The Media Economy In today’s rapidly changing and evolving environment, the media industries have never played a larger role than they now From macro to micro levels, The Media Economy dissects how media industries affect the economy as a whole, and applies concepts and theories to various levels of society This text breaks new ground through its analysis from two unique perspectives: 1) Examining the media industries from a holistic perspective by analyzing how the media industries function on the global, national, household, and individual scale; and 2) Looking at the key forces (technology, globalization, regulation, and social aspects) constantly evolving and influencing the media industries Building on the contributions of the original text, this Second Edition provides new references and current data to define and analyze today’s media markets To understand the role of media in the global economy, the insights included here are crucial for media students and practitioners Alan B Albarran is professor of media arts at The University of North Texas He has extensive experience as an editor and author, and is widely recognized as an international scholar in the area of media management and economics He is a former editor of the Journal of Media Economics and the International Journal for Media Management MEDIA MANAGEMENT AND ECONOMICS SERIES Alan B Albarran, Series Editor Albarran, The Media Economy Albarran, The Social Media Industries Albarran/Chan-Olmsted/Wirth, Handbook of Media Management and Economics Ha/Ganahl, Webcasting Worldwide: Business Models of an Emerging Global Medium The Media Economy Second Edition Alan B Albarran This edition published 2017 by Routledge 711 Third Avenue, New York, NY 10017 and by Routledge Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business © 2017 Taylor & Francis The right of Alan B Albarran to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988 All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe First edition published by Routledge 2010 Library of Congress Cataloging in Publication Data Names: Albarran, Alan B., author Title: The media economy / Alan B Albarran Description: Second edition | Abingdon, Oxon ; New York, NY : Routledge, 2017 | Series: Media management and economics series | Includes bibliographical references Identifiers: LCCN 2016009856| ISBN 9781138886094 (hardback) | ISBN 9781138886087 (pbk.) | ISBN 9781315715094 (ebk.) Subjects: LCSH: Mass media—Economic aspects Classification: LCC P96.E25 A483 2017 | DDC 338.4/730223—dc23 LC record available at https://lccn.loc.gov/2016009856 ISBN: 978-1-138-88609-4 (hbk) ISBN: 978-1-138-88608-7 (pbk) ISBN: 978-1-315-71509-4 (ebk) Typeset in Sabon Std by Swales & Willis Ltd, Exeter, Devon, UK This book is dedicated to the memory of Dr John W Dimmick (1944–2016) Mentor, fellow researcher, and friend CONTENTS CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER 10 CHAPTER 11 CHAPTER 12 Preface Acknowledgments Understanding the Media Economy Theories and Approaches Used to Examine the Media Economy Key Concepts to Understand the Media Economy Evolving Markets in the Media Economy Multiplatform Media Enterprises Technology and the Media Economy Globalization and the Media Economy Regulation and the Media Economy Social Aspects of the Media Economy Finance, Valuation, and Investment in the Media Economy Labor and the Media Economy Assessing the Future of the Media Economy References Index PREFACE The Media Economy examines the study of media economics from a 21st-century perspective, utilizing a holistic view In the initial decades of inquiry (circa 1950s to the 1990s) media economics tended to be approached from singular viewpoints—such as focusing on particular media industries, or specific practices like financing and economics, or a particular country, like the United States Much of my earlier work and books on the subject fell into this same paradigm My research and writing reflected what others were writing and researching Clearly the media industries (and for that matter much of the world) have experienced unprecedented change and evolution since 1990 owing to a confluence of factors: globalization, regulatory reform, social changes, and of course technology This has forced researchers in the field of media economics to take a wider viewpoint in an attempt to assess what is happening The result is clear—media economics must be examined across a broader spectrum of inquiry, because it cuts across numerous areas and levels of activity In this second edition of The Media Economy, the primary goal is to update and expand the content, and continue to break new ground in the way media economics is both studied and approached by students, scholars, researchers, and policymakers The Media Economy is a broader title that reflects the holistic nature of the field of study The text will emphasize the key drivers and concepts associated with the media economy, and the relevant theories and application of these theories to analyze the media economy The book draws on examples from around the globe as well as from the United States to illustrate key points and concepts THE PLAN OF THE BOOK This book is designed for both research and teaching purposes For researchers, the book provides a tool to understand the different components of the media economy and their influence on one another As a teaching tool, the book could be used as a primary or secondary text at both the undergraduate and the graduate level for courses in such subjects as media economics or media management, or a seminar in media industries My goal as a writer is to communicate ideas as clearly as possible, so the style is designed to be clear and concise There are a total of 12 chapters in the book, and there are learning objectives found at the beginning of each chapter and discussion questions at the end of each chapter The first four chapters provide an introduction and foundation for analyzing the media economy and introducing theories and concepts, along with a discussion of markets and their evolution Chapters 5–9 look at the main drivers of the media economy, including technology, globalization, regulation, and social aspects Chapter 10 is devoted to finance, valuation, and investment, and Chapter 11 examines labor in the media economy Chapter 12 concludes, with a summary and directions for future research There are several case studies presented throughout the book to help emphasize key points and concepts NEW TO THIS EDITION This edition has been thoroughly updated across all of the chapters with new material The case studies have been expanded with new material and revised as needed All tables and figures have also been updated with the latest information available Many chapters contain new examples from countries outside the United States While the number and titles of chapters remain the same as in the first edition, the content has been completely refreshed and expanded as necessary ACKNOWLEDGMENTS I first want to thank Linda Bathgate, my long-time editor at Taylor & Francis/Routledge, for her enthusiasm and support for my work I first started working with Linda at Lawrence Erlbaum Associates back in the 1990s (we both were very young) before it was acquired by Taylor & Francis I appreciate her as both a professional colleague and a friend My colleague at the University of North Texas, Dr Xiaoqun Zhang, helped in this edition by authoring four of the new case studies found in the chapters on technology and globalization His contributions have made these chapters stronger, and I thank him for his assistance I thank both my undergraduate and graduate students in the Department of Media Arts at the University of North Texas who challenge me daily in the courses I teach to help to make me a better professor and researcher Finally, I thank my wife Beverly for her constant love and unwavering support while I worked through this revision, as well as my children and grandchildren, who make life truly meaningful Alan B Albarran The University of North Texas November 2015 communism, collapse of 102 competition 24, 47–48, 53, 120; see also monopolistic competition; perfect competition computers 4, 40, 62, 85; costs 95; excessive usage 98; multiplatform approaches 71; time spent with media 140 concentration 21, 27, 31, 48–49, 53, 56–57 Concurrent Computer Corporation 74 consolidation 178, 184; see also acquisitions and mergers consumer to consumer (C2C) activity 51–52 consumers 21, 133–145, 183; allocation decisions 44–45, 138; content 142–144, 184; culture 135; ethnicity 137–138; gender 136; life stages 44; mass media and consumer media 134–135; multiplatform 72–73; price sensitivity 39; recessions 61; spending on the media 140–142, 144; technology 62; time spent with media 139–140; wants and needs 43; see also audiences content 2, 30, 41, 105, 185–186; consumers and 142–144, 184; gender differences 136; globalization 62–63; regulation 124–125; value chain 57, 58 copyright 58, 94, 95–97, 130 costs 94–95, 96, 105 Craigslist 52, 58 credit 150–151 critical tradition 20, 21, 27–28, 181 critics 124 cross-elasticity of demand 40, 41 cross-subsidies 76 CSI 106 Cuba 36, 118 cultural imperialism 6, 63 cultural studies 20, 21 culture 135 currency rates 104 data processing, hosting, and related services 175–176 Davenport, T H 25 debt 149–150 deconsolidation 47, 184 Dell 59 demand 2, 21, 37–38, 51, 105, 138; advertising 41–42; cross-elasticity of 40, 41; price elasticity of 40; valuation 155, 156 Dentsu 12 depreciation 154–155 deregulation 6, 118, 119 digital audio radio services (DARS) 89 digital divide 27, 89–90, 97–98 digital video recorders (DVRs) 4, 70, 72 digitalization 2, 6, 69, 85–86, 99, 105 Dimmick, J 24, 31, 45, 47, 56 direct broadcast satellites (DBS) 88 DirecTV 4, 43, 88, 130 discounted cash flow (DCF) model 157–158 Dish Network 4, 88, 130 Disney 3, 4, 6, 12, 31, 111–112; acquisitions 43, 46; deconsolidation 47; international consolidation 110; markets 55–56; net neutrality 130; theme parks 63; vertical integration 46 distribution 30, 31, 185–186; mass media 135; multiple platforms 2, 69, 70–72, 82, 83; value chain 57, 58; vertical integration 46 diversification 21, 45–46, 109 dividends 160–161 Dow Jones Company 43, 47 drones 90–91, 93, 178–179 duopoly 22, 53, 54, 56 DVD 4, 70, 78, 95, 130, 143 Eastern Europe 36, 102, 182 eBay 52 e-books 70, 72 economic conditions 60–61 economics 2–3, 7–17, 19, 181–182, 183 economies, types of 35–37 Ecuador 126, 128, 131 education 39, 66, 139, 142, 179 elasticity of demand 21, 40–41 employment 65–66, 165–180; global situation 165–166; macroeconomics 26; regulation 119; research 167–169; stability 61; see also labor equity 151–152 ESPN 47, 55, 56 ethnicity 39, 137–138, 142, 168 Euler, M 169 Europe: advertising 26; copyright piracy 97; macroeconomics 8; mixed economies 37; recessions 60; research 182 European Union (EU): currency rates 104; G-20 membership 10; media employment 177; net neutrality 131; regulation 122; right to be forgotten 128–129; trade 102–103, 104 expansion of economy 61 Facebook 3, 31, 58, 71, 115, 158; acquisitions 43, 47; advertising revenue 184; China 114; data collection 128; drones 90–91; information sharing 5; Messenger 91, 93; monetization 72; multiplatform approaches 70, 77, 78, 81; valuation 156 Fan, Q Farhi, P 168–169 Federal Communications Commission (FCC) 30, 64, 89, 121–122, 131 Federal Trade Commission (FTC) 64, 122 film boards 125 film industry 6, 42, 106; employment 173–174; globalization 63; markets 31, 54, 56; supply and demand 37–38; see also movies finance 147, 148–155, 162–163 financial crisis 8, 102, 148, 166 financial markets 120 financial statements 152–153 Finland 37, 126 firm, theory of the 22–23 Fisher, Irving Ford, G S foreign investment 17, 37, 102, 113, 114, 126 Fox TV Network 6, 55, 63 fragmentation 2, 7, 24, 41, 45, 72–73, 134, 136 France: broadband penetration 87; economic variables 11; foreign investment 126; G-20 membership 9; media and communications 14; revenue/GDP ratio 15, 17; satellite television 9; telecommunications industry free business models 76 freemium services 76, 143 Friedman, Milton Friends 106 Fuji Media 12 Gallagher, M 169 game consoles 4, 7, 59, 70, 93 game theory 25 games 98, 141 Gannett 3, 31 Gawker GDP see gross domestic product gender 39, 136, 139 Generation X/Y 137 Germany: broadband penetration 87; consumer spending 133; economic variables 10, 11, 12; foreign investment 126; G-20 membership 9; media and communications 14; revenue/GDP ratio 15, 16, 17; telecommunications industry 9; transnational media corporations 111; unemployment 166 Gershon, R A 110 Giles, R 167 global level of activity globalization 5–6, 21, 62–63, 101–116, 179, 183; China 113–115; definition of 101–102; macroeconomics 8; positive and negative aspects of 103, 115–116; strategies 109–110; television and film products 105–107; transnational media corporations 110–115 Globo TV 106 Goff, D H Google: acquisitions 43, 47; apps 75; China 114; data collection 128; drones 91; Google Play 93; Google Store 77; Google Voice 91; Google+ 81; Project Loon 90; right to be forgotten 128–129; search 58 Gramsci, Antonio 27 Gray, John 136 Greatest Generation 137 Greece 60, 65, 166 Green, Hank and John 73 gross domestic product (GDP) 2, 10–11, 12, 15–16; advertising 9; broadband penetration linked to 87, 88; consumer spending 133; growth 61; recessions 60; revenue/GDP ratio 13–16, 17; trade blocs 104; United States 178 Group of 20 (G-20) nations 9–10, 11–12, 13–16, 65, 87 growth 12, 61 Hagedoorn, J 46 hardware 59, 94, 95 HBO 31, 46, 88, 138 hegemony 20, 27 Herfindahl-Hirschman index (HHI) 48 Higa, Ryan 73 high-definition television (HDTV) 62, 70 Hilt, M 168 home video: see also DVD Hong Kong 128 horizontal integration 45–46 household level of activity household size 39 HT Media Limited 12 Hu Jintao 113 Huawaei 59 Huffington Post Hulu 31, 55, 143; hybrid subscription model 75; multiplatform approaches 78; net neutrality 130; strategic alliances 73; streaming 3, 24, 57, 71, 138 Hunan Broadcasting System 12 hybrid market structure 56–57, 66 hybrid subscription model 75–76, 184 Iger, Robert 55 iHeart Media 3, 159 iN DEMAND 74 income statements 152–153 incomes 39, 40, 141–142 indecency 125 India: BBC World Service 109; consumer spending 133; copyright piracy 97; economic variables 10, 11, 12; film industry 63, 106; G-20 membership 10; media and communications 14; privatization 119; regulation 122; revenue/GDP ratio 13, 15, 16, 17; unemployment 166 individual level of activity 4–5 Indonesia 10, 11, 14, 15, 97 industrial organizational (IO) model 21–22 industries 3–4, 21, 179; competition 24; fragmentation 2; macroeconomics 8–9, 15–16 industry associations 123 inequality 97–98; see also digital divide inflation 10 information economics 25–26 infrastructure 94 initial public offerings (IPOs) 158 Instagram 3, 31, 47, 58, 71; advertising revenue 184; information sharing 5; multiplatform approaches 70, 78, 81 insurance companies 151 intellectual property 95–97, 129–130, 149 Interactive Advertising Bureau (IAB) 74 International Labor Organization (ILO) 165–166 Internet 13, 14, 28–29, 86–88, 134, 179; access 9, 90–91; advertising 53, 74–75; BBC World Service 108; censorship 127; China 113, 114; competition 47; consumer spending 141; copyright piracy 97, 130; cross-elasticity of demand 41; digital divide 98; excessive usage 98; long tail activity 38; mobile phones 184–185; multiplatform approaches 70, 71, 78, 79, 81, 82; net neutrality 130–131; radio production 168; search 58; technological determinism 27; time spent with media 139; vertical integration 47; young users 142; see also broadband; social media; streaming; websites Internet of Things (IoT) 93–94 Internet Protocol Television (IPTV) 4, 57, 175; advertising 53; allocation decisions 138; broadband development 87; licensing 125; revenues 42; video on demand 71 Internet service providers 42, 73 investment 22, 147, 158–162, 163; see also foreign investment iPhone 95 iPlayer 80 iPod 5, 30, 41 IPTV see Internet Protocol Television Iran 127 Ireland 65 Iskold, A 25 Italy: broadband penetration 87; economic chaos 65; economic variables 11; G-20 membership 9; media and communications 14; revenue/GDP ratio 15, 17; unemployment 166 iTouch iTunes 71, 76, 77, 78, 93, 143 Jackson, J D Japan: advertising 26; broadband penetration 87; currency rates 104; economic variables 10, 11, 12; financial collapse 60; G-20 membership 9; media and communications 14; messaging 93; net neutrality 131; pressure on journalists 128; research 182; revenue/GDP ratio 13, 15, 16, 17; satellite television 9; trade 104; transnational media corporations 111; unemployment 166 job losses 60, 62, 65, 172–173, 178–179 journalism 127, 128, 167, 168, 169; see also newspapers judicial system 121 Jung, J Keynes, John Maynard Khajejeian, D Kirchner, Cristina 127 Kjellberg, Felix Arvid Ulf (PewDiePie) 73 Kranenburg, H V 46 labor see employment land phones 13, 14 Lanham, R A 25 Latin America: Disney 6; minority ownership 126; mixed economies 37; net neutrality 131; recession 60; research 182; Telefonica 110; television content 63 Lauf, E 168 Law and Order 106 Lee, C legal issues 22, 97, 117 levels of analysis 4–5, 21, 28–29, 185 liabilities 149–150 liberalization 118, 119 licensing 94, 97, 125–126, 149 life cycle 39, 44, 136–137 Line 93 LinkedIn 5, 58, 158 Lipschultz, J 168 Litman, B R location 39 long tail 38, 105 Lorenz curve 48 Lowrey, W 168 LucasFilms 47 Lutzhöft, N Machill, M macroeconomics 2, 7–9, 10–17, 20, 26, 181–182 Maduro, Nicolas 127 magazines 42, 184; advertising 53; allocation decisions 138; consumer spending 141; cross-subsidies 76; market structure 23, 54; multiplatform approaches 72; revenues 42; supply and demand 38; vertical integration 46; see also publishing Malaysia 127 market economies 36, 118 market share 46, 48, 57, 105, 117 market structure 29–30, 53–55; hybrid 56–57, 66; industrial organizational model 21–22; theory of the firm 22–23 Marketline 10, 13, 26 markets 21, 29–30, 51–67, 183; China 113; definitions of 51, 52–56; economic conditions 60–61; financial 120; free business models 76; functions 31; globalization 62–63, 109; horizontal integration 45; industrial organizational model 21–22; labor 65–66; regulation 63–64, 118; segmentation 39; social aspects 64–65; supply and demand 37; technology 62; theory of the firm 23 Marvel Entertainment 47 Marxist approaches 20, 21, 27 mass media 134, 135 McCombs, M 140–142 McKinsey and Company 141 Media Asia Entertainment Group 159 media economy 17–18; definition of 3; theoretical traditions 20–26 media firms 3–4 media literacy groups 124 media properties 42 Meeker, Mary 140 messaging 53, 70, 91–93 methodological tools 30–31, 182, 185 Mexico: broadband penetration 87, 88; economic variables 11; export of media content 106; foreign investment 126; G-20 membership 10; media and communications 14; net neutrality 131; pressure on journalists 128; recession 60; revenue/GDP ratio 15, 16, 17; trade 104 MGM 6, 63 microeconomics 2–3, 7–8, 20, 23, 181–182 Microsoft 58, 59 Middle East 6, 182 Millennials 44, 137 minority ownership 126 mixed economies 36–37, 53, 118, 124 mobile devices 5, 24, 135, 142, 179, 184; advertising 74; apps 75; BBC World Service 108; excessive usage 98; multiplatform approaches 71, 79, 80, 81; see also smartphones; tablets mobile phones 13, 14, 30, 175, 184–185; cross-subsidies 76; multiplatform approaches 70, 71; price elasticity of demand 40; subscriptions 24; see also smartphones monetization 71–72, 77, 82, 143, 184 monopolistic competition 22, 23, 48, 54, 56, 57, 66 monopoly 22, 48, 53, 54, 56 monthly active users (MAUs) 139, 156 Mota, Bethany 73 Motion Picture Association of America 123 movies: advertising 53, 76; assets 149; China 115; cross-elasticity of demand 41; digital technology 86; employment 173–174, 179; gender differences 136; globalization 105–107; measurement 139; regulation 125; revenues 13, 42; streaming 39; top box office receipts 107; vertical integration 46; see also film industry Mp3 players 5, 30, 62, 70 MTV 77 multimedia messaging 92 multiplatform approaches 2, 5, 29–30, 69–84; BBC World Service 108; business models 74–76; case studies 77–82; competition 47; consumers 72–73; strategic alliances 73–74 multiple of cash flow 156–157, 158 multiple of revenue 157–158 Murdoch, Rupert 113–114 music 31, 56, 57, 78; copyright 94; cross-elasticity of demand 41; hybrid subscription models 75–76; illegal sharing 97, 130; revenues 42; streaming 39, 143 Myanmar 119, 127 Napoli, P M 25 Nash, John 25 National Association of Broadcasters (NAB) 123 National Cable and Telecommunications Association 123 national level of activity National Security Administration (NSA) 128 NBC Universal 12, 43, 55, 73, 77–78, 82 needs 42–43, 44 neoclassical economics 20, 21 net neutrality 130–131 Netflix 31, 115, 143, 161; globalization 110; net neutrality 130; streaming 3, 24, 57, 71, 138; subscriptions 75; valuation 156 “new normal” concept 183–185 The New York Times 109–110, 143 New Zealand 90 news 107–109, 178–179 News Corporation 6, 31, 43; acquisitions 63; China 113–114; deconsolidation 47; multiplatform approaches 82; strategic alliances 73; vertical integration 46 News of the World 122–123 Newspaper Association of America (NAA) 74–75 newspapers 42, 179, 184; advertising 53; consumer spending 141; critics 124; cross-subsidies 76; decline in circulation 16; employment 167–169; horizontal integration 45; market structure 23, 29, 54; multiplatform approaches 2, 72, 79; regulation 122–123; revenues 42; subsidies 37; supply and demand 38; see also journalism niche theory 24, 47 Nielsen 6, 63, 139, 140, 143–144 Nigeria 109, 166 Nikkei 63 Nintendo 59 Nippon 12 Noam, E M 31, 48–49 North America 26, 182 North American Free Trade Agreement (NAFTA) 63, 102–103, 104 North Korea 36, 109, 118 Norway 37, 124, 126, 129 Oakley, Tyler 73 O’Brien, A 169 obscenity 125 Office of Communications (Ofcom) 122 oil crisis 102 oligopoly 22, 23, 48, 54; hybrid market structure 57, 66; mass media 135; transnational media corporations 110 On2 Technologies 74 Oneweb 91 over the top (OTT) 74 Owers, J ownership 20, 21, 37; liberalization 119; Marxist approaches 27; public or private 158–159; regulation 125–126 Pakistan 128 Pandora 31, 72, 75–76, 89, 143 Paraguay 131 Paramount 43 Patrick, W L 157 pay-per-use models 76, 82, 184 pay-per-view (PPV) 74 Pearson 31, 63 peer-to-peer (P2P) file sharing 97, 130 Pennings, J 46 perfect competition 22–23, 48, 54, 56 performance rights fees 123 Perma, H Peru 131 Pew 141 Phan, Michelle 73 Philippines 91 phone-hacking scandal 122–123 Picard, R G 9, 20, 52 Pigou, A C Pinterest 3, 5, 31, 58, 70, 71, 158 piracy 52, 96–97, 130, 149 Pixar 47 podcasts 7, 53, 70, 78–80, 81, 82 policy studies 8–9, 26 political economy 2, 21, 27–28 Porco, J 45 Porter, M E 47 Portugal 65, 166 power 21, 27 press see newspapers price 21, 22, 39–40, 53, 54 price elasticity of demand 40 Pricewaterhousecoopers (PwC) 141 principle of relative constancy (PRC) 23–24, 140–141 print media 9, 53, 139; see also magazines; newspapers; publishing privacy 128–129 privatization 17, 104, 118, 119 product placement 42, 53, 76 profit and loss (P&L) statement 152–153 Project Loon 90 propaganda 127–128 publishing 31, 42, 57, 182; diversification 46; employment in 171–172, 177; market structure 56; multiplatform approaches 70; revenues 12, 13, 16, 18; see also books; magazines Qatar 108 radio 13, 14, 42, 179, 184; advertising 39, 53; BBC Radio 79–80, 82; cross-elasticity of demand 41; deregulation 119; digital technology 86; Disney 55; liberalization 119; market structure 54; mergers and acquisitions 30; monopolies 23; multiplatform approaches 2, 70, 72; radio producers 168; revenues 42; supply and demand 38; see also satellite radio recession 9, 60–61, 65, 102, 178, 183; credit 151; currency rates 104; revenue/GDP ratio 13, 14; stock values 161; United States 166, 167, 170, 173 Recording Industry Association of America (RIAA) 123 regulation 6, 63–64, 117–132, 183; advertising 129; agencies 121–122; command economies 36; content 124–125; financial 153; industry associations 123; intellectual property 96–97, 129–130; judicial system 121; levels of 120–121; net neutrality 130–131; ownership 125–126; selfregulation 64, 122–123, 125; see also censorship relevancy 25 Reliance Communication 12 repurchasing of stock 161 repurposing of media products 52 research and development (R&D) 162 retained earnings 153 revenues 12, 13, 18; advertising 74; monetization 71–72; primary and secondary 42; revenue/GDP ratio 13–16, 17; stability 61; television and film products 105–106; transnational media corporations 110, 111–112; valuation 157 right to be forgotten 128–129 Roku Ross, K 169 royalties 123 RSS feeds 70, 78, 81 RT 108 Russia: BBC World Service 109; copyright piracy 97, 130; economic variables 10, 11; foreign investment 126; G-20 membership 10; media and communications 13, 14; news channels 108, 109; revenue/GDP ratio 15, 17; state-controlled media 16–17, 36, 118; see also Soviet Union, former Saga Communications Samsung 59 Sanchez-Tabernero, A 109–110 satellite radio 30, 70, 88, 89 satellite technology 88, 91, 99 satellite television 3, 4, 9, 57, 88, 99, 175; advertising 53; allocation decisions 138; BBC World Service 109; licensing 125; market structure 54; revenues 42; vertical integration 46; video on demand 71 Saudi Arabia 10, 11, 14, 15, 127 scale economies 48–49, 109 scandals 122–123, 153 SeaChange International 74 search 58, 185–186 search engines 42 segmentation 39, 45 Seinfeld 106 self-regulation 64, 122–123, 125 sex 106, 125 shares 158 Sheth, J 57 short text messaging (SMS) 91 Showtime 88 Sirius XM Radio 30, 89 Sisodia, R 57 Siwek, S E 96 Sky-Fi 90, 91 Skype 91, 93 smartphones 5, 7, 53, 62, 135, 184, 185; costs 95; Internet of Things 93; markets 59; messaging 91–93; multiplatform approaches 71, 72; Sirius XM Radio 89; time spent with media 140; utility 44; see also mobile phones Snapchat 158 social aspects 7, 64–65, 133–145, 183; consumer spending 140–142, 144; content 142–144; culture 135; ethnicity 137–138; gender 136; mass media and consumer media 134–135; time spent with media 139–140 social isolation 98 social media 3, 5, 42, 58, 182, 184; advertising 53, 74; BBC World Service 108; ethnicity 142; impact on local cultures 103; markets 31; messaging 91–93; monthly active users 139; multiplatform approaches 70, 71, 72, 77–79, 80–82 social networking sites 4, 7, 53, 65; excessive usage 98; markets 52, 58; monthly active users 139; vertical integration 47 software 94, 95 Sohn, S Sony 3, 4, 6, 59, 63, 110, 111–112 South Africa 10, 11, 14, 15, 166 South Korea 9, 10, 11, 14, 15, 87, 182 Soviet Union, former 36, 88, 102; see also Russia SpaceX 91 Spain 9, 65, 110, 166 Speckman, K 169 Spotify 24, 31, 72, 75, 89, 143 Square 158 Sri Lanka 90 stability 61 Star TV 113 state-controlled media 16–17, 36, 118 stock 158, 159–162 strategic alliances 73–74, 83 strategy 21, 22, 109–110 streaming 7, 53, 95, 143, 144, 184; allocation decisions 138; costs 94; distribution 57; hybrid subscription models 75–76; markets 31; media firms 3, 4; multiplatform approaches 70, 71, 72; record companies 97; subscriptions 24; video content 39 subscription video on demand (SVOD) 74 subscriptions 42, 52, 143–144, 184; allocation decisions 138; multiplatform approaches 75, 79; Sirius XM Radio 89; streaming 24 subsidies 37, 108, 126 substitutability 41 supply 2, 21, 37–38, 51, 138, 155, 156 Sweden 37, 124, 126, 129 Swinford, S 108 tablets 7, 59, 71, 135, 184; Internet of Things 93; multiple platforms 70, 71; price elasticity of demand 40; time spent with media 140; utility 43–44; see also mobile devices taxation 8, 119, 126, 165 technology 6–7, 62, 85–100, 142–143, 183; age of consumers 44; BBC World Service 108; case studies 88–94; costs 94–95; globalization 103; job losses 178–179; new hardware 59; satellite technology 88; social concerns 97–98; technological determinism 20, 27; transition from analog to digital 86; see also computers; Internet; mobile devices telecommunications industry 3, 4, 9, 94, 162, 174–175 Telefonica 110 Telemundo 43 television 3, 13, 14, 42, 57; advertising 53, 76; BBC World Service 107–109; China 113–114, 115; digital 62, 86; Disney 55; diversification 45; ethnic preferences 138; gender differences 136; globalization 63, 105–107; government ownership 37; Internet of Things 93; market structure 23, 29, 54, 55, 56; multichannel services 4; multiplatform approaches 2, 69–70, 72, 77–78, 81–82; price elasticity of demand 40; regulation 124; revenues 12, 16, 18, 42; streaming 39; supply and demand 38; technological developments 134; time spent watching 139, 140, 142; vertical integration 46; WFAA-TV 81, 82; see also cable television; satellite television texting 91–92 Thailand 127 theories 19–33, 182; levels of analysis 28–29; methodological tools 30–31; political economy 27–28; theoretical and applied traditions 21–27 theory of the firm 22–23 thePlatform.com 74 Time Warner 3, 4, 12, 31, 111–112; acquisitions and mergers 43; deconsolidation 47; net neutrality 130; vertical integration 46 Titan Aerospace 91 Top Gear 106 trade blocs and agreements 102–104 Trade-Related Aspects of Intellectual Property Rights (TRIPS) 96–97 transaction cost economics 26 transformation 182–183 transnational media corporations (TRMCs) 110–115 Trans-Pacific Partnership (TPP) 104 Turkey: broadband penetration 87, 88; censorship 127; economic variables 11; G-20 membership 10; media and communications 14; revenue/GDP ratio 15 Turner Broadcasting System 43, 46 21st Century Fox 3, 4, 6, 12, 31, 47, 111–112 Twitter 3, 5, 31, 58, 71, 158; advertising revenue 184; China 114; messaging 91; monetization 72; multiplatform approaches 70, 78, 80, 81; valuation 156 unemployment 10, 60, 165, 166, 167, 170–171 unions 66, 179 United Kingdom: BBC World Service 107–109; broadband penetration 87; children 124; economic variables 11; export of media content 27, 63; G-20 membership 9; license fee 126; media and communications 14; media employment 177; mixed economy 37; News Corporation 6; phonehacking scandal 122–123; regulation 6, 122, 129; revenue/GDP ratio 15, 16, 17; satellite television 9; telecommunications industry 9; unemployment 166 United Nations Development Program (UNDP) 90 United States: broadband 9, 87, 88, 94; cable television 9; children 124; consumer spending 133, 141–142; copyright piracy 96; currency rates 104; digital technology 86; economic variables 10, 11–12; employment 166–167, 169–176, 177–178, 179; ethnicity 137, 138; export of media content 6, 27, 63, 106; finance 148–149, 151, 153, 154; foreign investment 126; G-20 membership 9–10; Internet access 90; investment 158–159, 161; judicial system 121; liberalization 119; macroeconomics 8; media and communications 13, 14; media concentration 31, 48–49, 56–57; messaging 93; mixed economy 37; News Corporation 6; performance rights fees 123; private companies 159; Project Loon 90; recession 60, 166; regulation 6, 64, 120–122, 124, 125, 129, 131; revenue/GDP ratio 13–14, 15–16, 17; satellite technology 9, 88; time spent with media 139, 140; trade 104; transnational media corporations 111; unemployment 170–171; willingness to pay for content 144 Universal 43 Univision 3, 159 upgrading of technology 95 Uruguay 98 user-generated content 5, 7, 39, 57, 58–59, 65 Usher, N 169 utility 42–44 valuation 147, 155–158, 163 value 42–43, 44 value chains 57, 58 Van der Wurff, R Venezuela 64, 126, 127 venture capital 151 Verizon 4, 31, 87, 130 vertical integration 22, 46–47 Viacom 3, 12, 31, 77, 111–112; acquisitions and mergers 43; deconsolidation 47; global activity 4; vertical integration 46 video: China 115; cloud-based storage 73; consumer spending 141; digital technology 86; streaming 39, 143, 184 video game consoles 4, 7, 59, 70, 93 video on demand (VOD) 71, 74 Vietnam 127 Vimeo 3, 5, 39, 58, 143 Vine 3, 5, 39, 58, 143 violence 106, 125 Vivendi 43 Vogel, H L 158 The Voice 77–78 Vudu 71 The Wall Street Journal 39, 75, 77–79, 82, 127 Wallschlaeger, M 45 Walt Disney see Disney wants 42–43, 44 Waterman, D 46 wearable devices 70, 93 websites 23, 39, 54, 70, 73; see also Internet WeChat 92–93 welfare economics 25 WFAA-TV 81, 82 WhatsApp 43, 47, 91, 92, 93 Wicksell, Knut wi-fi 70, 142 Wikipedia 58, 59 wireless networks 4, 87 women 136, 139, 169 World Intellectual Property Organization (WIPO) 95, 129–130 World Trade Organization (WTO) 63, 101–102, 103, 104, 113, 182 WSJ.com 75, 77–79 Xi Jinping 115 Xiaomi 59 Xinhua News 36 Xinhua Winshare Publishing and Media 12 XM Satellite Radio 89 Yahoo! 58 YouTube 3, 39, 47, 58–59, 71, 143; advertising revenue 184; BBC World Service 109; China 114; Google’s acquisition of 43; multiplatform approaches 78; strategic alliances 73; user-generated content Zee Entertainment Enterprises 12 Zhang, Xiaoqun 89–93, 107–109, 112–115 ... analyze the key drivers and concepts associated with the media economy, including the relevant theories (and application of these theories) across the media economy In order to define the media economy,. .. name The reason is that the media economy is a much broader and more complicated topic The title The Media Economy reflects the importance of the media as part of the economics of a 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