Economics of Mass Media
Operating media is expensive. Where does the money come from?
- Advertising Revenue – Advertising space on newspaper and magazine pages, advertising time on TV, ads on Web pages and in social media, product placement in films, etc.
Global media revenue will rise to $2.2 trillion a year by 2012, boosted by advertising in digital and mobile media and an explosion in the adoption of broadband interest in things like watching videos on the Internet and on devices like the iPhone. – Reuters
- Circulation Revenue – Fees collected from a media audience, such as newspaper, magazine or website subscriptions.
- Audience Donations – Voluntary payments by members of an audience to a mass medium, such as money collected by a PBS fund-raising drive.
- Private Support – Payments, often called underwriting, from corporations, foundations or other organizations that fund the operation of a mass media outlet.
- Government Subsidies – Government money used to pay for the operation of a mass media outlet, such as PBS.
- Auxiliary Enterprises – Other methods of raising money, such as merchandising, facility rental, etc.
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© 2011 Dr. Anthony Curtis, Mass Communication Dept., University of North Carolina at Pembroke e-mail home page