Management Science 590 - Chapter 10
Who was the first major fiction writer to create an e-book-only volume of a new work?
Stephen King
Refers to a combination of technical (both hardware and software) and legal means for protecting digital content from unlimited reproduction and distribution without permission:
Digital Rights Media (DRM)
Refers to the merger of media enterprises into powerful synergistic combinations that can cross-market content on many different platforms and create new works that use multiple platforms:
Industry convergence
In 2015, which of the following forms of online entertainment produced the least amount of revenue? Internet radio online music games motion TV and movies
Internet radio
Why is DRM used?
It encrypts content so that it cannot be used without some form of authorization typically based on a payment.
Refers to digitally based changes in technology platform, content, and industry structure:
Media convergence
Content convergence describes convergence in the design, production, and ________ of content.
distribution
Approximately ________ of the Internet population in the United States reads magazines online.
one-third
Vox is an example of the Digital First business model.
False
In 2014, Amazon engaged in a trade dispute with which of the following over the pricing of e-books? Barnes & Noble Penguin Random House Hachette Harper Collins
Hachette
Which of the following start-up digital news sites is owned by AOL? Vox Vice Reddit Huffington Post
Huffington Post
Which of the following is not a leading factor in changing the television industry? Increasing broadband penetration Development of the mobile platform Increased popularity of binge watching compared to watching linear TV Inability to attract customers to traditional products
Inability to attract customers to traditional products
What advantages do pure digital news sites have over print newspapers?
They don't have the cost of printing papers. They can create new work flows and business processes that are more efficient and timely. They have a lower cost structure, often relying on user generated content and minimal payments to reporters and bloggers, with lower pension costs. They can take advantage of newer technologies for producing the news.
Which streaming gaming channel was purchased by Amazon in 2015? Dailymotion YouTube.com Twitch.tv Shield.nvidia.com
Twitch.tv
Which of the following statements about the wholesale and agency models for selling books is not true? In the wholesale model, the retailer decides at what price to sell a book to the consumer. Amazon surprised traditional publishers by selling e-books for below their wholesale cost. Amazon supports the agency model. A result of the agency model was that Amazon's prices on e-books rose.
Amazon supports the agency model.
Which of the following most accurately describes the resolution of the dispute between Hatchette, Simon & Schuster, and Amazon? The dispute remains unresolved. Publishers can set the prices of their books, but Amazon can offer incentives to publishers to reduce prices on selected books and publishers may pay Amazon to list their books. Amazon can determine the prices of books sold on its platform at its sole discretion. Amazon must not sell the books for any lower than the price they are offered by Apple.
Publishers can set the prices of their books, but Amazon can offer incentives to publishers to reduce prices on selected books and publishers may pay Amazon to list their books.
How do e-sports make money?
Theymake money from selling tickets to arena championship games, merchandise sales, corporate sponsorships, and selling ad space during the broadcasts.
Smartphones are an example of technological convergence.
True
The entertainment industry is generally considered to be composed of five players: television, Hollywood films, music, radio, and games.
True
Digital revenues accounted for less than half of all U.S. music revenues in 2014.
False
In the wholesale model of e-book distribution, pricing power is with the publisher.
False
The growth of the mobile platform and social networks has potential to lessen the disruption of the newspaper industry.
False
Is a news aggregator app that organizes stories in a magazine format , with content drawn from traditional media and social sites, and then reassembled in an easy-to-navigate, personalized format for a mobile touchscreen environment:
The publishing and entertainment industries make up the largest share of the commercial content marketplace, both online and offline.
True
Which of the following is not an example of a start-up digital news site? Huffington Post Buzzfeed Vice USA Today
USA Today
Which of the following is not a source of illegal file-sharing? Movie2K BitTorrent MovieWatch UltraViolet
UltraViolet
What are the three dimensions of content convergence?
design, production, and distribution
Zinio is an example of which of the following? interactive book developer magazine aggregator e-reader platform vanity press
magazine aggregator
Which of the following is not one of the five types of digital gamers? casual gamers local gamers social gamers console gamers
local gamers
Online newspapers and magazines are the largest and fastest growing forms of online entertainment.
False
The majority of newspaper readers read the news using a combination of the Web, print and mobile.
False
Which of the following happened during the period of time during which newspapers used a print-centric business model? Google launched its search engine. Apple introduced the iPhone. Facebook opened to the public. The adoption of smartphones and tablets has grown rapidly.
Google launched its search engine.
Which of the following is not a current trend in online content? Sales of music in digital form produce more revenue than sales of physical units. Readership of newspapers in print form continues to exceed online readership. E-book sales growth slows. Explosive growth of the mobile platform accelerates the transition to digital content.
Readership of newspapers in print form continues to exceed online readership.
Which of the following is the largest online movie download distributor? Netflix Hulu iTunes Google Play
iTunes
Which of the following newspaper audience platforms has the higher percentage of readers? print/mobile Web only Web/mobile print
Occurs as content created in an older media technology is transferred to a new technology:
Content design convergence
Occurs when the distributors and ultimate consumers have the devices needed to receive, store, and experience the product:
Content distribution convergence
Occurs when content, which is the most significant cost of content, is developed only once using technology that can deliver it to multiple different platforms:
Content production convergence
Which of the following routes to a newspaper Web site generates the most digital ad revenue for the newspaper? Via a search engine Via a social media site such as Facebook Directly to a newspaper's home page Via an online video
Directly to a newspaper's home page
To use OTT services, consumers must purchase a bundle of channels.
False
________ convergence describes the development of hybrid devices that can combine the functionality of two or more existing media platforms into a single device.
Technological
The integration of previously separate platform functionality into hybrid devices that can combine the functionality of many different existing media platforms such as books, newspapers, television, radio, and stereo equipment:
Technological convergence
Why are advertisers attracted to e-sports?
The audience is predominantly composed of young males between the ages of 21 and 34, who are hard to reach using traditional media. Coca Cola, Nissan, Ford, and Google are among the largest sponsors of e-sports.
A business model that uses advertising revenue to provide some content for free, combined with an option to obtain additional content for a price is called a(n) ________ model.
freemium
All of the following are examples of technology convergence except: the iPad. Amazon Books Publishing. Apple TV. smartphones.
Amazon Book Publishing
E-sports is growing at approximately 25% a year.
False
What are the three different online business models that newspapers have employed from 1995-2014?
Print-centric, Integrated Print/Web, and Digital First
Millennials are the first generation to be born into the digital revolution of the 20th century
True
Hollywood's practice of staggering the distribution of movies in different channels, such as box office and DVDs, is referred to as:
the release window
Cord cutters and cord shavers are shrinking the number of pay TV households yearly by approximately:
1%
In 2015, e-book sales constituted ________% of all consumer book sales.
23
Which of the following has the highest share of the e-book market? Amazon Apple Google Barnes & Noble
Amazon
Which of the following is not one of the top three players in e-book publishing? Barnes & Noble Apple Amazon Google
Was the top online video site in 2015 in terms of number of viewers:
Google Sites
Which of the following is the fastest growing segment of media revenues? magazines home video Internet media radio
Internet media
Which of the following statements about the movie industry is not true? Over 300 million Americans were expected to watch movies online in 2015. Online movie distribution is not dominated by a single distributor. Of the digital formats, the most revenue is generated by subscription streaming. DVD sales make up the largest share of movie revenues.
Over 300 million Americans were expected to watch movies online in 2015.
Over the past five years, book publishing revenues have:
remained stable
DRM refers to a combination of ________ for protecting digital content.
technical and legal means
Is the largest producer of revenues in the entertainment industry:
television
Which of the following forms of media generate the most revenue? television Internet newspapers box office
television
The leading merchants of digital games are Apple's App Store and:
the Google Play stores
Well over ________% of television viewers multitask while watching television.
60
Apple's iTunes store is the leading distributor of streaming video.
False
A metered subscription model is most similar to which of the following revenue models? transaction fee freemium advertising affiliate
freemium
Digital magazine ad revenues were expected to ________ in 2015.
grow over 20%
In 2015, Amazon's e-book and media store contained around how many book titles?
more than 1 million
Which of the following was the most troubled segment of the publishing industry in 2015? books magazines newspapers periodicals
newspapers
Around what percentage of Amazon's top 100 selling books are now self-published?
25%
Music streaming is growing at ________ a year.
30%
What percentage of people read newspapers only on a mobile device?
5%
Online digital entertainment and media revenue is about ________ of total entertainment and media revenue.
8%
Mobile games are expensive to develop.
False
Which of the following is not one of the three business models employed by newspapers between 1995 and 2015? The Print-centric model The Integrated Print/Web The Digital First model The Convergence model
The Convergence Model
Cannibalization is a major challenge facing book publishers.
False
In 2015, the mobile gaming market was the slowest growing form of online gaming in terms of revenue.
True
In 2015, the time spent on desktop computers and mobile devices exceeded the time spent in front of the television.
True
The a la carte revenue model allows users to pay only for what they use.
True
The average American adult spends double the time consuming media than the time spent at work.
True
The merger of media enterprises into powerful, synergistic combinations that can cross-market content on many different platforms is referred to as:
industry convergence
Which of the following occurs first in the process of content convergence related to books? media integration media migration media transformation media maturity
media migration
The New York Times introduced which of the following revenue models in 2011? paywall metered subscription advertising walled garden
metered subscription
In 2015, which of the following comprised the largest segment of the online gaming audience? social gamers mobile gamers casual gamers console gamers
mobile gamers
Which of the following accounts for the second largest amount of paid online content revenues in the United States in 2015? online video games Internet radio online music online TV and movies
online music
All of the following are aspects of content convergence except: language. design. production. distribution.
language
Which of the following was sued by the Justice Department for violating antitrust laws in connection with e-books? Amazon Google Apple Barnes & Noble
Apple
Online readership of newspapers is growing by more than 10% a year.
True
Why have newspaper revenues declined over the past 15 years?
The growth of the Web and mobile devices as an alternative medium for news and advertising. The movement of consumers to an online life style has drained billions of ad dollars (including classified ads) from the printed newspaper. The rise of alternative digital sources for news, commentary, feature stories, and articles. The difficulty of traditional newspaper firms and their managers to develop suitable business and revenue models that could survive and even prosper on the Internet, and the mobile/social platform. The rise of social media, and its role in directing traffic to newspaper content, has challenged newspapers to change their business model to accommodate changes in consumer behavior and technology.
The overall size of the online video audience is about the same size as the traditional television audience.
True
The proliferation of mobile device has led to an increase in the total amount of time spent with media.
True