1st exam period 9/25/2023 Topic ideas for Term paper investment from interest groups in news vs viewer retention and viewership the airliners effects on the ocean liner and ship building industry in america the chip shortages effect on the gaming industry The four basic broadcast media are For radio: AM (amplitude modulation) and FM (frequency modulation) For television VHF (very high frequency) and UHF (Ultra high frequency) All four operate under the same macroeconomic conditions but different microeconomic conditions AM and VHF began to emerge in the 1920’s 1950’s - big breakthrough for television (Post war era) FM and UHF did not become finically viable until the late 1960’s early 70’s FM – Moved to album-oriented popular music (teens/young adults) UHF – Helped along by the emergence of a third major network ABC. More powerful UHF transmitters, and a congressional mandate to manufacture UHF tuners AM Radio – in the 1970s more of a local rather than national service AM signals and the ionosphere (nighttime) FCC rules (sunset) and clear channel stations (50,000 watts) Fm is for local markets signal range on average is a 60-mile radius Web radio allows local content to be distributed globally (late 1990s) Pay radio satellite services (Sirus XM) Still decent in strength but now competing against iPod and internet stations VHF signals are similar to FM need relay stations to extend their signal outward about 100 miles UHF signals are weaker than VHF signals even though they require more power for the broadcast signal 2018: 4,800 AM radio stations; 6500 commercial FM stations 1380 VHF and UHF stations in the US Basic operations and Spectrum Basic operations –success of TV and Radio measured by ratings points Ratings: Nielsen – Television Arbitron – Radio Sweeps months: November February May and July –they determine advertising rates for local stations Advertising central to the success of all publications - Publishing is sensitive to economic conditions Publishing profits can be impacted by raw material and distribution costs changes Costs of star writers can be very expensive Book publishing accounts for 1/3 of industry revenues The other two major sectors are - Education/professional Trade (general interest) Total revenues in 2018 were 33 billion Book publishers Contract with authors agents hire editor's, artwork designers, arrange: printing and distribution and sales and marketing The operational characteristics mirror film, tv, and music Digital technology has upended everything Educational and Professional - High operating margins Significant barriers to entry Colleges: Half of revenue Primary and secondary other half of revenue Demographic changes in schooling can be predicted about ten years in advance - Helps with forecasting demand for books etc South and west: mostly the states purchase the educational materials - Determined by state boards of education/adoption New threat: OER open education materials - Free and on the internet (or a modest fee) Students: more freedom in how they aquire the book Trade Costs to puplisher for publication of - hardbound book: 2-3 dollars per unit Paper titles: 1 dollar Ebook: 10 cents In 2018 e-books made up 13% of all trade sales with hardback 39% and paperback 34% The trade market is “hit-driven” sometimes publishers subsidize retailer in-store promotions About35% of profits come from older titles; 70% will not earn back monies advanced to authors Self-publishing and distribution via online services has become less expensive and authors may retain up to 70% of the online royalties from sales Will publishers retain their literary gatekeeping function? Consolidation: mix major trade publishers account for 60% of books sold in the US penguin/random house (25% alone) Pressure on publishers’ margins have also been impacted by amazon, Walmart, target, and Costco. Also the diminishing role of Barnes & Noble, loss of Borders, Etc. At their peak the name of bookstore retailers sold 40% of adult titles Downloads, in all forms have impacted pricing and profit E-books may become more profitable than hardcovers Traditional costs: printing shipment inventory carriage and returns are largely eliminated due to eBooks New costs: digitization, computer servers, website development, and fraud, and privacy prevention Tradeoffs for readers: old vs new. In the us there are currently 1279 daily newspapers Newsroom employment at us newspapers dropped by 51% between 2008 and 2019 Revenues for newspapers come from: advertising, subscriptions, and newsstand sales -2/3’s content is advertising (80% of revenues) Thus, newspapers/magazines are sensitive to economic conditions/local advertising is critical Newspapers have become monopolies in their markets Newspapers have perishable content/speed of delivery critical to success -manufacturing and distribution costs higher Operate in a two-sided market: they sell to advertisers and readers Revenues: 80% from adv./20% forms of subscriptions a big shift occurring in retail—moving from print advertising to electronic media [50%] Classified advertising-tied to economy-also shifting Digital revenues may not even make up 10% of total revenues. Print reading advertisers still important. Physical paper subscription has significantly declined Physical paper subscription has significantly declined while on-line subscriptions have become more important Household penetration of newspapers -100% in 1970 -50% in 2000 The internet: news gathering/future advertising Today in age category 18-34 only 25% read a physical hard copy paper Revenue stabilization: paywalls—digital access fees Magazines and other periodicals Magazines: as of today—7357 in publication. They count for about 1/6 of publishing revenues Major categories: Consumer and general interest Trade and technical Farm Noncommercial literary Comics Magazines: costs = circulation/distribution/postage -50% of revenues come from subscriptions -paywalls becoming more important -discounting on advertising involves the competition Fewer magazines are now independent It traditionally takes 5 years for a magazine to turn profitable
