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PENN / Communications / COMM 130 / What is an economic regulation?

What is an economic regulation?

What is an economic regulation?


School: University of Pennsylvania
Department: Communications
Course: Mass Media and Society
Professor: Joseph turow
Term: Spring 2016
Cost: 50
Name: Midterm 2 Study Guide
Description: Chapters 5-9 in the textbook, all lecture notes, including History of the Print Media and Week 10B Journalism notes. Also includes key terms, examples and infographics for many concepts.
Uploaded: 03/20/2016
30 Pages 39 Views 14 Unlocks

Luisa White (Rating: )

I love that I can count on (Deja for top notch notes! Especially around test time...

Chapter 5: Controls on Media Content 3/20/16 4:31 PM

What is an economic regulation?

Government Regulation: “A long boxing match”

The First Amendment: there’s been continuous debate about the meaning of the  First Amendment, esp. in media

• “No Law”: the federal branches of government cannot make laws  abridging press freedoms; controversy of federal and state power  

o Ex: Gitlow v. New York – US Supreme Court ruled that “gov. and  its agencies should make no law”; Constitution should override  

any state law that contradicts it

• “The Press”: factually truthful advertising and many forms of  

entertainment in film, television, radio and print media.

o Incorrect facts/errors bout individuals or organizations that are  

What is the federal trade commissions?

We also discuss several other topics like When was japan attacked pearl harbor?
If you want to learn more check out Why bird flu achieve human to human transmission?

created by mistake or sloppiness are protected by it

• “Abridging”: “to cut short” or “to curtail”

o Government restriction is legal if they are:

▪ Applicable to everyone

▪ Are without political bias

▪ Serve a significant governmental interest

▪ Leave ample alternative ways for the communication to take  


More Allowable Government Control over Media Content

1. Prior restraint: government restriction of speech before it is made a. Obscenity: offensive to accepted standards of decency or modesty i. Difficult to determine since people’s standards are different and the  public’s collective standards are shifting constantly

What is a self-regulation regime?

ii. Must present clear offensive manner, be considered in its entirety,  and lack serious literary, artistic, scientific, or political usefulness

b. Military operations: cases in which US is involved in military operation but  has not officially declared war, gov. may seek control access to  Don't forget about the age old question of What are stock index quotations?


i. Espionage and Sedition Acts (1917, 18)

ii. Have used pool reporters and embeds during operations

c. Copyright: the legal protection of a creator’s right to a work

i. Copyright Act of 1976 recognizes rights of an individual creator (in  any medium) from the time he/she has created the work and that  

protects a creative work for the lifetime of that author plus 70 years 1. Authors ought to be able to control how their work is used

2. Authors should be plaid fairly for the use of their work

3. Fair use: a person or company may use small portions of  

copyrighted work without asking permission, like educational  If you want to learn more check out What is basal ganglia?

purposes, not profitable ventures

4. Transformative: when use of copyrighted material presents  

the work in a way that adds interpretation to it so that some  

people might see it in a new light

5. Parodies: a work that imitates another work for laughs in a  

way that comments on the original work (ex: Weird Al)

• Line between fair use and copyright violation is hard to  

figure out with parodies

d. Education: the right of primary and secondary school administrators to  dictate school-newspaper policy and refuse to allow articles

e. National security: information that could pose clear and present danger to  the ability of the US to defend itself against enemies

f. Clear and present danger to public safety: a situation in which media  content itself poses a threat to the physical welfare of citizens

g. Commercial speech: messages designed to sell products or services 2. Regulation of content after it has been distributed

a. Defamation: a highly disreputable or false statement about a living person  or organization that causes injury to the reputation that a substantial  group of people hold for that person or entity Don't forget about the age old question of What is the definition of colonialism?

b. Slander: spoken communication that is considered harmful to a person’s  reputation

c. Libel: written communication considered harmful to a person’s reputation i. Libel per se: written communication considered obvious libel Don't forget about the age old question of What is the meaning of hippocampus?

ii. Libel per quod: words, expressions, and statements that may seem  innocent at face value, but considered libelous in their actual context iii. Public figure: persona who is a politician or someone who has  stepped into a public role; more difficulty to win libel claims

iv. Private person: individual who may be well known in the community,  but has no authority or responsibility for the conduct of government  affairs and has not thrust himself into the middle of an important  public role

v. Actual malice: reckless disregard for truth or knowledge of falsity vi. Simple malice: hatred or ill will toward another person

vii. Simple negligence: lack of reasonable care; proof of such is required  by the Court to sue for libel

viii. Red-flag words: cheat, phony, hypocrite, prostitute, thief, etc. d. Invasion of Privacy: the right to be protected from unwanted intrusions or  disclosure

i. False light: publishing material that falsely suggests an individual is  involved in an illegal or unethical solution

ii. Appropriation: the unauthorized use of a person’s name of likeness in  an ad, poster, PR promo, or other commercial context  

iii. Intrusion: when a person or organization intentionally invades a  person’s solitude, private area, or affairs

iv. Public disclosure: truthful info concerning the private life of a person  that a media source reveals that would be offensive to a reasonable  person and is no of legit public concern

v. Databases and privacy concerns

1. Silently tracking on technological devices

2. Cookie trading (chapter 6)

3. Gramm-Leach-Bliley: prevents banks and credit card  

companies from selling certain kinds of data about Americans

4. HIPAA: stops health providers from sharing your personal  

medical info with marketers

5. COPPA: requires online publishers and advertisers to get  

parents’ permission if they want to collect info from children  

under 13

3. Economic regulation: rules set by the government about how firms are allowed  to compete with one another

a. Antitrust laws: limits excessive market control by mass media  corporations

i. Excessive market control: behavior by one company or a few  companies that make it nearly impossible for new companies to enter  the marketplace and compete

ii. Monopoly: control of the market by a single firm.

iii. Oligarchy: control of the market by a few firms.

iv. Antitrust policies: policies put in place to maintain competition in the  US economy, carried out through (1) the passage of laws, (2)  

enforcement of the laws by the US Dept. of Justice and state

attorneys general, and (3) through federal court decisions that  

determine how far the gov. ought to go in encouraging competition  and forcing companies to break themselves into a number of smaller  companies

b. Direct regulation by government agencies

i. Federal Trade Commissions (FTC): federal agency whose mission is  to ensure that the nation’s market’s function competitively; its  

coverage can include any mass media as long as the issue involved is  related to the smooth functioning of the marketplace and consumer  protection in that sphere

ii. Federal Communications Commissions (FCC): federal agency  specifically mandated by Congress to govern interstate and  

international communication by TV, radio, wire, satellite and cable. 1. Creating technical order: allocating frequency spectrums,  

2. Encouraging competitions: promoting efficient use of the  

frequency spectrum

3. Consumer protection:

• Stopping “robo-calls”

• Making sure broadcasters and cable systems do not  

allow commercials that are louder than the programs  

around them

• Making rules about 911 phone lines


Self-regulation regimes: codes and agreements among companies in an industry to  ensure that employees carry out their work in what industry officials agree is an  ethical manner.

External Pressures on Media to Self-Regulate

• Members of the Public: Ex—racism, religion, politicians, businesspeople • Advocacy Organizations (pressure groups): collections of people who work  to change the nature of certain kinds of mass media materials; letter writing campaigns, attracting media, boycotting

o Ex: CAMERA – promotes its view of accurate coverage of Israel in  the media & GLADD – advocates for fair representations of lesbian,  gay, bisexual and transgender people in the media

• Advertisers: Family Friendly Programming Forum and ANA

Internal Pressures on Media to Self-Regulate

• Editorial Standards: written statements of policy and conduct established  by media organizations as a form of self-regulation

o Maintained by Standards and Practices, which makes decisions  about the acceptability of language in scripts, themes, plotlines,  and images  

o Guided by policy books: guidelines for fairness, accuracy, and  appropriateness of a station content  

o Newspapers and magazines are guided by 2 types of standards: 1. Operation policies: guidelines for everyday operations; EX–

conflicts of interest, acceptable advertising content  

boundaries of deceptive information-gathering practices,  

payment to sources for news stories, etc

2. Editorial policies: identify company positions on specific  

issues; EX—which presidential candidate the paper supports  

and if the paper is in support of certain governmental policies

• Ombudspersons: individual hired by media organizations to deal with  readers, viewers or listeners who have a complaint to report or an issue  • Professional Codes of Ethics: a formal list of guidelines and standards  designed to establish standards of professionalism within an industry o Ex: Society of Professional Journalists, American Society of  

Newspaper Editors, PR Society of America

• Journalism Reviews: publications that report on and analyze examples of  ethical and unethical journalism

o Ex: Quill, Columbia Journalism Review, American Journalism  Review

• Content Ratings and Advisories: an adoption of ratings systems o MPAA created the first of the following three voluntary rating  systems:

1. Film industries – Ratings Boards

2. TV industries - National Association of Broadcasters (TV-Y,  

TV-14, etc

3. Video game industries – Entertainment Software Rating  

Board (ESRB) – G, PG, PG-13, R, etc.

Ethics: a system of principles about what is right that guides a person’s actions

Ethical Duties to Various Constituents: self, audience, employer, profession,  primes holders, society

Forming Ethical Standards for the Mass Media

• Values: things that reflect our presuppositions about social life and human  nature

• Ideals: notions of excellence or goals that are thought to bring greater  harmony to ourselves and others

• Principles: guideless we devise from values and ideals that are precursors  to codified rules


• PIPA: Protect IP Act

• SOPA: Stop Online Piracy Act — Help crack down on websites that display  or link to copyrighted intellectual property  

*Many leaked movies come from individuals at the Oscars

Key Words: 

Pool reporters: selected members of the media who are present at a news event  and share facts, stories, images and firsthand knowledge of that event with others. Embeds: reporters who receive permission from the military to travel with a  military unit across the battlefield

• Disadvantages: journalists were often highly sympathetic to the troops  with whom they lived and depended on for survival = self-censorship

Chapter 6: The Internet Industry 3/20/16 4:31 PM

Rise of the Internet: a global system of interconnected public, private,  academic, business and government computer networks that use a standard of set  commands to link billions of users worldwide.

• Differed from telephone conversations because it allowed for a  

transmission line to carry more than one data “conversation” at a time by  breaking down the messages into packets: segments of messages that  contain digital instructions that allow them to reassemble properly at the  same time at the destination

• Used more often by younger people than by adults 65+; 96% of  Americans age 12-17 reported using the Internet

The Internet Graphic

Tier 1: huge networks; usually do not change between each other (ex. AT&T) Tier 2: smaller networks in regions of the countries; pay to connect to Tier 1’s Tier 3: even smaller; could be ISP’s; pay Tier 2;s, and tend to be local

The Web: travels on top of the Interne through a browser; made up of hyperlinks  and HTML

• Hyperlinks: highlighted words or pictures on the internet that connect  user to a particular file

• HTML (HyperText Markup Language): computer language system that  allowed people to access a system of interlinked documents through the  internet

o Used to define the structure, content and layout of a page by using  tags.

o Created by Tim Berners-Lee, Sam Walker and Robert Cailliau Brief History of the Internet

1931: Emanuel Goldberg and Robert Luther — “Statistical Machine” 1947: Penn Engineering create the ENIAC

1969/73: ARPANET connects computers at 4 universities/ 2 internationally 1976: Steve Jobs and Wozniak found Apple

1981: IBM creates first PC and Microsoft creates the operating system 1990: Tim Berners-Lee created the World Wide Web

1993: Mosaic Web is created at U of Illinois— first graphical browser for Web 1995: Microsoft releases Windows 95

1998: Google is incorporated and Congress passes COPPA

2004: Facebook

Internet Production— user generated content (UGC): creative products, such as  videos and music, generated by people who visit websites such as Facebook,  YouTube and Instagram.

• Ex: an individual who makes a travel during a recent trip to Spain and  posts it on YouTube and Facebook

Internet Distribution— “publishers”

• Ex: Macy’s distributes the images of material to browser

• Ex: TheHuffingtonPost.com places and markets The Huffington Post online Internet Exhibition— internet service provider (ISP): a company that sells access  to the internet

• Ex: Time Warner Cable, Comcast, Verizon, Sprint, AT&T, T-Mobile • Wi-Fi: a radio technology that engineers designed in the late 1990s to  provide secure, reliable, fast wireless connectivity

o A router/antenna connected to the internet transmits a wireless  signal over radio waves called a hotspot; wireless receivers connect  to the hotspot

The Net Neutrality Controversy: the desire of websites and advocates to make  sure that ISPs do not charge sites for transmission

• Some ISP executives argue that they should have the right to charge for  some sites for exhibition because the sirvers use up tons of bandwidth  that they are not being compensated for

• Some companies restrict their workers’ abilities to use the firms’  computers to visit sites like porn, gaming, social sites

Social Media Sites and Search Engines

Social media site: an online location where people can interact with others around  information, entertainment, and news of their own choosing/making. Search engine: websites that allow users to find sites relevant to topics of interest  to them

• Work by using web crawlers: programs that search the internet to  retrieve and catalog the content of websites; crawling deep to get desired  search results

• Can’t enter some parts of the web that are password-protected • Algorithm: a complex set of mathematically based rules that search  engines use to come up with sites that relate to your search terms. • Natural or organic search results: websites that come up base on a search  engine’s algorithm without any influence from advertisers.

• Many search engines and social media are in similar due to social search:  a search that is carried out to find out what people in a person’s social  circle say about an item

• Competitive with one another because they both survive through  advertising revenues

How Is Money Made on the Internet?

1. Advertisements

a. Keyword advertising: when software determined what a person is reading  and sends the person ads for products that advertisers consider related to  the topic

b. Contextual advertising: when software uses the words in the search box  to send the person ads for products that advertisers consider related to  the topic

c. Profiling: creating a description of someone based on collected data done  through the following methods

i. Cookie: information that a website puts on your computer’s hard  drive so that it can remember something about you at a later time;  information for future use that is stored by the server on the client  side of a client/server communication; related to your browser

1. Session cookie: only used once (ex. online shopping)

2. Persistent cookie: knows you’ve been there forever until  

cleared (ex. polls, voting)

ii. Clickstream: computer jargon used to describe user movement  through websites

iii. Tracking pixels: 1x1 tiny thing on your screen that can see what  you’re browsing; more persistent than cookies

iv. Behavioral targeting: the process of following people’s behavior and  then sending them material tailored to what was learned about them v. Data mining: the process of gathering and storing information about  many individuals to be used in audience profiling and interactive  marketing; helps get advertisers

1. Ad network: a collection of many websites that a company  

knits together in order to sell ads on them (Ex: Google)

Programmatic Advertisements: happens in nanoseconds; marketplace

online ad exchanges: electronic auctions in which various publishers and ad  networks offer advertisers the ability to reach specific types of people, often at  exactly the moment those people are entering certain sites

• Metrics

o PPC (pay per click) – cheaper

o PPA (pay per action) – purchase, call, etc.

• Display Ads

o Banners

o Rich media: have active animation; motion, Flash

o Video ads

o “power” (direct) vs. “image” advertising (indirect)

• Subscriptions

o Ex: Netflix (and chill), LinkedIn Premium, Hulu

o Charging for content seems to draw significant numbers of paying  customers only to prominent sites

o Many online newspapers and magazines have dropped  


• Transactions: sites selling products or services

o Ex: Amazon, Zappos, iTunes

o Click-and-mortar companies: firms with both an online and offline  sales presence (Ex: Walmart, JCPenney, Home Depot)

• Research: people look up data, track what people do across devices and  sell them to companies for online use

“Web-Centered” and “App-Centered” Businesses: reaching out to target  audiences through web browsers while app-centered reaches people through apps • Web browsers and “mobile devices” play a large role  

o Feature phone: mobile telephone that carries extras unrelated to  calling (“features” like texting, calendars, cameras, and media  players) but does not have the sophisticated web-browsing, app importing operating system of a smart phone

o Smartphone: mobile phone that uses a special computer OS to  offer connections to the internet through a web browser as well as  through apps that are compatible with the operating system

o Mobile (app): computer software designed to help the user of a  mobile device perform specific tasks

Media Ethics: Confronting Internet Privacy

*There is growing concern about privacy as a media issue with the rise of  marketing on the Web

• Media executives claim that they need this info to remain competitive for  advertising, and that people often provide this information willingly • Privacy advocates suggest that the opt-in approach would work better,  but marketers prefer the opt-out approach because of the difficulties in  getting people to opt-in

o Opt-in approach: the view that marketers should not be permitted  to collect information about a person unless the person explicitly  indicated that it is alright for them to do so.

o Opt-out approach: the view that marketers should be permitted to  collect information about consumers as long as they inform people  of what they are doing and give them the opportunity to refuse

Key Words: 

IXP: internet exchange points

Post-office protocol: email; has a different protocol than the rest of the internet Retargeting: when users’ cookies are bought them from exchanges and used to put  up the same ads from the cookie on a different site

PII: the name, postal address, or any other information that allows tracking down  the specific person who owns a device; cookies do not allow marketers to view this  info

“apps”: software that uses the internet, but not the web system, to bring material  to audiences.

History of Print Mass Media 3/20/16 4:31 PM

Books: 3 Important Themes

1. The modern book did not arrive in a flash as a result of one inventor’s grand  change; the book-making technology evolved rather than appeared suddenly • 1440 CE —Johannes Gutenberg’s printing press

o moveable type

o allowed books to be printed quicker and made cheaper  

o 1450-18th century =>1 billion books printed

2. The book as a medium of communication developed as a result of social and  legal responses to the technology during different periods

• Gutenberg first printed the Bible because it was by far the most important  book of his era

• Led leaders in different parts of Europe to proclaim laws laying out the  subjects that were appropriate for books

o Ex: British Crown and printing press of 17th century—licensing from  the monarchy

o Vernacular bible vs. Latin bible => tension between Catholic church  (originality) and Christian Europeans that didn’t speak Latin

o Copyright Act of 1709

• Crucial social development in the 19th century — spread of literacy 3. The book as a medium of communication existed long before the existence of  the book industry

• Book printing became a large, profitable industry in mid 19th century due  to:

o Jacksonian Democracy (1829-1837)

1. Appealed to the “common man”

2. Expanded voting rights

3. Mass literacy emerged alongside mass politics

o Technological change

1. Expansion of infrastructure

2. More access

o Entrepreneurial capitalism

1. Emergence of book printers, bookstores, and publisher open  

in 19th century

2. Less government control; no licensing necessary

3. US did not recognize foreign copyrights until 1891; legalized  

foreign piracy

4. Small family-owned presses went out of business because  

they could not compete

Newspapers: printed products created on a regular basis and released in  multiple copies

1. The newspaper did not arrive in a flash as a result of one inventor’s grand  change

• Critical changes in the paper’s look came about with the development of  methods for creating headlines across the page, ways to reproduce  images and way to include color

• Increased ability to reach the masses through new technology o Steam-powered press (1814)

o Rotary press (1830s-50s)

o Computerized printing technologies

• Telegraph, telephone, and computer helped bring the news from outside  the offices

2. The newspaper as a medium of communication developed as a result of social  and legal responses to the technology during different periods

• The rise of the belief in an adversarial press: a press that has the ability  to argue with the government

• 1830s: The Penny Press

o combined mass market appeal with industrial production on a large  scale to achieve economies of scale (the larger, the cheaper and  more efficient) and reach large audiences at a MUCH lower price o relied on advertising revenue

o helped popularize news for more parts of society

o was the product of historical circumstances

• Institutional factors: the Post Office Act of 1972—emphasized the  importance of news in American society

• Technological factors: speed of delivery (railroads and electric  telegraphs) and speed of production

• Political factors: adversarial press (see above) and partisan press  (papers financed and controlled by political agendas or parties)

• Cultural factors: newly literate populations, growing working class, more  people with daily access, shift towards pop culture and scandal

• Economic factors: cheap paper, productive capacity of machinery,  postal subsidies, geography (east was covered in forest), transportation 3. The newspaper as a medium of communication existed long before the existence  of the book industry

• 1870s-1990s: number of papers increase dramatically

• 1880s-1900s: ads become more important for financial support and the  rise of yellow (colorful) journalism

• Early 20th century

o Journalism more “professionalized”

o Norms of objectivity

o Reading the paper is a civic duty

o Newspapers distancing themselves from spectacular entertainment  and dubious sponsors

o Rise of newspaper chains (Scripps, Hearst)


1. The magazine did not arrive in a flash as a result of one inventor’s grand change • 1700s: first published regularly in England

• 1741: first magazines appear in the US

• MANY changes throughout the 19th century regarding the aesthetics and  magazine’s look with respect to the covers and internal layout

• 20th century saw more ads than ever

2. The magazine as a medium of communication developed as a result of social  and legal responses to the technology during different periods

• 1825 there were less than 100 magazines being published in the US; this  increased dramatically over the next 50 years due to:

o the spread of literacy

o steam-powered presses

o postal loopholes and laws

3. The magazine as a medium of communication existed long before the existence  of the book industry

• Explosive growth of magazines after the Civil War and into the 19th century as well as marketing

• Birth of women’s magazines: “Godey’s Lady’s Book” (1830): VERY  influential and played a large role in fashion norms; perpetuated the  WHITE WEDDING DRESS

• 1970s was the birth of more tailored magazines: BRANDING of new  industrial products

• Muncey’s Fundamental Shift for the Industry

o Lower cost of magazine -> attract large audience

o Get advertisers

o Charge more for ads you would otherwise make from subscriptions o Reaching target audiences will keep the cycle going

TV as a huge challenge to magazines

Chapter 7: The Book Industry 3/20/16 4:31 PM

The Book Industry Today

Educational and Professional Books

• Marked by pedagogy: the use of features such as learning chapter  objectives, chapter recaps, and questions for discussions

• Audiobooks one of the few that can include professional and educational  as well as consumer books

• Three types of educational and training books

i. K-12: books and materials created for students in kindergarten  

through the 12th grade

ii. Higher-education: focus on teaching students in college and post college learning

iii. Professional: books that help people who are working to keep up-t date in their areas as well as rise to the next level of knowledge

Consumer Books: aimed at the general public; target reader in their private lives,  outside their roles as students and as highly trained workers; informal teaching (ex.  religion, science, cooking, history, ethics)

• Trade Books: general interest titles, including both fiction and nonfiction  books, that are typically sold to consumers through retail bookstores and  to libraries

o Distinguished between hard bound and paperbacks 

• Mass Market Paperbacks Books: smaller, pocket-size paperback books o Designed to be sold in mass market outlets: venues including  

newsstands, drugstores, discount stores and supermarkets

o Most common are romance novels and scifi tales  

• Religious Books: trade books that contain specifically religious content • Scholarly Books: titles published by scholarly societies, commercial  publishers and university presses for those involved in primary research in  academic, corporate or government settings

o Typically non profit for university and college divisions

o Rising costs of electronic databases and journals has forced many  university presses to reduce output

• Book clubs & mail-order books: ship titles directly to the consumer; main  difference is that mail-order publishers create new books, whereas book  clubs sell existing titles

o Book clubs: organizations through which individuals who have  

joined can select books from the clubs catalog and purchase them

through the mail or via the club’s website often at a discounted  price

o Mail-order: books that are advertised on TV or in promotional  mailings that can be ordered directly from the publisher and are  shipped to the consumer’s home

• Subscription reference books: titles such as “great books” series,  dictionaries, atlases, and sets of encyclopedias that are marked by their  publishers to consumers on a door-to-door or direct-mail basis

o Sales only make up a tiny 0.1% of book industry sales due to the  rise of internet references

Publishers and Imprints

• Imprints: a name or brand that the publisher places on the bottom of a  book’s spine as well as on the main title page; signifies a publishing firm  or one of its divisions

• 6 Largest Publishers:

1. Random House: largest English trade publisher in the world; Random  House Publishing Group, Crown Publishing Group, Knopf Doubleday  Publishing Group

2. Simon & Shuster: owned by CBS Corporation; imprints include  Pocket, Free Press, Scribner

3. Penguin Group: second-largest trade publisher in the world; imprints  include Penguin, NAL, Ace Books

4. Hachette Book Group, USA

5. HarperCollins: imprints include Zondervan, HarperTeen, Walden Pond  Press

6. Macmillan: collection of trade and scholarly publishers; imprints St.  Martin’s Press, Henry Holt, Farrar Straus & Giroux

• Book producing is often inexpensive, but these 6 companies dominate  parts of the industry because the physical creation of the book can be  very expensive (printing press, binding machine)

• Publishers contract out these services and composition services: the work  involved in inserting into a manuscript the codes and conventions that tell  the page-making program or the printing press how the material should  look on the page

Production Processes  

Trade Publishing

1. Acquisitions editor recruits and signs new authors and titles for the  company’s list of books; most difficult part of the process

i. Look to find books of best seller and blockbuster potential

ii. Literary agents help out as they market the client’s manuscripts to  editors, publishers and other buyers based on knowledge of the  target market and the specific content of the manuscript

2. A contract is drawn up that promises payments to the author in the form  of flat fees or royalties: shares of a book’s sales income that are paid to  an author, usually based on the number of copies sold.

3. Once OK’d by the publication board, the manuscript is read and edited by  a developmental editor

4. Production editor arranges all of the technical aspects of the book  (copyediting, design, pagination)

University Press Production

1. Editors at scholarly presses try to get manuscripts by well-known  professors from well-known universities OR young professors on their way  up the academic ladder

i. Get help through consultants: well-known academics that have a  reputation for being able to spot innovative new work in their field  that their colleagues are likely to appreciate

2. Usually publicize their books at academic conferences and by mail 3. Academic associations rent space at the conventions to booksellers 4. Marketing departments and salespeople set out titles that they think  

those attending the convention will like and brochures are sent with  descriptions of the author and topic

i. A “hit” means selling several thousand companies

Book Production in the Electronic Age

• E-books have soared due to the release of various tablets like Nook, iPad,  Sony Reader, and Kindle

Reducing the Risks of Failure During the Production Process • Conducting prepublication research: research conducted in order to gauge  a title’s chances of success with its likely audience

o Editors meet with people who are representing their audience and  ask them questions about the book being developed

o Scholarly editors often pay professors to read the manuscript and  comment on its prospects for success

o Seeing how previous books on a topic sold

• Making use of authors with positive track records: the previous successes  of a product, person or organization

o Authors who garner large advances and are successful in sales are  those with the following characteristics:

▪ Previously hugely successful (e.g. Stephen King)

controversial (e.g. former presidential candidate)

▪ Well known outside of book publishing (eg. Madonna)

• Offering authors advances on royalties: a payment of money before the  book is published based on what the publisher anticipates the author will  earn from royalties on the book

o Used to lure author stars

Distribution Processes

The Role of Wholesalers in the Distribution Process

*publishing executives must be realistic of the print run: number of copies printed 1. A wholesaler purchase copies of a book from a publisher at a discounted  price

2. The wholesaler sells those copies to a retailer (exhibitor) at a lesser  discount than it received from the publisher

3. If the exhibitor can’t sell all of the books it had bought from the  wholesaler, it may return them and demand a refund from wholesaler 4. If the wholesalers can’t find another exhibitor to sell the returned books  to, it may return them to the publisher for credit towards other titles Assessing a Title’s Popularity Through 3 Indicators

1. The size of the print run: signals how popular a publisher expects a book  to be

i. Imprints telegraph expected sales; distributors are more likely to  stock up on a title with a more popular imprint

2. The content of reviews

3. The scope of the marketing plan

i. Book tour: a series of appearances that an author make in various  cities in order to promote a title and stimulate sales

Exhibition Processes

*the online presence, along with the growth of electronic publishing, is changing  exhibition in the book industry

Consumer Books

• Brick-and-mortar stores: stores that have a physical presence in the  offline world

o Struggling now that the internet is selling more books than ever o Cannot compete on price with online retailers (e.g Amazon)

o Often used for window shopping now, then consumers will buy  what they see online

Textbook Publishing

• School board decisions can influence whether a textbook publisher has a  chance of selling thousands of copies

• College textbook publishers often send professors new copies of textbooks  hoping they will require their students to buy them

• New editions of textbooks keep textbook publishers in business • Digital revolution has caused some districts to use digital versions of  textbooks on iPads, etc.

Convergence and Conglomeration in the Book Industry • Boundary blurring due to popular reader technologies like Kindle and  Nook

• Mass media executives today increasingly believe that to reach their  target audience, they must pursue audiences across multiple media  boundaries

o Expectations of more presold titles: a book that publishers expect  will sell well to specific audiences because it ties into material that  is already popular with those audiences across other media

Ethical Issues in Book Production

• Plagiarism: using pats of another person’s work without citing or  otherwise crediting the original author

• Making up facts: swirls around nonfiction authors

• For editors and literary agents, taking a person’s idea for a book and  paying someone else to write it

Key Words:

Audiobooks: a recording in which someone reads a printed book or a version of it Trade paperbacks: standard-size books that have flexible dovers Best seller: a title that sells more than 75,000 hardcover copies or 100,000  paperback copies

Blockbuster: a book that sells well over 100,000 hardcover copies

Chapter 8: The Newspaper Industry 3/20/16 4:31 PM The Contemporary Newspaper Industry

Dailies vs. Weeklies

Dailies: newspapers that are published on newsprint everyday, sometimes with the  exception of Sunday

• Tend to not have competition from other printed dailies; most controlled  by a few large firms

• LARGELY affected by the surge of internet news and the national  mortgage crisis of 2008-2009.

o Many declared bankruptcy and struggled to stay afloat

Weeklies: newspapers that are published on newsprint once or twice a week • Somewhat less buffeted by the challenges that dailies had experienced • Succeeded in carving out topic or audience areas that newspapers have  not been able to cover as easily—4 coverage topics stand out

i. Neighborhoods within cities

ii. Suburbs

iii. Rural areas

iv. Certain types of people: ethnic, racial, occupational, interest  


• Alternative weekly: popular city paper written for a young, urban  audience with an eye on political and cultural commentary (ex. Chicago  Weekly)

• Shoppers: free, nondaily newspapers, typically aimed at people in  particular neighborhoods who might stop at a local merchants and  designed to deliver coupons and ads, through they may also carry some  news or feature content

*There is a HUGE variety between dailies and weeklies, esp. cultural, language, etc.

Development of the “Modern” Look

• Headlines across columns

• Beats and departments becoming increasingly important

• inverted pyramid

• organizational hierarchy

• pictures (illustrations), later photos

• MASS circulation newspaper

o more languages (immigrant papers); helped assimilation

o supported mostly by ads and sold very cheap to gain popularity o sensationalist stories ???? the era of the “Yellow Press” (the yellow kid  cartoon stolen from Pulizter by Hearst)

▪ shows the hyper-competition and that they will use anything  to get readers

Concerns About Sensationalist Stories

• Rise of journalism and J-schools (U of Missouri and Columbia) o Created norms for journalism activities because newspapers were  the front of democracy and many thought sensationalist stories  would corrupt the people

o “professionalized” journalism along with medicine

Financing the Newspaper Business

*Primarily generate revenues in 2 ways:

1. Advertising

• Freestanding inserts (FSIs): preprinted sheets that advertise particular  products, services or retailers

• Advertisers evaluate purchases for space in newspapers buy the CPM  (cost per thousand readers): the basic measurement of ad efficiency in all  media; used to evaluate ho much space they will buy and for what price

• Firms worry about coming up with ad prices that can compete with radio,  TV or local ads in national magazines

• “Advertising” in newspapers refers to 3 different areas

a. Retail Advertising: persuades people to shop in the local outlets ▪ most important of the 3 areas

▪ Revenue from retails have dropped 50% from 2005 to 2011

▪ Ex: ads from department stores, hospitals, car dealerships,  

restaurants, realtors, movie theaters

b. Classified Advertising: short announcement for a product or service  that is typically grouped with announcements for other  

products/services of the same kind

▪ Second most lucrative type of newspaper ads

▪ Revenues have plummeted due to online real estate, auto  

and general classified ad sites (cheap ones like Craiglist)

c. National Advertising: ads placed by large national and multinational  firms that do business in a newspaper’s geographic area

▪ Ex: Airline ads, political ads, movie ads

▪ Blurred line between national and retail ads sometimes

▪ National marketers provide co-op advertising money to  

retailers that carry their products

???? Ex: Soup manufacturer might provide local  

supermarket with an allowance to purchase ads that  

highlight their soups

2. Circulation

• Presents another major revenue challenge for newspapers:

a. Whether young people will stop reading printed newspapers because  they are so heavily involved in electronic media

b. Whether young people or anyone else will pay for digital newspapers  in amounts that will allow news to survive as the printed version  decreases

c. If the amount of advertising they receive online is not enough to  support staffs and professional journalists

• The dual dilemma facing the business: to keep drawing advertising and  circulation profits from the declining print product while building digital  products that are on track to replace print as the future of business

Key Economic Trends:

• Strong revenue growth until ’95 (age of the Internet), then revenue CLIFF • 2010: HUGE drop in physical circulation (recession?)

• Revenue depletion for ads because print ads are drastically falling and  digital ads are not increasing enough to make up for it

o Digital ad revenues do continue to grow, however

Production in the Newspaper Industry

1. Creating newspaper content

• Newspapers’ publishers are in charge of the entire company’s operation  (financial issues, production issues, and editorial issues)

• Publisher sets an advertising-editorial ratio: determines the balance  between the amount of space available for advertisements and the

amount of space available for one editorial matter in one issue of a  newspaper

i. Typical daily newspaper has 60% ads and 40% content; weeklies  have more advertising

ii. News hole: the number of pages left over and available for editorial  matter (based on the number of pages needed for advertisements);  filled by the editor 

• Managing editor coordinates the work of the sections (or departments)  within the newspapers

• General assignment reporters cover a variety of topics within their  department

• A substantial amount of stories come from wire services: organizations  that, for a fee, supply newspapers with a continual stream of hard news and feature stories about international, national, and even state topics via  high-speed telephone, cable and internet connections

i. Syndicates: companies that sell soft news, editorial matter,  cartoons and photos to newspapers for use

• After the deadline, copy editors read the stories from reporters, then edit  for length, accuracy, grammar and write headlines to accompany those  stories

• The difference between the online and offline reporting staff is blurring i. Emergence of blogs: a sort of diary or journal that may describe the  events surrounding the coverage and that invites reader responses 2. The technology of publishing the paper

• Creating a news website that is 24/7 is requires information technology  professionals because it is challenging and expensive

• Much of the printed product starts out as digital since reporters can go  anywhere with a laptop and digital camera

• Key activity in the process is pagination: the ability to compose and  display completed pages, with pictures and graphics, on screen

Distribution in the Newspaper Industry

News distribution: bringing the finished issue to the point of exhibition • Determining where to market the newspaper

o The location of consumers that major advertisers would like to  reach

o The location of present and future printing plants

o The competition of other papers

o The loyalty to the paper that people in different areas seem to have • Distributors must distribute link to their paper’s digital stories to people  who request email or Twitter updates, ensure the serving of ads to those  user and run software that learns about users by getting them to register  and by tracking their activities on the sites

Exhibition in the Newspaper Industry

• Online news outlets: computers, smartphones and other devices wherever  users can and want to access it

• Physical world:

o Free weeklies: often placed in special boxes in stores or on streets  with placards inviting people to take a copy

o Weeklies and dallies that cost money: can be found in stores and  coin-operated boxes and newsstands

o Subscriptions: exhibition points is a home or office delivery

• Achieving total market coverage (TMC): reaching nearly all households in  a newspaper’s market area

o More competition now that there’s a nationwide decrease in the  percentage of homes receiving newspapers

o Direct mail firms: ad firms that mail ads directly to consumers’  homes

o Marriage mail outfits: ad firms that specialize in delivering circular  advertisements that might otherwise be inserts as FSI in  

newspapers; produce sheets and brochures from several  

advertisers that are bundled together

A Key Industry Issue: Building Readership

*Built print readership through the following:

• More attractive and colorful layouts

• Sections designed to attract crucial audiences

• Emphasizing localism

*Built digital readership through the following:

• Podcasting: ability to download audio recordings directly to MP3 players

• RSS feed: a flow of stories on topics the reader has chosen that the  newspaper sends to the individual’s computer so that the user does not  have to go to the paper’s website to see it

• Mobile feed: stories specifically formatted for the user’s smart phone or  tablets

Why did the newspaper stop being dominant?

1. Suburbanization = reduced circulation for local papers

2. Television

3. The Internet

Why the problem may remain:

1. Due to the Internet, newspapers will no longer have monopolies for ads in  their areas (ex. local ads are now Google, Yelp, Yahoo!, and Groupon) 2. Online competition is so strong that CPM’s are much lower for digital ads  than print ads

3. Paywalls won’t solve the problem because you can find content on  multiple sites for free

4. Video ads may help a bit

Key Terms: 

Editor: the executive in charge of all the operations required to fill the news hole Beats: a specific, long-term assignment that covers a single topic area (ex: college  athletics in the sports department)

24/7: around-the-clock news organizations that constantly update stories and  present new ones

paywall: a barrier that prevents people from accessing digital material without first  paying money

Week 10B Notes — Journalism 3/20/16 4:31 PM

What is Journalism?

• To provide citizens with info they need to be free and self-governing o Educate citizens and raise public awareness of current issues

• Afflict the comfortable and comfort the afflicted

o People of power feel uncomfortable

o Make those who aren’t in the power elite, to be heard

o Gatekeeping ???? there will always be some selector of content

▪ Can sometimes stop the job journalists want to do or  

encourage them to do their job

Why should we care if journalism goes downhill?

• Link between journalism and democracy

o “Journalism is the first draft of history”

▪ most explicit recount of what is happening now

• news is the struggle over the definition of reality

o doe public corruption increase without the light of the press?

Burning Questions:

• Will the new circumstances cripple…

o Investigative journalism? — may cut down on this to save money o Beat journalism? — some say is going to be hurt

A new perspective: networked journalism

• Professionals and amateurs to work together to get the real story • Linking to each other across brands and old boundaries to share facts,  questions, answers, ideas, perspectives…

o Propublica and NYT

• Examples:

o Commercial news sharing

o Private-public partnerships

o Public and noncommercial media

o University news partnerships

o Legacy/hyperlocal (eg. Patch); collabs

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