Friday, September 17, 2010

why does economics drive most media companies?

Media companies are businesses, and all businesses rely on economics. Media companies, like all companies, need a source of income to survive. They need investors and donators in order to pay their employees, put out more products, news, or whatever it is they are putting out, and in order to advertise. When the economy suffers, media companies will suffer. Also, the media relies on the investment of other companies. For example, television shows rely on companies giving them money to promote their companies through advertisements. At the same time the companies are relying on the media to advertise their products. The media and the companys both rely on these advertisements. The companies need people to buy their products in order to make money. The media needs the companies to make money so they can buy more comercials, thus investing more money in the media. In order for media companies to stay afloat they must change and adapt with our society and economy. We live in a capitalist society, where everyone is in pursuit of making more money, and livinga better lifestyle. Therefore, media companies like all companies in America are directly impacted by economics.

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