Media Management and Economics 1999 Abstracts
Media Management and Economics Division
The Effect On Ratings Linked To Moving Programs Within The Prime Time Broadcast Schedule • William Jenson Adams, Kansas State • This study looked at the relationship between moving programs and the ratings. While moving an established series once during the main broadcast year improved the chances of a significant rating increase for both the series and the network, moving an established series during the summer resulted in significant rating decreases. Whether or not a move benefited a new program depended on how the new program was doing in its original slot. Neither new nor established series survived more than one move in any given year.
Circulation Performance, Perceived Environmental Uncertainty and the Market Orientation of U.S. Daily Newspapers • Randal A. Beam, Indiana University • This paper explores the relationships among perceived environmental uncertainty, a market-oriented editorial strategy and circulation performance at 183 U.S. daily newspapers. The research uses a multidimensional approach to measuring strength of market orientation and perceived environmental uncertainty. The research finds that a strong market orientation is positively associated with lower levels of perceived environmental uncertainty and that a strong market orientation is positively associated with better circulation performance for small dailies but not for medium-sized and large dailies.
From On-Air to Online World: Examining the Functions and Structures of Broadcast TV Stations’ Web Sites • Sylvia M. Chan-Olmsted and Jung Suk Park, Florida • This paper explored the content, functions, and designs provided by TV station Web sites. The authors also investigated the relationships between a station’s market characteristics such as affiliation, marketing size, marketing ranking, and ownership and its Web content and designs. The results revealed the importance of news-related content and the need for broadcasters to focus their online efforts on improving the areas of local information, interactive communication, e-commerce, web user data collection, personalization, and online advertising.
Opening the Umbrella: An Economic Analysis of Online Newspaper Geography • Hsiang Iris Chyi and George Sylvie, Texas-Austin • This study examines how the print newspaper’s local nature and the Internet’s boundary-transcending capacity define an online newspaper’s geographic market. An original theory of online newspaper geography is developed, and an illustrative model proposed, from which inquiries about the nature of the new medium are made. An email survey of online newspapers was conducted to test the hypotheses and to provide valuable information about online newspaper geography.
The Myths and Realities of Newspaper Acquisition Costs: Fiduciary Responsibilities, Fungibility of Assets, Winners’ Penalties & Excess Cash “Problems” • Dane S. Claussen, Georgia • Dertouzos and Thorpe (1985) completed the latest publicly available aggregate analysis of newspaper acquisition prices, and derived two price formulas. But they assumed acquiring firms never over- or underpaid; acquisition costs they couldn’t account for were attributed entirely to tax benefits. Claussen’s formula (1986) omitted tax considerations, but did not assume “correct” acquisition prices. This paper proposes a new formula and, explores the question of why newspaper groups often pay “too much.”
Managing Change: Newspaper Editors’ Attitudes Toward Integrating Marketing and Journalism • Peter Gade, Oklahoma • Three types of managers emerged from this 1998 Q study of top newsroom editors at 18 newspapers associated with the American Society of Newspaper Editors Change Committee. One of the types believes that newspapers can, and must, synthesize an increased marketing awareness and traditional journalism values. Two of the types, however, are not so optimistic about the changes they are expected to lead an manage. These two types see marketing as a threat to journalism values and believe newspapers should preserve the “wall” of separation between the news and business sides of the organization.
The Economics of American Movie Exports: An Empirical Analysis • Krishna P. Jayakar and David Waterman, Indiana University • Based on an economic model of international trade in media products, we present descriptive and cross-sectional econometric data which show that countries having relatively high movie consumption, including the U.S., account for disproportionately large shares of total world movie exports. We then test the hypothesis that the American share of box-office revenues throughout much of the world has risen to very high levels since the 1970s because the U.S. has developed its domestic media for movie exhibition (notably pay TV and videocassette distribution), at a more rapid rate than have other countries.
Supplier-Buyer Relationship in the Global News Value-Chain in the Internet Age • Yong-Chan Kim, Southern California • The present study examined whether the Internet affects the relationship between global news suppliers and local news organizations in Asia. This research critically reviewed the Malone’s “electronic market hypothesis”: the network technology will reduce transaction cost for interorganizational relations and the cost reduction will transform the hierarchically structured relations to market-type one. According to the interviews with 15 Asian journalists, the Internet is more likely to reinforce the current hierarchical relationship between the major Western news agencies and local news media in Asia.
The Bottom of the Net: The Market-Driven Collegiate Men’s Basketball Sport • Nojin Kwak , Wisconsin-Madison and Kuang-Kuo Chang, Michigan State • Finding of this study supported several expectations that are based on theory of the market-driven economy in the context of men’s college basketball. Findings demonstrated (1) the existence of inequality between schools and between conferences in terms of the number of games to be televised; (2) the importance of market value of schools in getting television coverage of their games; and (3) the relative importance of the marketability of a school over fan popularity in predicting the number of games to be televised for the school.
Who are the Mobile Phone Have-Nots? Influences and Consequences • Louis Leung and Ran Wei, Chinese University of Hong Kong • Grounded in the diffusion of innovations theoretical framework, this study focuses on examining who the mobile telephone have-nots are and what are the factors at work. Results of a telephone survey with a probability sample of 834 respondents show that the have-nots tended to be older females with lower household income and education attainment. They had pagers as an alternative and subscribed to no caller ID display service at home. This study also found a polarizing phenomenon in owning new telecommunications technologies.
Viewing Motivations And Implications In The New Media Environment: Postulation of a Model of Media Orientations • Jack C. C. Li, Florida • This paper postulated a model, which integrates the conceptualization of uses and gratifications with the two-step process of TV viewing, in the examination of the relationship between viewing motivations and selection of program types. Moderate correlations were found. This study also found that gender differed in program selections and viewing gratifications. Furthermore, the selections of various program types were highly correlated. This implies that they may be competing with one another for audience attention.
Market Competition And Media Performance: An Examination Of Popular Music Industry In Taiwan • Shu-Chu Sarrina Li and Peng Hua Wang, National Chiao Tung University • Two research questions were investigated in this study, one was to examine the relationship between market competition and music diversity, the other the organizational strategies adopted by the major record companies in Taiwan. Content analysis and intensive interviews were used to explore the two research questions. A negative relationship between market competition and music diversity was only partially supported by the findings of the study. Furthermore, this study also found that the open system adopted in the U.S. was very much employed by the major record companies in Taiwan.
Children’s Television Liaisons: Perspectives of Core Programming and Compliance • Denise Matthews, Oregon and Kyang-Kuo Chang, Michigan State • After decades of debate about broadcasters’ public interest responsibility to child audiences, federal legislators passed the Children’s Television Act of 1990 (CTA). The explicit intent of the CTA was to improve commercial broadcasters’ performance in meeting their public interest obligation to the nation’s children. Child advocates, legislators and parents were hopeful that the CTA would catalyze an improvement both in the quality and quantity of educational informational programming for children.
Employing Brand Equity Theory to Explain Variances in Ratings Inheritance Effects on 11:00 PM Newscasts • Waiter McDowell, Southern Illinois University and John Sutherland, Florida • Recognizing the potent influence of lead-in programming or inheritance effects on the ratings performance of television programs, the purpose of this study was to explore the plausibility of applying conventional brand equity theory to electronic media and to offer a tentative explanation of the considerable variances found in inheritance effects research. Adapting the essential components of an established brand equity model, the researchers propose that program brand equity is revealed in the differential ratings response of a program to its direct competitors and to its lead-in programming.
History of a Business Decision: Ralph Ingersoll II Decides to Create the St. Louis Sun • James E. Mueller, Pittsburg State University • This paper analyzes the decision by Ralph Ingersoll II to launch the St. Louis Sun in 1989. The paper, which is based on personal interviews, Sun documents, and other sources, shows that the new daily was created as a defensive measure to protect Ingersoll’s chain of suburban St. Louis weeklies from domination by the St. Louis Post-Dispatch. The Sun lasted only seven months, and analysis of its failure could help newspaper managers avoid similar mistakes.
Determinants Of Off-Network Syndication Revenues Of Network Primetime Series • Sora K. Park, Korea Press Foundation • This study analyzes factors that determine off-network syndication revenues of television programs that were first aired on the broadcast networks. The analysis of off-network broadcast and cable programs show that the performance during the network runs are the most important factor that contributes to the license fees of programs when the shows are syndicated. The most significant factor that influences the license fees for off-network syndicated shows is the performance during network airing reflected in ratings.
Communication Technique: How Does a U.S. Record Company Identify, Target and Reach Its Audience in an Ever-Competitive Marketplace? • Lisa L. Rollins, Middle Tennessee State University • This is a case study of the methods and strategies employed by a U.S. record company, Arista/Austin, to introduce its prerecorded music products and artists to a target segment. Findings indicate that the media company’s concentrated marketing focus upon a particular demographic is resulting in the exclusion of other potential consumers. Because of the eclectic nature of rock ‘n’ roll, many characteristics should be considered before a marketing campaign is created and then implemented for a target audience.
The Impact Of Radio Ownership Consolidation – Has The 1996 Telecommunications Act Adversely Impacted U.S. Radio Station Format And Ownership Diversity? • J.L. Rush, Jr., William M. Payton and Sarah Elizabeth Leeper, Brigham Young University • In February, 1996, the U.S. Congress and the F.C.C. initiated legislation and regulation substantially altering the national and local market structure of radio broadcasting. Using the Herfindahl-Hirschman index, this paper studies whether radio format diversity is adversely affected by successive mergers and consolidations under the new law. It looks at political economic and anti-trust implications of increased ownership concentration. It concludes that no public interest harm is clearly evident despite the obvious potential for it.
Black Newspapers: In Search Of An Advertising Strategy • George Sylvie and Lucy Brown-Hutton, Texas-Austin • This study explores African-American newspaper advertising in a major state-the total advertising and respective ad categories by content analysis and by a survey examining internal staffing and overall strategy views of publishers. Results indicate much of the problem still may be staffing-related. Advertising space in African-American newspapers still lags behind mainstream weekly averages, suggesting publishers focus on specific types of ads or evaluate targeting strategies for soundness of a plan heavily weighted on public-sector advertising.
New Entrant, Competitive Strategy, and Consumer Welfare in the Cable Television Industry • Kuo-Feng Tseng, Michigan State University • This study analyzes the characteristics and strategic behaviors of the competing versus monopoly cable TV systems. It finds that competitions result in better consumer welfare, such as lower monthly prices and more programming channels. The intensity of competition will decline as the duopolistic cable systems operate in a longer time, and the entrant usually provides more basic cable TV channels, instead of very lower prices to compete with the incumbent.
Audience Segmentation in Network Broadcasting: An Empirical Analysis • Michael Zhaoxu Yan, Indiana University • This study tests the notion that with heightened competition in the broadcasting industry, broadcast networks are increasingly using audience targeting to differentiate themselves from each other. Using a sample of 141 regularly-scheduled prime time programs aired on ABC, CBS and NBC in 1979, 1984, 1992 and 1997 and constructing a between-network audience segmentation similarity index, the study confirms the hypothesis that the three major networks were more differentiated from each other in their audience positioning in 92/97 than in 79/84.
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