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 5: Production and Cost
Why is packet switching used for the Internet rather than circuit networks? What are economies of scale, and how do they provide the United States with a competitive advantage in producing movies and many other cultural or entertainment goods? What are the implications of economies of scale for trade disputes such as that between Canada and the United States over so-called split-run productions of U.S. magazines? Why is international coproduction of television programs and feature films growing in importance? Why do most studios produce both movies and television programs? Why are there so many entertainment industry mergers, such as Disney's acquisitions of Miramax and ABC, AT&T's acquisition of the cable company TCI, AOL's merger with Time Warner, and Bell Canada's ...