University Canada West: COMM 401 Media Economics Assignment Report

This report provides an overview of media economics, defining it as the application of economic principles to the study of media industries. It emphasizes the importance of media economics in understanding the dynamics of the media industry, including content creation, distribution, and market forces. The report highlights economic challenges such as technological evolution, business costs, market fragmentation, and competition. It then recommends solutions like adopting multi-channel platforms, utilizing campaign measurement tools, investing in talent development, and implementing industry-wide structural changes to address payment and agency remuneration models. The analysis concludes that media economics is vital for the media industry to navigate its complexities and improve overall performance.

Running Head: MEDIA ECONOMICS 1
MEDIA ECONOMICS

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Table of Contents
Media Economics Overview........................................................................................................................3
Importance of media economics in media industry.....................................................................................3
Economic challenges facing the media industry..........................................................................................4
Recommendations of how media economics could inform the current media environment........................4
References...................................................................................................................................................5

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Media Economics Overview
Media economics is commonly termed as the study of economics along with the study of
media. In words of Downing, McQuail media economics is defined as economic theories,
concepts and principles to understand the elements of the macro as well micro economics. It is
concerned with the wide range of issues such as international trade, pricing policies, industrial
concentration and competition which may affect media firms and industries deliberately
(Anderson, Waldfogel & Stromberg, 2016). As broad communications have extended and
offered extension to many key players to go into this industry to partake in essential job like
substance makers, exhibitors and merchants. Media needs and motivation are relentlessly
changing to the tune of the market prerequisites. Every medium industry is working out to create
content with low speculation and increase benefit out of it. Any adjustment in the guideline
approach and advancements may influence the financial procedure of the media business
(Albarran, 2016).
Importance of media economics in media industry
The rise of the mass media created a way for in-depth study of media economics. Media
research is an important aspect for the country and different industries in many ways. Numerous
industries are portrayed by the availability of particular gatherings of clients who need one
another somehow or another (Cunningham, 2018). In these business sectors there are
organizations which created themselves as a platform with the job of making an alignment
between members of media industry and customers to have a deep rooted interactions. These
organizations play a vital role in minimizing the costs of the transactions for both the parties.
Subsequently the presence of at least one of these stages makes potential trades that would not

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have happened without media economics, and it creates values on both the sides simultaneously.
Media economics teaches the industry about the creativity and the importance of the audience.
Without audience there is no media. It is a large customer driven media to advertise and
distribute the content. A major advantage with regards to news media inclusion is that it is free –
a factor vital with regards to local gatherings or associations with strict spending plans.
Furthermore, just does your occasion or news get free exposure or new inclusion; your gathering
will undoubtedly get a lift through this inclusion also. It is essential to recall however that while
your gathering won't need to pay for this inclusion, it should work for it in different manners –
building associations with the media, planning data and discharges for them, being eager to
address them or be met by them, and so on (Our community.Com, 2018).
Economic challenges facing the media industry
The primary economic issue of the media by and large is neither perceived nor broke
down in detail. This is on the grounds that literature on media financial aspects for the most part
centers upon few of explicit media ventures, disregarding basic qualities and not finding the
common economic grounds to work within (Albarran, 2019).
Business costs are other peculiar issues which is a constant challenge for media industry.
The continuous evolution of the technology creates a hassle for media industry and it takes time
to understand and implement the change. Since media industry is heavily dependent upon
technology for most of its works like creation of the content, distribution of the information and
the display of various media content hence, coping up with the advanced technology and buying
it is also one of the economic issues faced by media industry (Napoli, 2019).

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At times there is disconnect between clients and agency and this can hamper the
performance from both the ends. Without clients the agency loses its identity, and it’s important
to maintain a solid point of contact between both. The barrier in the communication of the client
and agency is one of the crucial challenges.
Limited scope can be a problem, as when media wishes to display the information but is
restricted through various areas. In such a situation, media has fewer opportunities to connect
with the audience through apt data and information (Trinity, 2018).
Fragmenting market and the accelerated competition from various other media channels
is also one of the classic challenges that are faced by media industry on daily basis. Since the
same information is circulated through different modes, there is a need of creativity in the
thoughts and the content that can bind the audience. The lack of the creativity and constant
pressure from peers results in high economic slow-down .
Recommendations of how media economics could inform the current media environment
However, media economics can and should be more than that. Over the past few decades,
while remaining a niche within the field of media and communications studies, the field has
evolved to encompass a variety of approaches. This went hand in hand with the growing
commercialization of mass media and the rising consolidation and concentration of media firms.
Media industry can buy multi-channel which are connected through automated buying
platform to streamline & simplify media trading process. If this process can be simplified it
would be a relief to the media industry as the channelizing of the information through right
medium could be one of the greatest solutions (Gershon, 2019).

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The next solution could be multi-channel planning & adopting of right campaign
measurement platform which helps in highlighting campaign results and placing the
channel/media attribution at the central level to deal with the problems (Bonsall IV, Green &
Muller III, 2019).
Media industry can groom their people to be aware with the on-going technology through
virtual as well practical training process. The industry could also make a group of talent pool
development where youngsters are ready to explore their skills and talent and can be equally
beneficial for industry as well. Further, accreditation for required evolving skillsets can also be
availed to enhance the basic knowledge (Liu & Hsu, 2019).
Industry-wide structural change surrounding payment & agency remuneration models can
also be followed to be able to eradicate the challenges from root level. It is very important to
have transparency surrounding agency and have a record of revenue streams & publisher/media
rebates. Keeping the supervision of the financial aspects is also one of the ways of keeping the
economic challenges far away. Since finances play a crucial role it is important to have sufficient
funds to cope up with any situation.
Hence, from the overall analysis it can be stated that media economic is an important
element of media industry and it helps the industry understand its facts and figures in better
manner. Since media economics has tied the industry with various challenges, there are certain
recommendations that must be followed to get the improved results in the overall performance of
the industry.

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References
Albarran, A. B. (2016). The media economy. Routledge.
Albarran, A. B. (2019). Challenges and opportunities in media economics research. In A
Research Agenda for Media Economics. Edward Elgar Publishing.
Anderson, S. P., Waldfogel, J., & Stromberg, D. (2016). Handbook of Media Economics, vol 1A.
Elsevier.
Bonsall IV, S. B., Green, J., & Muller III, K. A. (2019). Market uncertainty and the importance
of media coverage at earnings announcements. Journal of Accounting and Economics,
101264.
Cunningham, B. M. (2018). Evolving research and theories in media economics. In Handbook of
Media Management and Economics (pp. 36-51). Routledge.
Gershon, R. A. (2019). Transnational Media and the Economics of Global Competition. Global
Communication: A Multicultural Perspective, 37.
Liu, Y. L., & Hsu, W. Y. (2019). Technological dimensions and media economics. In A
Research Agenda for Media Economics. Edward Elgar Publishing.
Napoli, P. M. (2019). Place/Space and the Challenges Facing Local Journalism and Local
Journalism Research. Journalism & Communication Monographs, 21(2), 147-151.
Our community.Com, (2018). Making Contact – Why Media is Important. Retrieved from
https://www.ourcommunity.com.au/marketing/marketing_article.jsp?articleId=1593

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Trinity, (2018). What are the biggest issues facing the media industry?. Retrieved from
https://www.trinityp3.com/2014/04/issues-facing-media-industry-survey/