Chapter Two: Media Theory
Jan 13, 2016
Chapter Two: Media Theory
Media economics
Economies of ScaleMass production and distribution
First copy costs Low marginal costs
Ownership patterns
What is the market structure?Monopoly: One producerOligopoly: A few producersCompetition: Many producers
Monopoly - Oligopoly - Competition
What is a firm’s market power?Smaller competitor?Monopoly?
Economic monopoly Monopoly on information
Oligopoly? Shares dominance
Market Structure Examples
Local TelephoneLong DistanceCableMusic Software
Monopoly Oligopoly Competition
The profit motiveMaking a profitEntry costs
how high is the barrier?
Sources of media revenueFrom consumers, to
Taxes, donations, subsidies Consumer goods purchases Retail media distributors Communications media, via subscriptions
Sources of media revenue
Selling the audienceDirect salesRentalsSubscriptions
More sources of media revenueUsage feesAdvertisingSyndicationCopyright royalty feesPublic subsidies
access fees, universal service fees
From mass markets to market segmentsNarrowcasting
Identification of specialized interests Relies on information technologies demographics profiling IT lowers costs of production and
distribution
Diffusion of InnovationsExplains the spreading of new ways of
doing things in a social system observability trialability compatability affordability supervening social necessity
Diffusion of innovations
Approaches to Media –Critical Studies
Looks for relationships betweenThe media systemMedia contentAudiences for mediaCulture
Approaches to Media – Political economyPolitics, Economics and Communication
intertwinedFocus on interests
Power relationshipsAdvertising
who’s selling; what’s being soldCommercial interests and ownership Ideology
HegemonyAn underlying consensus of ideology
that favors a system that serves the interests of a dominant social group
Economic system preserves the interests of the ruling classes Mitigating factors: Consumer needs, laws
of supply and demand
Approaches to Media – Agenda SettingThe ability of the media to determine
what is important OJ Simpson and US race relations Activism and media event creation Political “horse race”
Approaches to Media – Gatekeeping and FramingGatekeeping: deciding what will appear
in the media Does a media message make it through
the gate? Who are the gatekeepers?
Framing: writing to tell stories What makes the story? What is left out? 2 sides to every issue?
Approaches to Media – Opinion LeadersPeople who try to influence media
coverage (agendas & frames) Diverse interests spin doctors
Lobbying groups Special interests, business constituencies
Approaches to Media – Textual CriticismElectronic media as a new kind of “text”Apply tradition of literary or cultural
criticism Genre studies Semiotic analyses Feminist, Gay/Lesbian, Race studies
The active audienceThe media and audiences are both
powerfulMedia creators have a preferred reading
Approaches to Media – Societal FunctionsFunctions of the mass media
surveillance interpretation socialization entertainment
Functions of new communications media
Approaches to Media – Social Learning TheoryExplains media consumption behavior
in terms of Expectations about consumption Cognition, or how we learn through our
own experiences “Uses and Gratifications”