In a capitalist economic system, corporations are privately owned and are driven by a profit-seeking aim. Media companies, like every other profit-based company, want to sell a product. What they’re selling however is not a physical product but actually a conceptual one. In a way, they’re selling other people’s ideas. They advertise these ideas in forms of books, movies, commercials, music etc. These things are sold to the larger public and thus permit media companies to generate profit. Furthermore, advertising is very expensive to procure. Examples include airtime, commercials, ads, billboards, magazine covers, book publishing, and articles. Mass Media and economics are closely interconnected. Media companies, whether publishers, produces, or television networkers need the public’s money in order to run properly. Their revenue depends almost entirely on the publics’ demand. Therefore, economics can drive Media companies to prosperity or to downfall. This is often a big disadvantage to Media companies because with today’s fast changing technology, people jump from one media item to another causing success for one side and failure for another.
Tuesday, September 14, 2010
Why does economics drive Media companies?
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