COMM 106: Media Industries

mass customization

Logic: Allows media companies to serve large audiences while catering to individual preferences. Enabled by digital tools, it balances efficiency (mass production) with personalization (tailored experiences).

Follow the Money: Drives revenue by combining scale with customer satisfaction, e.g., streaming platforms recommending content to maintain subscriptions.

just-in-time production

Logic: Produces goods or content only when needed, minimizing waste and storage costs. Common in digital distribution of media.

Follow the Money: Reduces inventory costs and capital tied up in unsold products, e.g., on-demand video production.

dual product marketplace

Logic: Media products serve as both content for consumers and vehicles for advertisers to reach audiences.

Follow the Money: Revenue comes from two sources—sales to consumers and advertising revenue. Examples include traditional TV networks.

non-rivalrous good

Logic: Consuming a media product doesn't prevent others from doing the same (e.g., watching a movie or listening to a song).

Follow the Money: Infinite reproduction at minimal cost increases profitability.

first-copy-cost vs. marginal cost

Logic: High initial investment to create a media product (first-copy cost), but near-zero cost for each additional copy (marginal cost).

Follow the Money: Profit scales with the size of the audience, driving strategies like global distribution.

Windowing

Logic: Staggering release across platforms and regions to maximize profits at each stage.

Follow the Money: Extracts the maximum value by targeting different audience segments over time (e.g., theaters, streaming, home video).

ars longa

Logic: Media products have long-term value beyond their initial release (e.g., syndication, licensing).

Follow the Money: Generates ongoing revenue streams from older content.

loss leader

Logic: A product sold at a loss to attract consumers who will spend on other profitable products.

Follow the Money: E.g., offering free or cheap trials for streaming services to hook subscribers.

network effects

Logic: Value increases as more people use a platform or service (e.g., social media).

Follow the Money: Drives exponential growth and locks in user bases.

uncertainty principle

Logic: Success in media is unpredictable; hits are rare and hard to guarantee.

Follow the Money: Companies mitigate risk by overproducing content or relying on data analytics.

Overproduction/ overstocking

Logic: Creating more content than needed to ensure at least a few hits.

Follow the Money: Spreads risk and increases the likelihood of high-return successes.

Formatting

Logic: Using proven templates or genres to minimize risk and appeal to audiences.

Follow the Money: Reduces uncertainty by replicating successful models.

Industry Lore

Logic: Shared beliefs and practices about what works in the media industry, shaping decision-making.

Follow the Money: Influences investments and strategic directions, often aligning with proven success stories.

Exhibition

where public taste is taken into account to influence industry distribution.

Production

Creating media content (e.g., writing, filming, editing).

Distribution

Getting content to audiences (e.g., streaming, cinemas, or app stores).

retail / aggregation

Spaces where audiences meet media (e.g., cinemas, stores, streaming platforms).

Distributor promotional work

Efforts to market media to exhibitors and audiences (e.g., trailers, social media ads).

Gatekeeping

Decision-making by distributors or platforms about what media gets released (e.g., streaming services rejecting certain shows)

In-house vs. independent distribution

Media distributed by the same company that produced it (e.g., Disney+) vs. a separate distributor (e.g., an indie studio using Netflix).

democratization of media access

Digital tools allowing anyone to create and share media (e.g., TikTok, YouTube).

In the music industry, three distinct windows commonly used for content distribution are:

1. Streaming Platforms: Platforms like Spotify, Apple Music, and YouTube allow audiences to stream music on demand, either through subscription-based models (ad-free) or ad-supported free tiers. This is now the dominant window for music consumption.

2. Physical Media Sales: Despite a decline, physical formats like vinyl records, CDs, and cassette tapes remain relevant, particularly for collectors and niche audiences who value tangible products.

3. Live Performances and Tours: Live concerts and tours serve as a critical window for artists to reach audiences directly. These events often include exclusive merchandise and music sales, further monetizing the experience beyond ticket revenue.

long tail

Niche media products can thrive alongside mainstream ones, thanks to digital platforms (e.g., independent podcasts or documentaries).