Sunday, September 19, 2010

Why does economics drive most media companies?

Most media companies are funded by donations, sponsored by large corporations or they depend on advertisements. When the economy is bad small businesses and individuals are unable to make donations due to lack of money for personal spendings. Large corporations, too, are unable to donate/sponsor media companies during a time of financial crisis. Not only are donations negatively affected during a time of economic difficulty, advertising is negatively affected, as well. When the economy is bad, the New York Times, for example, will sell less papers per day. To raise money, the publication will most likely raise their advertising prices to remain in a good financial state. By raising their advertising prices the NY Times is eliminating some smaller companies that would normally buy advertising space. The economy is the nucleus of the mass media. Without money and without funding, the media would collapse.

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