COMM 1011 Study Guide - Final Guide: Motion Picture Patents Company, Federal Communications Commission, Film Studio
Document Summary
Economies of scale: costs go down as production qts. Supply + demand (law): relationship b/w supply of products, prices and consumer demand. Marginal costs: incremental costs of each add. copy/unit of a product. Monopoly: one company controls market, price fixing, reduce diversity of content. Duopoly: 2 dominate market, gentleman"s agreement b/w them (merges + price fixing) Oligopoly: 3+ companies that control the market (film) Profit: what is left after operating costs, taxes, paybacks to investors (revenue - production costs) Barriers to entry: obstacles companies overcome to enter a market. Direct sales: when consumers pay lump sums to purchase physical products like iphones (they keep product) Rentals: direct payment for product consumers don"t keep. Subscription: payments for continuing services (magazines, spotify) Syndication: rental of content to media outlets. License fees: compensate creators of media content for the use of original ideas (royalties) Media that society considers desirable but that commercial interests do not find profitable (pbs)