Friday, September 17, 2010

Why does economics drive most media companies?

In this day and age, economics drive everything. If the economy is good, any company is going to try new things and take risks, because they have nothing to lose. If it was a bad economy, companies take caution and "tighten their belts." In the world of mass communication, the only way to get ahead is to try new things and wow the public. Trying new things intrigues society and makes them want to find out more about that specific company. For example, if the economy wasn't doing so well a few years ago, then Disney wouldn't have launched the many new entities it did, such as Disney Digital 3D.
The financial security of media companies relies on the economy in general. If the stock market is down and other companies are filing bankruptcy, the outlook for a certain media company does not look good. The economy drives media companies because their livelihood depends on it. Almost any American company, not non-profit, will fail or succeed depending on the economy. In fact, anything depends on whether the economy does well or fails. The economy is the foundation for a whole country and if the economy can't support a whole country, it sure can't support one company.

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