Wednesday, October 20, 2010

Why does economics drive most media companies?

It is clear that economics drive most media companies. There are reasons for this. The status of the social economy effects how people make purchases and spend their money in various different ways. If the economy is not good, people are going to lose money, jobs, and in a way, the desire to buy things on the market. When the economy is in good shape people will feel more comfortable putting their money in other places besides their pockets.

This effects media companies directly because just like any other company, if the economy is low and facing struggles, it may not be a great time to put out a new product. Lots of times new technological products are expensive and require a good financial background to be payed for. Also, on another side of media, the economy can effect news media companies and television stations because if the economy is low they will mainly discuss this topic. Media communicates what is going on in the world and what is important.

It is interesting to see how economy can cause certain media companies to make more or less money through selling their products, but at the same time it gives the media something to televise and talk about.

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