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MC 101 Chapter 3 Notes

by: Danielle Rios

MC 101 Chapter 3 Notes MC 101

Danielle Rios
GPA 3.6

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These notes outline Chapter 3 in The Media of Mass Communication, 11th Edition, by John Vivian.
Mass Communications and Society
Mr. Michael Simmons
Class Notes
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This 3 page Class Notes was uploaded by Danielle Rios on Friday September 2, 2016. The Class Notes belongs to MC 101 at Southeast Missouri State University taught by Mr. Michael Simmons in Fall 2016. Since its upload, it has received 11 views.


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Date Created: 09/02/16
Chapter 3: Media Technology Financial Foundations  Capitalism: an economic system where trade and industry are controlled by private owners  Revenue Streams: companies attain profits mainly through either of the following ways: o Advertising o Sales to Media Consumers  Investors: some companies are jumpstarted by investors who will gain profits if the company does well o Venture capital: when investors take huge risks with expanding businesses o Dot-Com Bubble: massive investment in internet companies between 1995-2000 o Dot-Com Bust: when the value of internet companies collapsed (2005) Ownership Structures  Conglomerate Dominance o Conglomeration: the process of a larger company acquiring smaller companies to increase their profits (risky, but usually pays off)  Conglomerate Behavior o The board of directors for most conglomerates are profit-driven and make decisions based on profits o Typically, conglomerates have a hierarchical structure  Divestiture o The process of selling off subsidiary business investments o Companies tend to do this more often if they fear their company is not doing well Alternative Media Ownership  Institutional Sponsorship aka Sponsored News o Mary Baker Eddy: founded the Christian Science Monitor (a newspaper sponsored by the Christian Science church) in 1908  Community Foundations: nonprofit promotions in a community (supported by donations)  Nonprofits o Cooperative model: organization run with shared ownership  Associated Press: news-gathering organization which is a nonprofit o Nonprofit and Investigative Reporting  Report on stories for-profit organizations often avoid o Nonprofit Sustainability  Nonprofits have problems staying in business is the long run without adequate revenue streams  University Media Generators o Student investigative reporting with a target audience of students who attend university  Family Ownership aka Sole Proprietorships o Ownership of media which is handed down for generations o Personality-Driven Media: some companies begin with one owner, but eventually end up being purchased by conglomerates o Pride of Ownership: refers to the nostalgia some owners feel about owning their own company in a way which makes them less likely to sell to a conglomerate o Death tax: tax on inheritances Government Role  Historic Media-Government Links o Government Communication Policy  The 1989 Postal Act gave a discount to the government for mailing newspapers o Postal Favoritism  More laws were established to help the government send out mail in an easier way o See Timeline on pages 68-69  Broadcast Economics Broadcasting was the biggest tool for communicating government policy from 1909-1934  Government-Created Media Infrastructure o Scarcity Model: when resources are greater than demand o When the scarcity model was no longer effective, the marketplace model was used  Supply and demand became the determining factors of whether or not some enterprises remained in business  Favored Tax Treatment o Newspaper Preservation Act: law enacted in 1970 which allowed newspapers to combine their businesses in every way except for their operations in terms of news-editorials o Joint Operating Agreements (JOAs): the process of newspaper companies combining with each other New Media Funding  Advertising and Subscriptions o These two are closely related, so companies use both to increase profitability  Hybrid Mix o Government funding supports various media enterprises  Legals: paid advertising which is required by law o Philanthropy: donations to good causes o Underwriting: acknowledging non-commercial broadcast sponsors on the air o Fund Drives: when nonprofits host events to receive funds and other gifts to keep their enterprise going o Micropayments: a subscription which is billed with other expenses to receive the benefit of what may be an expensive service for what seems like a small amount of money o Auxiliary Enterprises: refers to revenue-generating business sideline Media Economic Patterns (some industries fade after time)  Phase 1: Invention  Phase 2: Entrepreneurship- when startup companies have a perfect balance of capital and risk, they move to the next step in the process of becoming a mass medium  Phase 3: An Industry- a period of company expansion  Phase 4: Maturation- trade groups are established  Phase 5: Defending Infrastructures- maintaining relevancy o Andy Grove’s Final Stages of an Aging Industry  Ignoring New Challenges  Resistance to Change  Radical Reforms (which may or may not work out) Notes by Danielle Rios


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