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Understanding Media Economics

Understanding Media Economics

Second Edition

May 2013 | 232 pages | SAGE Publications Ltd
'This book provides an extremely well written and informative introduction to the subject of media economics, characterized by clarity in the explanation of concepts or frameworks and by a balanced discussion for the respective positions in areas of debate' - Paul MacDonald, Roehampton Institute

'This book is a very valuable contribution to the media economic literature' - Richard van der Wurff, Dept of Communication, University of Amsterdam

Understanding Media Economics provides a clear, precise introduction to the key economic concepts and issues affecting the media.

The book: explains the fundamental concepts relevant to the study of media economics; considers the key industrial questions facing the media industries today; relates economic theory to business practice; covers a wide range of media activity - advertising, television, film, print media, and new media; and looks at the impact of economics on public policy.

The Second Edition of Understanding Media Economics is has been fully updated, and offers a stimulating perspective on the contemporary media environment. This book remains an essential purchase for all students of the media and mass communication.

Chapter 1: Introduction
What Is Media Economics about?

Macroeconomics and Microeconomics

The Firm in Economic Theory

Competitive Market Structures

Market Structure and Behaviour

What Is So Special About Economics of the Media?

Key Economic Characteristics of the Media

Economies of Scale

Economies of Scope

Changing Technology

Chapter 2: Convergence and Multi-Platform
The Vertical Supply Chain

Changing Market Structures and Boundaries

Digital Convergence

Technological Change, Innovation and Creative Destruction


A New Cornucopia?

Chapter 3: Corporate Growth and Concentration Strategies
Strategic Responses to Digitization

Managerial Theories

Horizontal Expansion

Diagonal and Conglomerate Growth

Vertical Expansion

Transnational Growth

Chapter 4: Networks
Economics of Networks

Broadcasting Networks

Global Networks in Transnational Publishing

Online Content Distribution

Social Networks and Microblogging

The Changing Role of Networks in Media Economics

Chapter 5: Demand: Push to Pull
Mass to Niche

User Empowerment

Segmentation and Branding

Audience Flow Management

Market Failure in Broadcasting

Public Service Content Provision

Chapter 6: Economics of Content Supply
Novelty and Risk Spreading


Repetition and Formats

Hollywood and Risk

Funding Models: Cost Plus Versus Deficit Financing


Chapter 7: Copyright
The Economic Origins of Copyright

Copyright and Welfare Losses

Digitisation and Enforcement


Territoriality and Free Trade Areas

Commercial Models Other Than Copyright

Non-Market Alternative Means of Incentivising Creativity

Adjusting Copyright to the 'Open' Internet

Chapter 8: Media and Advertising
The Advertising Industry

Why Does Advertising Take place?

Are Firms in Control of Their Own Markets?

Informative Versus Persuasive Advertising

Advertising as a Barrier to Market Entry

Advertising and the Performance of the Economy

The Rise of Internet Advertising

The Firm's Advertising Decision

Chapter 9: Digital Media Economics and Public Policy
Free Market Versus Intervention

Support Measures for Media Content


Concentrated Media Ownership

Promoting Competition

Monopolies and Technological Change

Maximising Efficiency

PSBs and State Aid Rules


The first edition of this book was extremely influential and helpful for me as a student, the new addition will now become equally essential for my students. I have already aquired two personal copies.

Dr Todd Nesbitt
Department of Communication, New York University in Prague
July 10, 2013

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