Econ 101 1st EditionExam # 2 Study Guide Lectures: 10 - 18Lecture 10Commodity: when products are all very similar and the differentiating characteristic is in price “uniform in quality, driven by price”Breaking News: sudden, compelling news event covered immediately by reportersEnterprise: a story pulled from a source that was developed through a specific area of coverage / beat sourceBeat: specific focus a reporter specializes in (ex: police beat or government)Gatekeeping: reporter chooses what to focus story on and the determines what information is important to display a certain messageInformation Subsidies: press release, press conferencePseudo Event: press conferences / press releases. An event with the soul purpose to attract attention Agenda Setting: “media doesn’t tell us what to think, they tell us what to think about” the way in which the media shapes stories to express what is and isn’t importantFirst level agenda setting: issue presented- what the media presentsSecond level agenda setting: attributes of issues- how the public thinks about the issue- the way the topic is covered influences how people interpret the news item or the “frame” which the public sees the newsThird level agenda setting: networks of issues or attributes- the way attributes of a story paint a picture to the viewer- ex: attributes connect as story unfoldsIntermediate Agenda Setting: media influences other media similar to how media influences the public agenda- ex: journalist are most influenced by other journalists- New York Times Affect Lecture 11“Page One: Inside the New York Times”- Struggle of NYT to survive this new internet age- NYT has build partnerships with web-based organizations - Hired former drug addict, David Carr, who defends the paper’s reputation from bloggers trying to hurt it- “New York Times Affect” most major news stories of other newspapers can be traced back to the NYT- NYT competitors: Gawker, Wikileaks- Apply 7 news values to the NYT7 NEWS VALUES1) Timeliness: immediacy, how long ago did the story happen?a. Online- past ½ - 1 hourb. Newspaper- past dayc. Television- since last news cast2) Impact: intensity, how the story affects people, # people affected3) Currency: timeliness + impact, is story being talked about a week later?, ongoing nature4) Conflict: “most common” news value5) Proximity: location, whether the story “hits home”6) Prominence: high ranking members of society get more coverage7) Novelty: emotion, human interest story, “out of the ordinary,” unusualLecture 12Gatekeeping: bridge between how we construct news and the economicsof how we construct itNewspapers- make decisions based on beliefs / interests of imaginary membersTelevision- producers view “interest, importance, visual quality”Online- algorithmsSocial Media- we are our own gatekeepersLecture 13 Dual Product Model- 2-sided marketCreates content for sale to consumersSells mass audience to advertisersMedia firm produces content to attract an audienceAdvertisers put commercials on ABC during the time of a popular so that many tv watchers will see their ad. Market Model-Private company selling products-Purpose: generate profits-Public interest determines what is important / popular-Accountable to owners-Encourage people to enjoy themselves and buy products via ads-Regulation is seen as interference-Criticisms: 1) people treated as consumers, not citizens2) Economic, not civic benefits 3) “Toaster with pictures” Public Sphere Model-Publically owned (exists through tax and government), serves the public-Purpose: promote citizenship-Public Interest is for good content even if unpopular-Accountable to the public and government representatives-Encourage: learn more about the world and live as active citizens-Regulation: useful to protect public interestHorizontal Integration: conglomerate owns several media outlets across marketplace, radio owning 6 different outlets - Journalism example: Hearst Corporation, owns newspapers, magazines,television and radio stations. Can cross-promote media this was- Non Journalism Example- Kelloggs & General Mills own a majority of cerealsVertical Integration: Conglomerate owns companies up and down chain of production & distribution- Journalism example: Disney, owns Pixar, ABC, can air Disney through this and also owns studios to film the movies and produceOr a newspaper owning paper mills and presses- Non Journalism: Exxon with Mobile (oil production, refining & distribution) Lecture 14Diverse monopoly: few owners & high product diversityHomogenized monopoly: few owners & low product diversityDiverse competition: many owners & high product diversityHomogenized monopoly: few owners & low product diversityLecture 15Economics of Print & Digital NewsFirst Copy Costs: fixed cost of packaging and preparing information for print (original cost of production) Reproduction Costs: marginal costs, cost of reproductionBaseball Playoff Example: It’s unprofitable for the home team newspaper to make it to the playoffs…- First copy costs rise due to extra expenses (travel, overtime)- Reproduction costs rise due to additional copies of paper printed- Circulation revenue rises, but not enough to cover extra costsHow does this differ from a website?- First copy costs rise, but reproduction costs do not because of low expense of digital distribution3 Kinds of Media Content- Mass Market- cost extremely high, “Hollywood Effect,” New York Times, or t.v. anchor- Specialized- cost high, local news- User generated content- cost free, facebook or youtube2 Kinds of Distribution- Physical- newspaper, magazine, book, DVD,CD (high reproduction cost)- Digital- website, iTunes, Netflix (0 reproduction cost)Innovation: - Sustaining Innovation: company improves product so that peoplecontinue to purchase it and can charge more- Distributive Innovation: new less expensive product, lower qualityLecture 16Hard paywall: minimal or no content shown without paying Soft paywall: more flexible in what can be accessedNonprofit News Model: support of listeners and online readers attract donations, use social media / websites / newsletter to create social value, foundations / donors / sponsors used to create economic valueHyperlocal Journalism: intense focus on locality, community news, may focus on single issueLecture 17Print-first Model: website is a repurposed version of a newspaperInterim Model: breaking news posted immediatelyDigital First Model: