Chapter Two: Media Theory

Media economics

Economies of ScaleMass production and distribution

First copy costs Low marginal costs

Ownership patterns

What is the market structure?Monopoly: One producerOligopoly: A few producersCompetition: Many producers

Monopoly - Oligopoly - Competition

What is a firm’s market power?Smaller competitor?Monopoly?

Economic monopoly Monopoly on information

Oligopoly? Shares dominance

Market Structure Examples

Local TelephoneLong DistanceCableMusic Software

Monopoly Oligopoly Competition

The profit motiveMaking a profitEntry costs

how high is the barrier?

Sources of media revenueFrom consumers, to

Taxes, donations, subsidies Consumer goods purchases Retail media distributors Communications media, via subscriptions

Sources of media revenue

Selling the audienceDirect salesRentalsSubscriptions

More sources of media revenueUsage feesAdvertisingSyndicationCopyright royalty feesPublic subsidies

access fees, universal service fees

From mass markets to market segmentsNarrowcasting

Identification of specialized interests Relies on information technologies demographics profiling IT lowers costs of production and

distribution

Diffusion of InnovationsExplains the spreading of new ways of

doing things in a social system observability trialability compatability affordability supervening social necessity

Diffusion of innovations

Approaches to Media –Critical Studies

Looks for relationships betweenThe media systemMedia contentAudiences for mediaCulture

Approaches to Media – Political economyPolitics, Economics and Communication

intertwinedFocus on interests

Power relationshipsAdvertising

who’s selling; what’s being soldCommercial interests and ownership Ideology

HegemonyAn underlying consensus of ideology

that favors a system that serves the interests of a dominant social group

Economic system preserves the interests of the ruling classes Mitigating factors: Consumer needs, laws

of supply and demand

Approaches to Media – Agenda SettingThe ability of the media to determine

what is important OJ Simpson and US race relations Activism and media event creation Political “horse race”

Approaches to Media – Gatekeeping and FramingGatekeeping: deciding what will appear

in the media Does a media message make it through

the gate? Who are the gatekeepers?

Framing: writing to tell stories What makes the story? What is left out? 2 sides to every issue?

Approaches to Media – Opinion LeadersPeople who try to influence media

coverage (agendas & frames) Diverse interests spin doctors

Lobbying groups Special interests, business constituencies

Approaches to Media – Textual CriticismElectronic media as a new kind of “text”Apply tradition of literary or cultural

criticism Genre studies Semiotic analyses Feminist, Gay/Lesbian, Race studies

The active audienceThe media and audiences are both

powerfulMedia creators have a preferred reading

Approaches to Media – Societal FunctionsFunctions of the mass media

surveillance interpretation socialization entertainment

Functions of new communications media

Approaches to Media – Social Learning TheoryExplains media consumption behavior

in terms of Expectations about consumption Cognition, or how we learn through our

own experiences “Uses and Gratifications”