A Research On Transformation Of Western Media Institution In The View Of New Institutional Economics

With the rapid development of new technology，especially the development of Internet，the pattern of the traditional media is overthrown. It also affects the development of media infuture. At present，media industry has been into a new stage of development. Media industryis experiencing transformation. Accordingly， media institution has also undergonetransformation at every level of media industry. Nowadays the institutional transformation isthe fundamentals of the international media industry. Institutional transformation is also animportant part of the China’s media industry reform. The development of cultural industry hasbeen promoted to the height of the national strategy in China. Compared with western mediainstitutional transformation，China’s media institutional transformation also has very hugedisparity. So the research on the western media institutional transformation has an importantreference to China’s media institutional transformation. The article tries to study the innermechanism，path dependence of the western media institutional transformation and the role ofthe government in the media institutional transformation from the perspective of the newinstitutional economics.Media institutional transformation is in the background of the rapid development of thenew technology. North believes that the personal benefit of invention and innovation isalways different from social benefit. Technology is based on accumulated knowledge. If it hasno the growth of the stock of knowledge，new invention will eventually become diminishingreturns. Though new technology can promote the development of media industry，but thecontribution of new technology is far unimaginable. The institutional information makes newtechnology develop persistently. Harold Demsetz believes that the changes of technologyneed to build a set of new institution of property rights. This can improve the private yields ofinvention and innovation. The interest mechanism leads to media institutional transformation.The transformation is repeated games of main subjects include government，media enterprisesand various participants. The institutional transformation sparks a series of changes in themedia industry. Four problems including competition，monopoly，regulation，diversification relate each other and conflict mutually. It is core task of the western media institutionalinformation to handle and coordinate these conflicts. The western media institution is in themarket economy，the way and the extent of institutional transformation is not the same. Mediainstitutional model，historical and cultural background are important factors which impactroute of institutional transformation. As the main supplier of institution，government plays an important role in the media international transformation.Firstly，the article summarizes related theories which can explain and illustrate the theoryof western media institutional transformation. At the same time，the article explicates thebasic issues about the theory of institutional changes and the theory of path dependence.Then，the article analyzes the related concepts of media institution，the institutionaltransformation process of the western media. It probes into the inner mechanism of thewestern media institutional transformation. The institutional demands of media subject due tonew interest mechanism which is produced by the changes of relative prices. The pursuit ofinterest mechanism changes institutional demand and supply. Non-equilibrium of the supplyand demand decides the institutional transformation. This makes institution into a short-termequilibrium. Transformation is dominated by induced institutional changes and it is a rationalexpectation in repeated games. The article further discusses the path dependence of mediainstitutional transformation. Informal institution deeply impacts formal institution. Specialproperties of media industry had decided that the government should regulate the mediaindustry. As the main subject of the compulsory institutional innovation，government plays animportant role. On the basis of theoretical analysis，the article contrasts the institutionaltransformation of American radio and television industry and the rise of Japan’s animationindustry，and points out western media system transformation is induced institutional changes.Japan’s media institution is influenced by American media institution，but its regulationexpresses more strictly. The transformation has broken in the part of minimum cost. Theideological property is relatively weak in animation industry. Costs of transformation arerelatively low，so Japan’s government firstly relaxes regulation in the animation industry，Thispromotes the development of animation industry and makes Japan a power of animationindustry in the world. Finally the article concludes the view，China’s media institution needs reform. The cultural industry should stripe off from the cultural undertakings. It should set upinstitution of property right which adapts to market economy. Media industry should operatein market economy，this can improve the efficiency of the media industry. The institutionaltransformation and institutional reconstruction should simultaneously.The main innovative point is that the article analyzes the factors which impact mediainstitutional demand and supply. The development of the new technology changes mediainstitutional demand. Media institutional supply shortages are the normality. Non-equilibriumof the supply and demand decides the institutional transformation. The deep reason is themechanism of interests has adjusted. Western media institutional transformation is dominatedby induced institutional changes. The institutional transformation is rational expectationswhich the main subject games repeatedly. In this process，regulation of relaxation is the trendof media institutional transformation. The type and extent of western institutionaltransformation is different. The article analyzes the media institutional model and historicaland cultural background of the main western state，and points out that informal institutiondeeply impacts formal institution.The article adopts the method of combining theories and cases. Media institutionaltransformation is a huge system，so the article firstly summarizes and concludes the basictheory of media institutional transformation and the theory of new institutional economics.The theoretical analysis includes the theory of institutional change，the path dependence andgovernment regulation. The article also pay attention to the cases analysis.Through theanalysis about the American radio and television industry and the Japan’s animation industry，the conclusion is confirmed. At the same time，the article adopts comparative analysis method.Through research on the process of media institutional transformation，it can comparelongitudinally the process of the western media institutional information. Through comparisonabout media institution of different media types and different countries，it can comparelaterally similarities and differences of media institutional information.