media economics l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Media Economics PowerPoint Presentation
Download Presentation
Media Economics

Loading in 2 Seconds...

play fullscreen
1 / 20

Media Economics - PowerPoint PPT Presentation


  • 274 Views
  • Uploaded on

Media Economics. What Is Media Economics?. The commercial media consist of enterprises that: Create or acquire content. Distribute content (news, information, entertainment, or data) to an audience. Content ----- Medium ----- Audience (Method of distribution). Business Models.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Media Economics' - daniel_millan


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
what is media economics
What Is Media Economics?
  • The commercial media consist of enterprises that:
    • Create or acquire content.
    • Distribute content (news, information, entertainment, or data) to an audience.
  • Content ----- Medium ----- Audience

(Method of distribution)

business models
Business Models

Advertising/Subscription Hybrid(Dual Rev. Stream)

SubscriptionOnly(Single Rev. Stream)

Advertising Only(Single Rev. Stream)

Transaction(Single Rev. Stream)

Cable

Newspapers

Magazines

TV

Radio

Google

Outdoor

HBO

Newsletters

Mobile

Movies

DVDs

Music

Content ownership cost is highest

Content access cost is low

Content access cost is higher

Content access is free

Content creation, distribution, access, and advertising-delivery business

Content creation, distribution, and advertising-delivery business

Content creation, distribution, and access business

Content creation, distribution, and retail business

media content
Media Content
  • Content creation includes actually creating it or acquiring it.
  • There are many types of content:
    • Entertainment
    • News
    • Information
    • Opinion
    • Pornography
    • Games
    • Data
consumers customers
Consumers/Customers
  • A consumer uses a product: Radio, TV, Web sites
    • Audience or readers
  • A customer buys a product: Newsletters, music, HBO, DVDs
    • Advertisers are customers for radio, TV, magazines, newspapers, Web sites—they buy access to audience/readers/users.
    • Subscription revenue is minor.
    • Who is P&G’s customer?
  • In some businesses the consumer and the customer are the same person
    • Detergent, razors
media economics6
Media Economics
  • Media economics is the study of how media enterprises:
    • Create or acquire content.
    • Distribute it to targeted audiences.
    • Generate revenue.
    • Make a profit.
media enterprises
Media Enterprises
  • Typically incorporated
    • Limited liability
  • Types of corporations
    • Private (LLC, LP, S Corp) – Flow-through entity
    • Public (C Corp) – Tax-paying entity
the 7 s model of a business
The 7-S Model of a Business

“Structure

follows

strategy”

Strategy

Style

Structure

Shared

Values

Staff

Skills

Systems

“Get the right people on the bus.”

structure of a corporation
Structure of a Corporation
  • Board of Directors
  • President/CEO
  • Divisions/Functions
    • Staff and Operating
  • CFO
  • CMO
    • Sales, Advertising, Customer Service, Promotion, Distribution
  • CTO/Head of Production
    • Operations, Production
  • CIO
purpose of a corporation
Purpose of a Corporation
  • To create and keep customers
    • Can’t make a profit unless you have customers
  • To serve stakeholders
    • Consumers/audience
    • Customers/advertisers
    • Society
    • Employees
    • Stockholders (owners, investors, lenders)
  • To survive
    • Need profits
    • Need to innovate and adapt (innovator’s dilemma—disruptive technologies)
create a customer
Create a Customer
  • Must satisfy unmet consumer/audience needs and wants—benefits sought (might be unrecognized).
    • Find an underserved niche (don’t go after McDonalds or Google).
  • SWOT analysis (strengths, weaknesses, opportunities, and threats).
  • Create a business concept and strategy (see following Five-Forces slide).
  • Create a differential, sustainable, promotable competitive advantage that will get customers/audience and keep them.
    • Best way – high barrier to entry.
  • Create a business model that monitizes content/audience/traffic.
slide12

MichaelPorter

“The Five Competitive Forces That Shape Strategy,” Michael Porter, Harvard Business Review, January 2008.

the internet changes everything
The Internet Changes Everything
  • Threat of new entrants:
    • Barriers to entry and been brought down to virtually zero, especially in the media.
  • Bargaining power of buyers:
    • Because of search and easy comparisons, the consumer is in control.
  • Threat of substitute products or services:
    • Many potential threats because of low barriers to entry in the media business.
slide14
Bargaining power of suppliers:
    • Often high because of proprietary technology (Apple iTunes, Kindle, e.g.).
  • Rivalry among competitors:
    • Substantial because of plethora of competitors – fragmentation of the media.
    • More difficult to get and sustain a competitive advantage.
competitive advantage
Competitive Advantage
  • The main source of competitive advantage is barrier to entry.
real competitive advantage barriers to entry
Real Competitive Advantage (Barriers to Entry)
  • Economies of scale
    • Fixed costs
    • Network effects
  • Customer captivity
    • Habit
    • Switching costs
    • Search costs
  • Cost
    • Proprietary technology
    • Learning
    • Access to resources
  • Government protection
    • Licenses, e.g.
sham sources of competitive advantage
Sham Sources of Competitive Advantage *
  • Deep pockets
  • Brands
  • Talent
    • Creative
    • Management
  • First mover

The Curse of the Mogul, Knee, Greenwald, and Seave, Portfolio, 2009.

media industry structure
Media Industry Structure *

Content

Packaging

Retail

Segment

* Aggregation

* Marketing and

promotion

* Wholesale

distribution

* Delivery to

final customer

* Creative data production

Key

Function

* Artist/production

house

* Author/imprint

* Journalist/title

* Cable channel

* Book publisher

* Newspaper/

magazine publisher

* TV/radio network

* Cable systems

* Book retailer

* Newsstands/postal

services

* Newspaper delivery

* Local TV/radio

stations

* Billboards

Examples

* The Curse of the Mogul, Knee, Greenwald, and Seave, Portfolio, 2009.

mapping to assess competitive advantage
Mapping to Assess Competitive Advantage

D

e

c

r

e

a

s

i

n

g

A

d

v

a

n

t

a

g

e

Increasing Competitive Advantage

Retail

Content

Packaging

Continuous

Physical

Local

Mixed

Mixed

Hybrid

Electronic

National/Global

Discrete

*The Curse of the Mogul, Knee, Greenwald, and Seave, Portfolio, 2009.

the new environment debunks media myths
The New Environment Debunks Media Myths
  • Myth: Growth is good.
  • Myth: The gospel of going global.
  • Myth: Content is king.
  • Myth: The cult of convergence.
  • For old-line media companies – “The Internet is not your friend.”

*The Curse of the Mogul, Knee, Greenwald, and Seave, Portfolio, 2009.