Media Economics: Applying Economics to New and Traditional Media differs from ordinary media economic texts by taking a conceptual approach to economic issues. As the book progresses through economic principles, authors Colin Hoskins, Stuart McFadyen, and Adam Finn use cases and examples to demonstrate how these principles can be used to analyze media issues and problems. Media Economics emphasizes economic concepts that have distinct application within media industries, including corporate media strategies and mergers, public policy within media industries, how industry structure and changing technologies affect the conduct and performance of media industries, and why the United States dominates trade in information and entertainment.
Chapter 10: Pricing and Market Segmentation
Why are the prices for foreign sales of U.S. television programs and movies so low? Are these prices unfair, and do they constitute dumping? Why do publishers of academic journals have different subscription prices for institutions (libraries), students, and other individuals? Why did the first video stores in the late 1970s have a membership fee, and why is that no longer the case? Why has block booking of movies (i.e., selling them only in packages or bundles) been prevalent? Why are books first introduced in hardback form, with a lower priced paperback only becoming available later? Why do magazine publishers offer first-time subscribers a special low price? Why is the mark-up (above cost) lower for videogame machines than ...