The Structure of Media Organizations

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The Structure of Media Organizations
Media Organizations follow a traditional
industrial structure Production Distribution
Exhibition and/or Point of Sale
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Media Economics Revenue
Direct Payment (Consumers Pay CDs) Indirect
Payment (Advertisers Pay Broadcast
TV) Both (Cable TV Subscriptions and Ad
Support)
Economies of Scale Enhance Profit Potential
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The Structure of Media Industries
Conglomeration Disparate Business In One
Corporation Concentration Few Owners In One
Industry
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The economics of the media industry
Patterns of ownership

• Concentration of ownership
• Conglomeration vertical integration movie
  industry horizontal integration Time Warner

Synergy
A QUESTION WHOSE PURPOSES ARE SERVED BY THESE
TRENDS?
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The Structure of Media Industries
Vertical Integration
Monopoly Oligopoly Limited Competition
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The economics of the media industry
The effects of conglomeration

• Media control and political power Rupert
  Murdoch The concept of hegemony
• Media ownership and diversity Homogenization
  Local News Efficiency and Quality Recorded
  Music Industry

Profit Incentive or Obstacle? Impact of
Advertising
A QUESTION WHOSE PURPOSES ARE SERVED BY THESE
TRENDS?
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Media Economics Social Issues
Concentration The Limits of Anti-Trust
Law Consumer Choice or Control Cultural
Imperialism Media Marketplace and
Democracy
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The Structure of Media Industries
Deregulation and Special Exemptions as Responses
to Convergence of Modes
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The Structure of Media Industries
Current Trends Globalization and Specialization