07 - Media Economics

They’re after my brain & my wallet!

Class Business

AnnouncementsHenry Jenkins (Friday September 30,

12:30PM-1:45PM in RTV 180)#IUT205

Exam 1: 09/27Assignment 1: 10/13

Last time on T205

Pop Quiz Results

• Pop Quiz 01 – 108 or 88.5% Participants– 82 or 67.2% Perfect Scores

• Pop Quiz 02– 98 or 80.3% Participants– 40 or 32.8% Perfect Scores

Decrease in almost 35% in Perfect Scores

2%

How are mediums created?

Are there patterns?

Stages of Media Development

Innovation

Penetration

Peak

Decline

Adaption

?

Zombification?

CD

Media Economics

The Game

Game Characteristics

Media Industries Strategies

Consumer Strategies

Student Media

Perfect Storm consumers

High Level of Free Time +High Level Of Disposable Income +

Low Responsibilities +High Social Interaction

Media Economics Game

PlayersGoalRules

Players

Consumers

ResourcesGame Depends on Consumers

Illusion of ControlNo Social Structure

Can’t Leave The Game

Advertisers

Media Companies

MoneyMessage AudienceCosts Low

Pay For Talent

Media Employees

Talent Time

Goal

Maximize Value Exchange

Different players have different goals

UtilityEnjoyment

MoneyAttention

FameConnection

No LoserNo Winner

No Exit

Conflicting PlayersConflicting Goals

Rules

Resources +Willingness to play

Regulations?

Game Characteristics

Importance of valuing resources well

Indirect as well as direct support

Complex interdependency among players

NegotiationsHighly dynamicCross-purposesDifferent Markets

Nature of competition

Limited ResourcesProfits Attract CompetitionIndistinguishable Messages

Advertising as the engine

Media Industries Strategies

Maximize Profits

RORevenues & ROAssets

Increasing Revenue Streams

Minimizing Expenses

Constructing Audiences

Attracting People to Niches &

Conditioning Audiences

Reducing Risk

Consumer Strategies

Default Strategy

Media Literacy Strategy

Media Economics Game

PlayersGoalRules

Game Characteristics

Importance of valuing resources wellIndirect as well as direct support

Complex interdependency among playersNature of competition

Advertising as the engine

Media Industries Strategies

Maximizing ProfitsConstructing Audiences

Reducing Risk

Consumer Strategies

DefaultMedia Literacy

Current State of MediaCh. 8