This is a summary of the 4 ECTS version of the course, taught by prof. dr. Desiree Schmuck, prof. dr. Leen d'Haenens and prof. dr. Rozane De Cock.
It includes all the materials that are required to be studied for the exam: slides and detailed verbal explanations. Studying only this summary was ...
Contents
1. Introduction: Characteristics of Digital Media Markets ................................................................ 3
1.1 Setting the scene ................................................................................................................. 3
1.2 Characteristics of media markets .......................................................................................... 5
2. Technological Innovation in Digital Media Production.................................................................13
2.1 Evolution of media formats and media types ........................................................................13
2.2 Impact of technological innovation: current trends ...............................................................15
Trend 1: User-generated content...........................................................................................15
Trend 2: Platforms as new gatekeepers ..................................................................................17
Trend 3: Use of news aggregators ..........................................................................................19
Trend 4: Automation by social bots ........................................................................................20
3. Audiences in Digital Media Environments ..................................................................................21
3.1 Audience measurement ......................................................................................................22
4. Consumption of Media I............................................................................................................26
4.1 Consumer behavior.............................................................................................................26
4.2 Consumer behavior: literacy ................................................................................................30
4.3 Consumer behavior: privacy concerns ..................................................................................31
5. Consumption of Media II...........................................................................................................34
5.1 Media effects .....................................................................................................................35
5.1.1 Feature 1: Selectivity of media use ................................................................................36
5.1.2 Feature 2: Media properties as predictors......................................................................36
5.1.3 Feature 3: Media effects are indirect .............................................................................37
5.1.4 Feature 4: Media effects are conditional ........................................................................38
5.1.5 Feature 5: Media effects are transactional .....................................................................38
5.2 Media effects in digital environments ..................................................................................39
6. Europeanization of Media in Europe ..........................................................................................41
6.1 Concept ‘Europeanization’...................................................................................................41
6.2 Example 1: ‘Europeanization’ of the television/AVMS regulatory framework..........................42
6.3 Example 2: ‘Europeanization’ of the audiovisual sector .........................................................48
6.4 Example 3: Europe’s human rights policy..............................................................................49
7. Current Debates on Public Service Media...................................................................................59
7.1 European public service broadcasters (PSB)..........................................................................59
7.2 Benchmark study of the PSBs in Europe: Analysis of supply, financing & audience reach (Raats
et al., 2015) ..............................................................................................................................62
7.2.1 Public mission & organization ........................................................................................62
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, 7.2.2 Financing .....................................................................................................................63
7.2.3 Channels and programming ..........................................................................................63
7.2.4 Cross-media and digital services ....................................................................................64
7.2.5 Content........................................................................................................................65
8. Trends and Challenges in Europe’s Media Production and Distribution ........................................68
8.1 Is content still king? ............................................................................................................68
8.2 Media subsidies (Trappel)....................................................................................................78
9. Media convergence ..................................................................................................................81
9.1 Media convergence.............................................................................................................82
9.1.1 Technological convergence ...........................................................................................83
9.1.2 Industrial convergence in the media sector ....................................................................84
9.1.3 Cultural convergence ....................................................................................................85
9.1.5 Regulatory convergence................................................................................................85
9.2 Media organizations............................................................................................................86
9.3 Media work in times of media convergence..........................................................................87
9.3.1 Market situation...........................................................................................................88
9.3.2 Organization of the company ........................................................................................88
9.3.3 Workflow & content .....................................................................................................89
9.3.4 Management, skills & training .......................................................................................89
9.3.5 Participation of the public .............................................................................................90
9.4 Case studies .......................................................................................................................91
9.4.0 News for children: from TV to … ....................................................................................91
9.4.1 Freelancing journalists: opportunity or threat for media workers? (De Cock & de Smaele,
2016) + work pressure research .............................................................................................91
9.4.2 Blurring lines between gaming and gambling on a global scale (De Cock, Zaman, Van
Mechelen & Huyghe) ............................................................................................................94
10. Alternative Media...................................................................................................................96
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,1. Introduction: Characteristics of Digital Media Markets
1.1 Setting the scene
The value chain
Why is it important to study digital media?
“Try to avoid digital media. They make you (…) fat, stupid, aggressive, lonely, sick and unhappy.” -
Manfred Spitzer, 2012, p. 325
3
,4
,1.2 Characteristics of media markets
Digital media: communication perspective
• Traditional media going online (such as the New York Times);
• Pure online media, which in its editorial policies resemble traditional media (such as Huffington
Post);
• Pure online platforms (such as Google or Social Media) that may lack a clear editorial policy and,
instead, but convey news from other sources (e.g. Reuters news).
Digital media: technological perspective
Digitization describes the change process in which analog, material information units are replaced by
dematerialized, binary information units.
Different stages in different media genres:
• Print news: production is digital, whereas distribution is still analog
• Radio: UKW-distribution is still dominant
• TV: mainly digitized
→ How does digitization change media markets?
Digital media: economic perspective
The use of digital technologies
• changes business models and
• provides new revenue and value-producing opportunities
• allows moving to a digital business
5
,Media economy
• Study of how media firms and industries function
• In tandem with other forces (e.g. globalization, regulation, technology, and social aspects)
• Through the use of theories, concepts, and principles drawn from macroeconomics and
microeconomic perspectives” (Albarran, 2009).
Imperfect market forces
• Market forces: bring production and consumption
together
• Market in balance: Price is at the intersection of supply
and demand
o Utility maximization
o Profit maximization
• Intervention has an impact on supply and demand
• Perfect market assumes
o Well-informed, rationally acting consumers
o Relatively large number of producers, free access
to production
• Various obstacles that influence the effect of demand, supply and free pricing
o Monopolistic market: one provider controls
o Oligopolistic market: control a limited number of suppliers
o Government intervention: If public service TV is financed with taxes and commercial TV
is not, there is no natural competition anymore and there are imbalances in market
Market failure
• Markets do not efficiently allocate goods and services
• Market forces do not serve the perceived public interests
• Media markets are characterized by a number of market failures
What is special about media markets?
• Two sided markets: they serve two types of consumers: audiences and advertisers
• Media industry provides different and diverse products (information to entertainment)
• Media markets are influenced by political, cultural and economic factors
o Political system and cultural demand influence which media are supplied
6
, Media and micro economics
In a context of…
• Globalization: companies/products function beyond national boundaries
• Regulation: rules and legislation, on the national and international level
• Technology: rapidly changing modalities of production and distribution
• Social aspects: demographics, lifestyle, multiculturality
Characteristics of media markets
Media industries are…
• Specific
• Atypical
Media industries are specific
• Reality of media companies
o High dependence on technological innovation
o Volatile markets: fundamental possibilities for newcomers
▪ Direct competitors
▪ Introduction of intermediaries which only aggregate media (e.g. Google News /
Facebook News tab)
• Digitization of distribution: changes market structure
→ material goods can be purchased via online markets
o Reduced market entry barriers
o Higher competition: global and local players compete
o Difficulties to adapt for established suppliers: transition from traditional distribution to
online distribution is more difficult than starting off completely digital
o Stronger price competition → consumers can easily compare prices
• Reality of media companies
o High fixed costs: Production cost for one consumer
o Low variable costs: production cost for additional consumers
→ Fixed costs: the de facto investment to produce the first unit
→ Variable costs: costs depending on additional units
• Possibilities to intervene in the (fixed) cost structures of media organizations
o Economy of scale
o Economy of scope
Economies of scale
• Increasing market share interesting to reduce marginal cost (cost per additional unit produced)
(e.g. publishing music album)
• Faster past break-even point, faster profit by additional units
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