/
The Media Business: Consolidation, Globalization, The Media Business: Consolidation, Globalization,

The Media Business: Consolidation, Globalization, - PowerPoint Presentation

alida-meadow
alida-meadow . @alida-meadow
Follow
349 views
Uploaded On 2018-12-06

The Media Business: Consolidation, Globalization, - PPT Presentation

and the Long Tail Chapter 3 Revised for ed6 7716 Wild Ponies Making it in the music business without a recording contract Doug amp Telisha Williams perform as the band Wild Ponies Indie ID: 737602

billion media big sales media billion sales big cable long news number amp player 2015 services products goods bigger

Share:

Link:

Embed:

Download Presentation from below link

Download Presentation The PPT/PDF document "The Media Business: Consolidation, Globa..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

Slide1

The Media Business:Consolidation, Globalization, and the Long Tail

Chapter 3

Revised for ed6. 7/7/16Slide2

Wild Ponies: Making it in the music business without a recording contract

Doug & Telisha Williams perform as the band Wild Ponies.Indie musicians can make a middle-class living by engaging with listeners.

Kevin

Kelly’s Theory of 1,000 True

Fans

Digital

technology puts creative media power in hands of

individuals.Slide3

Development of Private Ownership1638: First printing press in North American colonies

1690: First newspaper published in colonies1830s: Penny Press begins1840s: Telegraph industry owned privately, not by government

1930s: Growth of national newsSlide4

Big MediaConsumers have many

more ways to consume media now than they did 40 years ago.Old media expanded while new media come into existence.Limited number of giant media conglomerates, but also new big players.

But today, bigger isn’t always better.Slide5

Legacy ConglomeratesDisneyNews Corp. & 21

st Century FoxTime WarnerViacom & CBS

Bertelsmann

All are multinational businessesSlide6

Disney2015 Revenue: $52.5

billionMajor player in broadcast TV, cable, movies, theme parks

Home of Mickey Mouse, Pixar, Marvel &

Lucasfilm

Pioneer in new media distribution and media convergence; among the first to offer content through Apple's

iTunes.

Master

of merchandising and product

tie-ins

But has to deal with declining audiences for money-maker

ESPNSlide7

News Corp. & 21st Century Fox

News Corp.Fiscal Year 2015 Sales:

$8.6

billion

Newspapers

, Information services, Books

21

st

Century Fox

Fiscal

Year 2015

Sales:

$29 billion

Cable

, Broadcast, Film, Satellite properties, includes Fox

NewsSlide8

News Corp. & 21st Century Fox

Both companies c

ontrolled by Rupert Murdoch and family.

Good at handling changing media environment.

Gives consumers what they want.

Big player on global level.Slide9

Time Warner2008 Sales: $47 billion, but lost $13.4 billion

2015 Sales: $28.1 billion, but profits of $3.8 billionLower Sales but higher profitability –

Why?

Improved profitability by selling off AOL and Time Warner Cable.Slide10

Time WarnerMajor player in film, television, cable, publishing, and online content.

Home of Scooby Doo, Harry Potter, Batman.Most recently made magazine division independent company.

Lessons of company downsizing:

1. Bigger isn’

t

always

better.

2. Concentrate your strengths on what you do

best.Slide11

Viacom & CBSCombined revenues: $27 billion (2015)

Major player in broadcast television, cable, and movies.Home of MTV Networks (MTV, VH1, Nickelodeon), CBS, CW, and Paramount.

CBS owned Viacom; then Viacom owned CBS; now separate companies for financial reasons.Slide12

Bertelsmann2015 Sales: $21 billion

Major player in publishing; also magazines and European broadcastingAdapting to changing music

business

Privately-held German

companySlide13

Big Media: The New PlayersNew companies

for new mediaRemember – there are no mainstream mediaSlide14

The New PlayersComcast/NBC UniversalAlphabet/Google

AppleSlide15

Comcast / NBC UniversalComcast had 2015 Sales of $74.5 billion – 25% bigger than Disney.

Major player in cable services, internet, phone services, cable networks, movies, and broadcast TV

NBC Universal

s biggest value is for cable channels.Slide16

Alphabet/Google2015 revenue of

$74.9 billion – Bigger than all the legacy media companies.Big asset is search, major source of revenue is highly targeted online

advertising

Automated aggregator of

newsSlide17

Apple

2015 Total revenue of $234 billion

$155 billion

from mobile phones (iPhone)

$23 billion

from

iPads

$30 billion

from music and video sales

$25 billion

from

conventional computer product

Apple has redefined

how we consume and

use mediaSlide18

Long Tail Media vs. Big Media (Short Head Media)

Long TailPortion of a distribution curve where a limited number of people are interested in buying a lot of different products.

Short Head

Portion of a distribution curve where a large number of people are interested in buying a limited number of products.Slide19

Long Tail vs. Short HeadSlide20

Characteristics of the Short Head

Relatively fewer goods and services offeredLarge potential market

Place

for big, popular media

products—hit

movies, TV shows,

musicSlide21

Characteristics of the Long TailHigh number of goods; more niche goods than

hitsLow cost of reaching markets

Ease of finding niche

productsSlide22

Characteristics of the Long TailFlattening of the demand curve for mainstream hits; choice lowers demand for hits.Size of collective market; collection of niche products can be as big as hits.

Tailoring to personal tastes; consumers want content that fits their own wants and needs.Slide23

Consequences of the Long TailDemocratization of the means of production

Democratization of the means of distributionGreatly reduced cost of connecting suppliers and

consumers

Relatively small number of consumers demanding a large number of goods and services, often tailored specifically to their needsSlide24

Who Controls the Media?Owners

AdvertisersGovernment

Special Interest Groups

News Sources

Audiences