text_TITL pruh_TITL logoC
Culture and Mass Media Economy
1
Media Economics
3. lecture       Simona Škarabelová

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Today topics:
nWhat does it mean -
nmass media?
nmedia economics?
n
nMore about –
nBroadcasting
nTelevision
nInternet
n
nFuture of mass media – world of digitalization
n
n
n
n
Culture and Mass Media Economy
2

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Mass media
nTelevion- and Radio Broadcasting,
nInternet
nFilm production
nPrint
nWays of communications, that can adress many people in one moment or short time
nOwned by public authority or private entrepreneurs
nFinanced from:
n public money – subvention or fess (BBC in UK),
n private money/advertising (Spain),
ncombination of both
n
Culture and Mass Media Economy
3

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Culture and Mass Media Economy
4
Media economics
nembodies economic theoretical and practical economic questions specific to media of all types.
n
nexplores the specific application of economics laws and theories to media industries and firms,
nshows how economic, regulatory and financial pressures direct and constrain activities and their
influences on the dynamics of media markets.

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Culture and Mass Media Economy
5
With other words - media economics :
nIt concernes with the way, how the kinds of media and communications are available in society;
nIt focuses on the ways, how media behave and operate;
nit explores which kinds of content is produced in the media;
nIt answers the question, how can media influence culture, politics and society as a whole.
n

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Culture and Mass Media Economy
6
Within the study of media economics…
n
n…there are tree different traditions evident:
n
nA theoretical tradition
n
nAn applied tradition
n
nA critical tradition.

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
The theoretical tradition
n
nTry to explain by the word of economists choices and decisions and other economics factors
affecting producers and consumers of communications goods and services.
Culture and Mass Media Economy
7
https://encrypted-tbn1.gstatic.com/images?q=tbn:ANd9GcRKRFFaMyJTOzn4mbWO9NkqZsMJ1yWjfjHW43sGgA8SSz0
JNIzSPQ

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Culture and Mass Media Economy
8
The applied tradition
nWas created in the area of business economics and management department at universities and by
researchers for communications industry associations.
noften explore the structure of communication industries and their markets, with an emphasis on
understanding trends and changes.

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Culture and Mass Media Economy
9
The critical tradition is emerged
nfrom the work of political economists and social critics, primarily within communications studies,
concerned about issues of welfare economics.
n
n
n
n
nAcross the three traditions, there is a common underlying precept that media are economic entities
which work within economic content to producers and within market content to consumers.

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Media
noperate with a variety of business models and value-creation processes and in a wide variety of
settings.
ncontent can be sold or provide free to consumers. The state and private persons may provide
financial support for non-market purposes.
nadvertisers can provide none, some, or all of the income.
n
Culture and Mass Media Economy
10

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Culture and Mass Media Economy
11
nThe need to understand media economics is growing rapidly.
nIn developed nations the rise of enormous commercial enterprices in communications, the rapid
development of next elecronic communications systems and the commercialization of broadcasting are
dramatically changing the communications landscape and the economic and financial pressures on the
media and communications systems.

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Culture and Mass Media Economy
12
Broadcasting
nIs a key sector in modern society, not only economically but, more than most industries,
culturally,socially and politicaly.
nIt is a sector that is more than most subject to government regulation.
nThere is also a sector that is more than most linked to the digital revolution in technology as
the core of the „new global knowledge economy“

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Culture and Mass Media Economy
13
Broadcasting
nRefers to a diverse range of radio and television services for entertainment, educational and
informational purposes.
nThe industry is therefore distinct from live arts and education and from non-electronic media such
as cinema, books, magazines and newspapers.
nThe industry can also be characterized as a process/way from
nprogramme production,
nprograme selection for networks and local stations,
nprogramme delivery
n funding of this whole process.
n

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Culture and Mass Media Economy
14
Television
n had become a commercial mass medium by the 1950s, competing for audiences with radio and other
media.
nFinding the money – there are tree sources of funding for television programmes:
nAdvertisers,
nTaxpayers (in form of public money)
nViewers (fees)

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Culture and Mass Media Economy
15
Economic characteristics:
nNon-exhaustibility is a principal economic feature of television programmes.
nWith few incremental costs, a programme can be translated into other languages and reach wider
markets.
nThese economies of scale encourage programme producers to sell in international as well at
domestic markets.
nNon-excludability – it is costly to control viewers of free over-the-air television.
nIf some agreed to pay for the signals, free -rides could not be excluded.

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Role of government:
nGovernments have been intimately involved in the television industry from the outset because of
its effect on the political process.
n
n
n
n
nGovernments have used licensing of the spectrum as a way to control entry into television
broadcasting and programme content.
n
Culture and Mass Media Economy
16

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Influence of Internet
nThe Internet and the replacement of analogue by digital signals threaten current economic
relationship.
nTelevision and radio broadcasting viewership is decreasing, especially among the young, the some
people spending more time on Internet for e-mail, chat, social networks, homework or downloading
music, as well as content traditionally provided by television.
n
Culture and Mass Media Economy
17

www.econ.muni.cz
pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi
Culture and Mass Media Economy
18
The future of mass media
nIn the time of digitalisation???
nIn the time of globalisation???
nIn the time of internet???
n
n
nHow will be our live in the time digitalization?
nAbha Dawesar: Life in the "digital now"
nhttp://www.ted.com/talks/abha_dawesar_life_in_the_digital_now
n
n