Journalism 201 1st Edition Exam 2 Study Guide Lectures 14 26 3 funding models for journalism Non profit Public o Public Goods informing the public and contributing to a robust public discussion o news web radio earned media ex BBC For profit system news and media are supposed to create two distinct products o Paid for my subscriptions and mostly ads Profits the opposite of public goods because they are excludable o Public Goods and Profits o Most popular in the U S Challenges of the for profit system It is hard to create the two products public goods and profits at the same time Public goods and profits at odds tension between public service to inform citizen and the profit goal to make Complimentary copy talk about the product so the advertisers want to place their ad there pressures from advertisers Has pressure from what the advertisers and owners want Programming can be compromised if it conflicts with advertisement interests Tension between goals of profit and public service mission in American media Advertising is a dual product industry o The company sells content to you o The company sells you your attention to advertisers selling eyeballs Almost all of their profit comes from advertisers but when industry you sell the content to the advertisers it becomes advertisers private good Solution between profit and public service in 20th century media bundling and lossleaders newspapers definitely for profit but not maximum profit it doesn t get as much attention and charges less loss leader prestige bundling strong revenues from advertising classifieds Bundling puts all forms of media into one source Loss leaders rely on the facts that some things are going to make more than others like in sports where news is the loss leader because the news by itself loses Hard news about politics and investigative journalism is expensive but it can exist because the sports section pays for it o so hard news loss leaders o Popular until the 70 s and then channel diversification and unbundling can into play Technological political and economic changes in late 20th century all changes that undid bundling which led to profit loss because people could select which part of the news they want technological channel diversification cable satellite unbundling falling hard news consumption people didn t have to watch the news anymore political strong spirit of deregulation don t have to cover both sides free markets as solution to all problems government is starting to stay out of things neoliberalism sense that media businesses are like others free market ideology 1987 Fairness doctrine repealed 1980 s 90 s ownership rules relaxed 1996telecommunications act o increase polarization economic profit seeking consolidation of companies increasing profit focus and eliminates competitors sales to publicly held corporations consolidate because of economies of scale cheaper advertising advantage set prices eliminate competitors political advantages cross platform synergy the whole is greater than the part Advertising as a dual product industry creates content for sale to consumers which helps to sell mass audience to future advertisers examples o TV depends on ratings of their program to help price advertisments this has become more difficult due to recording TV shows and skipping through commercials o Newspaper earn my through subscriptions or individual buys number of papers sold price ads 1 they sell content to you 2 they sell you or your attention 2 is where the money is for most media companies but once you sell the content to the advertisers it becomes their private good Pressure on for profit media from owners and advertisers and examples pressures from advertisers o would love to control 1 the news they appear with 2 the news about them protection of brand image o hard for a company who relies on advertisers revenue to ignore their wishes Baker reading Chrysler o MS Magazine founded 1971 by Gloria Steinem as a response to typical Women s magazine refused to offer complimentary copy putting the product in the magazine more than once reinforce advertisers buy full page as long as writers mention them in their writing lost general mills pillsbury carnation hormel nabisco etc ran into economic problems investigative reporting of hair dye clairol withdrew all advertising other pressures o Chris Patten english governor of Hong Kong wrote a memoir lastenglish governor memoir wasn t entirely complementary of chinese government Harper Collins was set to publish it editor Stuart Profit was enthusiastic Rupert Murdoch CEO of News Corporation owner of Harper Collins ordered Profit to kill the book knew China was an up and coming market Profit refused was suspended What happened to KalleLasn and Adbusters and its significance for understanding communication in the U S Anchor on CNN said that advertisers would not be happy to be placed next to certain ads Ad Placement Significance Americans can speak out against American government but not American sponsors or companies that advertise whereas in Europe it is the opposite o ad was anti black friday Cultural Jamming offering alternative ideas on ads that s what his ad was about o standing out in a cluster of ads They didn t want to affect their other advertisers CNN is private so they have the ability to reject whatever they don t like o private corporations can reject ads Public radio as a hybrid public nonprofit medium government run NPR non profit organization but it s barely public because it s getting the money from the government public media outlets foundations and organizations non profit is funded by all of these except from the government and the public created by the Public Broadcasting Act 1987 NPR is hybrid in the sense that any profits are recycled back into NPR BBC England more public than NPR because funding mainly comes from the government Funding mechanisms of public media and protections from political pressure Funding Direct funding government License fees to own a TV in UK government tax BBC Taxes on media and telecommunications Ads Protections from political pressure Dedicated funding BBC licensing fees funding government can t touch Multi year funding funding guaranteed for many years allows presidents not to cut off funding Oversight boards make sure they are following the principles of journalism Staggered terms for commissioners mediate between the government and media People in charge of gov t aren t in charge of media Charters and
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