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Chapter Two: Media Theory
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Media economics
Economies of ScaleMass production and distribution
First copy costs Low marginal costs
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Ownership patterns
What is the market structure?Monopoly: One producerOligopoly: A few producersCompetition: Many producers
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Monopoly - Oligopoly - Competition
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What is a firm’s market power?Smaller competitor?Monopoly?
Economic monopoly Monopoly on information
Oligopoly? Shares dominance
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Market Structure Examples
Local TelephoneLong DistanceCableMusic Software
Monopoly Oligopoly Competition
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The profit motiveMaking a profitEntry costs
how high is the barrier?
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Sources of media revenueFrom consumers, to
Taxes, donations, subsidies Consumer goods purchases Retail media distributors Communications media, via subscriptions
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Sources of media revenue
Selling the audienceDirect salesRentalsSubscriptions
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More sources of media revenueUsage feesAdvertisingSyndicationCopyright royalty feesPublic subsidies
access fees, universal service fees
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From mass markets to market segmentsNarrowcasting
Identification of specialized interests Relies on information technologies demographics profiling IT lowers costs of production and
distribution
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Diffusion of InnovationsExplains the spreading of new ways of
doing things in a social system observability trialability compatability affordability supervening social necessity
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Diffusion of innovations
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Approaches to Media –Critical Studies
Looks for relationships betweenThe media systemMedia contentAudiences for mediaCulture
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Approaches to Media – Political economyPolitics, Economics and Communication
intertwinedFocus on interests
Power relationshipsAdvertising
who’s selling; what’s being soldCommercial interests and ownership Ideology
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HegemonyAn underlying consensus of ideology
that favors a system that serves the interests of a dominant social group
Economic system preserves the interests of the ruling classes Mitigating factors: Consumer needs, laws
of supply and demand
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Approaches to Media – Agenda SettingThe ability of the media to determine
what is important OJ Simpson and US race relations Activism and media event creation Political “horse race”
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Approaches to Media – Gatekeeping and FramingGatekeeping: deciding what will appear
in the media Does a media message make it through
the gate? Who are the gatekeepers?
Framing: writing to tell stories What makes the story? What is left out? 2 sides to every issue?
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Approaches to Media – Opinion LeadersPeople who try to influence media
coverage (agendas & frames) Diverse interests spin doctors
Lobbying groups Special interests, business constituencies
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Approaches to Media – Textual CriticismElectronic media as a new kind of “text”Apply tradition of literary or cultural
criticism Genre studies Semiotic analyses Feminist, Gay/Lesbian, Race studies
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The active audienceThe media and audiences are both
powerfulMedia creators have a preferred reading
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Approaches to Media – Societal FunctionsFunctions of the mass media
surveillance interpretation socialization entertainment
Functions of new communications media
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Approaches to Media – Social Learning TheoryExplains media consumption behavior
in terms of Expectations about consumption Cognition, or how we learn through our
own experiences “Uses and Gratifications”