One interesting point I found in this week's reading is that new media technology can change media production in many ways. For example, online publishing reduces the production cost of print media and also makes the distribution cost less affected by delivery distance. Although the online production can reduce the input prices for print products, it is still unsure if the circulation and advertising revenue will remain the same when one publication moves online. Particularly for the newspaper industry, how national and local newspaper will be affected by the online publication trend differently? Also, many major news organizations (i.e.BBC, Wall Street Journal) have started to provide online content in other languages in order to target geographically remote markets. How those news services may shape the international news flow and whether those services meet the marketing goals may worth to study.
The demand for news in the U.S. has decreased in many years. It may due to the increasing supply of demand-related products—the entertainment media content (It is just one hypothesis to explain the phenomenon). It will also be interesting to calculate the cross elasticity of demand with the price of broadband Internet service and the demand of different type of media content. The number may illustrate which type of media outlet is benefiting or suffering through the increasing adoption of broadband Internet, which may become the mainstream distribution channel for media in the future.
Not only the entertainment content and the news may compete for the audience demand, at times it may also compete for investment. For example, traditional media such as Austin American Statesman builds austin360.com, an infotainment website which generate significant income for the paper while reduces its budget to produce hard news. The concern is when the media firms adjust its financial arrangement to respond to the force of supply and demand, what it will do to the quality of newspapers? Would the market force eventually set a bottom line for the content share between entertainment and news?
My three new media sites:
www.cnet.com
www.slashdot.com
www.wired.com
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