COMM 122
Factors that Justify public/gov control of broadcasting
- airwaves seen as a "public good" - need management to avoid interferences and proper social uses for ALL society - Broadcasting media's political and social power
According to the lecture, during the 20th century the main revenue stream of commercial media worldwide was
Advertising
Co-productions
Business arrangement in which production staff and creative workers from more than one country or organization work together on a project
Subscriptions
Form of payment in which a media user provides a source of revenue for the media outlet that typically involves buying access to a package of goods.
What is the difference between adaptation and format sales?
Format sales- Selling particular features of a media good for production in another country - premise, setting, characters, and norms of original are localized. Adaptation- transfer of a work or story, in whole or in part, to a feature film (changing original film)
Advertising integration/ Branded entertainment -
Combining several media contents, channels, and tools under one big idea, in order to produce a greater experience for the consumer ex. wheat thins
Conglomeration
Combining smaller business entities under a single corporate umbrella - spreads risks, greater efficiencies, and reduces competition for the corp. *consolidating to reduce competition
What is a "media mandate"? According to Heavens and Lotz, why is the mission or mandate of media institutions important?
Commercial and non-commercial ****Media outlets foremost purpose (they determine business model- who it will serve-and how media outlet is considered successful or not-who pays?)
What is a "media mandate"? According to Heavens and Lotz, why is the mission or mandate of media institutions important?
Commercial and non-commercial: ****Media outlets foremost purpose (they determine business model- who it will serve- and how media outlet is considered successful or not
why U.S. media firms enjoy a "first-mover advantage" in international markets, and how does that benefit their position in the global market
Competitive advantage a company earns by being the first to enter a specific market, building strong market presence and brand recognition and loyalty. -we have dominated industry becuse we have operated under commercial mandate longest (incentive for savings and revenue)
Patent pool
an agreement between two or more patent owners to license one or more of their patents to one another or to third parties (RCA used this in their business model) -armstrong and military did this
Doyle argues that media markets are "dual product markets" because they sell _____and _____.
audiences to advertisers // content to viewers
Format sales
Selling the particular features of a media good for production in another country
Patent
Sets of exclusive rights granted by a sovereign state to an inventor for a limited period of time (intellectual property)
Niche audience
Smaller segments of media population brought together by interests in media texts that do not appeal to the much broader mass population
Public sphere
The "public sphere" is a social space where, multiple opinions are expressed, issues are debated by public, collective solutions are established. The public sphere is the central arena for societal communication. Debate platform and rational debates are needed to have an informed citizenary
What is key for international trade
copyrights!!
_____ allow media industries to commodify and own information products that are made, distributed and sold in the marketplace to make profits.
intellectual property regimes
Spectrum
is the invisible infrastructure used by wireless devices, such as radios, smartphone and tablets, to provide communications services
According to lecture and to Havens and Lotz, mass customization refers to the development of media goods for ______ audiences, according to _____.
niche // audiences' socio-demographics, attitudes and interests
Intellectual property
Intellectual property includes intangible creations of the human intellect (industrial property and copyright)
(G)localization
Unmooring media goods from their immediate cultural surroundings and reproducing them in another locale - translating language, settings, etc.
Known Product
Using intellectual property that has been previously success in order to reduce uncertainty of success because they have an established audience
Commercial Media
When media industries are driven by a profit making objective. Significant focus on high earnings and profits from their media goods, which in turn influences decision making within the organization
According to class discussion, the RT anchor's decision to resign on-air to the network's newscast in protest to its editorial line on Crimea is example of the _______ of media workers.
circumscribed agency
Direct payments
source of revenue generated from payment by audiences (film admissions, movie rentals, magazine purchases)
Industry lore
"Common sense" ways of doing things among media industries, including ideas on what consumer wants, trends, etc. Based on perceptions (affect on agency)
Cultural industry
"Creative industries" combine the creation, production, and distribution of goods and services that are cultural in nature and usually protected by intellectual property rights
Dominant ideology
"Common sense" or just the way things are - shared beliefs by society.
Why do media industries matter?
*Generates profit and wealth VITAL for the economy, BUT their very purpose is to share messages throughout a society and enable public communication *Explore how a society speaks to itself and others about values, priorities, and norms, contributing to construct the dominant ideology of our times.
strategies of U.S. media firms to overcome barriers to the internationalization of their operations and sales
*Industry always attempts to cultivate "taste and preferences" of national audiences -Dubbing/ Subtitles -Localization and adaptations ('derivative work' not an 'original', entail changes in language, settings, narrative technique etc. Ex. Ugly Betty) -Format Sales: Selling the particular features of a media good for complete reproduction in another country (American Idol) - Coproduction: A business arrangement in which production staff and creative workers from more than one country and organization work together in producing the project.
Explain what is cultural imperialism and the stance of U.S. media firms and government in this debate.
- FREE FLOW OF INFORMATION is US standpoint with no gov. intervention - cultural imperialism (global south)
What are some of the common production and distribution strategies employed by media industries to minimize risk and the uncertainty of information markets?
- Intentional overproduction - Conglomeration -Vertical Integration:Form of conglomeration in which companies seek control by acquiring firms at different levels of the production and distribution of goods or services. - Horizontal Integration: Form of conglomeration in which companies merge or buy other companies in the same level of production process. - Monopolies- Organization operating without competition in its industry(horizontal) -Oligopoly- Industry dominated by a small number of companies that block additional competitors from entering market (before conglomeration) -Formatting = (Known product, known talent, standard features like length, genre, format sales) -Windowing: Maximize number of windows or markets for the distribution of the same product -Cross promo
How have funding sources of U.S. commercial media evolved? What significant changes have we seen in the funding sources of commercial media in the country? What is the most important revenue stream for commercial media in the U.S. nowadays? What are other important sources of revenues?
- Licensing, broadcast rights (intellectual property) - Advertising*** (Most important revenue stream) Funded through TV network $ - Subscriptions (Becoming more popular) - SHIFTS: 2008 - First time ever we spent more time with paid content than with ad-supported media (ads are annoying = customers willing to pay = customization) *Media is diversifying their revenue streams and business models
How did inventors like Lee DeForest and Edwin Howard Armstrong fund their initial research and development ventures into radio technologies? How was this different from the funding used by inventors like Guglielmo Marconi in Europe?
- Marconi had governmental funding (England = public mandate (taxes)) - U.S. fundraised money through capital investors
What are media industries defined by?
- Mediums (Tv,magazine,newspaper) - Activity (production,distribution)
What event led the federal government to support the declaration of the airwaves as a "public good" or resource under state management and control? How was this decision justified?
- Titanic (airways had interference during this time so government saw need to organize/manage usage) -Airwaves seen as a "public good" -Need management to avoid interferences and proper social uses for ALL in society -Broadcasting media's political and social power
How did the development of TV impact commercial radio? Who funded research & development of TV and how? What were the initial social applications envisioned for TV?
- Tv was modeled after radio so a commerical place already existed through the radio -Tv was nothing else but radio with images -RCA first brought TV to country (showed power of private enterprise)
What was the impact of World War I and subsequently World War II on the battle for radio patents? What was the role of the government in research and development of radio technologies?
- fed gov froze all patent suits, trained 400 new operators to transmit signals and needed more equipment - Huge amounts of interference & gov. saw need to implement policies and this became part of the establishment of the medium's mandate - armstrong gave the gov. his patents for free during WW2 ** U.S. military and corporate interests = commercial mandate
Structural Constraints of Industry
- genres, formats, scripts - Ratings and audiences -advertising -programming -rules that govern production processes
Why was the introduction of FM radio to the market delayed by RCA?
- millions of AM sets would have to be scrapped & they wanted to continue expanding sales - The war on patents and RCA's previous investment in AM radio sets delayed the introduction of FM...
What kind of services were supported by radio transmissions as they were developed in the early 1990s? What were the initial social applications inventors envisioned for radio technologies?
- point to point communication
What kind of programming dominated early commercial radio? What was the most popular show? According to media historians, what was controversial about it?
- soap operas dominated in early commercial radio (music), concerts being aired -amos and Andy (racists) - commercial drive made marketers and content creaters more aware to please white audiences that were affluent and wealth off (bias)
What is unique about the costs of production of media products? Impact risk in the investment of production and distribution of media products?
- talent costs, developmental, production, marketing&distribution, overhead costs *ALL paid before any revenue is earned (independents self-finance) -unknown how successful product will be
What factors explain RCA's dominant position in the radio market between the 1920s and 1950s?
-American marconi sold, let to creation of RCA as independent company (began vertical integration - owning all patents, selling products, producing content)= PROFITS
strategies of U.S. media firms to overcome barriers to the internationalization of their operations and sales
-Dubbing/ Subtitles -Adaptations: 'derivative work' not an 'original It may entail changes in language, settings, narrative technique etc. Ex. Ugly Betty - Localization: Removing media goods from their original or immediate cultural surroundings and reproducing them in another locale. It may entail changes in language, settings, narrative technique etc. -Format Sales: Selling the particular features of a media good for for complete reproduction in another country (American Idol) - Co production: A business arrangement in which production staff and creative workers from more than one country and organization work together in producing the project.
Economies of scope and scale
-Economies of scale ( logics of mass production!): Financial advantage that emerge when the average cost of producing a good decreases as the number of units produced increases. -Economies of scope (diversify): Financial advantage that emerge from the producing a wide range of products, sometimes repurposing components or sharing costs of other enterprises.
Mass customization
-Era did not emerge in a paper form of print but in distribution in blogs and online versions of print media -1960s magazines and radios began targeting demographics -Mass production = mass entertainment - Customization = niche audience
Why do information and media products have characteristics of public goods? When do information products operate as semi-private goods? Distinguish different forms of media and information products: club goods, common pool of resources, public/private goods. Give examples.
-Private (excludable/rival), public, and semi-private goods. -Difference is their rival/non-rival shareability (individual consumption of a good doesn't prevent other people from consuming it) - Public good has openness (nonrival) - If it is difficult to prevent people who do not pay for the production of a good from its consumption or use. - Semi private = Club Goods (Paid by individuals for their use and non rival) and Commons ((Paid by a community for the use of its members - Rival)
What was the impact of the rise of corporations on the research and development of the radio industry?
-The RCA was the gov-sanctioned radio monopoly formed to replace Marconi's American company -There were cross-licensing agreements (patent pooling) agreements between GE, AT&T, Westinghouse, and RCA, which owned the assets of Marconi's company. Patent pooling was the solution to the problem of each company owning some essential patents. - RCA expanded into nearly every area of communications and electronics. Its extensive patent holdings gave it power over most of its competitors because they had to pay it royalties.
what is the main incentive for U.S. media industries to go global? Why are global media markets so important for U.S. firms?
-The U.S. film industry in particular has become more dependent on international markets for revenue growth... -Increasing competition and saturation of U.S. media market pushes growth in markets around the world -China box office growing tremendously -Changes in distribution strategies supported by digitization - the world of 'streaming' is truly global
Synergies
A belief in conglomerating various media operations where the combined value is greater than sum of individual parts due to potential of cross promo *** hard to achieve because conglomerates operate with self-interest from unit and divisions within companies
Cross - Promo
A company markets products of another company
what role do patents play in the invention of media technologies like the radio? How did legal battles for the control of patents shape the invention of radio in the early days in America?
A patent is an exclusive right granted for an invention, which is a product or a process that provides (ownership) - DeForest and Armstrong had a patent battle for the audion tube because each wanted credit of being maker behind radio - patents affect corporate and national affairs - corporations bought access to them
Why and how do media industries create artificial scarcities of information and media products?
Artificial scarcities = Strategies employed by the media industries designed to control the availability of information products in the hope the demand will increase if the product is not readily available... -Price differentiations -Subscriptions, Bundling/packing products
What is the circumscribed agency of media workers? How does ideology relate to media industries and their products? Do media industries reproduce or challenge the hegemonic views of our times?
C.A. = Decisions and choices made by media professionals about the production and distribution of media content within the constraints of formats, practices and agreed upon rules of the media industries (Decisions about how they perform their job - Creativity, improvs, changes to production) Ex. Newscaster and squid billies -Media promote the dominant ideology, either by the popular will or authority & tends to conform to the dominant ideology, due to public pressures, regulation or business considerations. -Media content also contest hegemonic views by providing spaces to present alternative ideas and ideologies *Choices we make are not wholly our own due to influence from modern institutions, norms and cultural traditions -Media is a contested space and a battleground!
What is the circumscribed agency of media workers? How does ideology relate to media industries and their products? Do media industries reproduce or challenge the hegemonic views of our times?
C.A. = Decisions and choices made by media professionals about the production and distribution of media content within the constraints of formats, practices and agreed upon rules of the media industries. Media is a contested space and a battleground! Media promote the dominant ideology, either by the popular will or authority & tends to conform to the dominant ideology, due to public pressures, regulation or business considerations. *Choices we make are not wholly our own due to influence from modern institutions, norms and cultural traditions
What is a dual-product market? Why media markets are dual-product markets?
Dual-Product: Two layers of sale in media industries: company offerers a media product to an audience, and economic transaction of selling audience to an advertiser. **Content & audience to advertisers
Price differentiation
Explains manipulation of a good's price depending on a set of circumstances (Watching it faster in a theater at a higher cost or waiting longer and spending less to rent).
What are 'geo-cultural' markets, and what are the pros and cons they present for the distribution of media products worldwide?
Geo Cultural: Transnational media markets that are based on cultural rather than national boundaries (constructed based on language and cultural specificities) PROS: Geo-linguistic markets tend to be dominated by larger regional producers CONS: -Markets do not simply "reflect global cultures," they "create representations" that best fit their for-profit strategies -Problematic representation of "global cultures" that over-generalizes, misrepresents and sometimes ignore diversity and specificity of local cultures
main factors driving the continuous global expansion of U.S. media firms
Globalization= relationship with economic and cultural processes -Hollywood has dominated market, exporting more films than importing because there is an untapped market we profit from + cultural imperialism WE ENTERED MARKET FIRST -global english speaking market = dominance - factors of economy of scale and long tail (profit for years)
"Nobody knows"
High degree of risk in determining success of media goods - no rules to determine how well something will do.
Problem of Info Markets
INFORMATION MARKETS ARE CONFRONTED TO THE "FREE RIDER" PROBLEM!!
What kind of products are produced by media industries? What is unique about them?
Information products (any product or service that you can sell to people to provide them with information, usually about a specific topic) ***Info is easy to share & info does not get "used-up"when you consume it...
Sunk Cost
Irrecoverable costs that are incurred during production. Media goods are upfront costs so they "sunk" in initial production process.
Who does the commercial media model serve?
It serves those that pay (consumers pay - we get content for what we like) (its mission is to generate profits(sell us to advertisers)
Licensing fees
Licensing fees- Paid as part of an agreement that defines the terms under which a tangible property is licensed for use by one party to another.
Mass media
Media goods designed to appeal to the widest group of consumers
According to class discussion on the examples of #OscarSoWhite and gender stereotypes on TV, which of the following IS NOT TRUE concerning the relationship between media and ideology?
Media is always shaped by the dominant ideologies.
Demographic
Narrow subsection or segment of the entire population
First "Mobile" media technology
Newspaper
What determines "success" under the commercial media model?
PROFITS & viewership(ratings)
Over the last decade, the main revenue stream of commercial media in the U.S. is
Paid Content
What is "peak TV"? According to the lecture, what is the implication of peak TV for the future of the TV industry?
Peak TV = What society has devoted the maximum possible amount of resources to production of original television programming. The TV industry is still growing with 495 estimated number of scripted original shows for 2018 (overproduction)
What is "peak TV"? According to the lecture, what is the implication of peak TV for the future of the TV industry?
Peak TV = What society has devoted the maximum possible amount of resources to production of original television programming. The TV industry is still growing with 495 estimated number of scripted original shows for 2018, but the changes are seen in how people are watching it- more online.
Circumscribed agency
Perspective that assumes that the choices we make are not wholly our own, but are not imposed on us by outside forces. ex. newscaster and squid billies
A-list/ B-list issue
Popularity of actors that can carry their reputation to their work.
First copy costs
Principle that highlights costs to media companies of producing the original of any media good and that nearly all costs are tied up in producing the first good.
Just-in-time production
Process that minimizes the warehousing of physical goods. Manufactures as close as possible to time of sale to minimize costs of production and receiving revenue. -strategy of mass customization (massproduction during war created economic downturns)
Distribution windows
Releasing media content on a staggered schedule for different platforms or countries - helps to build excitement (aiding in the world of digitization)
What are the benefits and limitations of the commercial media model for the content it produces?
STRENGTHS - foster competition in the marketplace pushing innovation and creativity -value efficiency & production outputs - less likely to assert gov. position over info and news WEAKNESS -cater to corporate values and prefer audiences with more $ -reproduce social inequality -less open to "citizen" productions
What was the 'music box' model for radio development, and who is credited with the idea? Why was that important?
Sarnoff predicted broadcasting in 1915 in his "Radio Music Box Memo." The Memo stated that Sarnoff had "in mind a plan of development which would make radio a 'household utility'.
Simultaneous release
Synchronized worldwide distribution windows that allow media audiences in major global markets to consume the same goods at the same time (overcoming barrier to globalization) Creates buzz and gives perception of transcending national boundaries
main challenges faced by U.S. media firms in the internationalization of their operations and sales?
Technological Barriers: Uneven development of global media systems Legal Barriers: Copyright vs. Piracy Cultural policy: Public policy and regulation aimed at promoting cultural diversity and accessibility to national and local cultures (CANADA close to us production)
First long-distance instantaneous communication
Telegraph (Point-to-point)
Ars longa
Term to highlight longevity of media industry products due to the ability of these products to make revenue long after original release
Cultural imperialism
Theory that media globalization leads to destruction of local, cultural values, replacing them with those persuasive from other countries
According to Habermas's definition of public sphere, media contribute to _____ by fostering
democratic process // dialogue and an informed public opinion
A band records a song with a label that sells it through streaming services and CDs; later the label decides to sell the song to ringtone services. This is an example of how:
economies of scope operate in media businesses by reducing production costs.
Product placement
embedded marketing - a marketing technique where references to specific brands or products are incorporated into another work
Walt Disney's $7.4 billion ______ with Pixar Animation Studios in 2006 made Disney the largest animation studio targeting families and children in the country.
horizontal integration
What is the difference of the media globalization hypothesis vs. media (g)localization or hybridization hypotheses?
hybridity - cultural process whereby different cultures interact and change each other over time (positive viewpoint but it America never undergoes cultural change - occurs against inequalities among national media industries) Cultural imperialism: domination of local cultural values by imported american values concerning nations BUT globilization is meaent to encourage cultural interactions
According to the lecture, ______ is a value system through which we assign meaning to the social world while ________ is the dominant view or social common sense of our times.
ideology // hegemony
_______ are the set of institutional arrangements that shape the production, distribution and consumption of media messages.
media systems
According to Havens and Lotz, which of the following IS NOT a strategy that media industry employs to deal with risk?
producing public goods
Electromagnetic spectrum
range of frequencies of electromagnetic radiation and their respective wavelengths and photon energies
According to the lecture, ______ refers to irrecoverable costs that are incurred in the production of media and information goods.
sunk cost
20th Century Fox owns one of the main studios in Hollywood, and they also own cinemas, TV channels and DVD rental shops. This is an example of ________.
vertical integration
