Friday, September 17, 2010

Why does economics drive most media companies?

Capitalism is Americas business game. The idea of taking a privately owned company and using it to generate profit or personal gain is basically what our country has built it self around today. In order to survive, be competitive, and even the least bit sucessful, companies need to make some profit or revenue. So, this is no exception for the media business.

While they may have started off focusing less on profit and more on informing the public, times, generations and traditions change with companies. Our generation now is all about big, strong, flashy adertisment and product sales, that generate the highest income no matter what for the company. Once every other business becomes like this, it is the classic case of if you cant beat em, join em. In order to stay profitable in the cesspool of an economy America has landed itself in, they need to stay economic based. If they want to have high enough salaries to keep there workers happy, or generate enough revenue to stay producing products while generating profit.

Because media companies use technology heavily in their fields, the ever changing new equipment becomes very expensive. In order to reach mass amounts of people, it takes a lot of new equipment to stay competitive in keeping users of your product feeling good about their purchase. They are economic based because they need to be, not just because they want to be.

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