|Course Title||Economics and Management of Mass Media|
|Institution||Novosibirsk State University|
I. Aim of the Course
The aim of this class is to present an analysis of the mass media industry through the prism of economic concepts and give an introduction to management and marketing principles in mass media industry. The class will teach students basic policy and economic issues in mass media. After the completion of the course students should be able to critically analyze and understand the developments in media markets. In addition, managerial knowledge acquired in class should help students improve the market position of their current or future employer - a media company.
II. Role of the Course in the Overall Degree Curriculum
This class is mandatory for students pursuing a Bachelor degree in journalism. It is taught in the 7th semester.
III. Methods Used
The main format of the class is lectures. This format is chosen because it is necessary to familiarize the non-economic audience with economic concepts of the course. Informal discussions of current lecture topics are strongly encouraged and are expected to be an important contributor to the class because many students typically have some real-life experience working in local media companies. Written tests are designed to create incentives for learning, but most importantly, they present an opportunity for independent
thinking and practical application of the class material.
IV. Course Content
Week 1 Mass Media Product: Information.
Private and public goods. Value of information. Information as public good.
Free-rider's problem and production of public goods.
Introductory Overview of the Mass Media Industry.
Major players. Technological sequence in production of mass media.
Statistical trends in Russian mass media.
Week 2 Mass media and profitability.
Definitions: revenue, expenses, profit. Profitability and media independence. Competition, efficiency, technological innovations and creative experiments. Revenue in mass media: major elements. Economic cost concepts: economic and accounting costs, variable and fixed costs, economies of scale, economies of scope, natural monopoly. Examples from media industry.
Week 3 Analysis of Demand Side in Mass Media Industry
Demand for content: prices, substitutes, complements, income, seasonality, product differentiation in mass media industry. Demand for advertisement: major determinants. Economic theories of advertising. Advertising as means of product differentiation. Value of advertisement place in a publication/TV program.
Week 4 Supply Side: Concentration in Mass Media
"Ideal" market structures: perfect competition and monopoly. Barriers to entry in media industry. Rationale for anti-trust regulation of mass media. How to measure monopolization in mass media.
Week 5 Written Test # 1
Practical problems based on material of weeks 1 through 4.
Week 6 First Management Principle in Media Industry
Interdependence of content, circulation and advertisement.
Two purposes for measuring audience.
Audience Measurement in Press
Number of copies as a biased measure. Certification of circulation in Russia. Measuring readership: basic concepts in statistical survey design (sampling, representative sample, population, population estimators, statistical biases and forecast precision). Gallup readership studies in Russia. Audience characteristics: affinity index.
Week 7 Audience Measurement on the Radio
Continuity of radio product: suitable survey formats. Audience measures:
AQH, AQH distribution, Share, Reach Daily.
Week 8 Audience Measurement on TV
Major measures: Audience, Rating, Share. Electronic measurement methods:
Nielsen's TV Meter. Gallup TV audience studies in Russia. Controversy:
survey methods versus electronic methods.
TV Ratings: A Closer Look
Factors affecting TV ratings. Strategic games of TV channels.
Week 9 Audience Measurement for On-line Media
Advertisement as the main revenue for on-line media. Major issues of audience measurements.
Marketing in Mass Media
Segmentation of media markets. Forecasting methods in marketing. Case study:
Week 10 Written Test # 2
Practical problems based on material of weeks 6 through 9.
Week 11 Selling Advertisement Time on TV
Two models: fixed price per minute and GRP. Comparison of the two models:
price, risk, the importance of objective TV ratings.
Week 12 Selling Advertisement Time on TV (continued)
Negotiations between TV station and advertisement buyer: arguments of the sides, strategy of the TV station, negotiated items. Reliability of Gallup advertisement revenue statistics.
Week 13 Trends in Television Industry
Broadcasting versus cable: comparing Russian and the US experience.
Distribution of spectrum. Financing public television in different countries.
Week 14 Circulation of Newspapers and Magazines
Newsstand sales and subscription: pros and cons. Newsstand and subscription prices in Russia and the USA. How to improve circulation of Russian press.
Week 15 Written Test # 3
Practical problems based on material of weeks 11 through 14.
A. Mandatory: None.
· General Issues:
Trade magazine "Sreda"
· Media Measurements
· Advertisement on TV
Advertisement Agency "Video International"
"Video International" in Novosibirskhttp://www.vis.siberia.net