Special Problems in Journalism

Media Content vs. Media Economics

E. Aguilar
Bicol University
College of Arts and Letters

Media management has become an interesting field of study from the time media conglomerates began
to emerge in the 20th century (Jan. 1, 1901 to Dec. 31, 2000). A media conglomerate is a large company
that owns various mass media outlets such as television, radio, publishing, movies, and the Internet.

Since the beginning of the study of communication, attention has primarily focused on the roles,
functions, and effects of communications. When media and other communications enterprises were
studied, they were typically explored as social institutions, and much of the focus was on the social,
political, legal, and technological influences on the enterprises and their operations (and not the other
way around).

Historically, media scholars ignored, or only lightly attended to the effects of economic forces. This is not
a surprise because communications scholars initially came from the disciplines of sociology, psychology,
political science, history, and literary criticism.

Media entities themselves permitted this lack of scholarly interest in economics and management
because—for most of their history—large number of media executives had not considered media to be
business enterprises. This is not to say that there were no commercial aspects. Many owners, however,
operated publications and small commercial radio and television stations as a means of making modest
livings, while enjoying a great deal of rewards from playing influential roles in the social, political, and
cultural lives of the communities and nations in which they were published.

In the second of the 20th century, media of all kinds began taking on stronger commercial characteristics
with the explosion of advertising expenditures. Newspapers and magazines prospered and commercial
radio and television became highly profitable. These changes, plus the rising of the new media as
competitors of traditional media, began creating new business and economic issues in the industry. But
media scholars generally ignored this phenomenon, not until the 70s and the 80s.

Media as a form of business

There are two aspects of a media organization:

1. Editorial aspect (content, production)
2. Business aspect (finance, income-generation)

Five characteristics that differentiate media from other types of businesses:

1. The perishable commodity of the media product
2. The highly creative employees
3. The organizational structure
4. The societal role of the media (e.g. awareness, influence)
5. The blurring of lines separating traditional media
Effects of too much media commercialization:
1. Loss of relevance
2. Yellow journalism (scandal-mongering, sensationalism)
3. Using news airtime for self-promotion
4. Less space for news, more space for ads
5. Bias towards other businesses

Sources:
Handbook of Media Management and Economics
Edited by Alan B. Albarran, Slyvia M. Chan-Olmsted, Michael O. Wirth