Journ 1100 Edition 1st Lecture 15 Outline of Last Lecture New York Times Documentary Page One A How are news values 7 involved in this film B Economic Pressures C What is the NYT influenced by Outline of Current Lecture The Economics of Print and Digital News I Costs a First copy b Reproduction II 3 kinds of media content III 2 kinds of distribution IV Innovation a Sustaining b Disruptive V What jobs do newspapers do VI News Network Effect VII Advertising innovators News innovators Current Lecture Economics of print and digital news Ex unprofitable for home team during baseball playoff I Costs a First Copy costs fixed costs cost for procuring and packaging information and preparing it for print b Reproduction costs marginal costs costs for producing product or printing and distributing i Higher marginal costs during a playoff because more newspapers must be printed for higher interest in sports story from consumers During the playoffs Newspaper first copy cost rise due to extra expense travel and overtime of covering the post season baseball story Newspaper reproduction costs go up due to additional copies of the paper needed to print and distribute These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Circulation revenue does rise but not enough to cover added costs therefore during a playoff game the paper actually doesn t make more money How would this be different for local news website Website first copy cost go up similar to newspaper for travel and overtime No extra distribution costs because of low expense of digital distribution II III 3 Kinds of Media Content a Mass market Hollywood Effect stars film sports music draw high salaries Production value high First copy costs extremely high b Specialized local news audience doesn t expect Hollywood style production standards so first copy cost is still high c User generated content youtube instagram facebook digital technology makes everyone a content producer 2 Kinds of Distribution a physical newspaper magazine book DVD all have high distribution costs b digital website iTunes Netflix are all zero reproduction costs Costs Physical vs Digital Media 1st Copy Costs Mass Market Extremely high Content Specialized Content local news User generated content IV Reproduction Costs Physical high Digital low or 0 High Physical high Digital low or 0 Low or 0 Digital low or 0 Economies of Scale Mass audience will cover high cost of production Dual product model covers costs Only must pay for delivery platform Innovation a Sustaining innovation established company improves products so it can charge customers more increase revenue and profits b Disruptive innovation startup company introduces new less expensive product although quality isn t high new customers don t care because they cannot afford the established company s products Customers don t buy products They hire products for jobs that need to be done V What jobs do newspapers do Inform citizens about newsworthy issues and events These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Provide investment information Entertain readers or help fill time Help consumers find new products on sale Help retailers These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute