CHAPTER 6 - The profit motive is at the heart of the...

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CHAPTER 6: 1. How do newspapers make their money? What is the related point about circulation quality? Newspapers make 80% of their money from advertising. EX. From book: the new York daily news was about to go out of business, but the NYT wanted them to survive, just so that the daily news’ readers would NOT start reading the NYT (due to their lower income levels). Having the daily news go out of business would attract poorer readers, and thus bring down the exclusitivity of the NYT, and scare away high-end advertisers. 2. Does market logic dictate news outcomes? Note the example of Eugene Meyer and the Washington Post:
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Unformatted text preview: The profit motive is at the heart of the newspaper, but this does not mean that market logic dictates news outcomes. Eugene Meyer lost over $1MM every year during his first 20 years of ownership at The Washington Post, but he did not care, as he wanted to own the paper to make a statement. He grew up in the time that buying a newspaper company was more about the political platform it afforded, not the money it brought in. 3. Read the section on market and press freedom; note: sources of economic constraint, chain ownership, and, concentration of ownership:...
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This note was uploaded on 09/30/2011 for the course COM 142 taught by Professor Theobald during the Spring '11 term at UC Davis.

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