Economics for Business: Analysis of Media and Entertainment Industry

This report provides an economic analysis of the media and entertainment television industry, focusing on Endemol Shine Australia. It begins with an introduction to the economics of business and the selected industry. The report then delves into the industry/sector background, followed by an analysis of the market structures, including monopoly, oligopoly, and monopolistic competition. Factors influencing demand, such as age, gender, motivation, mood, personality, and price, are discussed, along with factors affecting supply, including technology, price, cost of production, government regulations, and demand. The concept of elasticity is explored, and a recent macroeconomic event affecting the industry is examined. The report concludes with recommendations and a conclusion, supported by relevant references. This comprehensive analysis provides insights into the economic dynamics of the media and entertainment sector.

Economics Group
Assignment

Table of Contents
INTRODUCTION...............................................................................................................3
Endemol Shine Australia...................................................................................................3
Industry/sector background...............................................................................................3
An analysis of the market structures- media & entertainment television services............4
Factors that influence demand for the company’s services..............................................5
Factors that influence supply of the company’s or services..............................................7
Elasticity.............................................................................................................................8
Recent macroeconomic event that affected the industry/company..................................9
Recommendations.............................................................................................................9
CONCLUSION.................................................................................................................11
REFERENCES................................................................................................................12

INTRODUCTION
Economic for business is concerned with production, distribution and
consumption of goods and services of the business. This involves studying how
businesses make choices about allocation of resources that they have. In this report
research about an industry will be done and in this market structure of the industry and
company will be researched. Report will also involve discussion about factors affecting
demand and supply and elasticity. In addition to this impact of a recent macroeconomic
event will also be included in report. Industry selected for this project is media and
entertainment television industry.
Endemol Shine Australia
Company selected for the purpose of this report is Endemol Shine Australia, this
is an Australian production company founded in 1972 and in 2015 it merged Endemol
Australia and Shine Australia. Company is headquartered at Sydney, New South Wales
and parent company of this is Banijay. Company produces multiple television programs
across different channels and MasterChef Australia. This company is merger of
Endemol Australia and Shine Australia, Endemol Australia was largest independent
television production and distribution group, it was founded in 1972 and was subsidiary
of Dutch-based media company Endemol from 2009-2015 (Foster, 2020). Shine
Australia was founded in 2010 by Shine Group and several shows were produced by
Endemol Shine Australia since 2010.
Industry/sector background
Media and entertainment industry includes films and television, radio and print
media. Further segments in this include movies, TV shows, radio shows, newspaper,
magazines and books. Media and entertainment television is only limited to TV shows
because it does not involve movies, and print media. Television is a medium that is
used to disseminate information, news and entertainment that involve moving pictures
and sound. Industry that produces shows and distributes them on television is known as
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Television entertainment industry. This industry produces different types of source that
can be fictional and non fictional for the purpose of entertainment of audience (Aggarwal
and Rahul-Tiwari, 2020). Increasing number of television also contributed in increasing
number of shows produced by television entertainment industry and this also gave
contribution in increasing organisations in television entertainment industry.
An analysis of the market structures- media & entertainment
television services
Market structure is basically define to how media & entertainment television
industries are classified in their business on the basis of degree, nature of competition.
This is one of the best approach to represent characteristics that influence behavior of
consumers, generate a positive result or outcome.
Movies, Music, games and internet news- this is kind of media & television
industry in which provide the best quality of facilities and services. There are various
kind of careers in the media industries to discover, promote, support and manage all
kind of activities. It must be completed to bring more wonderful work to life and target
audience.
As per analysis of market structure, it has been increasingly the conglomeration
of media in order to category within different structure division’s aspect ( Steiner, 2018).
Market structure can be divided into different types: - monopoly, competition, and
oligopoly and monopolistic. These are consider the different market structure which may
support for media & entertainment services. on the basis discussion, media business is
probably familiar with these kind of market structure. A monopoly can be occurred
when one control a media service. For example- a small town with using social media
platform to advertise information.
Oligopoly is another kind of market structure which is mainly help for media &
entertainment industry to control the flow of entertainment services. Different media
companies are using oligopoly market structure to publish various information. Oligopoly
is kind of market structure which is mainly categorized by significant of specific strategic
behavior. Different kind of media & entertainment industry has been concerned about
oligopoly market structure in order to change quality, price, advertisement, quantity of
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media services. in this way, large number of populations are taking subscription, uses a
better services. i
Monopolistic competition is another kind of market structure which take place
when different entertainment enterprise offers the best quality of media service. The
reason for targeting potential consumers, who are majorly influence with interactive
media channels, especially children or young people. For example- Live nation were
becoming consider as long time competitors until it will be merged in 2010, with
providing the similar kind of event management services for music, live entertainment
industries.
For example- large companies are now selling their items with the help of
advertising for any or all of their brand on huge among of radio stations. However, these
fears are often channeled into concept of productive business (Steiner, 2018). In media
& entertainment industry, it has been diversified the high competition level among media
& entertainment services.
On the basis of discussion, it has been measured the overall market power,
which is becoming so much complicated. Ideally, media & entertainment industry can
easily estimates the original elasticity of supply or demand. Because of some reliable
aspect in context of current market structure. It may support for managing and
controlling the high competition level. Nowadays, media industry has been growing their
business continuously because many people want to use media services.
Factors that influence demand for the company’s services
Age- Age is one of the important factors influencing demand of television entertainment
services. Different types of people at different age have different choices and
preferences in context of entertainment and what they like to watch for the purpose of
entertainment on TV (Wayne, 2018). This has significant impact on demand of TV
shows and entertainment by Endemol Shine Australia in which young age people have
different choices then adults and similarly children have different choices in terms of
television entertainment. This is a very important factor influencing demand for and
television entertainment services.
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Gender- Gender is also an important factor influencing demand for television
entertainment services because both the genders male in female have different
preferences in context of content. This affects what they prefer to watch over TV and
this leads to effect on demand of television entertainment services. Television
entertainment shows have different zone and on the basis of this content of the shows
differentiate and on the basis of that male and female viewers or audiences like to
watch different types of shows and this is why gender is one of the factor to affect
demand of television entertainment services by Endemol Shine Australia.
Motivation- Regarding television entertainment services every individual have different
preference and motivation and this is one of the factor to affect demand for television
entertainment services of Endemol Shine Australia. This means that there are people
who watch television shows for the purpose of entertainment and there are also people
who watch television shows that relate to them on the basis of other factors of life and
this is why motivation of individuals to watch television entertainment shows
differentiates leading them to influence demand of television entertainment shows
(Schreyer, Schmidt and Torgler, 2018). There are people who like fiction shows
whereas other people like nonfiction and reality show influencing demand for television
entertainment shows by Endemol Shine Australia.
Mood- Mood is also one of the factors to effect demand of television entertainment
services. Different types of shows have different impact on mood off individual or in
other words it can be said that in different types of mood individuals like to watch
different types of shows. This is why mod is also a factor to affect demand of television
entertainment services. For example, A person feeling sad or stressed is likely to watch
comedy show to enlighten their mood.
Personality- Personality of individual has impact on all aspects of their life and this also
affect what kind of television entertainment shows they like to watch. On the basis of
different personalities demand for television entertainment shows influence. There are
people who like to watch comedy shows certain people like to watch shows of drama
zone and there are also people who like to watch thriller and suspense shows and they
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preference is mainly affected by their personality. It can be said that personality is one
of the factor to influence demand for television shows.
Price- Price is also an influential factor for demand of television entertainment services.
This means that on the basis of price people might prefer to watch shows on free to air
channels rather than subscribed channels. This will affect demand for television shows
that are broadcasted on free to air channels. This is why when there is large population
watching shows on free to air channels demand for shows that broadcast on those
channel is likely to increase.
Advertising- Advertising also influence demand for television shows and on the basis
of this goes shows that are advertised more are likely to have increased demand than
those that do not advertise (Kadosh and Staunton, 2019).
Changes in taste and preferences of audience- As test and preference of audience
changes related to television entertainment shows is it make significant impact on how
demand of television entertainment shows fluctuate.
Factors that influence supply of the company’s or services
Technology- Technology has a strong influence on supply of television entertainment
services. This is because in order to create and distribute television entertainment
services technology has Central role this is why when there is easy availability of all the
required Technology supply of television entertainment services are higher. On the
other hand if technology is not available for creating and distributing television
entertainment services they can make negative impact on supply of services.
Price- Price also influences supply of television entertainment services. Endemol Shine
Australia when are able to make strong profit from creation and distribution of television
entertainment services they are likely to increase supply of television entertainment
services. In this shows that make significant contribution in overall revenue of company
are likely to be supplied more than other shows (Doyle, 2018). For example MasterChef
Australia one of the important shows produced and distributed by Endemol Shine
Australia that enabled Company to make high revenue.
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Cost of production- Cost of production is also an important element of factor affecting
supply of television entertainment shows. Cost of production is concerned with the cost
that is incurred during creation and distribution of television entertainment shows. High
cost of production reduces supply of television entertainment shows whereas moderate
or low cost of production increases supply of television entertainment shows. This is
because cost of production is directly linked with profitability of company in relation with
shows that they create and supply.
Government regulations- Government regulations also affect supply of television
entertainment services. Government have specified regulations about what kind of
content a company can show to its audience and in this only content that is appropriate
according to Government regulations can be broadcasted on television.
Demand- Demand also influences supply of television entertainment services bye
Endemol Shine Australia. If there are certain shows that have increased demand that
are likely to be supplied according to demand and viewership (Le and et.al., 2019). On
the other hand if there are shows that are not being liked by or have less audience
supply of such shows is likely to be reduce or stopped.
Elasticity
This is concerned with how demand or supply is changed in response to change
in price or income. It considers that increase in income and price leads to increased in
demand and supply. This means that if price of goods and services increase, supply of
goods and services is likely to increase because in increased price profitability
increases. Similarly, as income of consumers increases it is likely to increase demand
of goods and services because of increased capability of the price. Concerned with
elasticity of demand in television entertainment services it is not really likely to affected
by increase in income, however, those who are using free to air channels their demand
for subscription can increase. This will increase demand for subscription based shows.
However, changes in price and increase in price is likely to affect supply of television
entertainment services (Zhu and et.al., 2018). This is because increase in price will lead
to increase in profitability leading to increase in supply of television entertainment
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shows. Her, it can be said that supply is comparatively more elastic than demand in
context of television services.
Recent macroeconomic event that affected the industry/company
Macroeconomic event is concerned with event that affects overall industry and
economy at once. Macroeconomic events are divided in different factors success
political economic social and few others. Recent macroeconomic event that affected
television entertainment industry include covid-19 pandemic. This was one of the events
that affected overall industry and economy of Australia and world. Covid-19
pandemichas significant impact on Television industry and Australian TV and film
industry collectively faced $325m loss because of the impact of pandemic (Amanda
Meade, 2020).
Pandemic made an unprecedented as well as and predictable impact on industry
and required industry to set for longest time. This was because of impact of widely
spreading disease and closure of industry and economy as an act to reduce spread of
disease. However overall cost for years is still unknown. This impact involved impact on
different aspects of industry and organisations and Endemol Shine Australia also
affected substantially like any other organization in television industry. This was
because of shutting down and delay in production of television programmes which
negatively affected revenue of organisations and as a result also contributed to
unemployment and partial unemployment (Shen and et.al., 2020). According to reports
as an effect of pandemic at least 60% scripted television programs around word got
delayed in which half of the programs were originally scheduled to be aired on second
half of 2020.
This can be said that like all other industries and economic sectors pandemic
made significant impact on television industry as well.
Recommendations
There are various recommendations which are to be followed and for this
purpose they are described as below –
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 The Endemol Shine Australia should adopt new technology for making the
services more effective and efficient as it is the media company therefore, the
technological advancements are necessary for the company to adopt
(Athanasopoulo and et.al., 2018).
 As the company deals with in the production and the media sector therefore, the
company should ensure that all the factors of the company are able to make the
necessary requirements and through this Endemol works effectively and
efficiently.
 The main aspect which Endemol should consider on the main source is the all
the patterns and the procedures should be followed by ensuring that the
significant purpose of the company can be solved by analysing the market
structure and the purpose of fulfilling the customers’ needs and demands
(Forkmann and et.al., 2018).
 The media and the production should initiate effective and innovative ways
through which company can expand its scale on the basis of what new innovative
ways can they serve entertainment to their customers.
 Endemol should also concern about the opportunities and strengths so that they
can check and observe the basic working and process of company in an effective
way possible.
Therefore, these are recommendations which company Endemol Shine Australia should
adopt and work towards it in significance to making what is being done on scale of
improvement. And by these recommendations company will be able to change its older
ways of work and production process to new developments and changes to be taken
place in an effective and efficient manner (Täuscher and et.al., 2017). Through these
recommendations the company will be able to help themselves and will initiate process
and procedure which will help in making production more on the scale of how and in
what terms there can be new techniques and tools that can be updated and upgraded to
an extent. This will also help in making what is demand and need of customers in
entertainment industry. The creativity and innovativeness will help company in
generating to vast and new plan which can grow the business more.
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CONCLUSION
Thus, it is concluded from the above report that introduction of the Endemol Shine
Australia helped in analyzing the various factors of the company. The industry and the
background of the sector helped in identifying what the company processes in. along
with this, the market structure of the market structure of the industry assisted in
observing the market on large scale. Factors that influence demand and supply of the
industry or the company are identified which aided in making the company’s work
effective and efficient. Elasticity was the new aspect which was introduced for the
company. Further, recent macroeconomic event that affected the industry, company
and Australia was identified. And finally, recommendations were made which helped the
company in covering up the loopholes and grab opportunities from the market.
Therefore, these were the factors and the aspects which were being considered and
analyzed for the conclusion to sum up properly.
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REFERENCES
Books and Journals
Aggarwal, R.D. and Rahul-Tiwari, S., 2020. Macro-economic landscape of Media &
Entertainment Industry in India: Emerging Business Models. Available at SSRN
3523192.
Athanasopoulo, A. and et.al., 2018. Understanding business model innovation:
Recommendations for future business model tooling by an action research.
In R&D Management Conference Proceedings, Milano, Italy.
Doyle, G., 2018. Television production: configuring for sustainability in the digital
era. Media, Culture & Society. 40(2). pp.285-295.
Forkmann, S. and et.al., 2018. Capabilities in business relationships and networks:
Research recommendations and directions. Industrial Marketing
Management.74.pp.4-26.
Foster, F., 2020. Why'MasterChef'is a masterclass in Australian propaganda. Kill Your
Darlings, (Jan-Jun 2020), pp.259-262.
Kadosh, K.C. and Staunton, G., 2019. A systematic review of the psychological factors
that influence neurofeedback learning outcomes. Neuroimage. 185. pp.545-555.
Le, T.V and et.al., 2019. Supply, demand, operations, and management of crowd-
shipping services: A review and empirical evidence. Transportation Research
Part C: Emerging Technologies. 103. pp.83-103.
Schreyer, D., Schmidt, S.L. and Torgler, B., 2018. Game outcome uncertainty and
television audience demand: New evidence from German football. German
Economic Review. 19(2). pp.140-161.
Shen, H and et.al., 2020. The impact of the COVID-19 pandemic on firm
performance. Emerging Markets Finance and Trade. 56(10). pp.2213-2230.
Steiner, A., 2018. The global book: micropublishing, conglomerate production, and
digital market structures. Publishing Research Quarterly.34(1).pp.118-132.
Steiner, A., 2018. The global book: micropublishing, conglomerate production, and
digital market structures. Publishing Research Quarterly, 34(1), pp.118-132.
Täuscher, K. and et.al., 2017. Visual tools for business model innovation:
Recommendations from a cognitive perspective. Creativity and Innovation
Management.26(2).pp.160-174.
Wayne, M.L., 2018. Netflix, Amazon, and branded television content in subscription
video on-demand portals. Media, Culture & Society. 40(5). pp.725-741.
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