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Economic perspective ch 7 (The player (4 types) (The goal (net winners;…
Economic perspective ch 7
The player (4 types)
The advertiser- money exchange for time
Employees of media companies-bring their time skills and talent to the game
you the consumer- your time and money
media companies
(1) competes and talent market to try to get the best writers actors musicians etc. (2) compete in the audience market by produce messages to their talented employees= attract a larger type of audience (3) they compete in advertising market, get their message out when they have something valuable to offer
The goal
net winners; negotiated resources exchanges, greater value than cost
Net losers; resource exchange is zero sum
The rules; must have resources and willingness to exchange
Below-the-line employees; requires talent much more than training ex: writers, directors etc
Above-the-line employees; fairly common skills to be able to perform their jobs ex: lightening technician
Characteristics of the game
Importance of valuing resources well; successful in negotiations is to value resources accurately
Indirect support; payments of time you make when you expose yourself to media messages; selling your time to advertisers; advertised products
Direct support; financial payment you make directly to a media company- subscribing to a website/tv program
Complex interdependence; among the different players in the media economic game; radio station want to attract more advertisers- cut-price- but play more ads on the radio- consumer gets mad changes station- advertisers lose money
nature of competition; limited amount of resources- larger companies are better at the game
Monopolistic competition- firm is large
Digital convergences; creates message-distribute it on different channels
Advertising as the engine; grows the media industry- goods can enter markets and let us know when avaliable
Media Industries strategies
Maximizing the profit; Profit= revenue- expenses