COMM 320 Exam 1 Review

legacy media companies

Traditional media companies rooted in 20th-century mass media production, broadcast, and distribution.

• Disney, Warner Bros. Discovery, Paramount, NBCUniversal, Sony.

tech companies

Digital-first companies focused on data extraction, platform infrastructure, algorithms, and subscription ecosystems.

• Netflix, Apple, Amazon, Google/Alphabet (YouTube), Meta.

What does 'mass media' mean?

BOTH the distribution of media/information and the type of products made for the masses.

Mass Production Era (everyone)

Standardized mass production for a broad/homogenous audience (shared tastes/experiences), often excluding minority voices.

Mass Customization Era (specific groups)

Identifies niche audiences and targets media by demographics or attitudes/interests.

Information/Digital Era (data)

Focuses on information and data, shifting from audience attention —> audience data.

What are the rationale and effects of minimizing risk for media companies?

Reduce risk: companies use conventional genres, formulas, reboots, sequels, and familiar ideas to make media seem safe.

Effects: conventional genres, industry lore/formulas, less risk, and decisions based on algorithmic metrics.

Industry Lore

Unwritten rules/conventional wisdom about what audiences want and what will be commercially successful. “This is how the industry works”

What are the major business models in media?

Advertiser-Based, Transaction-Based, Subscription/SVOD, Crowdfunding/Direct-to-Fan.

Advertiser-Based (ads)

free/low-cost content monetized by advertisers.

Transaction-Based (pay once)

pay for something individually.

Subscription/SVOD (pay regularly)

recurring fee for ongoing access.

Crowdfunding/Direct-to-Fan (fans pay)

voluntary audience support.

Audience Commodity model

Audience attention sold to advertisers, involving tracking, profiling, and behavioral data mining.
- Audience attention/data becomes valuable to companies.

[ Media Company ] -----> Packages Audience's Attention -----> Sold to: [ Advertisers ]

Political Economy Perspective

The relationship between politics/economics and how power and wealth are distributed and contested.

• money + politics + power

What differentiates products, platforms, and pipes?

Products = WHAT, Platforms = WHERE, Pipes = HOW.

Products (WHAT)

what you access/buy/use

Platforms (WHERE)

where you consume media.

Pipes (HOW)

how you access media.

Horizontal Integration

One big company controls lots of different media.

Effects of Horizontal Integration

Cross-promotion, IP spread, less priority for non-fitting content, harder for small companies to compete.

Vertical Integration

One company controls multiple supply-chain stages from production —> distribution —> exhibition.

Effects of Vertical Integration

More control, limited access, prioritizing own products, walled gardens.

Effects of consolidation (merging) and conglomeration on the media ecosystem

Fewer companies, layoffs, less risk/originality, higher paywalls/subscription costs, centralized power.

Cambridge Analytica scandal

How data was being used

• demonstrates the importance of data collection and the use of large amounts of user data for advertising/targeting

SCANDAL bc They were an advertising company that was using lots of data to sell their services to multiple people

What role did Apple/iTunes play in the music industry's shift to streaming?

They operated as a 3rd party

• Apple/itunes being the middleman for subscription streaming services and physical media 

Unbundled albums, sold individual tracks, helped combat piracy, reduced album revenue, accelerated digital music.

How are algorithm-based platforms and AI affecting the music industry?

Algorithms prioritize retention, viral sounds, and playlists (influence what becomes popular)

AI raises concerns about voice cloning and royalty dilution.

How have music labels remained powerful despite declining album sales?

Through large catalogues, hits/stars, touring, merchandising, 360 deals, branding, sponsorships, and licensing.

360 deal

A deal where a music label receives a % of many/all artist revenue sources: albums, streaming, touring, merch, acting, endorsements.

Significance of the music industry’s overemphasis on artist branding.

• Artists are treated as marketable brands. 

• Revenue comes from advertising, endorsements, sponsorships, and licensing. 

• EX: Sabrina Carpenter/Samsung, Beyoncé/Tiffany, BTS/Hyundai. 

•  ■ The artist’s identity itself becomes valuable. 

'Closed Development' in television

A process where broadcast channels have more control over who makes TV and what stories audiences see.

• Pitch → Script → Orders → Casting → Shooting Pilot → Upfronts/Ads → Production → Debut

syndication in television

Licensing off-network reruns to secondary outlets after the initial run, allowing profitable shows to generate revenue repeatedly.

• FRIENDS is a show that makes money again and again

How did Netflix disrupt the film and television industry?

By challenging the pilot process, normalizing binge-watching, using viewing data, targeting niche audiences, and establishing a quality-TV brand.

 EX: The Crown, The Irishman, Emilia Pérez. 

■ Netflix showed television did not have to follow the old rules

What has been the trajectory of profitability for main streaming apps?

Streaming services experienced about 5 years of losses but have moved toward break-even or slight profits through various strategies.

What was the significance of the US v. Paramount Supreme Court case?

It ordered major studios to sell off cinemas, separating major studios from theaters.

What is the relationship between major movie studios and movie theaters?

They are interdependent but strained, with theaters needing exclusive content and studios needing theatrical promotion and box office revenue.

• They follow a 45-day window

• ■ Shorter windows create pressure on theatrical revenue.

45-day window

exclusive theatrical period before PVOD/SVOD

What are the functions of Hollywood unions like SAG-AFTRA and WGA?

SAG-AFTRA: represents actors and other performers/media workers.

WGA: represents writers

Unions = workers negotiate together

Residuals in the film and television industry

financial payments made to actors, writers, directors, and other creatives whenever a film or television show is reused or broadcast beyond its initial release to a new medium.

• provide financial stability

AMPTP

The Alliance of Motion Picture and Television Producers, representing major studios in labor negotiations.

• Disney, NBC, Sony, Apple, Amazon, etc

What were the major stakes of the Writers' and Actors' 2023 strikes?

Issues included streaming compensation, residuals, AI safeguards, and better working conditions.

• Biggest issues: money, streaming, AI, working conditions

What were the outcomes of the Writers' strikes?

WGA secured higher wages and streaming-view bonuses

What were the outcomes of Actor’s strikes?

Actors got higher minimum earnings, streaming bonuses, viewership disclosure, AI limits, minimum background actors, relocation bonuses.

'Crunch' in the gaming industry

Intense, unpaid or compulsory overtime around game release

• EXCESSIVE OVERTIME

'female tax' in the gaming industry

The extra time and effort women game makers expend discussing gender issues along with their work.

What has been the trajectory of unionization in the gaming industry?

There has been a significant increase in unionization efforts, with various unions forming and fighting for workers' rights.

Oligopoly

a few huge companies control an industry 

• ABC, Verizon, FOX, At&t, Universal Pictures, Walt Disney Studios