedoor Case, Japan

Livedoor, a company supplying Internet services succeeded in buying a
majority share of a radio company Nippon Broadcasting. Nippon
Broadcasting has the biggest share in Fuji Television network.
Indirectly, Livedoor has become the largest member of the board of directors
for largest group of media in Japan. This means the Internet media can now
influence the direction of the broadcasting media. This fact was only realised
at a later stage by the broadcasting group, when the stakeholders were rather
restless with the new developments. The administrative and regulation
structure of the broadcasting body in Japan gives priority to public view.
Therefore, the takeover efforts were renegotiated outside the court, by

permitting Livedoor to buy a minority share (McCurry, 2007).

(b) Investment Cases in India

Telekom Malaysia BerhadÊs (TM) proposal to buy shares in Idea Cellular Ltd,
a celco company in India, could not be continued because of several factors.
At the same time, Singtel from Singapore succeeded in buying shares of

Bharti Telecom, India. The regulator of India did not allow TM Malaysia to
bid to buy shares in the same sector because Singtel had already had an
interest in Telekom Malaysia. At that time, a celco company in Malaysia, i.e.
Maxis qualified to bid for shares in India. Telekom Malaysia stated that they
were continuing to try an alternative method not only in India but also in
Pakistan and other countries in the Asia-Pacific.
Astro also has begun to be established in Indonesia and the Sin Chew Media
Corp has owned a daily newspaper in Papua New Guinea. Investment and
business activity expansion is a must to prove the existence of a strong
telecommunications industry not only in the country but also overseas.
ACTIVITY 8.4
Do all investment measures, business expansion and takeovers are

acceptable in terms of public interest? Discuss this matter in the
myINSPIRE forum.
8.5 THE FUTURE OF TELCO AND CELCO

Now, let us discuss the future of telco and celco. The convergence of technology
today influences how communications is distributed by the media,
telecommunications technology, television and computing. Combination and
technological innovation succeeded in developing new ways of accessing
information by interacting virtually. Methods of communicating have developed
from mass communications method to direct to the individual.
This trend occurs because access to information is of a ubiquitous concept, i.e.

capable of communicating from anywhere. The use of information technology and
communications has begun to move from a fixed medium to a mobile medium. Even
clients now have begun to control the form of communications and information
obtained, stored and how data is utilised through ICT for further application.

Malaysia is in line with other developed countries such as Japan and Korea in
migrating to new technology such as Voice over Internet Protocol (VoIP), use of
Wireless Fidelity (Wi-Fi), mobile content streaming service, broadband service
which supports third generation advanced cellular telecommunications services
(4G) and on-demand video services through the Internet.
Internet streaming facilities and 4G service are still being improved, while the
success of telecommunications technology combination, broadcasting and
computerisation indicate the entry of telco and celco in Malaysia as competitors to
traditional broadcasters in multimedia broadcasting service.
The result of this multimedia technology enables various media products and
services to be received at their respective base as in TV screen, computer screen
and mobile telephone. The concept of information and entertainment distribution
to the audience (mass broadcast) has now shifted to the concept of information and
entertainment distribution directly to individual clients (mass broadcast to
personalised broadcast).
Now, the climate and ways in which the clients view TV or communicate using
telephones are quite different. Clients have begun to demand facilities in accessing
information, communications and entertainment according to their own comforts.
They want information wherever they are and at any time. This ubiquitous concept
means anywhere, anytime, any device.
The capability of traditional television or fixed line telephone is limited and unable
to fulfil these needs. Clients are beginning to switch to interactive TV or mobile
telephones with 4G capabilities. The introduction of smartphones has further
influenced the decline in the relevancy of traditional television and fixed line
telephone from the consumersÊ perspective. Consumers can now enjoy the ability
to stream live news and shows anytime and anywhere.
Television stations may start streaming programmes to Internet clients and mobile
telephone clients. Broadcasters have to chase viewers to give them satisfaction by
planning interactive programmes because todayÊs viewers are capable of
processing various kinds of information. Viewers are able to participate in quiz,
games, contribute to forums, blog, browse advertisements while viewing and
listening to radio and TV broadcasts at the same time. Figure 8.5 shows you an
example of online radio station.

Figure 8.5: hitz online radio

Source: https://hitz.com.my/
8.6 EXTERNAL CHALLENGES

According to data extract from Internet Live Stats (n. d.), „In 2014 nearly 75 per
cent (2.1 billion) of all Internet users in the world (2.8 billion) live in the top 20
countries. The remaining 25 per cent (0.7 billion) is distributed among the other
178 countries, each representing less than one per cent of total users. Countries in
Asia have among the highest number of users of mobile telephone services and
wireless Internet.‰
How about mobile subscribers? The cellular mobile services landscape in Malaysia
which used to be an oligopoly market comprising Celcom Axiata Berhad (Celcom),
Maxis Communications Berhad (Maxis) and DiGi.Com Berhad (DiGi) is now
becoming a more competitive industry.
Digi currently is the number one mobile service provider in Malaysia with a
market share of 28 per cent in 2016, while Celcom and Maxis both had the same
market share of 25 per cent in the same year. Digi has approximately 11.8 milion
subscribers as of 2018 followed by Maxis with 10.9 Million subscribers and Celcom
with 9.2 million subscribers. The rest of the market is shared by several other
emerging providers such as U Mobile, Yes 4G and Redtone (Statista, 2016).
The hottest competition will be felt especially by celco companies and small
companies supplying services such as interactive SMS/MMS, software
program broadcasting and website builders. In the efforts to uplift business,
telcos and celcos have highlight their brands of products and services with
various methods of promotion and positioning among the clientsÊ audience.

Table 8.2 lists the companies attempt to capture part of the celco business sector
through a war of slogans.
Table 8.2: Examples of Slogan Used among Celco Providers
Company Celco Promotion/Slogan
Maxis Fibre nation

MaxisONE plan
zerOlution 360
Celcom Be XACTLY YOU

This is Celcom territory
Everything is in your hands
DiGi LetÊs inspire

Always the smarter choice
In addition, due to the increasing number of smartphone users in Malaysia,

these celco companies compete in providing the best Internet plans for their
clients. Figure 8.6 shows you an example of how telco mobile plans attract
potential customers.
Figure 8.6: Celcom mobile plans

Source: https://www.celcom.com.my/personal/postpaid

Besides challenges from overseas, management of local telcos and celcos also face
their own specific problems to progress further in the industry. The problems are
as follows:
(a) Opportunities to develop business between telcos and celcos should be

balanced because the sudden growth in telecommunications causes
congestion in the use of the frequency. MCMC may redistribute frequencies
so that the sector can give a more general service. Unbalanced distribution of
opportunities may create uneasiness for big/small companies and the
monopolistic situation.
(b) Telcos and celcos are less capable and slow in performing various services
which are available in the environment of telecommunications industry.
While waiting for them to fulfil clientsÊ demands, suppliers (vendors) who
are often weak in terms of resources are used. This opens the possibilities for
competitors from outside to enter the market.
(c) In using suppliersÊ service, there are various issues causing difficulties to the
industry and clients. Profit distribution ratios which benefit the telcos and
celcos has become an issue to service suppliers. Problems of variations in
billing and delays in payment weaken service suppliers with small capital.
(d) A shortage of a skilled workforce and competencies in multimedia

technology often gives rise to problems such as server-down, which causes
dissatisfaction among clients.
Keep in mind that pressure of competition from outside is greater for the television
broadcasting industry. Globalisation has gradually influence Malaysian
consumers to demand more of what are being offered to them in terms of TV
channels and shows. The rising number of new players in streaming media such
as Netflix and iflix has further intensified the competition (see Figure 8.7).

Figure 8.7: Netflix and iflix apps
ACTIVITY 8.5
Find out through the Internet how the local community in a remote
area such Gua Musang handle the effects of globalisation. What are
the positive and developmental effects of globalisation to them?
8.7 FUTURE CHALLENGES OF THE

BROADCASTING INDUSTRY
Now, let us identify the future challenges of the broadcasting industry. What are
the challenges that may face the broadcasters in future? Is competition the main
challenge? Let us find out the answer in the next section.
The number of pay TV subscribers across Asia Pacific will increase from 608.7
million in 2017 to 686.4 million in 2023 (McDonald, 2018). The growth
represents fertile market for broadcasting media to expand their activities in
the region. Broadcasting industry in Asia Pacific began to feel the impact of
globalisation when giant companies such as Time Warner and Sony
Corporation began to supply more attractive programme content to
broadcasting industry participants in this region.
These challenges became more serious to broadcasting management operating

with analogue and terrestrial when pay satellite TV (Astro, Malaysia, LIPPO
Group, Indonesia) and cable TV (Singapore, Philippines and Thailand Pool TV)
and direct to homes TV (DTH/DBS) began to offer programmes at much higher
levels of quality.
Meanwhile, planning of terrestrial radio began to show reformation in short-term

scheduling and programme production in the efforts to improve opportunities and
ratings in the market. Management began to focus attention to positioning of their
own brands among viewers and media planners. Scheduling method of slots and
belting became niche programming. From here, it changes to popular
programming which in general are viewersÊ selected popular programmes. Media
planners offer prime time, other primes and fringe time as additional attraction for
air space to advertisers.
Now, a new phenomenon in scheduling has begun to be used among broadcasters

who are competing to attract listenersÊ/viewersÊ attention. Broadcasting stations
have begun to promote their new/main programmes in a big way in the media
and billboards by exhibiting times and dates of broadcasting on the radio or TV.
They invite listeners/viewers to make appointments to view the stations
concerned. For example, Gegar Vaganza, Maharaja Lawak by Astro and DaÊi
Pendakwah Nusantara, Anugerah Juara Lagu by TV3.
8.7.1 Competition in Broadcasting Media

Environment
With the existence of a fertile environment for investment, media companies and
global telecommunications companies may continue to find opportunities to expand
their operations in Malaysia. Syndicated programme distributors from Western
countries, East Asia, India and Singapore have strengthened their positions in the
local broadcasting schedule. For example, I can See Your Voice is a music game show
originated from tvN South Korea. Now, it is a franchise international programme
shown in many countries including Malaysia (see Figure 8.8). In Malaysia, it has two
versions, Malay (ntv7) and Chinese (8TV).

Figure 8.8: I can See Your Voice Malaysia version Malay

is an example of franchise international programme
Source: www.tonton.com.my
In the meantime, representatives of global media such as Fox and Time-Warner

have begun to creep in as suppliers of broadcasting schedules following popular
programming. They make strategic partnership agreements with local stations to
bring in their international service such as news of CNN, BBC, Deutsche Wella and
AlJazeera which become permanent programmes in daily broadcasting.
For broadcasters and listeners/viewers, radio and television broadcasting media

are the main channels for effective information distribution. This media has been
most sought after in the last decade as it is considered the most lucrative and
strategic to consolidate business transactions of other related media. Until 2005,
five free-to-air broadcasting organisations (FTA–TV) with seven broadcasting
channels had been in operations.

In 2008, Bernama News Channel, owned by Pertubuhan Berita Nasional Malaysia

came into the market (see Figure 8.9).
Figure 8.9: Bernama News Channel WebTV

Source: http://webtv.bernama.com/
Two years later in 2010, Jabatan Kemajuan Islam Malaysia (JAKIM) introduced TV
Alhijrah, the first free-to-air Islamic and HD television station in Malaysia (see
Figure 8.10).
Figure 8.10: TV Alhijrah

Source: https://alhijrahmedia.com/tv-alhijrah-live-streaming/

Table 8.3 shows you the list of free broadcasting channels in Malaysia.
Table 8.3: Free Broadcasting Stations (FTA) in Malaysia
FTA-TV Number of Channels in Operation
RTM 2
TV3 1
ntv7 1
8TV 1
TV Alhijrah 1
Bernama News Channel 1
FTA-TV Number of Channels which Ceased Operation
METRO VISION 1 (1999)

TV9 1 (2005)
The first radio and television satellite broadcasting stations in Malaysia (Astro),
which offers more than 40 TV broadcasting channels and 12 radio channels, is in
operation successfully, while the second pay TV U Television (formerly MiTV) was
launched in September 2005.
In the meantime, Telekom Malaysia Berhad (TM) began to participate in the field
of broadcasting through broadband streaming services which offers a package of
TV and radio broadcasting, data to mobile telephone and website.
The existence of the second pay TV stations U Television, the three private FTA
stations taken over by Media Prima and broadcasting of radio/TV programmes
through Internet toughened the competition to get viewer share and adverting
expenses (adex) (refer Figure 8.11).

Figure 8.11: 2017 full year adex report

Source: Malaysian Advertisers Association (2018)
The report indicates that Malaysia is experiencing its 4th consecutive year of
declining adex, with a 2.4 per cent decline of its 2016 adex. Digital adex is growing
most aggressively at 22 per cent per annum. At the current growth rate, digital
share of adex will presumably overtake TV share of adex by the end of 2018.
By the middle of 2019, digital media, newspapers and TV (free-to-air and payTV
combined) will each command about 25 per cent of adex. By comparison, in 2009,
digital share of a adex was four per cent and newspaper share was 48 per cent,
while TV has remained relatively unchanged at 25 per cent through the past
decade (Malaysian Advertisers Association, 2018).
According to The Wall Street Journal (2018), Astro net income grows about 23 per
cent from the previous financial year. There appears to be profitable expansion
opportunities despite the restrictive market place.
Meanwhile, the management of Media Prima had attempted to combine all private
TV FTA stations to avoid competition, Astro feels viewers share in Malaysia is
reaching saturation. The satellite station has announced its broadcasting expansion
to Indonesia with confidence to capture 30 per cent, 1.5 million of pay TV clients
in the country. In planning various strategies to capture a part of viewers share
and advertising expenses, competition between broadcasting stations in the
country is getting stiffer. This has caused many workers to lose jobs in both TV
stations which ceased their operations.
In the meantime, while the celco sector rushed to promote their services, the telco
sector had to offer voluntary separation scheme (VSS) to 10 per cent of its workers
because of automating part of their service and operations. These effects of
globalisation have revealed pressures on telco management to expand their
services horizontally and vertically.
8.7.2 National Broadcasting Digitalisation Project

The building of Digital Broadcasting Hub (DBH), a national broadcasting vision,
has benefited the whole telecommunications industry. This pioneer digitalisation
project comes from careful planning since 2002. This project has provided
terrestrial digital radio and TV broadcasting service to clients in the Klang Valley
in phase 1 (2006), metropolitan area and subsequently the whole country by 2012.
Table 8.4 was a proposed road map of the digitalisation project implementation.
Table 8.4: Mapping of Broadcasting Digitalisation Implementation
Implementation Schedule
Project evaluation February 2005–April 2005
Project offer May 2005–August 2005
Delivery August 2005–December 2005
Installation November 2005–May 2006
Training February 2006–June 2006
Testing May 2006–September 2006
Launching September 2006–November 2006
Source: MCMC (2005)
With the introduction of radio and TV digital broadcasting, it could be extended

to telecommunications media and computerisation, i.e. digital multimedia
broadcast (DMB). This digitalisation project is the building of new infrastructure
at a high cost. In this case, the broadcasting department of Malaysia, Radio
Televisyen Malaysia (RTM) was given the responsibility to introduce digital
broadcasting technology and culture to the audience.
Broadcasting stations such as TV9 and Astro were already equipped with digital
broadcasting infrastructure. TV3 and RTM stations have obviously shown their
preparedness towards full digital broadcasting by 2012. Their respective
managements have set up a special division of new media and trained staff to face

digital broadcasting challenges. Their production format now contains interactive

elements such as SMS which is a starting point for the culture of sending and
receiving in radio/television broadcasting. The main part of the programme
format will contain interactive TV (iTV) characteristics, with viewers as product
and service clients, besides radio/TV programmes through a multimedia base.
The combination of multimedia and broadcasting had become a reality in an

experiment in BBC when the station made its television news report from a
location through a mobile telephone with 3G facilities.
8.7.3 Digital Broadcasting Advantages

Digital broadcasting introduces the customers to quality programmes which are
as good as quality digital video disc (DVD) in terms of picture and quality compact
disc (CD) from its video. Digital broadcasting systems enable broadcasting in wide
screen format with high resolution with standard definition TV (SDTV or high
definition TV (HDTV).
In addition, if there is adequate bandwidth available it may also support the

introduction of ultra-HD services for radio broadcasting as it enables digital audio
broadcast (DAB). Both broadcasting formats are capable of producing audio and
video of more attractive quality compared to analogue broadcasting. Digital
broadcasting enhances broadcasting functionality and offers interactive features
for audiences.
Furthermore, digital broadcasting is capable of broadcasting simulcasting/

multiplatform broadcast. Clients can benefit from various value-added services
with digital broadcasting technology.
Finally, service providers can benefit from digital broadcasting as the delivery cost
of provision of a TV service within a multiplex will be lower on a per unit basis
than that of providing a single analogue TV channel. The switchover from
analogue to digital broadcasting is seen as a welcomed development and a
revolutionary change in the broadcast industry in the 21st century. It is an initiative
that will benefit many segments of the society. Digital broadcasting satisfies the
interests of several parties as highlighted by Ihechu and Uwaoma (2012) which
include national, viewers, broadcasters, content providers and regulators. Digital
broadcasting allows user to choose more programmes while broadcasters enjoy
the cost effectiveness of digital broadcasting.

8.8 CHALLENGES TO THE BROADCASTING

MANAGER
Before we end this topic, let us identify the challenges faced by the broadcasting
manager.
8.8.1 Implication of Digitalisation Project

Service and analogue devices as in the era of black-white TV will soon be discarded
because analogue system cannot fulfil the demand and expectation of viewers.
Developed countries have begun planning towards terrestrial digital broadcasting
service. The most popular broadcasting system is video broadcast-terrestrial
(DVB-T) (see Figure 8.12).
Figure 8.12: Implementation of digitalisation project through phase-by-phase planning
Developing conventional FM/MW radio broadcasting and analogue TV

broadcasting no longer brings any benefit in terms of ROI to management because
it involves a high cost.

Besides, the government has to bear a high cost from the stage of project evaluation
to implementation stage, while the broadcasting management will have to pay for
the cost of setting up a creative multimedia division, skills training for staff and
expenditure for preparing interactive programme content. The broadcasting
industry in Malaysia cannot be left behind in implementing this project. The
following are issues related to digitalisation project:
(a) Acceptance of Technology by Audience

Digital broadcasting technology can be used as a mechanism to collect,
analyse and distribute information interactively with viewers. Management
supplies information to raise the understanding and involvement of the
community in activities sponsored by the broadcasting stations.
Reception of signals or digital radio and TV broadcasting at home, involves

changing the radio/TV set to those that can receive programmes in digital
format.
As an alternative, clients may use set-top-box (STB) or decoders for changing

signals to digital content. This is something that may raise problems for the
broadcasting management.
Broadcasting managers in Europe, Japan and South Korea also experienced

the same problem. Digital format broadcasting in Australia only received 10
per cent response from existing TV viewers (ABU, 2005).
NielsenÊs study (2014) on viewersÊ video viewing using multimedia device is

on the rise, with viewers averaging 1 hour 12 minutes per month streaming
video to their televisions. Online video viewing has grown over the last
several years, with Americans now averaging 7.5 hours per month streaming
video on their computers.
Interactive TV (iTV) is an important feature of digital TV broadcasting. It is

a TV and programming system which is specifically provided to allow
viewers to have a two-way interaction in real time (real-time navigation)
during programme broadcasting. This means viewers can control a part of
the programme broadcasted and be able to communicate with the
broadcaster. For the time being, viewers need the set-top-box facilities with
EPG application that can be controlled by using a remote control to enjoy
facilities provided in the programme.
(b) Management Burden

Coordinating decoder or set-top box facilities and nurturing the culture of
viewing digital broadcasting with EPG application becomes the
responsibility of broadcasting management. Management examines digital
broadcasting planning from each angle to ensure that devices such as set-top
box and receiving antenna may be made in Malaysia by the original
manufacturer (original equipment manufacturer). By this measure, not only
the cost to the clients may be reduced, but the set-top box can be adjusted to
receive broadcasting from all stations.
By the time multimedia broadcasting arrives, many clients are expected to

use a base or receiver devices such as a laptop and a mobile telephone in an
area that is hard to receive broadcasting signals. Management should also
cooperate with the suppliers of telecommunications networks to provide
service „outside the area‰ or areas which are regarded as gap fillers.
(c) Implementation
The taskforce of this national project proposed that RTM begin digital TV
broadcasting at the end of 2006, followed by other broadcasting stations in
the country. Various cost implications, technology applications, social and
clientsÊ acceptance, skilled workforce and private broadcasting capabilities
demanded the implementation of digitalisation project be carried out in
phases and cautiously.
Multi-channel standard digital TV (SDTV) broadcasting would be

transmitted to the Klang Valley area first. Various value added facilities for
TV viewing through digital broadcasting may be enjoyed through phase-by-
phase planning (as you can see in Figure 8.12).
Now, Malaysian can enjoy digital broadcasting through myFreeview which

consists of TV1, TV2, TV3, ntv7, 8TV, TV9, TV OKEY, RTM 4D Sports, TV
Alhijrah, Bernama News Channel, Channel W, BES, National FM, Radio
Klasik, Asyik FM, Traxx FM, Minnal FM and AI FM.
8.8.2 Roles of Manager in Facing Future Challenges

in Broadcasting Industry
Future broadcasting managers must be trained in broadcasting organisational
management which is changing constantly. They must have leadership qualities
and wide knowledge in modernising broadcasting industry, telecommunications
and ICT. Their roles can be divided into:
(a) Organisational Management

To manage the negative influence of globalisation, broadcasting industry
managers of the country must strengthen their position in dealing with the
new environment. Broadcasting industry managers should explore

opportunities to expand business and strengthen services and their

respective organisational functions. This could be done through a variety of
growth strategy such as diversification and product development. Managers
should also be sensitive for dimensions of globalisation as proposed by
Abdul Rahman Embong (2000) and examine the ways of handling these
dimensions in the context of technological change, policy change and market
global forces from time to time.
In order to raise broadcasting industry performance to a competitive level in

the international arena, managers should always use their position among
local broadcasting entrepreneurs with an open mind. Managers should
examine the differentiated approach being practised in the world class
broadcasting industry such as BBC, NHK and KBS and be willing to make
changes in the local context.
Among strategic actions of broadcasting managers, a platform for discussion

and cooperation between entrepreneurs of local broadcasting industry should
be created. The platform should be used to build relationship network and
subsequently for expanding broadcasting and telecommunications activities
regionally and at global levels. While attempting to coordinate activities
globally, managers must be responsive to local needs too.
Managers also need to create the philosophy of organisational human

resource, i.e. appointing the most suitable manager to a post in which he/she
is able to plan a strategy and implement it. For this purpose, there should be
a strategic management team and a management team which implements
planning at the operational platform. They together have to create a strategy
which is implemented responsibly. The performance of this manager should
be evaluated continuously.
Last but not least, they need to understand the socio-political needs of
viewers/listeners in terms of the reception methods of digital radio and
interactive TV technology. The broadcasted service and programmes should
be those that is affordable to the audience and not a burden to them; for
example, the cost of buying an antenna and set-top box.
(b) Broadcasting Management

As managers, they need to carry out modernisation of local broadcasting
industry by taking into account studies and the experience of successful
global broadcasting organisations, applied in the local context. Focus should
be given especially to the nooks and corners of broadcasting sector
privatisation, in developing a business planning which includes terrestrial
analogue and interactive digital broadcasting strategy in future.

Then, they need to continue to strengthen the excellence of broadcasting

sector in the era of a combination of telecommunications, computerisation
and broadcasting technology or multimedia. They can expand the functions
of broadcasting stations with the setting up of new units according to the
needs of broadcasting multimedia. Based on current development and trend
of broadcasting, a new media unit should be created.
In addition, trained human resources and expertise need to be provided. The

multimedia training needs to be aligned with continuous training proposals.
This is to assure a quality workforce that can produce various contents
planned in the future.
Organisation rebranding, either in the telecommunications sector or in

broadcasting sector is a change from the external point of view and an
operation with the purpose of improving the image performance of the
stations. Besides the change in terms of organisationÊs image, managers
should ensure that there is a pre-planned programming and interactive TV
channel to support the desired type of rebranding.
Managers also need to establish a network of interactive programme content

suppliers and ensure work process flow for fulfilling channels conforms to
programme evaluation guidelines supplied.
Information flows to all levels of organisation also need to be increased.

Marketing and sales team should know about the role of advertisements
which will be different, i.e. future advertisements will be interactive and be
regarded as an additional income source.
Managers need to always monitors and performs audits on management

expenditure process, and lastly, they need to identify smart partners who can
cooperate with entrepreneurs of broadcasting industry. These entreprenuers
are listed in Figure 8.13.

Figure 8.13: Smart partnership between

telecommunications entrepreneurs and broadcasting managers
• The beginning of digital broadcasting and multimedia means radio and TV

management will have to face cross-media broadcasting. This development
requires readjustment of technical operational standards and a system which
has wide implications. Preparation of programme content to fill up 24-hour of
broadcasting and the elements of airtime marketing are new complexities for
future broadcasting management.
 In the effort to bring about progress to the telecommunications industry in

Malaysia, telco management utilises the opportunity from rapid developments
and changes taking place in the telecommunications field environment. They
should attempt to improve the telecommunications technology facilities
accessible by the audience. This effort will place Malaysia in the category of an
advanced country in the field of telecommunications.
 The MCMC platform as the enforcer of guidelines has become a place for
complaints, discussions and continuing debates between various parties of
telecommunications industry who compete to safeguard their own interests.
 The globalisation phenomenon process can happen in the field of

telecommunications globalisation through vertical and horizontal integration
(Sherman, 1994); and from the angle of four dimensions – economy, politics,
culture and ideology (Abdul Rahman Embong, 2000).

 The convergence of technology today influences how communications is

distributed by the media, telecommunications technology, television and
computing. A combination of technological innovations has succeeded in
developing new ways of accessing information by virtual interactions.
 The broadcasting industry in Asia Pacific began to feel the impact of

globalisation when giant companies such as Time Warner, Sony Corporation
began to supply more attractive programme content to broadcasting industry
participants in this region. These challenges became more serious to
broadcasting management operating with analogue and terrestrial when pay
satellite TV, cable TV and direct-to-homes TV (DTH/DBS) began to offer
programmes at a much higher level of quality.
 Challenges to the broadcasting manager include acceptance of technology by

audience, management burden and implementation.
Cellular company (celco) Regulation

Challenges Simulcasting/multiplatform
Digital audio broadcast Streaming broadband
Digital television Technological combination
Digital video broadcast Technological leap
Expansion Telecommunications company (telco)
Globalisation
High definition TV (HDTV)

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kami ke arah sebuah negara yang terhubung – Laporan tahunan 2015.
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%20Malaysia.pdf

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grow-pay-tv-number-by-13/
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/docs/report/2014/Nielsen_Advertising_and_%20Audiences%20Report-
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2005/04/15/rebranding-shot-in-the-arm-for
telekom/#h1VoAZbgvFug0YIs.99.

MODULE FEEDBACK
MAKLUM BALAS MODUL
If you have any comment or feedback, you are welcome to:
1. E-mail your comment or feedback to modulefeedback@oum.edu.my
OR
2. Fill in the Print Module online evaluation form available on myINSPIRE.
Thank you.
Centre for Instructional Design and Technology

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Copyright © Open University Malaysia (OUM)

Copyright © Open University Malaysia (OUM)

Module Writers: Dr Hamisah Zaharah Hasan

Mohd Khir Den

Prof Dr Rahmah Hashim

Moderator: Dr Ramachandran Ponnan

Enhancer: Raja Nor Aminah Raja Ayob

Developed by: Centre for Instructional Design and Technology

First Edition, November 2008

Copyright © Open University Malaysia (OUM)

Topic 1 Overview of Broadcast Management 1

Copyright © Open University Malaysia (OUM)

Topic 2 Telecommunications Management Theories 29

Topic 3 Electronic Media, and Information and Communications 72

Copyright © Open University Malaysia (OUM)

Topic 4 Telecommunications Industry Structure 98

Topic 5 Management of Educational TV Broadcasting 119

Copyright © Open University Malaysia (OUM)

5.4.4 Lighting Technician 131

Topic 6 Marketing and Sales Management 147

Copyright © Open University Malaysia (OUM)

Topic 7 Cable/Satellite Broadcasting System 173

Topic 8 The Future of Telecommunications Management 196

Copyright © Open University Malaysia (OUM)

Copyright © Open University Malaysia (OUM)

Copyright © Open University Malaysia (OUM)

" Copyright © Open University Malaysia (OUM)

COURSE GUIDE DESCRIPTION

As an open and distance learner, you should be acquainted with learning

Copyright © Open University Malaysia (OUM)

Table 1: Estimation of Time Accumulation of Study Hours

Briefly go through the course content and participate in initial discussions 4

COURSE LEARNING OUTCOMES

Copyright © Open University Malaysia (OUM)

Topic 2 looks at managerial aspects from the academic perspective, focusing on

Topic 3 exposes learners to the participants involved in the broadcasting and

Topic 4 discusses the important elements of the telecommunications industry

Topic 5 introduces one of the participants in the national broadcasting industry

Topic 7 introduces cable TV and satellite TV broadcasting systems, which are

Copyright © Open University Malaysia (OUM)

Topic 8 discusses up-to-date media and telecommunications scenario as well as

TEXT ARRANGEMENT GUIDE

Self-Check: This component of the module is inserted at strategic locations

Activity: Like Self-Check, the Activity component is also placed at various

Copyright © Open University Malaysia (OUM)

Albarran, A. B. (2016). Management of electronic media (6th ed.). Belmont, CA:

Gershon, R. A. (2001). Telecommunications management: Industry structures and

Green, J. H. (2001). The Irwin handbook of telecommunications management (3rd

Gross, L. S. (2009). Electronic media: An introduction (10th ed.). Boston, MA:

Sherman, B. L. (1995). Telecommunications management: Broadcasting/cable and

TAN SRI DR ABDULLAH SANUSI (TSDAS) DIGITAL

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After that, you will also be exposed to the components of telecommunications

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1.1 TELECOMMUNICATIONS AND

1.1.1 What is Telecommunications?