lesson 5

• Croteau and Hoynes (2001)

  posited two models by which we can view media as an institution-the market model and the public sphere model. The models differ on how public interest is perceived and realized.
• Market Model

  ➢ The content is seen as a product and the audiences are viewed as the consumers.

  ➢ It is also the more dominant perspective within the media industry.
• Media Industry

  ➢ Viewed like all other mainstream industries in society that take profit as their main goal.
• Media Organizations and Institutions

  ➢ Act as the typical capital-intensive and profit-generating company.

  ➢ It raises capital, sell stocks, competes with other media companies for market share, invest in research and development to generate new products, operates on a top-down structure, and positions itself as a main player in the field.
• Media Firm

  ➢ Financed by investors and stockholders thus its main accountability is to them, manifested in stockholder meetings and annual reports that illustrate profitability and the conditions that warrant it.
• market model

  This model operates using the logic of supply and demand, where the quantity demanded will equal the quantity supplied thereby resulting in an economic equilibrium, a point wherein profit reaches the optimum level.
• The market model promotes efficiency


  ➢ Profit is the ultimate motive that can only be achieved when production costs are kept to its lowest level, thereby increasing profitability from sales.
• The market model promotes responsiveness

  ➢ Media firms claim that the logic of supply and demand make them more attuned to the pulse of the audiences because they keep tab of the demand for their products. They are able to supply the media products that they think are the current preferences of the audiences or consumers.
• The market model promotes flexibility

  ➢ It is always responding to better and more innovative products. Simply put, market model allows media firms to strive to be on top of their game; thus the nature of the playing field itself allow firms and entities to constantly adjust and innovate.
• The market model promotes mass products

  ➢ Producers gain expertise to create successful products for the mass audience. Given the amount of their investments that are spelt in financial terms, they tend to veer toward mass production in their effort to gain their investments back and reap more profits. The links of the local media industry to the global economy enable the production of mass products.
• Newspapers and magazines

  ➢ Accomplish the layout by giving print advertisements and ample space.
• Commercial

  ➢ Takes a significant fraction, almost 40%, of the airing time of a television program.
• ❖ Radio

  ➢ Benefits significantly from the product placements and advertisements.
• What are drives the profit-driven directions of these media enterprises are mechanism that attract those significantly contribute to their profits- the advertisers and media buyers. These entities produce advertisements to sell product to target consumers.
• Blogging scene

  ➢ Bloggers have already identified ways by which they can generate income.

  ➢ They usually start small by posting articles that can attract a steady base of readers, then move on to more interesting perhaps timely, if not controversial topics which will attract a niche group of readers.
• Independent media producers

  ➢ Have also used the internet as platform to advertise its products.

  ➢ For instance, use YouTube as an online resource.
• Public Sphere – the area of public life where individuals can freely discuss, deliberate, and debate on issues and matters affecting their lives.

  — The concept was developed by Jürgen Habermas who argued that the public sphere is a way of checking state domination.
• Public Sphere Model

  • a model for the mass media industry that sees the protection and promotion of public interest as the primary goal. Audiences are treated as citizens and stakeholders in the creation of a democratic society.
  • assumes that media will side on the lofty ideals of democracy and set aside profit and commercial interests.

  media stands as the core of democratic society.
• Markets are undemocratic. Croteau (2001) claims that markets are inconsistent with its democratic mandates because profits are the only consideration
• Markets are amoral. There is largely no consideration for products that may harm, even indirectly, the audiences. The market cues the owners what to supply and what will generate optimal profits.
• Markets do not meet democratic needs. are based on the inherent and inalienable rights of individuals. In a market economy, the drive to earn profits dislodges human rights and democratic ideals.
• Industry refers to a remarkable scale of production and distribution of

  goods and services within an economy.
• Manufacturing industry- emerged from the dramatic changes brought about the

  industrial revolution.
• Construction Industry- spans the construction, repair and alteration of all physical structures.
• Beauty Industry - covers the product and services related to the improvement of the physical appearance of both women and men.
• ❖ Media Industry- provides goods and services to help other industries achieve their market goals.
• Dual Product Model- works first by creating a media product for specific audiences and

  then by selling that audience to prospective advertisers.
• Globalization - it has risen to popularity over the past two decades and more momentum in public discourse after the fall of Soviet Communism in 1989.

  -commonly defined as the connectedness of the production, communication, and technologies throughout the world.
• Anthony Giddens (1991) illustrated globalization as “the intensification of worldwide social relations which linked distant localities in such a way that local happenings are shaped by events occurring many miles and vice versa”.
• Social Scientists and scholars agreed that globalization results to at least 3 dramatic

  changes:

  • The growth in information and communications technology

  • Increased citizen mobility

  • The rise of multilateral institutions
• On the surface level, there are 3 emerging trends:

  • Domestic market becomes inundated from media productions that are produced.

  • Transnational media giants are always potentially collaborating if not,

  competing with local media giants.

  • Local media giants are now looking at other nation-states and the

  equivalent media companies as sources of additional revenue.
• PATTERNS OF OWNERSHIP

  ➢ Ownership patterns refer to the ways in which ownership of a property or company is divided.
• ❖ Horizontal Integration- means that its products and services are both complimentary and competitive.

  ❖ Vertical Integration- is also known as the traditional industrial organization is a proven structure for media organization.

  - A situation wherein the company’s businesses are in the same

  product path.