Wednesday, April 2, 2014

Media Economics and the Global Marketplace ch. 13


1.       How are the three basics structures of mass media organizations – monopoly, oligopoly, and limited competition – differ from one another?

 

A monopoly occurs when a single firm dominates production and distribution in a particular industry, either nationally or locally. On the local level, monopoly situations have been more plentiful, occurring in any city that has only one newspaper or one cable company, however many individual local media monopolies have been purchased by national and international firms. In an oligopoly, just a few forms dominate an industry. For example, book-publishing and feature-film businesses are both oligopolies. Sometimes called monopolistic competition, limited competition characterizes a media market with many producers and sellers but only a few products within a particular category.

 

2.       What are some of society’s key expectations of its media organizations?

 

Some key expectations of media organizations include introducing new technologies to the market place, making media products and services available to people of all economic classes, facilitating free expression and robust political discussion, acting as public watchdogs over wrongdoing, monitoring society in times of crisis, playing a positive role in education, and maintaining the quality of culture.

 

3.       Why has the federal government emphasized deregulation at a time when so many media companies are growing so large?

 

Although the administration of President Carter actually initiated deregulation, under President Reagan most controls on business were drastically weekend. Deregulation led to easier mergers, corporate diversifications, and increased tendencies in some sectors toward oligopolies (especially in airlines, energy, communications, and finance).

 

4.       How do global and specialized markets factor into the new media economy? How are regular workers affected?

 

The new globalism coincided with the rise of specialization. Beyond specialization, what really distinguishes current media economics is the extension of synergy to international levels. This typically refers to the promotion and sales of different versions of a media product across the various subsidiaries of a media conglomerate. Regular workers were affected by finally being able to afford what they could not before.

 

5.       Using Disney as an example, what is the role of synergy in the current climate of media mergers?

 

Disney came to epitomize the synergistic possibilities of media consolidation. It can produce an animated feature for both theatrical release and DVD distribution. With its ABC network, it can promote Disney movies and television shows on programs like Good Morning America. A book version can be released through Disney’s publishing arms, Hyperion, and “the-making-of” versions can appear on cable’s Disney Channel of ABC Family. Characters can become attractions and Disney’s theme parks, which themselves have spawned Hollywood movies such as the lucrative Pirates of the Caribbean franchise.   

 

6.       Why have Amazon, Apple, Facebook, Google, and Microsoft emerges as the leading corporations of the digital era?

 

Each company has become powerful for different reasons. Amazon’s entrée is that it has grown into the largest e-commerce site in the world, shifting to distributing more digital products. Apple’s strength has been creating the technology and the infrastructure to bring any media content to user’s fingertips. Facebook’s strength has been the ability to become central to communication and social media. Google draws its huge numbers of users through its search function, has much more successfully translated those users into an advertising business. Microsoft is making the transition from being the top software company to competing in the digital media world with its being search engine and successful devices.

 

7.       What is cultural imperialism, and what does it have to do with the United States?

 

Cultural imperialism is a process where American styles in fashion and food, as well as media fare dominate the global market. Today, many international observers contend that the idea of consumer control or input is even more remote in countries inundated by American movies, music, television, and images of beauty. For example, consumer product giant Unilever sells Dove soap with its “Campaign for Real Beauty” in the United States, but markets Fair & Lovely products – a skin-lightener line – to poor women in India.

 

8.       What do critics and activists fear most about the concentration of media ownership? How do media managers and executives respond to these fears?

 

The pressing concern is the impact of mergers on news operations, particularly the influence of large corporations on their news subsidiaries. Because of the growing consolidation of mass media, it has become increasingly difficult to sustain a public debate on economic issues. Media reform groups are forming usually united by geographic ties, common political backgrounds, or shared concerns about the state of the media.

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