Media Content Vs. Media Economics

Special Problems in Journalism Media Content vs. Media Economics E. Aguilar Bicol University College of Arts and Letters

Media management has become an interesting field of study from the time media conglomerates began to emerge in the 20th century (Jan. 1, 1901 to Dec. 31, 2000). A media conglomerate is a large company that owns various mass media outlets such as television, radio, publishing, movies, and the Internet. Since the beginning of the study of communication, attention has primarily focused on the roles, functions, and effects of communications. When media and other communications enterprises were studied, they were typically explored as social institutions, and much of the focus was on the social, political, legal, and technological influences on the enterprises and their operations (and not the other way around). Historically, media scholars ignored, or only lightly attended to the effects of economic forces. This is not a surprise because communications scholars initially came from the disciplines of sociology, psychology, political science, history, and literary criticism. Media entities themselves permitted this lack of scholarly interest in economics and management because—for most of their history—large number of media executives had not considered media to be business enterprises. This is not to say that there were no commercial aspects. Many owners, however, operated publications and small commercial radio and television stations as a means of making modest livings, while enjoying a great deal of rewards from playing influential roles in the social, political, and cultural lives of the communities and nations in which they were published. In the second of the 20th century, media of all kinds began taking on stronger commercial characteristics with the explosion of advertising expenditures. Newspapers and magazines prospered and commercial radio and television became highly profitable. These changes, plus the rising of the new media as competitors of traditional media, began creating new business and economic issues in the industry. But media scholars generally ignored this phenomenon, not until the 70s and the 80s. Media as a form of business There are two aspects of a media organization: 1. Editorial aspect (content, production) 2. Business aspect (finance, income-generation) Five characteristics that differentiate media from other types of businesses: 1. The perishable commodity of the media product 2. The highly creative employees 3. The organizational structure 4. The societal role of the media (e.g. awareness, influence) 5. The blurring of lines separating traditional media

Effects of too much media commercialization: 1. Loss of relevance 2. Yellow journalism (scandal-mongering, sensationalism) 3. Using news airtime for self-promotion 4. Less space for news, more space for ads 5. Bias towards other businesses Sources: Handbook of Media Management and Economics Edited by Alan B. Albarran, Slyvia M. Chan-Olmsted, Michael O. Wirth