How are governments currently adapting to the growing "transnational" media industry marketplace?

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The previous answer does a good job of pointing out two of the important ways in which governments are adapting to the growth of transnational media.  However, there is another important aspect of some governments’ reactions to this trend.

In some places, governments’ responses to transnational media are conditioned by nationalism.  That is, governments want to control the incursions of media from outside the country not because of the messages conveyed by that media (censorship) but because that media is foreign.  Countries that see themselves as important do not want to be inundated with foreign media at the expense of their own domestic media.  Therefore they sometimes place barriers in the way of foreign media in hopes of allowing domestic media to grow and thrive.

In addition to trying to police transnational media for reasons of censorship and intellectual property rights, there is a strong tendency in some countries to resist transnational media for nationalistic purposes.

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There are several major areas in which governments are involved with the transnational aspects of new and mass media.

One area is censorship. Many countries, including China, Saudi Arabia, and Russia censor media for political, moral, or religious purposes. This leads to issues such as the censorship of Google in China, where the government blocks access to parts of the internet; since local governments cannot block what material is created on foreign media censorship increasingly becomes a question of limiting access to international media.

The next important issue is pirating and royalties. Countries that have major players in content creation, such as Hollywood and Bollywood are especially concerned about international piracy of movies and songs in countries with weaker regulations.

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