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It's a word commonly used in US parlance, I think. One of the hosts used it when I was talking about hoping the industry will fracture into more defined parts, each taking care of their own and setting goals relative to one another - instead of one big place competing for monster hits.

The other host may have been using it wrong - it’s a fairly loaded term that arose from the dissolution of Yugoslavia and is usually used to describe a violent, sharply divided, acrimonious collapse into multiple groups that fight each other. (It is common in US English but it’s also controversial)

Yes. It's an early 20th century term, but what happened to Yugoslavia in the early 90s when it broke up and became 6 separate nation-states is the best example. To balkanize is to just break things up into separate/independent parts. :)