Friday, September 17, 2010

Why does economics drive most media companies?

Most media companies are directly correlated with the current state of the economy. This is because the funding for most media companies comes from the economy, which effect organizations and foundation. The world of mass media is now known to be made for mainly business which means harsh actions may be in order. There is no surprise that media companies need to let go of certain employees simply because they cannot afford to keep the company running. This presents a danger for small or uprising media companies. Media companies are relying heavily on advertisement agencies to sponsor their sources of media in order to keep the information flowing. While advertisements have been a temporary solution for the current recession, other countries like Japan gathers money every month from the door of your own home. (Vivian 55) While methods of funding like this work in Japan, this does not necessarily mean it will work in the United States. In this current state of the economy there are only a few things that media companies can do in order to stay afloat. Since the companies rely on the consumer’s money, they need a way to fund their media, which is really only through certain foundation and organizations. When these media companies come up with something worth paying for the customers will come forth. However, with such little money between the customers and companies, there could be a large conflict lingering in the future.


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