Mass Media is based upon a free-market system, capitalism, in which it is motivated by profit. Capitalism is an economic system based upon private ownership, where a company is solely responsible for the production and distribution of goods for their own profit. The means by which media companies generate revenue varies. Most media companies have always been financed primarily through the selling of services and advertising sales. Technology of today is changing the ways in which media companies generate revenue.
It is necessary for a media company to profit in order to operate, maintain, and grow. A media company is limited to the types of revenue it may depend on. Some media companies rely on a mixed economy, depending on a mix of advertising sales and other revenues, such as subscriptions. Other countries have found alternatives for funding their media outlets, such as taxation, and government fees contingent upon dictatorial regulation of content.
Hybrid-mixed types of funding are now the official alternative to weakening advertising and subscription revenues. The ways in which consumers meet their media needs have changed with evolving technology, such as the internet. Government funding, philanthropy, fund drives, micropayment systems and auxiliary enterprises are the newly established alternatives of economic drive for many media companies. Mass media has become rooted within a mixed economy in relation to capitalism, due to the evolution of technology.
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