Understanding Media Industry & Type of Market Structure.

“If you cannot explain it simply you don’t underunder
stand it well enough” :- Albert Einstein

Media Industry as we all know is a wide industry itself. Media Industry consists of many formats like print media, television, movies, cellphones and the internet. big is media industry and it would be difficult to explain the whole industry. As per the Forbes Magazine 2016 Walt Disney ranks first in Media Industry.  So to understand media industry in simple way we need to learn the usage of the various types of media and to understand it even better we would learn the working of Yash Raj Studio.

Yash Raj Studio was founded in the Year 1970 by Yash Chopra. Yash Raj Studio make film’s, music & even do advertisement. The studio have produced many films from which 13 film’s were directed by Yash Chopra himself. The film’s consists of many block buster film’s like Daar, Dil to pagal hai, Veer Zara etc. They have the most popular series of film Dhoom.
To advertise their film’s they use different tactics like giving advertisement in newspaper, they make the website for the film, Mobile Games with help of 99 apps, Giving Hoardings, Social Media Contest etc. Yash Raj Studio has a kind of monopoly for releasing film’s world wide.

Yash Raj Studio has his own YouTube channel known as Yfilms for short film’s & advertisement purpose. They recently made an advertisement for Durex Condom by releasing a series called Sex Chat With Papu and papa . The similar things is been used by many YouTube channels like TVF & SDE etc. All the above tactics are used by Yash Raj Studio and many more comes under media industry.

Media have it's own market as per wikipedia "A media market, broadcast market, mediaregion, designated market area (DMA), television market area, or simply market is a region where the population can receive the same (or similar) television and radio station offerings, and may also include other types of media including newspapers and Internet content." Media have it own market structure to. The structure consists of Monopoly, Oligopoly, Monopolistic, and Perfect Competition. Let's take a look on each of them.

Monopoly:- Monopoly refers to a market where there is a single seller. No other seller can enter in this market if he does it would difficult for him to survive. The best example for this could be back when television was introduced there was a company who have the rights over Radio and was also having a copyright over Television which made it difficult for other inventor to release their own model of television.

Oligopoly:-  Where there are only few seller selling Homogeneous or differentiate product. This is the most realistic market structure. For example there are six major book publishers - Random House, Pearson, Hachette, HarperCollins, Simon & Schuster and Holtzbrinck.
Monopolistic:-  There are large number of sellers selling different products and large number of buyers. Example for this could restaurant business.
Perfect/Pure :- This type of market is unrealistic which cannot occur in real life. This is an imaginary market structure where there are large number of sellers selling homogeneous products.

This was the short explanation with examples of media industry and the types of market structure. Hope you liked it….

Media & Economic

So as a media student we think that why Economic is important in media. For that we should first need to learn both separately.  So we know that a Media is a communication channel through which we can share news, entertainment, education & data. On the other hand we also know that Economics is the factors that determine the production, distribution and consumption of goods and services.

But why should we study economic in media?
Economics in media basically means applying all the theories of economics i.e. study of micro and macro economics in media. Economics in media helps us to understand a new relationship between economic and media producer, advertiser, audience and society. As a

media personality we required to know what audience demands, in which area which news paper has a great sale, how many people listen to radio, what are the percentage of profit on the film, royalties on books and novels etc. Through Economics many people have find the development of media in past years.  So for getting this information we require Economics in Media.
Let’s take a simple example:
Imagine that you have to make a movie. So you need to know what film genre would be preferred by the audience? What would be the cost of the actors? What would be the production cost? Etc. For this Pre-Production activity we need to do analysis and analysis should be based on the economic theory. After Production of the film we need to know all the ways through which we can advertise our movie, making merchandise and creating digital contest and many more. Suppose after launch of your movie your movie become a blockbuster you need to figure out what was the total number of people who watched it in cinema. What was the total Box Office collection? How many DVD and CD’s were sold, how many people watched it on television and many other factors. For all the following process we need to study economics.
In the example it is clear that there is a relationship between Media and Economic and also why we need to study Economics in Media.
Thank You.