Advertising, subscription, + direct sales model

Question 1

What is the advertising model?

Answer 1

Where advertisers pay for space within a media product

Paying for access to media product’s audience

Question 2

Why do advertisers pay more + why do the media charge more?

Answer 2

• Advertisers pay more for larger audiences + specific audiences
• The more money media producers charge, the more profit the media product can make

Question 3

How do social media use ads to benefit them?

Answer 3

They can create detailed info on users (through likes, dislikes, etc) which can be sold to enable marketers to create appealing ads

Question 4

What is the subscription model?

Answer 4

Where some media producers ask for regular payment to allow access to products

E.g. Netflix

Question 5

What are the advantages of the subscription model?

Answer 5

• Provides funds to media businesses up front
• Don’t have to worry about success of individual shows bc ppl pay for streaming service

Question 6

What is the direct sales model?

Answer 6

A way of making money by selling a product direct to audience (consumers)

E.g. Newspapers + magazines usually do this

Question 7

How has online free news affected the direct sales income?

Answer 7

There is a decline in people buying magazines + newspapers, which also makes advertising income decrease

Question 8

What are other methods of direct sales?

Answer 8

The sales of DVDs + albums, merch, and collectibles make income for media producers