Chapter 2-The Media Business

Chapter 2-The Media Business - Hanson’s “Seven...

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Unformatted text preview: Hanson’s “Seven Truths” 1. 2. 3. 4. 5. 6. 7. The media are essential components of our lives There are no Main Stream Media Everything from the margin moves to the center Nothing’s new: Everything that has happened will happen again New media are always scary Activism and Analysis are not the same thing There is no “They” Growing a media business Growing a media business The beginning Penny Press 1 cent weekly newspaper First US media to be largely supported by advertisement revenues Benjamin Day (1833) New York Sun Ida Wells­Barnett, (1885) Free Speech Two distinct models Two distinct models Benjamin Day – – – – – Commercialization, whatever sells Some news Sensationalism Advertising Build with an exit strategy – – – – – Documented news Researched lynching Keep the “truth” in the mind of the audience “truth” sells Informed populace Ida Wells­Barnett espousing ideologies Traditional Media Economics Traditional Media Economics (making money, staying in business) o o o o o o o Advertising Circulation/subscriptions Donations Private Support Government Subsidies Other enterprises Government Funded What sells today? What sells today? News – packaged and documented – Sensationalism Non­news: Social media Instructional such as DIY The regulars: sports, entertainment Music: distribution control New Media Economics New Media Economics Commercial sponsors AdSense CPC (Cost per Click) Cost per Lead (Also used in traditional models) Cost per Sale (Difficult to track w/o online ordering) CPI or CPM (Cost per Thousand Impressions) server counts every time an ad impression opens on a user’s screen CPA (Cost per Action) typically opt­in advertising Subscriptions Links Domain names So many others Media Economics cont’d Media Economics cont’d The information must be in demand Make the information outlet “famous” Information as a loss leader Direct traffic to your product SERPs (Search Engine Results Pages) the list of web pages returned by a search engine as a result of a keyword search Media still sell information Do not always communicate only for profit Typical Life Cycle Typical Life Cycle Introduction (Danger Zone) – – – – – – – – Idea R & D Manufacturing Testing, retooling, testing Marketing Rapid growth in sales and profits Reinvest or take profits Increase market share, promotion (advertising/public relations) Growth Maturity – R & D restricted to product modification and improvements – Competition flanks the leader Decline – Seek to lower production cost – Intro in cheaper markets Life Cycle Model Life Cycle Model Why does this matter? Why does this matter? Media sell products – Hard and soft products – Intellectual products and rights – Creative products “Media” are products Media practitioners must be always aware of the “bottom line.” Product Life Cycle (applies to Product Life Cycle (applies to media products and others) Product life cycle is one element that drives a succession of strategies used by management to develop, manufacture, and sell a product Life Cycle Examples Life Cycle Examples Intro Growth Maturity E­ Email Conference Fax Digital Blu­Ray Download Dear John Avatar DVD Decline Hand­ written letters VHS Harry Potter Pirates and the Half­Blood The Short Head and the The Short Head and the Long Tail (Chris Anderson) Electronic Developments such as Internet Electronic Developments suchas Internet Markets allow for longer product cycles— especially for media products Short­Head – Many people interested in few products Long­Tail – Few people interested in many products What does it mean? Ownership and Ownership and Government Control Media Traditions: Media Traditions: ownership o o o o Private Public Corporate Government All demanded o Large resources: money, connections, tenacity o Licensing o Intense competitive abilities (few channels, many viewers) o Expertise, work, luck New Media Ownership New Media Ownership A laptop and an Internet connection Some technical savvy A sense of what will sell Some business acumen Fewer viewers in many channels Bottom Line: For a thousand bucks, some work, and some luck you can be in business Ownership Integration Ownership Integration Ben Bagdikian o Vertical Integration o Horizontal Integration Issues: o Monopoly o Consolidation Who controls content? Who controls content? Who controls content? Who controls content? o o o o o o Owners Advertisers Government News Special interest Groups Audiences The Business of Media The Business of Media Key Issues: o Ownership: Private, Government o Control o Diversity o Gatekeepers o Agenda Setters o Change! See beyond the horizon YouTube YouTube “We are providing a stage where everyone can be seen” –Chad Hurley Media Discussions (considering Media Discussions (considering these media types) Radio Advertising Public Relations Newspaper Books, Magazines Movies Television News Internet Discussion Points Discussion Points What influence do your media have on society? Is it valuable? How will it change in the future? What will it be like when your children go to college? How will ownership change?/Will change in ownership matter? ...
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This note was uploaded on 03/26/2012 for the course COMMS 101 taught by Professor Lisaswenson during the Fall '11 term at BYU.

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