Journalism 201 1st EditionExam # 2 Study Guide Lectures: 14 - 263 funding models for journalism - Non profit - Publico Public Goods→ informing the public and contributing to a robust public discussiono 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 Profitso 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 adthere (pressures from advertisers)- Has pressure from what the advertisers and owners want- Programming can be compromised if it conflicts with advertisement interestsTension 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 goodSolution between profit and public service in 20th-century media: bundling and loss-leaders- 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 ito so hard news=loss leaderso Popular until the 70’s and then channel diversification and unbundling can into playTechnological, 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, 1996-telecommunications acto 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 skippingthrough 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 tothe advertisers, it becomes their private goodPressure on for-profit media from owners and advertisers, and examples - pressures from advertiserso would love to control 1) the news they appear with 2) the news about them- protection of brand imageo 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 pressureso 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 certainads (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 likeo 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 -BBCTaxes on media and telecommunicationsAds- Protections from political pressure:- Dedicated funding - (BBC licensing fees) funding government can’t touch-
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