Friday, September 17, 2010

Why does economics drive most media companies?

Money and media have a strong dependence on each other. People invest millions of dollars in the media market, and in return the media needs that money to survive. Advertisements communicate to the audience what the media companies want them to invest in. In turn, consumers are feeding into the cycle. These sales provide a profit. Television, movies, newspapers and magazines use advertising for a main source of profit. Many companies invest in more than one market now. Advertising is easily seen in different kinds of media when you have holdings in movies, television, and magazines such as Time Warner does. Technology has had a major effect on the advertisement industry therefore many newspapers and print companies have lost money. People don’t buy newspapers and magazines anymore, they simply look online. After 9/11 companies were begging the people to go out and buy products so the economy wouldn’t crash. With society running on a capitalist system, companies will always be seeking profit.

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