CMN 140: Week 4 Lecture Notes
CMN 140: Week 4 Lecture Notes CMN 140
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This 5 page Class Notes was uploaded by Brittney Bui on Monday October 26, 2015. The Class Notes belongs to CMN 140 at University of California - Davis taught by Laramie Taylor in Fall 2015. Since its upload, it has received 22 views. For similar materials see Intro Mass Comm in Communication Studies at University of California - Davis.
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Date Created: 10/26/15
Lecture 7 Wed 1021 L Taylor CMN 140 Media Money Costlv Content Movies We pay attention to movie cost because it s a marketing tool and we use that to determine how good the movie will be List of the most expensive movies ever made in terms of production budget 1 Avatar 425000000 Costlv Content Internet Facebook 50 millionyear on data center leasing YouTube I 300K for servers on Gangnam Style the most viewed video on YouTube Costlv Content TV Sitcom l average is 15 million per episode 30 minutes Drama I average is 2 million per episode 1 hour Reality show average is 1 million episode Ex Survivor not Cake Boss 0 Reality shows are cheap compared to sitcom s and dramas SoWHO pavs for this content We do The audience What are a household s media costs Cable Internet Cell phone bill DVD Rental Netflix Newspaper subscription Magazine subscription Movie theater SpotifyiTunes Video games Hardware like AppleTV not a monthly fee but it s still a cost Average is over 1000yearperson in direct payment in the US Funding Models Fee for a serviceproduct We pay for the content 0 Ex Watching movies the theater buying CDs 0 This model is risky if you are a media producer because it s risky as a media consumer 0 I m going to pay 15 for a movie ticket and I don t know what to expect sometimes you watch a really bad movie in the theater 0 Problem once a consumer knows everything about the content then the consumer does not need to pay to consume it anymore 0 Ex Fast and Furious has 7 sequels producers are confident that consumers are confident they know what they re going to get 0 More complicated when it comes to music 0 Ex Mumford amp Sons made 2 albums that were popular The 3rd album did not have any banjos and did not do too well and the consumers were confused and upset because they did not get what they expected 0 lnvolves a lot of UNCERTAINTY Subsc p on We pay for a body of content for a fixed amount of time usually monthly 0 Ex Netflix magazines library databases Involves some uncertainty but LESS than paying a fee for a serviceproduct Able to cancel whenever you want 0 Only works when the consumer knows what to expect very predictable 0 Ex Cosmo magazine has the same type of content 0 It s not great but it s good Audiences in the subscription model tend to be high value because they stay The subscription automatically renews It takes a lot for a subscriber to end their subscnp on Government Supported 0 Government funds 0 Ex Venezuela state television its funding is monthtomonth they have to keep everybody in the government very happy 0 Ex BBC a tax was passed in Britain that if you have a radio you have to pay an annual fee to own and operate that radio a TV was a different fee all the revenues from those fees go into supporting BBC the government cannot make changes to the BBC they can only make suggestions grants BBC a great deal of autonomy DonationsPublic Support 0 Voluntary payment not tied to consumption 0 Not giving you anything in return for your payment 0 Ex Public radio public television community newspapers some music 0 This model is expanding 0 Ex 10 years ago the Bay Area Newspapers operated on a voluntary support model They were not generating enough advertisement revenue to stay in business so they asked the public for help and they actually contributed donations Advertising Supported Funded by entities who pay for audience attention 0 Ex Most TV most Web pages much of the cost of magazines newspapers part of the cost of video games and movies Need to convince the public in a predictable way for audience members to continue watching What advertisements cost How much it costs to put a 30 second ad on any given show in any given year Most expensive Sunday Night Football 600K Why do some TV spots cost more than others More viewers are watching l The more attention production companies can sell the more they are worth You can watch a lot of shows on Hulu or Netflix but you cannot watch Sunday Night Football anywhere else Football is a program that you want to watch with others l The most attractive demographic young adult men Costlv Content Time 9 hoursday with media after we ve already adjusted from multitasking 20hour US median wage 66937year median salary no overtime 10000 hours rule 3 years 9 hours a day for 3 years 10000 hours 0 To become an expert at anything you have to spend about 10000 hours on it If we are spending 9 hours a day on media that means we are losing 9 hours doing other things What s the opportunity cost 0 We give up something substantial for media Explaining Behavior Why don t we maximize our own interests 0 Media producers and distributors are maximizing their own interests and we are maximizing our own interests mutual maximization Economic OptimizationMaximization VS Satisficing 0 Economic OptimizationMaximization determining our behavior whether it s producing or consuming in such a way that it will return the greatest profit how can I get the most given what I have 0 A consumer will select the productentertainment that will most optimize their experience 0 Everyone involved in all transactions has perfect knowledge of all other alternatives Ex Looking ALL the options on Netflix Assumes a very high degree in consumers making choices motivated to scrutinize to make a decision Assumes limitless resources for analysis and decision making now you have to have the ability to process the information before you make my decision How accurate are all of these 3 assumptions in regards to how we actually make decisions Not very accurate Satisficing satisfy suffice Not necessarily seek what is optimal will seek what is GOOD ENOUGH Once you find what is good enough you will stop and choose that choice Truth l we engage in this model ALL THE TIME Ex Finding apartments many people do not look at ALL the choices and just choose the convenient option doesn t mean that it s horrible but it s good enough even if you do look at a lot it s only like 10 and still not all of the options Ex When you go to the movies do you look at all the ones that are available and figure out which one is the best choice If satisficing were not a thing there would be NO NETFLIX Good enough to occupy consumers attention 0 Will individuals and institutions differ on their tendency to optimize or sa s ce Yes because of different needs Ex Buying a house vs which movie to watch 393 Cost 0 Consequences 0 Time spent Media SaleUse as Nedotiation Media companies interests increased profit shareholder value maximizing audience and payment from audience members Consumers interests less clear and likely to be more diverse specific content interest informationcontent experience entertainment convenience ease of decisionmaking Windowing the strategic release of the same content at different times and through different media in order to maximize revenue the mechanism by which this negotiation ends up taking place 0 How many different ways are there to watch a movie and how much does each option cost Tuesday theater 5 Normal theater 12 to 25 Driveins 7 DVDs 10 BluRay 20 Rent DVD 2 Netflix 8month 50 cents a movie Amazon Prime 1 OOyear 2day free shipping iTunes 6 to 10 Piracy free Hulu ads TV ads YouTube ads or 6 Airplane part of air ticket 0 Movie companies look at the entire constellation of audience s interests like convenience and time and try to sell you what is most valuable to you and charge you as most as they can 0 Some people say that in 10 years windowing will be gone because once a movie comes out in theaters it will come out on the same day for free online Stars at Risk Reduction 20000000 per movie for 0 Johnny Depp PC 3 Arnold Schwarzenegger T3 Keanu Reeves Matrix 2 3 Sandra Bullock Gravity Why are they worth this much Because studios fervently believe that the public will watch a movie with these actors in it Having these actors in movies reduces the risk and uncertaintv that the public might have about these movies Are they really worth this much They are perceived as worth it When a big name is attached to a movie investment does uo But when we look at box office data we look at the amount of money that production companies make