(Day 1 – Intro) Creative Destruction: process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one, the next big thing comes and knocks old offConvergence:The delivery of multiple types of media over a single wired or wireless pathwayDisrupts existing business modelsCreates new opportunities for new businessesMedia industries no longer compete in just their own “silos”Democratization of Media:Time ShiftingConsumer Created ContentAudience Fragmentation:Broadcast Networks – like coke or pepsi (ABC, NBC)Cable Networks and Online – now we have so many other networks, e-books, music, internetOnline reading questions:1. How did radio technology change to make its use for broadcasting possible?Technology started with navy ships for military useMarconi’s radio telegraph was used for wireless communication using radio wavesFessenden continuous wave – able to send voice broadcast (1906)Forest used a vacuum tube (Audion) that was the first way sound was able to be heard, amplified radio wavesFCC made it able for people to start buying licenses for broadcasting.2. Explain why FM radio did not immediately replace AM, what changes allowed FM to become more popular than AM?AM station owner worried about FM hurting profits (dividing the market)AM broadcasters convinced FCC to move to frequencies1960’s FCC limited simulcasting of AM stations to 50% of timeFM played a greater variety of music and longer songs3. How did Hollywood’s relationship with TV evolve through the early days of TV?Ignored TV as a fadTV was originally live broadcast in New YorkHollywood had the film studiosBegan to get Hollywood film production of TV shows(1960) Hollywood studios decide to produce TV shows on film, provide some movies4. Why do broadcast and cable networks allow their programs to be viewed on the internet when most of their profits came from distribution through cable & satellites?Pages 180-183, 325-330 – “Media Today”Funding Online ContentSites survive through advertising revenuesSites Involved in Image-MakingIdea behind using a site for image-making activities = encourage fans to purchase the product offlineSites Selling Products or ServicesClick & Mortar companies: Firms with both an online and an offline sales presence (EX. Amazon)Content Sites Selling SubscriptionsNetflixSelling AdvertisementsAdvertisers have technology to track what we use and bribe us with itKeyword advertising: when software determines what a person is reading and sends the person ads for products and advertisers consider related to the topicContextual advertising: software determines what a person is reading and sends the person ads for products that advertisers consider related to the topic.Profiling: creating a description of someone based on collected data1910 – Starting a carSuccessive TechnologiesNew technologies must often be improved before they can support new ways to make a profit (business models) from the technologyWireless telegraph to broadcast radio (Marconi)Successive Radio TechnologySamuel F.B. Morse – invented the telegraphJames Clerk Maxwell – theorizes that radio waves existHeinrich Hertz – proved that radio waves existedGuglielmo Marconi – put together the first working wireless telegraph system for one place to another communication (ships)Oliver Lodge – resonant tuningReginald Fessenden – invented voice transmissionLee de Forest – Audion tube which amplifies the radio signalsEdward Howard Armstrong – boosts signal further with the regenerative circuitAlso came up with Superheterodyne – better to tune signals without interferenceEvolution of RegulationBerlin radio conferences in 1903 and 1906Handle all wireless messagesEncourage radio on all shipsWireless ship act of 1910 (Ship Safety)Adopted most Berlin conference suggestionsShips with 50+ passengers must have wirelessRadio Act of 1912Two wireless operators on every shipAll transmitters must be licensedFirst comprehensive regulation of land stationsAnnual Radio ConferencesSecretary Herbert Hoover attempts voluntary solutions for interference problemsCourt rule in 1926 that Hoover has no power to regulateRadio Act of 1927Fundamental principles of the law still existAirwaves belong to the peopleBroadcasters must serve the public interest convenience and necessityFederal Radio Commission (FRC) createdNon-political government commissionGiven the job of eliminating interferenceCommunications Act of 1934Federal communications commission replaces the FRCRegulates both wired & wireless communicationContinued public interest requirementTelecommunications Act of 1996Encouraged greater competition between telecom. CompaniesAllowed greater concentration of the mediaChanged limitations of how many stations companies could ownDiscussion #2The Internet in the Arab SpringHow did the internet contribute to the revolution?Attracted more people to the revolutionWould the revolution have happened without social networks?The revolution was inevitableConsider that the revolutions success was only temporary, can social networks be blamed?Revolutions tend to fail regardless of the internetProtests and social media: Twitter images of the 2011 Egyptian Revolution examination (Ozen Bass & Tamara K.)Emotional imagesPolice, army, military vehicle, etc.Efficacy-elicitingCrowds – groups of peopleProtest activities – signsSymbols – religious, nationalSummaryMore collective picturesMore efficacy than emotionalEgyptians users: less violenceActivists: more crowdsReposting – caricaturesTime of instability: more national and religious symbolsInfluential users: more crowds, less facial emotionsMedia must find the right business models to earn a profit from the products and services they offer to be prepared to adjust or change those models to respond to new competitors and new technologies.Business model metaphorLemonade StandCharge consumers for each cup soldFree samples of lemonade that is sold in storesAll you can drink for a monthly feeGive away lemonade, charge to put marketing messages on the cupsEarly Broadcast Business Models1920’s: people hated radio broadcasting advertisersLoss LeaderToll BroadcastingAT&T – charged for toll callsProgram sponsorship – advertisingWhat product or service of value to your customers will you offer?Through which channel will you deliver the product or service?How will you get money from your