Edited for
posting; some
in-class content
is not included
Media Industry
here.
Development and
Economics
Thursday, September 24
1

• A “life cycle” concept
• Applicable to all media - even unknown
•
2
Flickr user Oakley Originals

Innovation
Stage
• New means of
transmitting
messages
•
Flickr user KaiChanVong

• Growing public
Penetration acceptance of a
medium
Stage •
4 Flickr user D3 San Francisco

Peak Stage
• Most public attention, revenue
•
Flickr user coda

Decline Stage
• Loss of audience and
revenues
•
6
Flickr user jurvetson

Adaptation Stage
• After decline,
repositioning in
marketplace
•
7
Flickr user Joe M500

The Rise of Social Media
http://www.youtube.com/watch?v=sIFYPQjYhv8
8

Life Cycle?
• Place these social media in their current
positions in the media life cycle:
•
9

Analyzing Your Media Choices
• Think of one media product you included in your
media log.
• Which corporation produces this product?
• Who is the target audience for this product?
• Where in the life cycle would you position this
medium?
• Share with a partner.
10

Convergence
• Difficult to address
media individually
• TV = Internet = Flickr user YuvalH
Movies = Books =
iPhone?!
•
11
Flickr user pedrosimoes7

http://www.youtube.com/watch?v=JNy1x5VTX6Q
12

Dealing with
Convergence
• Media companies’ response to convergence:
mergers and acquisitions
• Results:
• Larger media companies
•
13

Pearson
http://seekingalpha.com/article/162863-does-pearson-need-to-sell-the-financial-times
14

• Mass media conglomerate
• Vertical integration
•
15

VERTICAL
INTEGRATION
Production
Materials, design, manufacturing
Distribution
16

• Horizontal integration
•
17

HORIZONTAL
INTEGRATION
Movies Books TV Internet
etc.
18

What are the advantages of a company
that looks like this?
Production Production Production Production
Movies Books TV Internet
Distribution Distribution Distribution Distribution
19

• Synergy results from the combination of vertical
and horizontal integration
•
20

• Mergers and acquisitions
• Company can control its product from start to
finish, ensure its distribution, and market it through its
multiple media firms
•
21