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1 |
Artisanal Society
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1.1 |
folk culture
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oral tradition
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traditional
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passed down one-to-one
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1.2 |
high culture
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written tradition
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classical
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scarcity of objects
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1.3 |
handmade production
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local markets
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small scale
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2 |
Industrial Society
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2.1 |
Economies of Scale
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unit cost declines as production quantities increase
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first copy
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production costs
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staff salaries
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taxes
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investor dividends
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loan repayments
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marginal / incremental costs
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marketing
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duplication costs
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increased staffing
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more facilities
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production costs spread across mass audiences
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large operations
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greater investment
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greater revenue
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greater profits
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supply and demand
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economies of scale create cost savings
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consumers will buy more
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increase economies of scale
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improved efficiency
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Competition
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size
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scale
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monopoly
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one company dominates
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sets pricing
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local monopolies are common
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duopoly
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two independent companies dominate
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newspapers, radio/TV station owners
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oligopoly
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few companies dominate
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most common in media
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barriers to entry
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obstacles to entering a market
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high costs
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less access to capital
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2.2 |
Mass Media Revenue
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direct sales
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purchases by consumers
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rentals
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payment to borrow the product
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subscriptions
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payment for a continuing service
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usage fees
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admission fees
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pay-to-play
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advertising
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indirect payment
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payment for exposure to audience
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syndication
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payment to rent content between media companies
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license fees and royalties
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compensation for content creation
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subsidies
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government payments
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socially valuable
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not commercially sustainable
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voluntary donations
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corporations, foundations, individuals
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pay-as-you-wish
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compensate for valuable content
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3 |
Market Segmentation
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3.1 |
narrowcasting
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media competition
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fragmented audience
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3.2 |
factors
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information technologies have lowered production costs
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easier to profit from smaller audiences
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advertisers value small but targeted audiences
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higher price for specific audiences
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research techniques and consumer information databases aggregate a large audience across narrowcast media
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more efficient than using mass media and reaching everyone
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traditional mass media have lost audiences to narrowcasters
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respond with narrowly targeted programs of their own
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4 |
New Media Economics
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4.1 |
Personalization
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market segmentation scaled down to individuals
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advertisers benefit precisely target specific ads
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first-copy costs are not an issue
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4.2 |
New Media Revenue
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advertising (Google AdWords)
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pay subscription (newspaper pay wall)
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commissions (eBay)
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social media gathers free content (Facebook)
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