Media Economics	Analyzing the economic relationships within the media market and media companies.	Economic+med market and comp.
Can do three types of Analysis	1. Macro Economics 2. Micro Economics 3. Also Business Administration	MA E MI E BA
Macro Economics	Examining macroeconomic issues, such as labor and capital markets, policy and regulatory concerns etc.	LABOR CAPITAL MARKETS POLICY REGULATORY
Micro Economics	Examining microeconomic issues, such as media competition and concentration, market structure, ownership structure, financial performance of media companies etc.	MEDIA –> COMPETITION –>CONCENTRATION –>MARKET –>OWNERSHIP –>FINANCIAL PERFORMANCE
Business Administration	Focusing on a single company´s structure etc	ONE ENTERPRISE
Business Economics	1. Business Management Process Engineering 2. General Business Administratrion 3. Special Busiess Administration	3 Sections
1. Business Management Process Engineering	Secondary methods and procedures are provided for business economics	e.g. ACCOUNTING COST ACCOUNTING BUSINESS STATISTICS
2. General Business Administration	Examining sector–independent issues presenting functional and cross–sector relationships in order to promote inter–disciplinary thinking and decision making	Connection among departaments?
3. Special Business Administration	Analyzing the characteristics of a distinct set of enterprises, focusing on selected issues that are relevant only to certain companies or business units	Set Enterprises, focusing on issues relevant to them
Theoretical and terminological context	Media Economics and Media management	2 important concepts
Media Economics	The study of how media industries use scarce resources to produce content that is distributed among consumers in a society to satisfy various wants and needs	Media economics: media industries, scarce resources, produce, satisfy
Media Management	Consists of the ability to supervise and motivate employees and the ability to operate facilities and resources in a cost-effective manner	Media management: ability to supervise, operate facilities, cost effective
Purpose of economics	SO: forming theories and models which serve to explain phenomena observed in practica. OO: Deriving recommendations for practice.	Scientific objectiv and Operational objective
Basic questions	What should be produced? And which benefits/services does the product provide? How should the services be provided? For whom should the services be provided?	WHAT HOW FOR WHOM
Structure of Economic Transformation Processes
Production Factors		4
Explanation of Production Factors	WP: All performane provided by people in the company R: Material and equipment used for producing the good, not part of the final product. M: Raw materials and supplies, and semi finished products incorporated to the final product and also used for the equipment. DF: Part of the WP factor, used for process of leading, directing, planning and organizing.	WP: People R: Equipment M: Raw materials DF: Soft skills
Economic principle	Generally, economics is about achieving an optimum cost-effect relation due to the conflict between unlimited human needs and scarce resources. MR and ME.	MR: given input, maximum output ME: given output, minimal input
How important is competition?	Fundamental decision-making constraint, factors that influence the sustainability of firm profits.	Market entry conditions, market power of input suppliers, mp of product buyers, etc.
Defining Business Objectives	To have in mind: Commercial media companies Non profit media companies Material and formal goals	Categorizing media companies Goals
Targets
Basic mechanism of price formation	Demand: quantity of goods that consumer are willing to buy at a given price. Supply: amount of good that producers are willing and able to sell at a given price.	Demand and supply Market based regulation, price serves as indicator of scarcity of traded goodd and thus encourages to adjust.
Why should journalist deal with economics?	They should, because they work in companies that are guided by the economical principles, which is the profit maximization	Companies with Economic principle