Question 1

Most of the media companies we are familiar with are owned by a few much larger companies. Example: Verizon owning Yahoo!

Accepted Answer

Many media companies are indeed owned by a smaller number of large corporations, creating a media landscape where a significant portion of outlets are controlled by a few entities. Verizon's ownership of Yahoo! is one example of this consolidation in the media industry.

Question 2

While the Internet provides opportunity for alternative media outlets, they often are not successful because ______.

Accepted Answer

Alternative media outlets often struggle with financial sustainability due to limited budgets, which affects their ability to continuously pay staff and produce substantial content.

Question 3

Bagdikian's hypothesis that absence of competition in the media industry will likely lead to ______ is plausible.

Accepted Answer

Bagdikian's hypothesis suggests that a lack of competition in the media industry would lead to a convergence in content and presentation styles, resulting in more homogenous media products. This is because fewer competitors would likely mean less variety in the types of media being produced.

Question 4

Local newspapers that get their advertisement support from primarily local businesses ______.

Accepted Answer

Local newspapers that rely on advertisement support from primarily local businesses may face pressure to publish content that is favorable to those businesses, limiting reporters' freedom to write stories that might not be light and industry pleasing.

Question 5

Network news programs, still expected to make a profit in despite having most of their advertisers move to the Internet and the fierce competition from cable news channels, have started ______ to attract consumers.

Accepted Answer

Network news programs have started incorporating entertainment, human interest, and celebrities to attract consumers, adapting to changing viewer interests and the competitive media landscape.

Question 6

Advertisers are the dominant source of revenue for ______.

Accepted Answer

Advertisers are a major source of revenue for print, broadcast, and online news platforms, making them a dominant source across all these media types.

Question 7

The "pipes" component of modern media companies is often overlooked but is a vital aspect.

Accepted Answer

The "pipes" component, referring to the distribution networks and infrastructure that deliver content to consumers, is crucial for media companies to reach their audience effectively, yet it is often not as prominently discussed or recognized as content creation and branding.

Question 8

Peterson and Berger's analysis of the postwar music industry, they argue that high market concentration leads to homogeneity, while a competitive market leads to ______.

Accepted Answer

Peterson and Berger's analysis suggests that a competitive market in the postwar music industry fosters diversity in music, as opposed to homogeneity in a high market concentration scenario.

Question 9

When networks have hit television series, they often will ______.

Accepted Answer

Networks often create copies and spin-offs of hit television series to capitalize on their success and maintain audience interest.

Question 10

Modern media companies provide three services to consumers that do not associate with one another.

Accepted Answer

Modern media companies often provide interconnected services that complement and enhance each other, such as content creation, distribution, and advertising, creating a more integrated consumer experience.

Question 11

Companies that provide us with the metaphorical pipes that transfer our media experiences do not have any power over media producers and media consumers.

Accepted Answer

These companies, often referred to as media distributors or platforms, have significant power over both media producers and media consumers by controlling access, distribution, visibility, and monetization of content, thereby influencing what content is produced and how it is consumed.

Question 12

From the few amount of shows that make it onto a television network, only a handful of them get renewed and get to continue. The reason for this is ______.

Accepted Answer

The primary reason shows are renewed is their ability to attract a sufficient audience, which in turn generates advertising revenue for the network. If a show does not gather enough viewers, it does not generate enough profit from advertisements, making it less likely to be renewed.

Question 13

Platforms like Facebook and Google provide advertisers with viewers, which prompts viewers to become consumers of said products.

Accepted Answer

Facebook and Google use targeted advertising based on user data to show ads to viewers who are most likely to be interested in those products, increasing the likelihood of viewers becoming consumers.

Question 14

News outlets increase their profit margin in today's modern media world by cutting costs, often ______.

Accepted Answer

News outlets often increase their profit margins by decreasing the number of journalists they have on staff, focusing on preplanned events instead of random events, and cutting back on long-term investigative reporting. These measures help reduce operational costs.

Question 15

In the early 19th century, the more mainstream British press started gaining profit from utilizing advertisement, but the more radical British press did not receive support from advertisers, which is believed to be the reason ______.

Accepted Answer

The radical British press likely struggled financially without the support of advertisers, leading to its decline, as advertising revenue was crucial for sustaining newspapers during that period.

Question 16

Silvio Berlusconi, elected prime minister of Italy 3 times, achieved his position by ______.

Accepted Answer

Berlusconi utilized his ownership of television and radio outlets to influence public opinion and change the media landscape in his favor, which played a significant role in his political success.

Question 17

Networks have been leaning toward producing less expensive programs that do not have huge budgets or expensive actors because of ______ and ______.

Accepted Answer

Declining audiences and a decline in advertising revenue are significant factors driving networks to produce less expensive programs. As audiences shrink, networks receive less advertising revenue, necessitating cost-cutting measures such as opting for programs that are cheaper to produce.

Question 18

Which of the following is an example of control of the media having an impact on what content media users consumed?

Accepted Answer

All options illustrate ways in which control over the media can influence the content that reaches the audience, whether through governmental policy, financial influence, or selective representation.

Question 19

When advertises write their products into the story line of a film, television series, or video game for characters to naturally utilize as a more subtle way of guaranteeing reaching audiences, they are practicing ______.

Accepted Answer

Product placement is the practice of integrating products into entertainment content for promotional purposes, making them part of the story in a natural way.

Question 20

The degree to which there is diversity in media content readily available to audiences, such as presence of different voices, different political views, and a variety of cultures is called ______.

Accepted Answer

Media pluralism refers to the degree of diversity in media content available to audiences, encompassing a variety of voices, political views, and cultural representations.

Quiz 3: The Economics of the Media Industry