Th e m e d i a a n d c o m m u n i c a t i o n industries: A 21s t c e n t u r y p e r s p e c t i v e Alan B. Albarran, Ph.D. The University of North Texas Center for Spanish Language Media Denton, TX, USA [email protected]

Resumen

Los medios de comunicación y las industrias de la comunicación están experimentando cambios y evolución sin precedentes en el siglo veintiuno. Este trabajo examina este proceso con un método de estudio de casos que analiza los sectores tradicionales y nuevos de los medios de comunicación, utilizando los siguientes criterios: los mercados en los cuales se ubican, los líderes en cada una de las industrias respectivas, el potencial económico de estas industrias, y los procesos continuos de evo- lución y transformación. El estudio sostiene que ya no se identifican los medios de comunicación y las industrias de la comunicación en términos de sectores centrales tales como la radiodifusión o los periódicos, sino en una estructura de actividades distinta, que involucra áreas como contenido, dis- tribución y búsqueda. Además, el trabajo plantea que los estudiosos necesitan nuevas herramientas teoréticas y metodológicas para comprender mejor los cambios y transformaciones masivos que se ocurren a través del sector de los medios de comunicación. Una serie de propuestas concluyen el estu- dio, ofreciendo un marco sobre el cual se puede construir la investigación y el análisis en el futuro. Palabras claves: Comunicación, industrias, medios, mercados, cambios, transformaciones

Abstract

The media and communication industries are experiencing unprecedented change and evolution in the 21st century. This paper examines this process with a case study method by analyzing the tradi- tional and sectors using the following criteria: the markets in which they are engaged, the leaders in each of the respective industries, the economic potential of these industries, and their con- tinuing evolution and transforming processes. The paper argues that the media and communications industries can no longer be identified in terms of core sectors such as broadcasting or newspapers, but rather to a different structure of activities involving such areas as content, distribution, and search fea- tures. Further, the paper posits that new theoretical and methodological tools are needed by scholars to better understand the massive changes and transformation occurring across the media sector. A se-

Co m Hu m a n i t a s Vo l . 1. No. 1. Añ o 1 · Pá g s .: 59-68 60 Co m Hu m a n i t a s ISSN: 1390-5619

ries of propositions concludes the paper, offering balization, regulation, economics, technology, and a framework on which to build future research and social aspects. Each of these forces is described analysis. briefly in the following paragraphs. Key words: communication, industries, Globalization is a term with many different media, markets, changes, transforming. meanings (Micklethwait & Wooldridge, 2000); for media firms and industries the act of globa- Artículo recibido el 04 de diciembre de 2009; so- lization occurs when companies reach beyond metido a pre-revisión el 15 de diciembre de 2009; enviado domestic borders to engage consumers in other a revisión el 20 de diciembre de 2009; aceptado el 25 de nations, thus expanding their markets. Originally, diciembre de 2009; publicado Año 1. Vol. 1.No. 1. media globalization was limited to selling content around the world, a practice that first began with Hollywood films and later programming. 1. Introduction The United States is the largest exporter of media content in the world, raising many concerns about the influence of America abroad and the notion of The first decade of the 21st century has “cultural imperialism” (Jayakar & Waterman, 2000). been unique in terms of its impact on the media Globalization also occurs when compa- and communication industries. From the rapid rise nies acquire other properties in other countries. and collapse of the dot-com era to a worldwide News Corporation was first an Australian newspa- economic recession impacting virtually every sec- per company, acquiring newspapers in the United tor of business activity, along with the introduction Kingdom and the United States, and later pur- of converging technologies such as the mobile chasing a group of television stations that would “smart phone” and multiple digital platforms, the eventually become the Fox TV Network. Sony en- media and communication industries are not only tered the film industry by first acquiring Colombia in the process of transforming themselves, but are Tri-Star, and later MGM. being transformed by many external factors (Alba- Yet another form of globalization occurs rran, 2009). This paper takes a look back, as well when a company establishes multiple locations in as a look forward, to understand this process and other nations. The Nielsen Company, a privately how it is reshaping the future of the media and held firm specializing in various types of research communication industries. services, operates in over 100 countries throug- The word “transformation” is purposely used hout the world. Disney operates theme parks in in this paper to represent the massive changes ta- several important global cities, with a separate king place across the media and communication base in Latin America. As the global leader in book industries. Transformation is typically defined as publishing, Germany-based Bertelsmann also has an act or a process that transforms something, re- operations around the world through its various sulting in a change in form or appearance (Trans- publishing entities. formation, Merriam-Webster). The term captures Regulation and regulatory practices differ the environment that currently confronts the me- from nation to nation; through regulation govern- dia and communication industries. The transfor- ments require business and industry to follow cer- mation of the media and communication indus- tain rules and guidelines. Regardless of the coun- tries didn’t happen overnight. The process has try, most businesses and industries dislike being been accelerated by several external factors dis- regulated, and would prefer to operate without cussed in the next section of the paper. government oversight (Albarran, 2002). But regu- lation is important in establishing and maintaining competition, to protect workers and consumers, and to generate revenues through taxation in or- 2. External forces transforming der for government to operate. the media industries Over the years the media industries have evolved in many developed nations from being There are five predominant forces that in- strictly regulated to various forms of deregulation teract in any society impacting the media and and liberalization. In the United States and Uni- communication industries. These forces are glo- ted Kingdom, regulations for the media industries Vol. 1. No. 1. Año 1 - Diciembre 2009 - Enero 2010 Co m Hu m a n i t a s 61

have been repeatedly relaxed since the 1980s, tion is graying; American society along with many especially in regards to media ownership. Other other nations are becoming much more ethnically nations have followed suit to some degree, but in diverse and multicultural; people are living longer other regions of the world (e.g., Middle East, Asia) and working longer; younger people are more te- heavier regulation exists. chnologically savvy and prefer to access content Economics in any nation is influenced by its differently than adults. government’s philosophy and the interplay of Given all the outlets available for entertain- market forces, which are identified through an ment and information in a digitally delivered me- analysis of macro- and microeconomic concepts. dia world, audience fragmentation is at an all-time Macroeconomics is concerned with the aggregate high. Audience members are more empowered economy, and topics like gross domestic product than at any other time in media history. Audience (GDP), gross national product (GNP), labor and members no longer just consume content -they unemployment, interest rates, and banking and also make content in a multitude of ways, whether finance (Albarran, 2002). Microeconomic analysis through blogging, podcasting, uploading videos, is concerned with the structure, conduct and per- or social networking to just name a few options. formance of markets and individual firms (corpo- Social aspects are yet another force driving the rations). transformation process. During the 1980s and 1990s, the media in- dustries experienced massive global consolidation thanks to a host of economic factors: strong cash 3. The evolution of media flow and profit potential for media properties; plenty of available capital for investing; low inter- and communication markets est rates; and relaxed government policies liberali- zing ownership requirements. 3.1. Traditional Media Technology has both enhanced and disrupted and Communication Markets the media economy. Innovations in technology through distribution and reception technologies Historically, media and communication mar- continue at a rapid pace (Shapiro & Varian, 1999). kets were easy to define because they functioned The plethora of technological advances has for- in a specific area -such as publishing (newspa- ced media companies to try to keep up with one pers, magazines, books), radio, television, sound another, while at the same time not knowing what recordings, and film. Media companies could be technologies consumers will ultimately adopt. The further differentiated because they tended to fo- digital environment has caused havoc with tradi- cus on one area on the media value chain; spe- tional business models; in an analog world con- cializing in development (of content), production, tent was controlled by media companies and ac- distribution, or exhibition as illustrated in Figure cess limited. In the digital world these barriers are 1 (Albarran, 2009). As media companies began to removed. consolidate, larger conglomerates such as Disney For media companies finding new business and News Corporation were developing numerous models and revenue streams are a major concern. brands in a horizontal pattern, across different For consumers, today’s new technological gadget markets, as well as engaging in vertical integra- is likely to be obsolete within months, replaced tion, where many activities of the value chain were by yet another new innovation. Technology offers housed under one corporate structure. faster and easier tools to deliver and access enter- The transition from analog to digital tech- tainment and information. Technologies like the nology -along with the diffusion of the iPod, DVR, and smart phones are examples where and other digital platforms- began to further blur both media firms and consumers win. how media markets were defined. Cable, satelli- Social aspects are also important in that the te, and companies entered audience can no longer be thought of as a mass the picture, along with Internet-related busines- entity, but an aggregate of many different demo- ses, and technology companies, together creating graphic, ethnic, and lifestyle groups with different confusion as to how media markets are defined needs and interests. The audience is transforming and identified. as well (Napoli, 2003). The baby boomer genera- Evidence of this evolution of media markets 62 Co m Hu m a n i t a s ISSN: 1390-5619

Figure 1 Traditional Media Value Chain

Content Production Distribution Exhibition creation

is available through an examination of the media- see evidence of two trends: the growth of content- related companies that make up the Fortune 500. related companies, as well as the importance of The Fortune 500 is a listing of the top U. S. com- distribution via , a great deal panies ranked by revenue, and published annually of the latter coinciding with the rapid growth of by Fortune magazine since the 1950s. While the mobile phones and the Internet. Further, it was information is descriptive, over time it illustrates during this time period that telecommunication trends and patterns. What follows is an analysis operators began offering “triple play” services, the using only the top 100 firms each year. bundling of telephone, high speed Internet servi- In 1980, only three media-related compa- ce, and a multichannel video service to the home, nies were in the top 100: RCA -then the owner of providing direct competition to cable television the NBC Television Network (36); CBS (37), and providers offering similar services. Gulf + Western (52), then owner of Paramount These traditional media and communication Studios. By 1990, only three companies were lis- markets focused on a single business model: ad- ted: General Electric (5), which had acquired NBC vertising. Content attracted audiences, and adver- from RCA; CBS (28), and Time Warner (59). Table tisers purchased time and space to acquire access 1 illustrates changes in the top 100 compared at to audiences. There is one other business model three time intervals. used by traditional media, that of subscriptions. With a subscription, the consumer purchases the Table 1 good or service, usually on a monthly basis. Among Media Firms listed in the Fortune 100, Selected Years items that use subscriptions are newspapers and magazines, and cable or satellite television servi- 1995 2000 2005 2008 ces. Consumers also engage in direct purchases, AT&T (5) GE (5) GE (5) GE (6) whether acquiring a CD, a ticket to the cinema, or GE (6) AT&T (8) Verizon (14) AT&T (10) a book. Bell South (44) SBC (12) Time Warner Verizon (17) Companies engaged in the media industries (32) generally enjoyed strong cash flow and profit mar- Verizon (63) MCI (25) SBC (33) Time Warner gins -that is until new technologies enabled a grea- (49) ter number of choices and options for consumers, MCI (66) Bell Atlantic Microsoft (41) Sprint Nextel creating fragmentation and declining audiences. (33) (58) This was especially true for younger demographics, SBC (89) Time Warner Disney (54) Disney (67) who find little utility in a newspaper, radio station, (45) or even traditional television. The younger demo- graphics can simply acquire the content they want Media One (91) Bell South (58) AT&T (56) Comcast (79) via the Internet, and watch or listen on a laptop or Disney (66) Sprint (67) News Corp. (84) Mp3 player. Sprint (81) Viacom (69) The plight of traditional media companies News Corp. (98) became further evident as the United States fell Source: Fortune 500 in to recession at the end of 2007. By the end of 2008, advertisers had pulled millions of dollars Notice over time the growing presence of out of traditional media, in part to save money, telecommunications companies, as well as the but also to place more online. As ad- growth of the larger media conglomerates Time vertising eroded from three of the best sectors of Warner, Disney and News Corporation. Thus, we the ad market (e.g., financial services, automotive, Vol. 1. No. 1. Año 1 - Diciembre 2009 - Enero 2010 Co m Hu m a n i t a s 63

retail), the effect on media companies was dra- Table 2 matic. Many media companies saw the value of Examples of New Media Digital Platforms their enterprises plummet, with some companies forced in to early stages of bankruptcy protection Mobile or Smart Mp3 Players HDTV/SDTV (e.g., Tribune, Pappas Telecasting). The long-term Phones economic outlook for traditional media suggests PDAs Video on Demand Podcasts continuing contraction in terms of value, and con- (VOD) tinuing fragmentation (and thus erosion) of exis- Wi-Fi/Wi-Max Broadband Blogs ting audiences (see Carr, 2008; “Fitch Touts Grim ’09 Outlook”; Webster, 2005). User Generated Social Networks/ DVR/PVR Content Twitter 3.2. New Media and Communication Markets Video Game SMS DVD (old/Blu-ray) Consoles The new media and communication markets Apple TV/Slingbox RSS Feeds Satellite Radio forming early in the 21st century revolve around HD Radio TV Multicasting Internet Radio/TV the Internet and a host of emerging digital pla- Source: Compiled by the author from multiple sources. tforms engaged in a variety of different services and applications. Traditional media firms are stru- ggling to find a foothold in this new landscape, networks, which allow exchange of entertainment while fighting for economic survival. and information with one’s “friends”; and through In these new media markets, consumers can services such as YouTube, where users can upload access or download content anytime they want their own content to share with others, enabling a from anywhere in the world. All they need is a new generation of writers, producers, and actors broadband connection, either provided by wire or who can use this new medium to develop their own wireless, and a device that can connect the user to programs or series, also known as “webisodes”. the Internet -which can be a laptop/desktop com- In terms of business models, the new media puter, or a or “smart phone”. There and communication markets offer an expansion is no longer a linear chain from development to of options, and we can expect more sophisticated exhibition where control rests in the hands of the models to emerge. At present, the most popular distributor. Now, content can be accessed or exhi- business models are advertising, subscription, pay bited anytime and anywhere. per use, and search. A brief discussion on each These new media markets share common follows. characteristics (see Evans & Wurster, 2000). First, Advertising is also the primary business mo- their experience is nonlinear, allowing the user en- del in the new media world, but it is driven with try at many different points along the value chain. greater accuracy and precision than found in tra- Second, the experience contains a great deal of ri- ditional media. Through the use of cookies and chness, involving both interactivity and individua- database marketing, advertisers can more directly lity. Third, anyone from anywhere in the world can target customers who “click-through” by knowing access the material, making the Internet and digital their online habits and preferences, especially for platforms a truly global experience. Fourth, these repeat customers. This allows for greater efficien- new markets offer multiple business models and cy on the part of advertisers. Globally, Internet ad- revenue streams. Fifth, these new markets expand vertising is expected to reach $50 billion by 2012, the entertainment and information options offered according to several analysts. via traditional media. Table 2 provides a listing of Subscriptions are usually available to allow currently available digital platforms in the U. S. users access to premium content. The most suc- This transformation of markets not only cessful example of a subscription model is the on- shifts control to the user (audience), but also em- line version of the Wall Street Journal. Users pay an powers the audience to be developers of content. annual fee for 24/7 access and updates from the We have seen early manifestations of this em- Journal. Several magazines have also been suc- powerment through several digital platforms hos- cessful offering premium content to online readers ting user generated content: blogs, which allow (e.g., Playboy, Consumer Reports). Online subs- the user to operate as their own publisher; social criptions can also be a premium for subscribers of 64 Co m Hu m a n i t a s ISSN: 1390-5619

traditional media; for example, as a subscriber of look at companies, especially large media conglo- the Economist, I have access to the online version merates. With over 150 subsidiaries functioning for free, and access to content unavailable to the across multiple media markets, what business is general public. Time Warner engaged in? Likewise, News Corpora- Pay per use simply means the user pays a tion, which owns two TV networks, a number of TV one-time fee for access or content. Apple’s iTunes stations, newspapers, a book publishing house, a is an example of pay per use; the user pays for film studio, and a number of new media ventures whatever content they download for their compu- such as MySpace, cannot be classified in to a sin- ter, iPod or iPhone. The user controls how much to gle market structure. spend, and when to spend. According to Ander- How do we as researchers begin to make son (2006), the future for many media companies sense of the current landscape, which consists of will be building incremental revenue from a library heavy competition in a fragmented marketplace of media products, rather than through large scale with blurred boundaries? To begin with, we can no “hits”. This idea is the basis for Anderson’s theory longer think of the media industries along the old of the long tail. former labels of broadcasting, publishing, and mu- Search is the dominant activity among Inter- sic. It is perhaps more useful to identify the core net users. As a business model, advertisers pay aspects of the current media landscape, and try to search engines like Google, Yahoo!, and MSN to attempt a classification based on those criteria. display adjacent ads when users conduct a search For example, it would be better to use the term using specified key words. Search is a very efficient content to identify those companies that gene- and effective way for advertisers to reach poten- rate programs for television and movies for film. tial customers. Likewise, distribution is perhaps a more effective In summary, the new media and communi- term to describe companies involved in offering cation markets evolving in the 21st century are cable, satellite, and IPTV and telecommunications driven by convergence, the rapid expansion of services. consumer reception technologies, multiple digital The Rule of Three (Sheth & Sisodia, 2002) po- platforms for consumers to access entertainment sits that in any given market, there will be three and information, and expanded business models. leaders who will dominate absent excessive gover- These trends are creating havoc among traditional nmental regulation, capturing between 70-90% of markets, and leading to confusion as to how we the market share. The remaining companies in the define media and communication markets in this market will fight for the remaining share by either new era. A new landscape for media and commu- becoming product specialists, or a market specia- nication markets in the 21st century is discussed list. For example, CNBC has become a global pro- in the next section of the paper. duct specialist with its emphasis on business re- porting. Market specialists tend to target a specific demographic group, such as MTV whose audience 4. Media & communication markets: is comprised primarily of younger audiences and programming to meet their entertainment needs. a 21st century landscape Following these ideas, Figure 2 presents a landscape map of part of the 21st century me- Historically, the structure of media markets dia and communication industries in the United were defined using labels associated with other States, focusing on just six of the many possible economic markets, such as an oligopoly or mono- segments. In each case, the top three projected polistic competition. But the impact of technolo- leaders of the market are identified, following the gy, regulation, economics, globalization, and so- theoretical foundation established using the rule cial forces has led to blurring of the markets. In the of three. 21st century, a TV station is not just engaged in Again, this is not to suggest that there are broadcasting any more than a newspaper is enga- only the three leaders in each of these respective ged only in publishing. Both attempt to reach new markets, but rather to identify the three with the and existing audiences (and advertisers) through largest share of the market. For example, the Film their digital platforms. and TV Content market is among the most com- The picture is further complicated when we petitive of the areas listed in Figure 1, with CBS, Vol. 1. No. 1. Año 1 - Diciembre 2009 - Enero 2010 Co m Hu m a n i t a s 65

Figure 2 A Map of Selected Media Industries Using the Rule of Three

Time Warner Comcast Facebook Disney Verison MySpace News Corp. AT&T Twitter

Film & TV Distribution Social

Apple Sony Google RIM Microsoft Yahoo Nokia Nintendo MSN

Smart Videogame Search

Source: Author’s compilation.

NBC Universal and Viacom all challenging for mar- labels of market structure identified as monopoly, ket share. On the other hand, in the social net- oligopoly, monopolistic competition, and perfect working market, Facebook and MySpace have an competition (Gomery, 1989). In terms of theories, enormous lead in the US (and globally) over other researchers have primarily relied on a handful of sites, but Twitter -a new startup- shows enormous theories drawn from economics, such as economic potential. Google dominates in search over both theory, which argues that firms seek to maximize Yahoo! and MSN. This examination is not to sug- their value for their owners and stakeholders; and gest that this is a static picture and will not chan- the industrial organization model, which has been ge. To the contrary; we have experienced constant widely used to examine firms and markets from change and evolution in the media and communi- a microeconomics perspective (Wirth & Bloch, cation markets, and this is simply a point in time 1995). Macroeconomic examinations of media reference. What the author hopes to convey here markets are much less prominent, according to is a different way to examine the media and com- Albarran and Liu (2009). munication markets from a structural standpoint, Other theories used by scholars to unders- and moving away from labels that are no longer tand media markets include the principle of re- appropriate in the 21st century. lative constancy (McCombs, 1972), niche theory What is to be gained from looking at the me- and media competition (Dimmick, 2003); game dia and communication markets in this manner? theory, behavioral economics, information eco- That is the discussion of the next section of the nomics, transactional cost economics, and po- paper, where we review theoretical and methodo- litical economy (see Albarran, Chan-Olmsted & logical aspects of examining media and communi- Wirth, 2006; Wildman, 2006). These theories still cation markets with a fresh perspective. offer value to researchers, but little has been done in the area of evolving market structure to keep up with the changes taking place in the 21st 5. Theoretical and methodological century. The rule of three (Sheth & Sisodia, 2002) suggests a two-tiered market structure found in considerations most markets, resembling a hybrid oligopoly- monopolistic competition structure, but this has Media and communication markets have not been examined with any consistency among been examined for decades using the well-known media scholars. 66 Co m Hu m a n i t a s ISSN: 1390-5619

Likewise, our methodological tools are not 6. Propositions and research agenda well equipped to handle the changes taking place in the 21st century. For example, the topic of con- This section of the paper offers a set of pro- centration among the media industries is a glo- positions that may be helpful to other researchers bal concern (Albarran & Mierzejewska, 2004). Yet, interested in conducting studies on the continuing virtually all of the work on media concentration evolution of the media and communication mar- only investigates the phenomenon from a within- kets. These propositions are intended to serve as a industry perspective. As this paper has attempted heuristic catalyst to spur further inquiry and study, to point out, we can no longer look at media com- as well as the refinement of both theoretical and panies using a silo approach, because companies methodological tools available for researchers. are not involved in just a single market. We need to be considering the influence of horizontal concen- • The evolution of the media industries is a con- tration across markets, a subject first broached by tinuing phenomenon that will impact both Albarran and Dimmick (1996). traditional and new media markets. We will Refining both theoretical foundations and continue to see further fragmentation with methodological tools are not easy tasks; they re- traditional media, especially related to news- quire researchers to take risks and challenge as- papers and broadcast radio and television. sumptions. Younger scholars will feel the most • This evolution process must be examined pressure, because they not only have to engage using multiple levels of analysis ranging from in publishing to ensure their place in the aca- the global to the individual level, as well as the demy, but also because they will push the ideas development of new theoretical orientations long in place from established scholars. Esta- and methodological tools. blished scholars must also take risks, and are in • Media markets will best be examined by consi- the best position to do so to grow the field -as dering broader topics of content, distribution, long as they are open-minded about new appro- and search rather than the outdated labels of aches and perspectives used to examine media television, publishing, and music. and communication markets. Regardless of who is • Media markets must be examined as part of doing the investigations, only a handful may yield the social system involving economics, regu- a new paradigm; it will take a great deal of trial lation, globalization, technology, and demo- and error. But now more than ever, the field needs graphics. -and scholarship demands- better theoretical and • Business models will continue to evolve and methodologies to begin to capture the transfor- expand to take full advantage of the new me- mation that is taking place with media and com- dia environment, offering greater sophistica- munication markets. tion and efficiency to marketers and adverti- Our theories, and our methods, need to sers attempting to reach target markets. be more holistic and offer a broader orientation • Technology will continue to expand, especia- to studying these changing markets. We need to lly for wireless hand-held devices offering the consider not only the within-industry impact, but user many applications and expanded utility also the across-industry impact. We also must to access media entertainment and informa- recognize that media markets by themselves in- tion. volve multiple levels of analysis, ranging from the • New studies are needed to understand how global level to the nation/state or societal level, the transforming of the media industries and to the household, and perhaps most importantly markets process impact audiences and social in the 21st century, the individual level where the structure. For example, if the newspaper mo- consumer is empowered and in control of their ves entirely online, what are the ramifications own media consumption. We must begin the task of such a change on an informed republic and of building new theories and methods to analyze the promotion of democratic values? How do these evolving markets, and the work needs to be- we begin to assess the cultural impact of new gin now. media in a transformed marketplace?

These are just a few of the many topics that deserve more study and investigation by scholars Vol. 1. No. 1. Año 1 - Diciembre 2009 - Enero 2010 Co m Hu m a n i t a s 67

from around the globe as we attempt to gain un- dustry, but across markets. This is especially nee- derstanding of this transformation process. ded to understand the full impact of large con- glomerates that operate across multiple markets, yet we have no way to measure or account for the actual concentration within that market, just to 7. Conclusions use one example. This paper demonstrates there is much work This paper has attempted to provide a broad to be done to truly grasp this evolutionary pro- examination of the transformation of the media cess, and the work done by academic researchers and communication markets that is now ongoing can be useful and helpful to society to understand during the first decade of the 21st century. This these changes; to policymakers in making im- paper utilizes a case study approach involving portant decisions regarding regulation; to media several different sources to begin to analyze this industry practitioners and executives to unders- transformation process. The paper, based on the tand the changes taking place around them; and situation in the United States, illustrates how the to other researchers to help guide them in future number of companies engaged in the media and directions. communication markets have grown and expan- ded since 1980. The paper also discusses the key differences between traditional media markets (e.g., broadcasting, newspapers, film, etc.) and References new media markets, driven by a plethora of digital platforms to engage the consumer. An important Albarran, A. B. (2002). Media Economics: Understan- part of this discussion is the differences in busi- ding Markets, Industries, and Concepts, 2nd ed. ness models found among traditional versus new Ames. IA: Blackwell. media. ______. (2009). Management of Electronic Media, 4th From a theoretical standpoint, the paper ed. Boston: Wadsworth. draws on the rule of three, which posits that in any Albarran, A. B., Chan-Olmsted, S. M., & Wirth, M. competitive market three dominant players are O. (Eds.) (2006). The Handbook of Media Mana- most likely to emerge controlling 70-90% of the gement and Economics. Mahwah, NJ: Lawrence market, with the remaining players fighting for the Erlbaum Associates. remaining market share. Using the rule of three, Albarran, A. B. & Dimmick, J. (1996). Concentra- the paper offers a 21st century landscape of six tion and Economies of Multiformity in the media and communication markets -broadly defi- Communication Industries. Journal of Media ned- to illustrate the theory’s utility in examining Economics 9 (4) 41-50. the media industries. Albarran, A. B. & Liu, F. (2009). The Influence of One outcome of the re-mapping of the me- the Media on an Economy: A Case Study of dia and communication markets presented in this 11 Nations. In Albarran, A. B., Faustino, P. paper is to move away from outdated labels stres- & Santos, R. (2009). The Media as a Driver of sing areas such as “broadcasting” or “publishing”, the Information Society (pp/ 443-456). Lisbon, to focus instead on content, distribution, search Portugal: Media XXI. and other functions which engage consumers and Albarran, A. B. & Mierzejewska, I. B. (2004). Media advertisers across multiple platforms. Concentration in the U. S. and European The paper also calls for new ideas and in- Union: A Comparative Analysis. 6th World vestigations involving the development and ex- Media Economics Conference, May 12-15, pansion of theoretical orientations, as well as the Montreal, Canada. creation of new methodological tools to account Anderson, C. (2006). The Long Tail. Why the Future of for the holistic environment that the media and Business is Selling Less of More. New York: Hy- communication markets are now engaged. Speci- perion. fically, we need theories that can be used across Carr, D. (2008, October 29). Mourning Old Media’s multiple levels of analysis, and we need methodo- Decline. Retrieved March 16, 2009 from: logical tools that can help us in understanding not http://www.iht.com/articles/2008/10/29/ only what happens within a particular market/in- business/29carr.php 68 Co m Hu m a n i t a s ISSN: 1390-5619

Dimmick. J. W. (2003). Media Competition and Co- balization. New York: Crown Publishers. existence: The Theory of the Niche. Mahwah, NJ: Napoli, P. M. (2003). Audience Economics. New York: Lawrence Erlbaum Associates. Colombia University Press. Evans, P. & Wurster, T. S. (2000). Blown to Bits. How Shapiro, C. & Varian, H. R. (1999). Information Rules. the New Economics of Information Transforms Boston: Harvard Business School Press. Strategy. Boston: Harvard Business School Sheth, J. & Sisodia, R. (2002). The Rule of Three. Sur- Press. viving and Thriving in Competitive Markets. New Fitch Touts Grim ‘09 Outlook for Media, Entertain- York: The Free Press. ment. Retrieved March 18, 2009 from: http:// Transformation. Retrieved March 3, 2009 from: www.marketingvox.com/fitch-touts-grim-09 http://www.merriam-webster.com/dictio- -outlook-for-media-entertainment-042427/. nary/transformation. Fortune 500. Retrieved February 24, 2009 from: Webster, J. G. (2005). Beneath the Veneer of Frag- http://money.cnn.com/magazines/fortune/ mentation: Television Audience Polarization fortune500/2008/index.html in a Multichannel World. Journal of Communi- Gomery, D. (1989). Media Economics: Terms of cation, (June), 366-382. Analysis” Critical Studies in Mass Communica- Wildman, S. S. (2006). “Paradigms and Analytical tion, 6(2), 43-60. Frameworks in Modern Economics and Me- Jayakar, K. & Waterman, D. (2000). The Economics dia Economics, In Albarran”, A. B., Chan- of American Theatrical Movie Exports: An Olmsted, S. M. & Wirth, M. O. (Eds.) The Empirical Analysis. Journal of Media Economics, Handbook of Media Management and Economics 13(3), 153-169. (pp. 67-90). Mahwah, NJ: Lawrence Erlbaum McCombs, M. (1972). in the Market- Associates. place. Journalism Monographs Vol. 24. Wirth, M. & Bloch, H. (1995). “Industrial Organi- Micklethwait, J. & Wooldridge, A. (2000). A Future zation Theory and Media Industry Analysis”. Perfect. The Challenge and Hidden Promise of Glo- Journal of Media Economics, 8(2), 15-26.