The Characteristics of Media Goods and the Media Economics Structure

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The Characteristics of Media Goods and the Media Economics Structure Introduction Media is, to a large extent, a complex industry covering comprehensive areas, ranging from business operation to creative ideas. However, at a fundamental level, the study of media economics mainly focuses on the main players of the industry: companies, consumers as well as the environment. That is to say, the media economy can help us analyze and understand the relations among the producers, viewers, advertisers, government and community. This essay will be divided into three aspects: characteristics of media goods, characteristics of media market and the structure of media industry. Characteristics of media goods According to Doyle (2002), Media…show more content…
3. Albarran (2002) pointed out that policies and technology also have a great impact on the media industry. These impacts could lead to positive or negative results. For example, when the cinemas in the United States changed film projection to digital devices, the annual exhibition cost for one cinema saved about 1 billion dollars (Picard, 2005). The structure of media market Even though mixed and various factors have influences on media market, according to the market structure analysis tool presented by Albarran (2002), five important criteria are important and helpful in studying the market structure: 1. Concentration of the market: According to Albarran (2002, p30), “a market is concentrated if it is dominated by a limited number of large companies”. For example, Hollywood film industry is heavily concentrated (see Table 1) because the total market share dominated by Big Six has exceeded 80%. |Table 1: Market Share for Each Distributor in 2009 | |Rank |Distributor |Movies |Share | |1 |Warner Bros. |36 |20.04% | |2 |20th Century Fox
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