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CS101 (20)
Chapter 1

Chapter 1 CS101.docx

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Wilfrid Laurier University
Communication Studies
Natalie Coulter

CS101 Chapter 1Economics of Mass Media Week 2 Alternative MediaCampus and community radio stations in CanadaUnderground MediaThe generation defined antiestablishment press of the 1970s The emphasis is heavy on local live entertainment usually bar centredHightech MediaTechnology creates new possibilities Ex What iPods are doing to music storesEconomics of Mass MediaEconomic Foundation The mass media are expensive to set up and operate They are a major investment To meet expenses the mass media must sell their product in two waysDerive income from selling a product directly to mass audiences Ex Movie industryDerive income from advertisers that place advertisements for mass audiences ExNewspapers The mass media operate in a capitalistic environment With few exceptions they are in business to make moneyAdvertising Revenue Advertisers pay the mass media for access to potential customers From print media advertisers buy space From broadcasters they buy time Book publishers once relied solely on revenue from customers who buy the book Now they charge film rights whenever Hollywood turns a book into a movie or television program Movies now benefit from DVDs and VHS and advertising rather than just what they make at the box officeCirculation Revenue Circulationnumber of copies of a publication that circulate When income is derived from the audience its called circulation revenue Macleans costs 495 at the corner store but little of this money goes to Rogers the parent companyGovernment Subsidies Canadian Broadcasting Corporation CBCCanadas national public television network Began broadcasting in 1952 CBC promotes Canadian culture to CanadiansDemassification DemassificationMedia focus on narrowed audience segments Radios demassified in the 1950s Magazines demassified in the 1960s and 1970s Television is currently demassifying with the variety of programs that are on Alternative Mediaemerging narrowly focused advertising vehiclesSponsored websites with games and other lures Direct mail catalogues and flyers to selected addressesTelevision commercials at point of purchase such as in grocery stores
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