The Characteristics of Media Goods and the Media Economics Structure
Media is, to a large extent, a complex industry covering comprehensive areas, ranging from business operation to creative ideas. However, at a fundamental level, the study of media economics mainly focuses on the main players of the industry: companies, consumers as well as the environment. That is to say, the media economy can help us analyze and understand the relations among the producers, viewers, advertisers, government and community. This essay will be divided into three aspects: characteristics of media goods, characteristics of media market and the structure of media industry.
Characteristics of media goods
According to Doyle (2002), Media …show more content…
This definition is also perfectly proved by the share ratio in the Table 1 – averagely, the percentages are similar. Therefore, supported by concentration ration analysis, the structure of the Hollywood film industry is oligopoly. In reality, oligopoly is an attribute of media market. The result of this structure is that the fewer the number of producers exist, the stronger market power owned by each media company.
2. Product differentiation
Doyle (2002) pointed out that economies of scope are usually adopted by media companies in order to enrich and diversify products. Re-packaged and reformatted products, actually based on the same content, could be