Media Economics Flashcards
How does the main economical concepts differ in Media economics?
Media as a good:
Information is a process not a product, no unit, no scarcity, externalities,
Non-exclusive, problem of free riding, market failure, etc.
Supply nature:
Media supply is prototypical, relationship between dev cost and reprod cost is atypical. Baumol’s law: wage will increase but productivity won’t increase
Demand Nature:
Unpredictability of demand => diminishing risk through increasing genres+content, spreading risk through diversification
Time-dependent consumption =>ads on certain times, some media consumption is time-intensive, some is capital-intensive
What are the main differences in neoclassical economic assumptions and media economics?
In NCE:
equilibrium between demand supply and price, rational decision making, commodities and interchangeable, contribute to national income, marginal cost is significant.
In ME:
problems defining demand supply and price, unpredictable actor decisionmaking, products are unique, contribute to citizenship health public debate, marginal cost is low
What are the consequence of the differences in media economics?
*Tensions and debates around media economics
*Traditional Economical view vs newly adapted concetps
*Media goods, commodification and public good, monetization
*Media companies, scale and scope, dis/integration concerns
*Importance of other industries
