THE PRICE IS RIGHT

!
COME ON DOWN!
The Commodity Model:
Audience as Value
Content
• Introduction

• Commodity Model (Present)

• Commodity Model & Limitations

• ‘Evolution’ of Commodity Model

• Case Study: MediaCorp TV & MOBTV

• Conclusion

• References
Relationships
Audience – Media:
Foundation of economic power
Audience is an asset/property

Advertiser – Media:
Provide financial support

Advertiser – Audience:
Capture audience’s awareness

Government protects local media’s economic

interests by ensuring that the broadcasters are
still working on an advertiser-supported system.
Dallas Smythe
Zz.
• Audience Commodity

• “all non-sleeping time is working time”

• Work time is devoted to the production of

commodities, producing and reproducing labour
power.

• Time away from work, but not asleep is sold as a

commodity to advertisers.

• By consuming media, audience performs labour

for the advertisers and media.
Commodity Model
Broadcaster

Ratings $$$

Audience Advertiser
Commodity Model & its Limitations
• Maxwell (1991) and Streeter (1996) argue that audiences do not
produce any commodity or sell labour power, but some are paid
by ratings firms to produce the ratings commodity.

• “Media capitalists buy in the ratings commodity and

replace audiences’ labour power with constructed
audience image”.

• Advertiser support needs to be consistent with public

interest as broadcasters are required to “give people
Commodity Model & its Limitations
• In reality, the broadcasters cater to the advertisers,
instead of to fulfill the public’s wishes.

• Broadcasters are expected to maximise their

audiences and sell them to anyone who is willing to
pay.

• Broadcasters are trusted with the responsibility of

public interest and compelled to provide programmes
Commodity Model: New Media ENV
• Commodity model exists in a world whereby media is
financially supported by advertisers.

• With the introduction of new media, the concept about

commodity value of audience will change.

• One approach - the value of audiences to advertisers

(ratings).

• Other approach - ability of audiences to pay fees (direct

payment).

• In both cases, the audience will still be the key source of

MediaCorp TV & MOBTV
• MediaCorp’s Revenue = Mainly from advertisers.

• MediaCorp introduced MOBTV

(MediaCorp Online Broadcast Television).

• Audiences are able to pay directly for programme viewing.

• MOBTV subscription fees = Revenue to MediaCorp.

Commodity Model: New Media ENV
Broadcaster

$$$
Ratings $$$

Audience Advertiser
Conclusion
• Model evolves to suit the conditions of the new media
environment.

• Sustainability of the commodity model is constantly

challenged, esp in a technologically advanced
environment.

• Money is still an independent variable.

• Definitions and concepts of audience value and media

environment are subjected to changes.
References
Kellner D and Durham M, (1991), Media and Cultural Studies, pp 230-321

Webster, J. G, (1991), Audience Models in Communications, Policy

Chang, De Li, Making identical audience commodities across countries by global

sports: NBA and global advertising in Taiwan and the US
http://lass.calumet.purdue.edu/cca/gmj/OldSiteBackup/SubmittedDocuments/archivedp

Cynara M. Medina, Ugly Betty and The Latino /A Commodity Audience, Downloaded on 9
March 2009,
http://www.allacademic.com//meta/p_mla_apa_research_citation/2/5/9/6/3/pages259631/p259631

Glass G, (2006), Audience Labor: The Asymmetric Production of Culture

http://www.geof.net/research/2006/audience-labor

Gould, Stephen J. ; Gupta, Pola B. (2006), Journal of Advertising, "Come on down":

how consumers view game shows and the products placed in them.
http://www.accessmylibrary.com/coms2/summary_0286-15385145_ITM
Thank You!
Presented by:
Adrian Ng
Bertrand Tay
Charine Tan
Ken Chua
Nicole Lee
Pearlyn Hoon
Vernia Lim