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Understanding Media Economics

Understanding Media Economics

Second Edition

April 2013 | 232 pages | SAGE Publications Ltd
"Expertly synthesizes economic theory and contemporary cases to both explain the structure of the contemporary media industry and shed insight on the significant challenges and controversies confronting the sector."
- Lucy Küng, Oxford University and Jonkoping University

"A wide-ranging, accessible introduction to media economics and their application to a broad range of media topics from advertising and business models to copyright, audience demand and public policy."
- Chris Bilton, University of Warwick

"An excellent textbook on media economics, which takes into account the full complexity of the subject matter in the context of structural, technological and creative transformations that characterise digital media."
- Milan Todorovic, London Metropolitan University

With the rapidly evolving digital media landscape, this second and completely revised edition of Understanding Media Economics moves beyond a sector-specific approach to media analysis, and instead focuses on the issues and imperatives that are now central to how economic forces impact on the media industries.

Exploring themes such as innovation, digital multi-platform developments, the emerging importance of networks, branding and segmentation of market demand, strategies of risk-spreading, maximizing value within content, intermediation and rights management, corporate expansion and advertising, this book addresses and explains the key pressing questions and issues that are transforming contemporary media industries and markets.

Gillian Doyle makes the economics of the media fascinating, compelling and easy to understand. This is essential reading for students of media economics, media management, media policy and courses across the cultural and creative industries.

Chapter 1: Introduction
What Is Media Economics about?

Macroeconomics and Microeconomics

The Firm in Economic Theory

Competitive Market Structures

Market Structure and Behaviour

What Is So Special About Economics of the Media?

Key Economic Characteristics of the Media

Economies of Scale

Economies of Scope

Changing Technology

Chapter 2: Convergence and Multi-Platform
The Vertical Supply Chain

Changing Market Structures and Boundaries

Digital Convergence

Technological Change, Innovation and Creative Destruction


A New Cornucopia?

Chapter 3: Corporate Growth and Concentration Strategies
Strategic Responses to Digitization

Managerial Theories

Horizontal Expansion

Diagonal and Conglomerate Growth

Vertical Expansion

Transnational Growth

Chapter 4: Networks
Economics of Networks

Broadcasting Networks

Global Networks in Transnational Publishing

Online Content Distribution

Social Networks and Microblogging

The Changing Role of Networks in Media Economics

Chapter 5: Demand: Push to Pull
Mass to Niche

User Empowerment

Segmentation and Branding

Audience Flow Management

Market Failure in Broadcasting

Public Service Content Provision

Chapter 6: Economics of Content Supply
Novelty and Risk Spreading


Repetition and Formats

Hollywood and Risk

Funding Models: Cost Plus Versus Deficit Financing


Chapter 7: Copyright
The Economic Origins of Copyright

Copyright and Welfare Losses

Digitisation and Enforcement


Territoriality and Free Trade Areas

Commercial Models Other Than Copyright

Non-Market Alternative Means of Incentivising Creativity

Adjusting Copyright to the 'Open' Internet

Chapter 8: Media and Advertising
The Advertising Industry

Why Does Advertising Take place?

Are Firms in Control of Their Own Markets?

Informative Versus Persuasive Advertising

Advertising as a Barrier to Market Entry

Advertising and the Performance of the Economy

The Rise of Internet Advertising

The Firm's Advertising Decision

Chapter 9: Digital Media Economics and Public Policy
Free Market Versus Intervention

Support Measures for Media Content


Concentrated Media Ownership

Promoting Competition

Monopolies and Technological Change

Maximising Efficiency

PSBs and State Aid Rules


The first edition of this book was extremely influential and helpful for me as a student, the new addition will now become equally essential for my students. I have already aquired two personal copies.

Dr Todd Nesbitt
Department of Communication, New York University in Prague
July 10, 2013

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