Journ 1100 1st Edition Lecture 15Outline 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 NewsI. Costsa. First copyb. ReproductionII. 3 kinds of media contentIII. 2 kinds of distributionIV. Innovation a. Sustainingb. DisruptiveV. What jobs do newspapers do?VI. News & Network EffectVII. Advertising innovators, News innovatorsCurrent LectureEconomics of print and digital newsEx: unprofitable for “home team” during baseball playoffI. Costsa) First Copy costs: (fixed costs) cost for procuring and packaging information and preparing it for printb) Reproduction costs: (marginal costs) costs for producing product, or printing, and distributingi. Higher marginal costs during a playoff because more newspapers must be printed for higher interest in sports story from consumersDuring 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 distributeThese 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 moneyHow 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 distributionII. 3 Kinds of Media Contenta) Mass-market  “Hollywood Effect” stars (film, sports, music) draw high salaries. Production value high. First copy costs extremely highb) Specialized  local news, audience doesn’t expect Hollywood style production, standards so first copy cost is still highc) User generated content  youtube, instagram, facebook, digital technology makes everyone a content producerIII. 2 Kinds of Distributiona) physical  newspaper, magazine, book, DVD, all have high distribution costsb) digital  website, iTunes, Netflix, are all “zero” reproduction costsCosts: Physical vs. Digital Media1st Copy Costs Reproduction Costs Economies of ScaleMass Market ContentExtremely high Physical: highDigital: low or 0Mass audience will cover high cost of productionSpecialized Content (local news)High Physical: highDigital: low or 0Dual-product model covers costsUser-generated contentLow or 0 Digital: low or 0 Only must pay for delivery platformIV. Innovationa) Sustaining innovation: established company improves products so it can charge customers more, increase revenue and profitsb) 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 eventsThese 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 retailersThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a