RTF 347P Final Exam

day-and-date release

simultaneously releasing a movie to the public in some combination of theater, cable, DVD, and download Simultaneous release is the name given to an experimental new method of making movies available to consumers. Traditionally, movies are released first in cinemas. A DVD release follows some months later.

FCC (Federal Communications Commission)

-FRC (precursor to FCC) first to regulate broadcast, only licensed broadcasters could use the airwaves. (Spectrum=national good that belongs to the people, those who rent must serve the interest of the public) -FCC Has no jurisdiction over networks but instead has regulatory power over the individual stations that make up the network, or its "affiliates". ONLY directly regulates broadcast stations not the networks. Federal Communications Commission Back in the day the federal radio commission was created and only licensed broadcasters were allowed to use the airwaves. Because the US policymakers identified the spectrum as a national good that belongs to the people which needed oversight to prevent overlapping signals. Those who borrowed us were also charged with serving the public interest and had to apply to the FCC (which reps the public) for a license and if they conditions are met they are allowed to use th airwaves. As long as it operates in the PUBLIC INTEREST, CONVENIENCE, and NECESSITY

Globalization

-One of the main drivers of globalization today's shift to digital media. -The inherently global nature of the Internet allows anyone anywhere to connect in real time -media globalization is the capacity of worldwide communication infrastructures to send messages anywhere in the world almost instantaneously -this capacity makes the coordination of media production distribution and aggregation much more efficient.

American domination of international markets

-One of the main reasons American media industries have dominated the worlds media industries in some sectors is because they have long operated under a COMMERCIAL MANDATE -commercial media industries have a strong incentive to take advantage of cost savings and revenue available from global markets while industries with non-commercial mandates are primarily in scented to serve the stakeholders which are typically citizens for whom they are content is aimed towards FIRST MOVER ADVANTAGE -American industries still often enjoy what is known in economics as first mover advantage -first mover advantage refers to the fact that the first company or industry sector to move into specific market often remains the main player in the market for years to come *hollywood maintains this in film and television

Media Regulation & FCC

-started with the Paramount Decree: United States vs. Paramount Pictures case in which the big 8 film studios dominated the film industry and controlled all aspects of production, distribution, and exhibition (the most extreme example of *VERTICAL INTEGRATION* in history) DEFINTION: laws, guidelines, and policies that govern how media industries produce, distribute, and exhibit their products. WHO? -all media industries face 2 types of governmental regulation enforced by the state: either content regulations or regulations on industry structure. SELF REGULATION -The most substantive regulating mechanism for a commercial media industry with free-speech protection -The regulations that are most responsible for producing the media contact we are familiar with emerge from informal self-regulation that leads industry workers to perceive certain types of content as more or less commercially viable -In addition to the self-regulation based off what media creators perceive as commercially viable they also engage in formal self-regulation through the creation of self impose rules limiting or categorizing content -in many cases media industries use formal self-regulation as a defense move in order to head off actual government impose regulation -EXAMPLE: Family Hour regulation during the 70's, the 3 networks agreed to broadcast only programs that might be suitable for the entire family during the first hour primetime 8-9 PM

Distributors vs Aggregators

A Distributor is a person (or company) that takes your movie and gets it out to retailers like Blockbuster, RedBox, Netflix, Amazon, iTunes, cable and satellite, on-demand, and other VOD platforms. Aggregators are the people (or companies) who Distributors use to assist them. Middle men. The simple answer, in a nutshell, is that a distributor will get your film into theatres while an aggregator will get your film online. This is because places like iTunes, Amazon, Hulu have requirements beyond coding that new filmmakers can't fulfill. So why not cut out all the middle men and hire an Aggregator from the get go? Distributors would become obsolete. This will be the eventual outcome, but in the meantime, Distributors everywhere are trying to hold on to their jobs. So, naturally, Distributors are making it appealing (financially or otherwise) for Aggregators to work with them, instead of you and me. Today, Aggregators aren't set up for one-on-one relationships with filmmakers. As technology advances and makes it possible for more films to be made, the strain will continue to weigh on Aggregators who don't morph their company structures to suit. Any musician can post their music to iTunes and sell directly to their fan base. As of today, iTunes is not open for any filmmaker to upload their movies. Right now filmmakers must use an iTunes approved Aggregator in order to upload their movies. When the day comes these VOD platforms are open to filmmakers directly, you won't need to worry about an Aggregator or Distributor every again. You'll be able to provide your product directly to your audience. Just like the music industry.

Right-to-work state

A U.S. state that has passed a law preventing a union and company from negotiating a contract that requires workers to join a union as a condition of employment. These laws are designed to drain resources from workers' organizations by allowing people to benefit from union representation without paying for it. Under "right to work," unions are required to represent all employees, but are not allowed to require any type of payment in return. Over time, this weakens unions: people who pay nothing drain the union's resources, jeopardizing its ability to advocate for employees' interests as effectively. While it is not impossible for unions to exist and even thrive in states with "right to work" laws, the absence of a steady income from all represented employees places a significant limit on workers' ability to speak out.

advance

A common tactic used by media industries to learn creative talent and to get the benefit of their services for a set time These payments are often driven by the expectation this payment will enable the talent to complete the commissioned work such as a script or album It is indeed to be remuneration for future work and talent typically does not receive royalty or payment for the good untill the label studio or publisher have earned profit equivalent to the advance

Long Tail

A contact coined by WIRED magazine that describes the value that media industries can find outside of the blockbuster. It's derived from PARETOS PRINCIPLE, earning revenue from so-called long tail of media goods is made possible by the substantially reduce cost of digital distribution. In the era of brick and mortar retailers there was insufficient space to sell most media goods. Digital retailers make it possible to monetize the media goods that may have only a few buyers but the few buyers of many goods can introduce significant new revenue to media industries. Known as the 80s 20 rule most industries 80% of the profits are made from 20% of the products. The peak of the slope illustrates very few products purchased by mass audiences. At the other end of the slope is the long tail or the mini products that are purchased by only few. These few add up.

Cost plus financing (continuous)

A model that has been common in the public mandate sector of British television industries called cost plus system In this case a producer brings an idea to a network and if the network wants to develop the idea the network pays the cost of production plus a fee or profit to the producer sometimes 10% The cost plus system greatly reduces the risk for the studio producing the show as it does not take on the deficit expenses and it is guaranteed a certain amount of profit In this arrangement however the Studio effectively sells the show to the network so any value to come from selling a show in another market would be of benefit to the network rather than the studio In exchange for the reduction of risk the studio gives up the opportunity for exceptional reward

Single media good vs. Continuous media good

A part of economic conditions SINGLE Films, albums or tracks, games, books: each Individual good is marketed based on the distinctive merits of each media product BUSINESS MODEL:Most commonly purchased by individual transaction CONTINUOUS produced as ready flow of regularly refreshed content -whether print, music, or video...but television radio newspapers and magazines are primarily continuous media goods. BUSINESS MODEL: Supported mainly by advertising but also subscription or a combo of both TELEVISION ? Before 2000's tv was mostly continuous because it was difficult to experience it other than a linear flow or programs available only at network specified times W changes in tech like DVR VOD and streaming some types of TV takes on characteristics of single media.

Upfronts

A period of media buying in which advertisers purchase time on network television a few months before (May) the new season of shows begin (September). They are thus bought "up-front." Upfronts are presentations (and together, an event) where the major television networks preview their upcoming fall and midseason series for advertisers, the press, and the other networks. Recently, focus has shifted away from small meetings geared towards advertising sales and more towards large presentations, often featuring shows' talent. The upfronts are held in New York the third week of May. For TV development, they are the ceremonial end of pilot season, where the year's work is displayed.

crunch time

A period of work usually comprising if you weeks before the launch of a new media product when the employees regularly work for long hours and weekends in order to finish the project on time

Above vs Below the Line

ABOVE Major personnel involved in the production of film and television those seen as primarily responsible for the creative processes involved in production such as directors actors writers and producers Historically Hollywood accounting forms used a line to separate the specialize creative cost from other technical and production cost in the workers associate with this task became to be known as above the line workers BELOW Workers directly involved with the technical aspects of film and television production. Hello the line personnel handle the day-to-day tasks of producing a movie or TV show. Though below the line jobs are often overlooked when people consider credit professions in the media industries they do involve creative practice

AFM

American Film Market (AFM) is a film industry event held each year at the beginning of November in Santa Monica, California. a marketplace for the film business, where UNLIKE A FILM FESTIVAL, PRODUCTION AND DISTRIBUTION DEALS are the main focus of the participants. people attend the eight-day annual event to network and to sell, finance and acquire films. Participants come from more than 70 countries and include acquisition and development executives, agents, attorneys, directors, distributors, festival directors, financiers, film commissioners, producers, writers, etc.

Attachment agreement

An Attachment Agreement is an essential agreement for almost any film, pilot, or any other type of medium or large scale production. Attachment Agreements secure key talent such as actors to an intended production. An Attachment Agreement is a contract set up between a producer and a talent. It is an agreement which commits the talent to the project under certain specific conditions. Once an Attachment Agreement is in place, the producer can more confidently go and find a financier, a network, a studio or other production company to develop or produce the project. In Attachment, the talent agrees to "Attach" themselves to a script/pilot/show/concept, and in return, the project developer agrees to pay the talent at a set rate or give them something else in return. Sometimes talent are induced to enter an Attachment Agreement with an upfront payment, other times with a negotiated salary or profit participation. Financiers need confidence that key talent are committed to participate in a project before investing.

Globalization in TV

An increase in program services like the introduction of cable and satellite channels let you explosion in the number of programming hours needed to fill in most countries around the world Buying international programming was easy and cheap way to fill the sudden explosion and schedule time the most channels begin replace imports with domestic programming as soon as they were economically able to do so Numerous transnational satellite channels the target audience is in multiple territories also know exist with popular cable channels who have international versions for example Disney Channel in the discovery channel At the level of particular programs some television formats can be remade in multiple countries with local talent EX Big Brother, Love Island

Foreign Sales Agents

An international sales agent will brand the film to the foreign markets, territories and all media (including theatrical, home video, VOD, cable, TV and other ancillary media). Pre-selling territorial distribution rights typically involves the producer or a sales agent attending the major international film markets (ex: Toronto Film Festival (TIFF) (Canada), with additional business being done at regional markets Producers must be careful when attempting to do pre-sales themselves. Unless the producer is thoroughly knowledgeable about the distributors in each territory, she will be much better served by contracting a good international sales agent. A producer will choose a sales agent based on the sales agent's reputation, experience and relationships with reputable distributors. The producer does a market study to find similar or "comparable" titles in the marketplace, and then learn which sales agents sold those films. An international sales agent will seek distribution commitments for particular territories for a film that is in development or pre-production, usually with the right package of script and attachments. If a producer is fortunate enough to have a strong script, bankable cast, director and a marketable genre, the sales agent will send the script along with preliminary market materials or footage of scenes to his or her distribution partners. Since sales agents usually make their offers based on the value they believe they can realize for the film, a sales agent should be able to provide a producer with some sense of the estimated value of the film before they bring it to the marketplace.

Sunk costs

And economic term that describes the inrecoverable costs that are incurred in the production of goods and services. Media goods typically incur most of their production costs upfront so these costs are sunk in the initial production process

The Long Tail (Anderson) extras

Anderson argues that digital distribution significantly shifts economic strategies immediate industries away from blockbusters and towards niche products.

Gross vs Net

GROSS SALES =The total revenue a company makes BEFORE deducting costs of production distribution marketing and overhead this is not to be confused with NET SALES which is gross sales with those cost subtract it out for example if a series grosses $200 million into production distribution and promotional costs are $100 million the net is $100 million ($200m-$100m)

Formats

Formatting is a strategy used by media industry workers to combat the uncertainty of audience behavior and is composed of a variety of techniques that emphasize features of media content known to succeed in the past It's the best explanation of why commercial media seems to be so similar. Formats are the media industries way to follow a formula to achieve success in the main formulas are derived from past successes Can include using knownstars or creative workers known products such as sequels of serials or known format such as on genres in standard features (film is 90-180 min one episode of tv is 30-60 min)

Globalization in FILM

FILM -The film industry has been internationalizing for more than a century -one of the driving forces is the fact that major Hollywood studios on numerous movie theaters abroad and can therefore profit directly from international box office sales -High price blockbuster films that contemporary Hollywood produces can't easily earn back their production budgets through domestic sales alone so International box off at sales turnover more profit -as a DVD sales on films have decreased in recent years due to privacy and streaming services foreign revenues have become even more important -The US film industry has learned to take advantage of global markets the worldwide promotion of new films global merchandising and the simultaneous release of films in most markets

Pre-Sales

Before or during production, a producer may go to various distributors for commitments to distribute the film after it is made. To work effectively, such commitments must include advances or minimum guarantees which may cover all or some of the film's production and post-production costs. This is known as "pre-sale financing." The distributor either (1) pays a cash advance upon signing of the agreement or in multiple installments over the course of production, (2) guarantees to pay that advance upon completion and delivery of the film (and the minimum guarantee is used as collateral for a production loan), (3) pays a share of the distribution revenues, or (4) in limited cases, pays a flat buy-out fee. Foreign pre-sale is a license to distribute the film in certain foreign territory or media (outside of the USA and Canada) before the film is completed. Foreign pre-sale is a key source of revenue for independent films, and can serve as the primary source of collateral for production loans. Foreign distributors will often commit to pre-buying the territorial distribution rights of a film based upon the strength of the script, story, genre, budget, director, and star attachments. After making a number of foreign pre-sale deals, the independent producer might have raised enough money to produce the film, while leaving open a number of unsold territories to sell to once the film is completed (usually at higher fees). This arrangement ensures the production company makes a profit on the film.

Platforms

Broadly any mode of delivering media content to consumers these can be technological mode such as streaming or broadcasting or media forms such as television games or film An overriding influence of digitization of media production has been a shift of finding IP that media industries can repurpose and profit from across multiple media platforms People realize in order to have the greatest impact it's necessary to ensure that messages get picked up and spread across multiple media channels. The spreading of media often combines the mediated interpersonal communication networks of social media with IP created by legacy media industries

Technological and regulatory barriers to globalization

Communications infrastructures and governmental regulations often pose additional challenges for media corporations with global aspirations Although they helped propel the wave of television globalization in the 80s as nations around the world added cable and satellite television channels they (Cable satellite and Internet delivery platforms) still remain quite on evenly developed around the globe. Many countries have retained photos on percentages of foreign content on television channels especially content of American origin. These quotas date back to the early days of the film industry when a number of European nations establish them to protect their domestic film industry from Hollywood dominance after World War I. Too many foreign government employee quotas along with coproduction funding that helps to fray production costs and limit direct for an investment in media production distribution and aggregation The decision to base industries on different mandates emerges from the different perceptions of how media industry serves state interests. Some might desire public mandates to ensure the media industries cultivate inform citizens rate while others prioritize commercial mandates because they see them as a contribution to economic growth. Most countries desire both ***THE MOST IMPORTANT REGULATORY CONDITION from the perspective of Hollywood has been the developmentof global intellectual property regimens that favor the interests of powerful nations and industries. Today the IP is held by commercial entities not the creative forces behind them. So instead, IP rights generally serve the interests of commercial companies trying to maximize profits.

Contingent Compensation

Compensation that is based on measured performance What the top gross players do get are two kinds of compensation: fixed and contingent. The fixed part is the upfront money that gross players are paid whatever happens to the movie. The contingent part is the percentage of a pool called the "distributor's adjusted gross" in Hollywood lawyer lingo. The players get their share of this pool after certain conditions are met, such as the movie earning back the amount of fixed compensation or reaching a contractually defined cash break-even point contingent compensation would not kick in until the film met the break-even point defined in the contract How much a participant in back-end compensation gets paid after the motion picture or a television project is released and exploited usually depends on two (2) factors: (a) on how well such motion picture or a television project performs financially and (b) how such contingent compensation is defined in their agreement

Globalization in Advertising

For nearly all the media industries the global spread of advertising agencies has been a major catalyst for globalization. Ad agencies facilitate this. The most powerful advertising campaigns are generally owned by one of the three major holding agencies that account for over half the revenues in the industry WPP group OMNICOM GROUP AND PUBLICIS GROUP

Localization

DEFINITION -The process of unmooring media goods from their intermediate cultural surroundings and reproducing them in another locale. This includes translating the language, settings and the narrative techniques to fit the new location Dubbing and subtitling are specific examples of localization Localization stems from the recognition that all media products even those designed by global conglomerates have to compete with a different and unique mixture of rivals in every local market Consequently global media organizations tend to delegate operations in each market to local decision makers who sometimes have a good deal of control over the production and distribution of content However at the same time decision makers at the parent company wants to maintain some degree of brand consistency and quality across all markets EX Disney tends to run almost all decisions through headquarters before they are finally approved even down to such details as how each of its characters will sound in each market meanwhile MTV allows for local executives in lucrative markets a fairly free hand in programming talent selection scheduling and so forth At minimum most global media companies offer some degree of local control to decision-makers once they have been trained in the practices and cultures of the parent company The situation of local adaption of global formats

Plutocratic Patronage

David Hesmondhalgh reminds us that the precursors of the contemporary media industry's begin with creative work being supportive through patron and system In the patronage system, the creative worker plied his trade at the will of the patron of the artist likely receive some level of economic security and exchange Next to an organization allowing for market professional emerged the market professional was an intermediary who existed between the artist in those who might purchase the art in this organization artist share the profits from their goods in order to be free of the duties of marketing and selling their wares the artist bookings greater creative freedom and financial insecurity in comparison with the patronage model The media industry as we consider here are characteristic of a complex professional era in which the creation of media content requires an extensive team of workers who specialize skill sets though the patronage and market professional modes may be historic relics they provide valuable point of comparison and we may even consider whether some of the opportunities of digital technologies may make the newly Relevant Related to create of autonomy and agency as well as the role of economic and technological changes caused by the digitization in relation to changes for creative workers

Exclusive deal vs first look deal

EXCLUSIVE An overall deal is the king of all deals. This is where the real money is made. In an overall deal, content creators must exclusively develop all of their material under the network/studio they have a contract with. The downfall to an overall deal though is that typically the content that is created under the deal remains the intellectual property of the network/studio when the deal term finishes, i.e., shows that are not green lighted don't go with the creator when his/her overall deal ends. That's why these deals are so lucrative because in reality, most shows never get picked up and turned into a series. Additionally, overall deals are usually only made for television. FIRST LOOK Typically, first look deals are negotiated with production companies rather than individuals; however, that does not mean that individuals are never given the opportunity to sign a first look deal. The key difference between a first look and an overall deal is that with a first look, the content creator generally retains the copyright to the material that they created rather than the network/studio owning it. The network/studio is given the right of first refusal. If the network/studio turns down the creative content, then the content creator is free to shop the material elsewhere and try to get it picked up. Since most shows are never picked up and turned into a series, receiving one of these deals can be very profitable for content creators. Several Hollywood elites who have an overall or first look deal include, Donald Glover with FX Productions, Ryan Murphy and Shonda Rhimes with Netflix, and Leonardo DiCaprio with Paramount to name a few. In a "first-look" deal, a movie studio, network, TV studio or production company may contract with an independent producer to get first dibs on the producer's next projects. The first-look agreement gives the studio the first opportunity to become involved, or the right of first refusal to produce, finance and/or distribute any projects the producer develops. This provides the producer with a committed source of financing for the producer's next film. If the studio rejects a project, the agreement usually provides that the producer is free to take the project elsewhere. First-look deals are usually reserved for proven talent.

Telecommunications Act of 1996

Eliminated limits on how many BROADCAST STATIONS could be owned nationwide. Before 1996 no company owned more than 65 radio stations nationwide but afterwords this expanded to nearly 1200. This is just further as evidence that media industries have become more CONGLOMERATED and CONSOLIDATED in recent years. The last major regulatory act which lifted the limit on national ownership of radio station and loosened other limits leading to a massive consolidation within media industries.

Pay or Play Deal

Essentially, pay or play is the commitment by a producer -- a studio, network, production company, or individual -- to pay the artist even if the producer later decides that the artist's services won't be required. In other words, whether or not the production goes forward, and whether or not the artist is ultimately required to render services, he or she will be paid the negotiated fee. A typical pay-or-play provision protects not only the artist but the producer too, as it allows the producer to terminate an artist's services for any reason whatsoever -- with or without cause -- without the threat of a lawsuit for loss of opportunity or a similar claim, as long as the agreed-upon compensation is paid. For the artist, pay or play offers security from loss of compensation if he or she is replaced at the director's whim after the artist took him- or herself off the market in anticipation of the production.

Analog vs. Digital

IN REGARDS TO DIGITALIZATION -media using an analog method of recording store signals in a manner that represents the message using an analog, or direct facsimile, as the original -Accessing analog media whether taper film requires a machine that can decode the analog language such as a record needle the heads of a tape player that read the magnetic coatings for a film projector -in terms of media industry operation analog had considerable limitations because it required transfer to a physical medium and kept up a considerable amount of space in storage. -degradation of quality is another limitation to analog media while digital copies maintain their quality -Digital code operates as a common language across many machines that could not speak to each other in the analog age. The common digital language allows digital television recorders computers and audio recording devices to all speak to each other while digital media also enabled the distribution of information over the Internet allowing for the quick and perfect transmission of a media product without physical transportation IN REGARDS TO REGULATION -there's been a shift from analog to digital television signal transmission heat of legislative decision was in 90's -congress decided to require all the nations television broadcasters to switch from transmitting an analog signal to a digital one. -digital transition required big changes for both broadcasters and tv viewers. -television stations had to purchase new Quitman and transmitters and to access the signals viewers without cable or satellite services had to purchase sets with digital receivers -it was necessary to switch to digital signal that was capable of carrying more information -this mandate to switch to digital transmission is an example of massive government regulatory involvement and should be regarded as fairly uncommon

Financing methods single goods

INDEPENDENT: (Winters bone) finding independent investors and financiers- crafted a standard equity deal in which the first money earned on the film would go to completely reimburse the investor and pay them an agreed upon premium (usually about 20%) then the additional earnings were split between the investor and filmmakers 50/50 -this covers only the cost of making a media good Once it's made they also have to secure a distribution deal. Many do this via film festivals. They hired a producers representative kinda like an agent for the film and a publicist to negotiate distribution offers. PUBLISHER FINANCING: Example: The creation of video games is largely controlled by handful of game publishers including Electronic Arts Nintendo and take two. Game publishers contract with game developers were creative talent akin to directors riders or musicians and other industries They receive an advance to find the development of the games Profits for the game developer or then only achieve once the game goes onto the market and the publisher owns back the advance payment then the developer earns a small percentage of the subsequent sales

Output Deal

In an "output deal," a studio or mini-major agrees to co-finance certain films produced by an independent producer. In exchange, the producer grants to the studio the exclusive rights to distribute the producer's films, in certain media or territories for a specified term. With an output deal, an indie filmmaker can retain her independence and thus, control over the creative elements of production, while enjoying worldwide studio distribution. It can also be helpful to have an output deal in place when a producer is trying to raise debt or private equity financing. Output deals are usually reserved for producers who have a strong track record.

Dual product markets

Introducing advertisers is what makes many media dual product markets. This is because they are effectively to things being sold The main commodity is the audience such as a radio station selling an audience of listeners to an advertiser. Most listeners never consider this and it seems that the station is also selling a schedule of programming to them. It's important to remember that programming is just the beat the stations used to draw us together so that we hear the content of real ECONOMIC importance which is the advertising message.

Financing continuous goods DEFICIT

Key practice is DEFICIT FINANCING -describes the dominant financing arrangement in US prime time series television whereby production studios lose money in making series during the first few years even if the show is a hit A producer will pitch a show idea to a network and if the network likes it the network will give the producer some money to write a script. If the network likes the script they will give the producer money to shoot a pilot. A pilot is an expensive proposition because it requires building sets and developing a forecast almost 80% of pilots are never developed in series and are typically never seen by anyone except the network executives. (Form of INTENTIONAL OVERPRODUCTION) If a network likes the pilot episode it has a good place for the show on the schedule it will license the show. The license fee the network pays typically covers about 60 to 70% of production costs. This license fee gives the network the right to air the episode a couple times. Although this doesn't look like a very smart arrangement for the studio because they have to take on a deficit not paid by the license the studio still owns the show and can sell it elsewhere after the period of the initial license. After the studio makes enough episodes the studio then sells episodes again and secondary markets to entity such as local stations to air during the hours the network doesn't provide programming (AKA SYNDICATION), to cable channels and to networks and other markets around the world also by releasing DVDs and licensing rights to digital distributors such as Netflix. The studios are in the most considerable revenue from selling episodes to networks in other countries and they're often able to do this near the beginning of the shows production (selling ins secondary markets to help studio recoup deficit)

antitrust regulation

Laws handled in the United States by the DEPARTMENT OD JUSTICE with the FEDERAL TRADE COMMISSION intended to prevent too much industry CONSOLIDATION. Referred to sometimes as "competition laws", statutes developed by the US government to prevent monopolies and predatory business practices. Ensure fair competition exists in an open market economy.

Cultural Barriers to Globalization

Local news is probably the least transferable of all media content while instrumental music is probably the most transferable The main distinction between media content that can and cannot travel well abroad is the degree of which the content relies on language to communicate (An exception to this seems to be pop music) Cultural differences can either weave together or keep apart audiences, in different nations or language groups most of these differences or similarities have deep historical roots which have evolved over time

dual revenue streams

Many media rely on some blend of advertising support and subscription or direct payment by the media user This is the case of the most print media basic cable television some satellite radio Hulu Plus and some YouTube channels These media are often discussed as having dual revenue streams because they receive funding for both advertising and yours or readers These and able industries to operate in ways that have particular consequences for the creative content These media must be more attentive to their audience than free media because they required of you were a reader to pay some amount for their product In other words there's a cost for use that is not the case for fully advertiser supported media but most media with the dual revenue stream depends heavily on advertisers Similar to media supported only through advertising those medias operating with a dual revenue stream have significant pressure for the content to appeal to more sizable audience This is because they need subscribers to drive enough value so that they keep paying for their subscriptions or making direct payments but they also want to keep a vast audience because it is part of why advertisers are paying them Losing a subscriber hurts them into ways first because they need the money from the subscription fees and they also have one less audience member to sell to advertisers

Marketability vs. Playability

Marketability is the extent to which a film can attract an audience. Films can be marketable only when they sound appealing to the targeted audience. The aim of producing a film is to make it appeal to many people. A high number of people who go to watch a film implies increased revenues because they pay to watch, or when they buy the films. Thus, the production team should focus on aspects that could increase the marketability of a film. For example, a film could adopt a successful book and/or famous personnel to make it increase its marketability. Audiences across the world like to associate with successful people or things. playability is used to analyze what occurs in the audience in the theatre. It does not consider what makes an audience enter the theatre, but their experience with regard to a film. Playability could involve the analysis of the following questions: Does the film play well? How is the film rated by the audience? Has the movie generated word of mouth? Does the film catch the attention of film reviewers? Therefore, playability predicts the extent to which a film will be received by an audience based on how it would meet expectations and other cues adopted in the marketing platform. Expectations of a film are often set by names of films. Playability of a film is more important than film marketability. Playability implies the quality of production, themes and stories in a film. Even if a film with poor playability is marketed well it cannot withstand the dynamics of film markets.

Legacy Media Industries

Media industries, including newspaper, radio and television, broadcasting, music, etc., that existed prior to the widespread adoption of digital technologies and the Internet. Established before digitization 1. Newspapers 2. Magazines 3. Books 4. Recordings 5. Movies 6 Radio 7. Television

Globalization in music

Music has been international phenomenon long before the modern music industry developed songs techniques and musicians and performers have traveled the world longer than any form of media

GDPR (General Data Protection Regulation)

New European Union law on data protection and privacy for individuals. In simple terms, it does this by regulating the processing of personal data by an individual, company or organisation. In reality, this gives individuals more transparency and understanding of how their data is being collected, stored, used and shared, and an ability to control this. If the data held relates to an individual who's in the EU, GDPR applies. External entities must comply.

Option vs shopping agreement

OPTION AGREEMENT Option agreements typically last longer (12-18 months) and the screenwriter generally doesn't need to agree on who the producer attaches your project. Historically, the way producers, production companies, and studios went about securing rights in material for their development and production pipeline(s), has been to enter into an option agreement with the owner, author, or subject of the desired project. An Option Contract is a long-established legal structure where a seller agrees to sell the property in question for a price (the "purchase price") which is to be paid within a specified time frame (the "option period"), if and when the purchaser determines that the purchase is in his/her/its best interests. In so doing, the seller is granting the purchaser the exclusive right to purchase the property during the designated time. In exchange, the seller pays a smaller, so called "option price". SHOPPING AGREEMENT A more modern approach some producers and production companies take is to enter into a "shopping agreement" with the owner of the material in question. In a shopping agreement, the owner agrees to give the seller a fixed period of time, during which to "shop" the material around to prospective distributors, television networks, financiers, and what-have-you, in order to get the project "set-up." The owner and producer agree that if, during the shopping period, there's interest in the project, they will each enter into negotiations with the interested party. The owner will negotiate for the sale of the rights (possibly an option, sometimes a straight purchase), while the producer will negotiate his/her/its deal as producer (or Executive Producer, Co-Producer, etc., as the case may be). Owner and producer further agree that neither will circumvent the other by entering into a deal, unless the other has also entered into a deal. Typically, little or no money changes hands between the producer and material's owner, so the producer is getting a free window of time to set up a deal. That window of time is often (but not always) shorter than a typical option period.

OTT

OTT is a subset of the overall VOD category and it is transmitted to the viewer via the internet without requiring users to subscribe to a traditional cable or satellite pay-TV service. OTT stands for over-the-top, initially named in reference to devices that go "over" a cable box to give the user access to TV content. In OTT channels, content is delivered via an internet connection rather than through a traditional cable/broadcast provider. OTT content can be viewed on multiple devices, including computers, mobile devices, OTT devices, and more.Any device that is not desktop, laptop, or mobile but is used to consume OTT content. Examples include Smart TVs, Apple TVs, Chromecast, PlayStation, Xbox, FIRE STICK, and other streaming devices.

Royalties

Percentage of profits that media workers received from the sale of media goods Usually limit to above the line: Major personnel involved in the production of film and television those seen as primarily responsible for the creative processes involved in production such as directors actors writers and producers Historically Hollywood accounting forms used a line to separate the specialize creative cost from other technical and production cost in the workers associate with this task became to be known as above the line workers

Media capitals

certain cities or regions produce most of the world's media content (LA) Many people today believe that the dominance of American media is in decline and that the current global media landscape is characterized not by One center of production and distribution but rather by multiple centers of regional dominance, called MEDIA CAPITALS, in a range of nations: -China Japan India Mexico Brazil Egypt the US and the UK

"Real" audience vs "constructed" audience

REAL AUDIENCE The actual people who show up for a Film subscribe to a newspaper or buy a new album or song. The problem with the real audience is that it doesn't enter into the equation until after the product has been created and all the cost have been "sunk" The real audiences can be more meaningful in some of the financing structures discuss later for the most part the more important version of the audience is the constructed audience CONSTRUCTED AUDIENCE this distinction of the constructed audience is used to help conceptualize how ideas of the audience work in media industries: people who work in these industries do not make this distinction The constructed audience is the audience including its characteristics likes and dislikes that are imagined by creators and those throughout the industry while making media So this audience may be a useful fiction the constructed audience is often based on knowledge about how real audiences have behaved in the past but mostly as perceptions and extrapolations The constructed audience is important because it is the entity held in mind when hundreds of daily decisions are made in the process of making a media product Will the audience think the end of this movie is too depressing or is this an issue readers will care about or will fans think that this song goes on too long The constructed audience is a decision makers perceptions of how they think the audience will answer. Because structured audience consequently drives media products creation.

How global barriers are overcome

SIMULTANEOUS RELEASE -permits distributors and aggregators to generate worldwide buzz about new releases -since promotions are centrally controlled in planned they can be cheaper to produce then if different promotional campaigns are developed in each market -simultaneous global release can cut down on illegal copying because most media piracy attempts to take it vantage of lags and time releases to sell pirated copies in market before it's official release -for the more the synchronized release of certain kinds of media content out to the perception that we are living in a globalized world one in which taste in trans transcend national boundarie Simultaneous release is a clear example of a successful attempt by larger media conglomerates to use their reach in their muscle to increase the popularity in sales of their products INTERNATIONAL COPRODUCTION this refers to a business arrangement in which production staff and creative workers from more than one country work together on a project with aim of distributing the final product in each participant till markets and possibly beyond Most successful formula for balancing cultural realities with the desire to exploit international markets Assumes that by drawing on creative talent from different global locations the final product will be more more culturally relevant in those places DUBBING AND SUBTITLING The translation or language transfer industries make it possible to watch films and television and read magazines from different language cultures EX: Pepsi's marketing in China in the 80's with campaign slogan of "Come alive with the Pepsi generation" translated to "Pepsi brings your ancestors back from the grave" LOCALIZATION OUTSOURCING -refers to the process whereby certain elements of production are completed somewhere away from the primary production in order to take advantage of cheaper labor conditions in government subsidies In 2013 only 65% of Hollywood movies designed primarily for US market were filmed in the United States

Society vs Segment Making Media (Turow)

SOCIETY Used to describe media that reaches a broad cross-section of the general audience, creating the opportunity for populations to "talk to each other" and gain access to a diversity a view points according to JOESPH TUROW book BREAKING UP AMERICAA possible example of this is broadcast television in the network era SEGMENT Media that cater to niche audience is or small slices of society. Segment making media discourage is once likelihood of encountering diversity points in general he allows for reinforcing of existing beliefs

Hard sell vs. soft sell

Soft sell- a promotion or person-to-person sales technique that is indirect. It may focus on building a reputation and relationship with customers -emotional, entertainment, values rather than rational salesperson seeks to grow a lucrative and loyal consumer base. In advertising and promotion they may do nothing more than associate a positive emotion or idea with the brand. This tends to benefit large firms that have a wide pretense whereby brand recognition and image can boost sales. BRANDS COMPLEX SALES Hard sell- a direct approach to pomrotion and sales. It is characterized by aggressive sale stitches and repeated calls to action. A hard sell may also make strong claims to address common objections. Seeks to make one time sale as early as possible

Standards and practices

Standards and practices is the office charge with maintaining network policies about content and making sure that the show being prepared for NETWORKS will not result in any kind of legal action such as an indecent content or defamation of an individual or corporation This department evaluates the creative products and provides assessment before they are finalized They typically rely on a more stringent set of norms than legally required and there is a fair amount of space for the individual executive to interpret standards PLAYING IT SAFE

Attention Economy

Summary: Digital products are competing for users' limited attention. The modern economy increasingly revolves around the human attention span and how products capture that attention. Attention is one of the most valuable resources of the digital age. Today we have access to information on a massive scale. The so-called attention economy rewards apps and services that we give our attention to. From a video game to a social network to a puzzle, the dominant monetization model is advertising. That means that if an app or service can keep your attention, they make more money.

NATPE & MIPTV

The National Association of Television Program Executives (NATPE) is a professional association of television and emerging media executives. NATPE implements its mission by providing members with education, networking, professional enhancement and technological guidance through year-round activities, directories, and events. The organization also offers online services to its membership including a propriety industry networking tool, special partner offers, and educational opportunities. MIPTV (Marché International des Programmes de Télévision) is an event which takes place annually in Cannes, France, using the facilities and infrastructure which the town has developed over the years to host other important events such as the Cannes Film Festival amongst other events. It is essentially a content market for co-producing, buying, selling, financing and distributing entertainment content. It provides the people involved in the TV, film, digital and audiovisual content, production and distribution industry a market conference and networking forum to discover future trends and trade content rights on a global level.

NATO (National Association of Theater Owners)

The National Association of Theatre Owners is the largest exhibition trade organization in the world, representing over 33,000 movie screens in all 50 states, and additional cinemas in 102 countries worldwide. Movie theater owners will be able to test evolving digital cinema technologies to see what works best in the cinema space with a new program set out by the National Association of Theatre Owners (NATO), the organization said Tuesday. "Digital cinema has opened up the door to a wide range of technological advances," "Exhibitors — the primary consumers of these technologies — along with other industry stakeholders, need an open, rational testing program to determine which of these technologies will work in the cinema space." The technology evaluation program was approved last month by NATO's executive board at the organization's annual meeting. Efforts are already underway to get the process started, which has included reaching out to members of the American Society of Cinematographers, as well as equipment manufacturers, service providers and other organizations, for input and participation.

Line producer vs creative producer

The Producer is the person responsible for putting together the project, from hiring the writer(s), gathering the production team (including the Line Producer), and being the main contact between the production and the studio, or the entity putting up the money for the film. It's even possible that the Producer is not on the set every day. They are usually "behind" the scenes, taking care of business outside the production. The Line Producer is the one on the front lines -- going into battle. As any of you know, a film production set can be like a war zone Line Producers, therefore, are usually the one who break down the script and as such, are very close to knowing what is needed for each scene for the day's shoot. As such, knowledge and expertise in a film scheduling program is essential to the role of a Line Produce

creative autonomy

The degree of individual agency one can exercise in developing one's create a vision this term applies mainly to creative workers immediate industries There is variation in the roles of central creative figures in each media industry in some industries allow creative tasks to be shared by many different workers In film the key creative worker is a director in the music industry this could be the artist producer the songwriter or the record label depending on the particular project the power of the creator is an absolute creators often negotiate their power with network studios or editors that enable them to distribute their message Creators make a myriad of negotiations between their visions in the economics of their projects

Outsourcing

The contemporary form of media globalization aims to spread as widely as possible the considerable risks and rewards of commercial media That means that the global media companies will try and hire the cheapest workers they can anywhere in the world through a process called outsourcing DEFINITION -companies seek to sell their products to as wide a global audience as possible and they try to generate production funding from as wide of a range of international corporations and governments and non-governmental organizations as they can -ALL ENABLED BY GLOBAL COMMUNICATION

ROI (Return on Investment)

The formula for calculating RoI is: to divide the film's box office (in dollars) by the production budget in dollars ("negative cost"), and multiplying the result by 100, and expressing that number as a percentage. BREAK EVEN The break-even point is supposed to be where the cost and revenue are roughly equal so as to avoid loss, hence a movie would break even when it has made as about the same money as its production (and advertising) budget.

first copy costs

The cost of producing the first copy of a media good. It is an economic principle that highlights the cost to media companies of producing the original of any media good and that nearly all costs are tied up in producing the first good. In the commercial media industries there's a high level of SUNK COSTS: -if you were making a movie you need to spend the entire budget of millions of dollars before you have any sense whether it's any good Consequently media industries typically have what are called high first copy costs and relatively low marginal or reproduction costs In other words nearly all the money that goes into the media production must be spent to shoot the film record the album or make the show (first copy costs) After that the cost of distribution is comparatively low (reproduction costs)

P&A

The costs of theatrical distribution, met by local distributors, are often referred to as 'P&A', or PRINTS AND ADVERTISING P&A are the nuts and bolts of marketing and distributing films into cinemas, the tools used by the DISTRIBUTOR to create a public for its film. P&A also represent the bulk of the distributor's investment, after paying the initial fee for rights, and can range from less than £1,000 to over £1 million for the release of a film in the UK.

Emerging payment model FREEMIUM

The growing popularity of smart phones and tablet computers has created opportunities for media companies to explore newer forms of payment specifically in app purchases and freemium content In app purchases are merely a form of direct pay for the nature of gaming and digital distribution make it possible to continue to seek payment from the same consumer with minor improvements or incentives In the freemium content model some of the content or basic functionality is actually available for free but added functionality will require further payment The most successful version of this is madden NFL football game which adopted a freemium model when released on smart phones and devices Although this is primarily restricted to gaming we can also see similarities in online music sales where potential consumers can listen to portion of a song or an album before paying to download the whole thing

Make good's

The industry term for additional advertising time or other remuneration made to an entity that does not receive whatever value was guaranteed for its purchase Example in the television industry and advertiser is often guaranteed a certain number of viewers by the network and if the network doesn't deliver it then gives advertiser other spots to make up for the deficit

Runway Production

The outsourcing of media production typically from Hollywood to nearby locations ia term used by the American Hollywood industry to describe filmmaking and television productions that are intended for initial release/exhibition or television broadcast in the U.S., but are actually filmed outside of Hollywood, California, in another country or U.S. state

Recoupment waterfall

The way a film's income is collected and distributed is known as the Recoupment Waterfall. Income comes in from a variety of sources and the money is then handed back to the filmmakers via a number of third parties. Along the way, these third parties can recoup the money they spent up front promoting the film and also charge a pre-agreed fee for their work. What's left after a party has repaid costs and kept their fees will be passed down the chain to the next party. Each film has its own unique waterfall but the majority will follow the following pattern

Why has globalization become so prevalent in the past half century?

Transportation and communication have become much cheaper than in the past, digitalization Organizations have long recognize the economic advantages of globalization but only in recent years have the economic benefits been so great for most industries that they have actively sought to develop business and content strategy is designed to exploit global markets

co-production

U.S. independent filmmakers may find opportunities to collaborate or co-produce with foreign production companies (outside of the United States and Canada). These co-productions will provide financing in the form of cash, goods and/or production services (such as equipment, facilities and personnel) to the U.S. production company, for free or at a greatly reduced price, to produce a film, project or TV program. Most often, the foreign company provides these cash, goods and/or services in exchange for co-ownership of the project, and in return, it receives exclusive distribution rights to the film in its respective territories and may also receive a pro-rata share of the net profits of the film worldwide.

WGA vs PGA vs DGA vs IATSE

UNION IATSE (International Alliance of Theatrical Stage Employees) are traditional labor unions, with the primary mission of finding work for their members. Thus they have local chapters and subchapters ("hiring halls") for their unions, governing very specific jobs that comprise a specific bargaining unit within the overall union. Special deal terms can differ from local chapter to local chapter. GUILDS SAG, DGA, and WGA are guilds, which do not traditionally actively seek out employment opportunities for members. Rather, they fight for centralized minimum deal terms and protections when their members are employed by companies that recognize the guilds. As a filmmaker, you don't have to sign with SAG, DGA, or WGA, and they generally won't come after your film if you don't sign with them. But you can't employ their members unless you do sign with them. PGA: the Producers Guild: producers are the ones on the opposite side of the negotiating table when renewing the DGA, WGA and SAG/AFTRA contracts. Writers Guild (WGA) Directors Guild (DGA)

Globalization in Gaming

Unlike other media forums video games were never national products all those specific games themselves sometimes targeted specific national audiences Mini games were developed by Japanese countries with the intention of targeting consumers in the United States Europe and Asia Today mini contemporary games are designed by multinational teams with the intention of reaching a multinational market

Hollywood accounting

Used to describe a manner of accounting for the cost of production-mainly through overhead charges and nonspecific fees for things like distribution-done with the conglomerate that reduces the net profits of the media good to a loss, thereby allowing the studio to avoid payment of royalties or percentages of net profits Most creators work on freelance basis and enter into contracts it may provide a net share of profits yet in the film industry the norm of Hollywood accounting prevent that from ever accounting to much for them if anything Has led to UNIONS The studios also closely guard the details of their budgets and detailed accounting is often only available in legal documents in cases of payment disputes To be sure studios and conglomerates do you take considerable risk in financing media products but they are also handsomely rewarded in the case of success The conglomerate control of media industries has also contributed significantly to the level of unionization in the industry as unions serve as a key mechanism to help workers negotiate for fair share

buy pilot

With the shifting size and timing of content release, series producers are experimenting with new ways of staffing their writers' rooms as well. the emerging trend of "mini-rooms," a more freelance-centered approach to the traditional television writers' room. While the format can vary, a typical mini-room would consist of placing three to five writers in a room together to generate ideas. This stands in contrast to a past model where a network would invest in the production of several pilots before deciding which would go to series. Like with most gig economy arrangements, a mini-room gives writers more flexibility, but also less stability. The concept shifts risk away from networks and production companies who are able to evaluate broader ideas up front before pouring money in production. developed as a result of viewers' tendency to "binge-watch" several episodes of television in one-sitting, streaming services have begun producing their own original series, releasing entire seasons at once, at all different times of the year.

surrogate consumer

a professional who is retained to evaluate and/or make purchases on behalf of a consumer Aggregators act as our surrogates with distributors and make deliberate selections based on what the aggregator believes the consumer will want aggregators push certain content by consumers rather than letting us pull what we want from all available content Aggregators distributors and others are play the surrogate consumer role to some extent most of us recognize and accept the surrogate role and believe that they're acting in good faith however problems can occur when distributors give aggregators incentives to favor some goods over others Together the roles of distributors and aggregators play in bringing completed media goods to consumers demonstrate a high degree of SELECTION and shaping of consumer demand these practices reflect the EFFORTS TO DECREASE the high RISK inherent in the media industries particularly the "NOBODY KNOWS" principle by having experts deal more directly with audiences there's a better likely hood for media products to "find their audience" media companies cannot predict the popularity of the products but they can at least ATTEMPT TO LIMIT ACCESS and SHAPE CONSUMER DEMAND

soft money

a type of Alternative film funding investment Usually all financing can be categorized as either soft- or hard money. Soft money is financing where the investment is NOT made on the basis of the projects possibility to generate profit, and therefore the need for recoupment is not that big. Soft money comes in one form as subsidies (GRANTS, soft LOANS..) - from regional sources that SUPPORT LOCAL CONTENT, such as various film funds. The other version of soft money is all types of tax credits, which vary by US State. Hard money, on the other hand, are all types of investments that have some sort of claim attached; Part of the profits for co-producers and/or equity investors - or interest if it's a matter of a loan and/or venture capital investment with an exit tied to a recoupment plan. In other words, any investment made on a commercial basis

Casualization

an increasingly common work arrangement where employees work on a project-by-project basis, rather than as a year round, full time employees

Economic conditions

economic considerations that include who owns media how media creation is funded and how media are paid for produce a range of consequences

media globalization definition

reflects both a cultural as well as an economic shift in emphasis in the production and distribution of a wide range of products including media goods. Although globalization has existed in one form or another for centuries in its current form it entails a broader emphasis on cultural exchange and erosion of boundaries between nations alongside the more traditional focus on international trade

main types of theatrical releases

standard release: In the standard process, a movie is first released through movie theaters (theatrical window), then, after approximately 3 months [12], it is released to VHS and VOD services (entering its video window) Limited theatrical release: is a film distribution strategy of releasing a new film in a few theaters across a country, typically in major metropolitan markets. The purpose is often used to gauge the appeal of specialty films, like documentaries, independent films and art films. wide release: (short for nationwide release) is a motion picture that is playing nationally. This is in contrast to a film that is showing at a few cinemas (usually in New York City and Los Angeles), or is in limited release at selected cinemas in larger cities around the country. Box Office Mojo considers 600 or more theaters to be a wide release. In the United States, films holding an NC-17 rating have almost never received wide releases. Showgirls (1995) is the only film with an NC-17 rating to have a wide release.

Marginal cost

the cost of producing one more unit of a good At the core of his argument is the assertion that "information wants to be free" -Anderson solution is to give it away in cases where there is no marginal cost (as is the case when products are distributed digitally) -but to charge for physical copies in the cases users want them or by converting users from basic free version to a premium paid version and the strategy users can do certain things for free but must pay a fee to engage with the full array of capabilities typically through a subscription EX: some Hulu content is free when supported by advertisers but one must upgrade to pay a subscription to access a greater content of Hulu although still with commercials.

branded entertainment

the practice of creating a media good that primarily serves as a promotional tool for a specific product or brand. It is an advertising strategy that weaves the product being advertised into the content of the good and helps to explicitly highlight the features of the product. The annual VICTORIA SECRET fashion show is a good example of branded entertainment on television and is sometimes called an advertorial content in print In the case of television the addition of this commercial strategy has developed as a response to new technical logical abilities of viewers that enables them to skip commercials Product placement brings more concerns and issues such as well the product placement be organic and will it fit well This leads to certain type of content being more likely to receive product placement advertising dollars which in the long term Mike her till other types of programming from being created Product placement works much better in reality programming than scripted programming and some fear for the future of scripted programming if it is an able to make use of this additional financial stream

geocultural markets

transnational media markets that are based on cultural rather than national boundaries Unlike national boundaries one cannot easily draw a map of the world that shows where cultural boundaries end and begin The identification of cultural similarities and differences is more of an active imagination and interpretation then cartography