Midterm Flashcards
Define Monopoly
The exclusive possession or control of the supply of a product or service
Define vertical integration
- A company may manage multiple stages of a business
- Ex. hardware, software, and/or distribution
Define horizontal integration
When a company specializes in one thing and try to be the only option
Example: Amazon trying to dominate all distribution
Explain rate of return regulation
- Essentially capping the profit a company can make for providing a service in cable industry
- Giving companies subsidies or this monopoly and in exchange, they can’t make more than X% profit
Explain common carrier universal service
- Related to telephone industry
- Must serve customers in public interest without discrimination
Explain Universal access
Everyone has the right to access phone/TV/Internet
Define scarcity
When something has a limited amount
Explain retransmission consent
Local stations could charge cable companies for access to signals
-The cable company could refuse to carry the signal
Explain Bundling service
When you get cable, phone, and internet from the same company
Define subsidies
A sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive
List characteristics of the coaxial cable
- Could transmit more than 3 stations at once
- The hardwired tether could reach most people
- Allows transmission of more data than copper wires
What is the goal of regulation?
To get technology to diffuse
What is the 1st Amendment
- Freedom of speech
- Governments struggle with the balance of freedom of press/speech with their need to control/protect citizens
What is the 4th Amendment
- Protects from searches
- How to apply to the Internet when no papers exist and data is stored online
The Communication Act of 1934
- Broadcasters should serve in the public interest.
- Wanted to prevent vertical integration and ensure competition, localism, and diversity.
- Company couldn’t be both distributor and producer.
- Federal law that Says we have to regulate right of way in a national level.
- Created the FCC (Federal Communication Commission)
1984 Modified Final Judgment (MFI)
- Opened long distance calls to competition
- Brought down the price of long distance calls
- AT&T forced a break up and they lost their monopoly
1996 Telecommunications Act
- Goal was to promote competition and reduce regulation to get better prices
- Led to convergence and monopolies
- Merges between phone and cable companies
E-mail and Privacy-federal Case Law - Balance privacy w/employer’s maintenance of workplace
- Employees have no expectation of workplace privacy
- Used for workplace misconduct
- Only applies where there is a reasonable expectation of privacy
- 4th amendment
Online Obscenity
- Internet legislation based on broadcast legislation
- CDA/COPA
Communications Decency Act (CDA) of 1996
- Regulated all online sexual content
- Only info appropriate for children would be available online
- Ruled unconstitutional
Libel
- Any expression that damages your reputation or causes others to disassociate themselves from you
- Publisher is responsible
Network Neutrality
- Organizational infrastructure of different industries
- History of corporations and ownership influence marketplace.
- Only the cable company pushed for net neutrality
Define convergence related to technology
The coming together of computing, telecommunications, and media in a digital environment
What is the role of information in new technology?
Information as an intangible public good or as a utility
Media products enter the economy as ____?
information
Intellectual property rights are retained by the ______?
Owner
Information lacks ____ presence and can be sold as many times as the market will allow. not manufactured
Physical
Internet disseminates info of all types
- Need to determine whether it is an information service or provider
- Global and crosses international boundaries
- Convergence of ownership
How to track diffusion?
- Have to measure with consistency
- Consider effect of shortened lifecycle of technologies
- Monetary measures are inconsistent
- Non-monetary measures are more consistent
- Used in different industries (e.g. monetary measures vs. units sold)
Principle of Relative Constancy
The amount of money individuals spend on media
- Determined by the state of the economy
- Consistent percent of disposable income
- People spend predictable amounts on media
What did the principle of relative constancy predict about the media industry?
- Successful new media harms traditional media
- New communication technologies are expensive
- McCombs (1972) suggested new media was different
What is the critique of the Principle of Relative Constancy?
It does not consider media economic theories
What is the goal of diffusion of innovation theory?
Tries to explain how an innovation is communicated over time through different channels to members of society.
What are the five groups that make up the Diffusion of Innovation Theory?
- Innovators
- Early Adopters
- Early Majority
- Late Majority
- Laggards
Adoption of innovation predicts a person’s future ____?
adoption
What is critical mass?
- Apart of the Diffusion of Innovation Theory
- Number of people required to get people to adopt, the tipping point
Explains what happens in the delay period between innovation and diffusion?
- Rate of adoption proceeds slowly
- Diffusion becomes self-sustaining (critical mass)
- Then the rate of adoption shoots up
What are the 4 stages of the product lifestyle?
- Introduction
- Growth
- Maturity
- Decline
What are the parts of the Umbrella Perspective of Technology
- Enabling factors - make technology possible
- Limiting factors - restrict or prevent technology
- Motivating factors - make people want to adopt technology
- Inhibiting factors - opposite of motivating
Umbrella Perspective - List the levels of the enabling factors
- Hardware level (capability to send digital signals)
- Political level (policymakers allocate spectrum)
Umbrella Perspective - List the levels of the limiting factors
- Hardware level - no available service connects to device
- Organizational/political level - laws of policies prevent use