Chapter 3: The Economics of the Media Industry

Modern Media companies do NOT provide

the products that we consume media through (TVs, radios, phones)

When an individual scrolls through Hulu to find the film that they want to watch, they are using

a platform

if an individual wanted to invest into the "pipes" of the media companies, they would put their money into

Verizon

many of the films that we watch on Netflix are___from traditional media companies.

products

Facebook and Google display content that

is created by their users

A telephone line providing DSL Internet access is an example of a___from a modern media company.

pipe

The media companies that we are familiar with are

mostly owned by a few very large companies

The "Big Three" music companies that own most of the smaller labels are

Sony Music, Warner Music Group, and Universal Music Group

Formerly known as Clear Channel Communications,____is the leading radio company in the United States.

iheartmedia

Netflix, Hulu, and Amazon are all___which have dramatically changed the way users view television.

streaming services

___and___are the leading U.S. mobile network companies.

Verizon;AT&T

Steve owns a book publishing company and he has recently purchased a paper mill. This is an example of his company___.

integrating vertically

when a media company purchases other similar media companies to cross promote media products, said company is___

integrating horizontally

Disney owning 20th century Fox, Marvel,Pixar,and ESPN is an example of__

horizontal integration

Facebook, Twitter, and Youtue are not considered traditional media companies because they ___

do not hire media creators, therefore they don not produce media content

Roughly 45% of adults in the United States get their news from

Facebook

Content such as sensational headlines and top 10 lists are considered___intented to attract the attention of social media users.

clickbait

Online ads have now overtaken___as the worlds largest advertising medium.

television

Silvio Berlusconi was elected prime minister of Italy 3 times by___

owning TV and radio outlets and utilizing his position to change the media in his favor

Control of the media directly impacts the sort of content media users consume.

all of these

Bagdikians hypothesis that absence of competition in the media industry ill likely lead to ____is plausible.

homogenous media products

In Peterson and Bergers analysis of postwar music, they argue that high market concentration leads to homogeneity, while competitive market leads to___.

diversity

From the few amount of shows that make it onto a TV network, only a handful of them get renewed. The reason for this is___.

not may shows attract audiences big enough for the company to generate profits through ad revenue

when networks have hit television series, they often will

create copies and spin-offs and generally beat it to death

networks have been leaning toward producing less expensive programs that do not have huge budgets or expensive actors because of__and___.

declining audiences: decline in advertising revenue

News outlets increase their profit margin in todays modern media world by cutting costs, often

all of these

Advertisers are the dominant source of revenue for

all of these

Local newspapers that get their ad revenue from primarily local businesses____

don't allow reporters freedom to write stories that are not light and industry pleasing

Modern media companies provide three service to consumers that do NOT interact

False

Platforms like facebook and google provide advertisers with viewers, which ideally prompts viewers to become consumers of the advertisers products.

True

The "pipe" component of modern media companies is vital but often overlooked.

true

"Pipe" companies do not have any power over media producers and media consumers.

False

Most of the media companies we are familiar with are owned by a few much larger companies

True

the older giant media companies have begun using consolidation as a business strategy.

true

majority of music revenue in 2017 came from sale of CD's and vinyl.

false

a company simply growing larger is a guarantee for success.

false

in the current media economy, the different pipes and platforms through which people access content is just as important as the content they are consuming

true

while we as consumers seemly have access to endless media outlets, the companies that run these outlets are often consolidating companies to ensure profit

true

being considered "shareworthy" is now a goal for most all media producers, including journalism.

true

google and facebook don not have significant impact on the advertisement industry.

false

Facebook and google heavily invest in internet infrastructure such as undersea cables and high atmosphere balloons.

true

it is uncommon that people in power will abuse their power of media outlets to achieve what they want.

false

concentrated corporate media ownership does more than just exclude certain ideas, it has also blurred the corporate voice with "our" voice or the American view.

true

the cost to produce quality television programs has decreased due to less advertisement revenue

false

advertisers view product placement and brand integration as smart investments as they are hard for audiences to avoid.

True

News outlets tent to lean toward more airy stories and less controversial topics to attract more viewers and increase ad revenue, which has changed the meaning of news for both producers and consumers.

True