However we shall deal exclusively with the former

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However, we shall deal exclusively with the former, that of content formats. Considering product operations from the standpoint of format requires a large degree of decision making on the building blocks of the offer. From a certain perspective, a media product is nearly always formed by a unique combination of ingredients. That is the reason why the menu analogy can be resorted to in this sector. Hence, in terms of economics, a large proportion of media products are a combination of products that could or do have value in themselves, whether they are newspaper articles, scripts, individual performances, music, programs, commercials, etc. As a result, because of the great potential new technologies wield, the chance to exploit subproducts of the media product is increasing day by day. At the other end of the spectrum, the multimedia firms are finding it easier and easier to aggregate formats in multiproduct offers. Therefore, the economics of bundling and unbundling is the pivot of management in the case of a large number of media products, as it dictates the content formats that compete in the market. Bakos and Brynjolfsson (1999) explained the strategy of selling a bundling of many distinct information goods for a single price that often yields higher profits and greater efficiency than selling the same goods separately. A successful television program format is the integration of talent capable of working harmoniously to come up with a captivating product for a particular audience. A TV channel product consists of orchestrating a vast array of different formats, which as a whole constitutes a specific television offering; similarly, the product of cable or satel- lite TV is a combination of channels that work together forming a menu from which the viewer selects programs. Herrero (2003), for example, carried out research on the implications of this approach for pay television.
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9. MEDIA PRODUCT MANAGEMENT 189 The underlying logic for selecting and adding value, for working on a range of ways to present media products, is becoming more evident through multiple commercial transactions that span from the sale of film packs to exhibitors and broadcasters to the role of sales promotion contents as an essential element of newspapers and magazines (Argentesi, 2003). Unbundling constitutes a reverse strategy. A product that has been traditionally com- mercialized as a unit is broken down into elements or subproducts capable of meeting an audience’s urge for particular ingredients inherent to that product. This process of unbundling is the key to customizing many information goods, by decomposing them into services and personalized contents, as is the case affecting the customization of electronic information services of old and new media (Ritz, 2002).
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