Media Economics in Austria : A Comparison to Germany on Print, Television, Radio and the Internet

At a time when the media are facing a severe loss of trust, what is needed above all is education. How does media work? What are the economic dependencies? How is media content created and how is it consumed? What challenges does digitization bring, and why is it more important today than ever to understand the world of media? It is questions of this nature that this book addresses, with the aim of helping interested readers understand how the media works. Especially in relation to social media and digitalization, knowing how it works is important - to be able to distinguish which media are trustworthy and to understand why independent journalism is so important. This book is suitable for anyone who wants to understand media, and that's exactly how it's laid out: Readable for everyone and explained in an understandable way. Preface 5 Contents 7 About the Author 12 1 A First Step Into the Subject 14 1.1 What are Media? 14 1.1.1 In the Beginning, There was the Book 14 1.1.2 The Mass Media 16 1.1.3 Different Interests 17 1.2 What is Information? 17 1.2.1 The Journalistic Forms of Presentation 18 1.2.2 The Informative Form of Presentation—Objective and Value-Free 18 1.2.2.1 The Short Message 18 1.2.2.2 The News Item 18 1.2.2.3 The Report 19 1.2.3 Informative Forms—Subjectively Evaluative 19 1.2.3.1 The Reportage 19 1.2.3.2 The Interview 20 1.2.3.3 The Portrait 20 1.2.3.4 The Feature 21 1.2.4 Opinion-Expressing Forms 21 1.2.4.1 The Leading Article 21 1.2.4.2 The Commentary 21 1.2.4.3 The Gloss 22 1.3 What is Media Economics? 22 1.3.1 What is a Market? 22 1.3.2 The Macroeconomic Level 24 1.3.3 The Microeconomic Level 25 1.3.4 Challenges of Media Economics 26 1.4 Supply and Demand 28 1.4.1 The Elasticity of Demand 28 1.4.2 Economies of Scale Industry 29 1.4.3 Costs and Profit in Perfect Competition 30 1.4.4 Costs and Profit in Monopoly 31 1.4.5 Essential Difference between Both Models 32 1.5 The Functions of Media 32 1.5.1 Core Functions in a Democratic Society 32 1.5.2 Functions for Core Areas in Society 34 1.6 Media & Politics 35 1.6.1 Politics Needs the Media 35 1.6.2 The Media Needs Politics 36 1.7 How Media is Financed 37 1.7.1 Financing Through Advertising 37 1.7.2 Funding from Subscribers 38 1.7.3 Funding from Fees 38 1.7.4 Funding from Donations 39 1.8 What is the Dual System? 39 1.8.1 Precise Definition of Terms 39 1.8.2 Structure of Public Service Broadcasters 41 1.8.3 Structure of Private Broadcasters 42 1.9 Media Criticism 43 1.9.1 The History of Media Criticism 43 1.9.2 Media Criticism in the Internet Age 43 References 45 2 Print Media 46 2.1 The Development of Newspapers 46 2.2 The Newspaper Market at a Glance 47 2.2.1 The Situation in Germany 49 2.2.2 The Situation in Austria 50 2.3 The Value Chain of Newspapers 50 2.4 The Separation Principle 51 2.4.1 Problem of Articles Disguised as Advertising 52 2.4.2 What Does This Mean for Journalistic Practice? 53 2.5 Challenges for Newspapers 53 2.5.1 Changed Media Usage 54 2.5.2 The Internet as a Solution Approach 55 2.6 Processes in Newspaper Production 55 2.6.1 Workflow in the Editorial Office 56 2.6.2 Workflow for Daily Newspapers 56 2.7 The Empirical Press Economy 57 2.8 The Competitive Situation 57 2.9 The Cost Structure 58 References 59 3 Television 60 3.1 The History of Television 60 3.2 Television Production 62 3.2.1 In-house Production 62 3.2.2 Contract Production 63 3.2.3 Third-Party Production 64 3.2.4 Co-Production 64 3.2.5 Special Case: User Generated Content 64 3.3 Television Advertising 65 3.3.1 History 65 3.3.2 The Placement of Advertising 65 3.3.3 The Cost of Television Advertising 66 3.3.4 Essential Elements of Media Planning 68 3.3.5 Development of the Advertising Market 69 3.3.6 The Relationship Between Media and Advertising 69 3.3.7 The Ad-Circulation Spiral 70 3.3.8 The Reach 71 3.3.9 How Is the Audience Rating Measured? 71 3.3.10 The CPM 71 3.3.11 Future Trend Addressable TV 72 3.4 The Value Chain for Films and Film Rights 72 3.4.1 The Value Chain for the Television Market 74 3.4.1.1 The Extended Value Chain for the Television Market 74 3.4.1.2 Program Production 75 3.4.1.3 Programming 75 3.4.1.4 The Distribution/Program Distribution 76 3.5 The Streaming Market 78 3.5.1 What Is Streaming? 78 3.5.2 Business Models 78 3.5.3 Ad-Supported Streaming 81 3.5.4 Paid Streaming 81 3.5.5 Digitalization of Television 82 3.5.6 The Role of Demographic Change 83 3.5.7 Individual Usage 84 3.5.8 Influence Factor Globalization 85 3.5.9 Television and Streaming Become One 85 3.5.10 The Competition in the Streaming Market 86 3.5.11 How the TV Industry Can Adapt to This Change 87 3.6 TV as an Economic Driver During the Pandemic 88 3.6.1 Competition Situation in Electronic Markets 89 3.6.2 The Future Development in the Sector 90 3.7 The Television License 90 3.7.1 The History 91 3.7.2 The GIS Fees Info Service GmbH (Austria) 91 3.7.2.1 The Procedure 92 3.7.2.2 The Bad Reputation of GIS 92 3.7.3 The Broadcasting Contribution in Germany 93 References 94 4 Radio 96 4.1 The History of Radio 96 4.2 An Overview of the Radio Market 97 4.2.1 Radio Market Germany 98 4.2.2 Radio Market Austria 100 4.3 The Value Chain in the Music Market 100 4.3.1 Common Practice 101 4.3.2 Basics of the Music Industry 102 4.3.3 The Music Labels 103 4.3.3.1 The Major Labels 104 4.3.3.2 Independent Labels 105 4.4 Radio Management 105 4.4.1 Strategic Objectives 105 4.4.2 The Program Formats 106 4.4.3 Basic Considerations for Positioning 107 4.4.4 Niche Positioning 108 4.4.5 Economic Framework Conditions 110 4.4.6 Market-relevant Data for Radio Stations 111 4.4.7 Criteria for Station Selection 111 4.4.8 The USP 112 4.5 Radio Advertising 113 4.5.1 History 113 4.5.2 The Placement of Advertising 114 4.5.3 What Radio Advertising Costs 115 4.5.4 Daily Progression of Advertising Costs 115 4.6 The Future of Radio 116 4.6.1 Current Threats to Radio 116 4.6.2 Radio Needs New Distribution Channels 117 4.6.3 The Future of Radio Remains Exciting 118 References 118 5 The Internet 119 5.1 The History 119 5.2 Digital Economy & Monopolies 120 5.3 Digital Media 122 5.3.1 What Types of Digital Media are There? 123 5.3.2 Three Types of Digital Media 124 5.4 Online Journalism 124 5.4.1 The Opportunities of the Internet 125 5.4.2 Online Displaces Print 126 5.4.3 Forms of Presentation in Online Journalism 127 5.4.4 Willingness to Pay for Online Journalism 128 5.4.4.1 The Young Ones Lead the Way 128 5.4.4.2 Quality Must Be Right 129 5.4.4.3 Paying with Data 129 5.5 Social Media 130 5.5.1 What Exactly is Social Media? 130 5.5.2 Types of Social Media 131 5.5.3 Social Media as an Opportunity for Journalists 132 5.5.4 Social Media as a Threat to Journalism 133 5.5.5 What the Research Says 133 5.6 Advertising on the Internet 134 5.6.1 The Website 134 5.6.2 Social Media and Online Marketing 135 5.6.3 Influencer Marketing 136 5.6.4 Advertising on Facebook 137 5.6.5 Advertising on YouTube 138 5.6.6 Videos as an Opportunity 138 5.6.7 Banner Advertising 140 5.6.8 Search Engine Advertising 140 5.6.9 Email Marketing 141 5.6.10 Affiliate Marketing 141 5.7 The Future of Online Media and Journalism 141 5.7.1 The Importance of Artificial Intelligence 142 5.7.2 The New Workplace 143 References 143 6 Conclusion 145