Media Management: Strategy, Business Models and Case Studies (Springer Texts in Business and Economics)

“Digitalization significantly changes the media. To cope with this change and to exploit new market opportunities is a major challenge for media corporations. Bernd Wirtz provides a valuable guideline for this new world, combining theory, facts, and practice.” Dr. Hubert Burda, German publisher and Managing Corporate Partner of Hubert Burda Media Holding KG “The media business is subject to substantial change while differences between distinctive media areas are fading away. This is due to technical innovation in areas like transmittance of content, bearer of content and recording devices but also due to new formats, trends and constant change of consumer behavior.” The textbook “Media and Internet Management” stays abreast of changes and covers this topic on a well-founded and comprehensive basis. It makes a valuable contribution to theory and practice in media management and is highly recommendable to media managers.” Christoph Mohn, Chairman of the Supervisory Board, Bertelsmann AG “The world of media is full of challenges and dynamic conditions for its field. The dynamic of this market is accelerated even more by new digital technologies and ongoing globalization. This book is an absolute “must have” for everyone who wants to know more about the basics, conditions and requirements of modern media management. The analytical clearness and structure make this publication highly relevant for students, but also for managers.” Urs Rohner, Chairman of the Board of Directors, Credit Suisse Group AG “Media Management is a textbook, but a very welcome newcomer for students and teachers as it fills a market gap for good educational material in this rapidly evolving field. It is concise, simple (but not simplistic), and contains a contemporary overview of concepts and tools for media managers. ” Prof. Dr. Bozena I. Mierzejewska, Editor of The International Journal on Media Management, Fordham University, New York “Summed up, with his second edition Wirtz managed to strengthen the outstanding position of his publication “Media Management”. His textbook shines because of its content, analytical clearness and the high relevance for business practice without losing its academic background. With the second edition this book has established its position in the field of media business as the leading standard reference book in Germany. It is suitable for business students, lectures as well as managers who can gain magnificent information from it.” Prof. Dr. Wolfgang Fritz, Director of the Institute of Marketing, Braunschweig University of Technology, Germany; Honorary Professor at the Institute of Business Administration, University of Vienna, Austria. Preface Contents About the Author 1: Foundations of Media Management 1.1 Structure of the Textbook 1.2 Development of Media Management 1.2.1 Media Management as a Business Administration Discipline 1.2.2 Development of Media Management and Media Economics 1.2.3 Definition of Media Management Definition of Media 1.2.4 Definition of the Media Sector 1.2.5 Definition of Media Enterprises 1.2.6 Media Economics 1.2.7 Media Management Definition of Media Management 1.2.8 Economic Significance of the Media 1.3 Development of Media and Communication Applications 2: Characteristics of Media Management 2.1 Market Definition in the Media Sector 2.2 Multidimensional Competition 2.3 Product Specifications 2.3.1 Media Products as Combined Products 2.3.2 Media Products as Public Goods 2.3.3 Media Products as Services 2.3.4 Media Products as Meritorious Goods 2.3.5 Quality of Media Products 2.4 Market Structure 2.4.1 Concentration 2.4.2 Market Entry Barriers 2.5 Changes in Media Usage Pattern 2.6 Changes in the Advertising Markets 2.7 Media Competition and Convergence 2.7.1 Digitalization 2.7.2 Deregulation of the Information, Media, and Communication Markets 2.7.3 Changes in User Preferences 2.8 Environmental Changes and Dynamics in the Media Sector 3: Value Creation Systems of Media Enterprises 3.1 Value Creation in Media Enterprises 3.2 Core Assets and Core Competencies 3.2.1 Analysis of Core Assets and Core Competencies in Media Enterprises Definition of Assets and Core Assets Definition of Competence and Core Competence 3.2.2 Management of Core Assets and Core Competencies in Media Enterprises 3.3 Business Models and Types of Business Definition of a Business Model 3.3.1 Revenue Model 3.3.2 Recipient Market 3.3.3 Advertising Market 3.3.4 Licenses 3.3.5 Government Fees 3.3.6 Production of Goods and Services Model 3.3.7 Types of Business 3.3.8 Content Integration 3.3.9 Content Bundling 3.3.10 Content Presentation 4: Functions of Media Management 4.1 Strategic Management 4.1.1 Strategic Development 4.1.2 Strategy Options Focusing Strategies Integration Strategies Network Strategies 4.1.3 Influencing Factors Costs Revenue Expectations Contract Conditions Competitors Government Regulations 4.1.4 Procurement Strategies 4.2 Production Management 4.2.1 Influencing Factors Production Process Resources Production Costs 4.2.2 Production Strategies 4.3 Marketing 4.3.1 Product and Program Policy Performance Core Packaging Brand Policy Services 4.3.2 Price Policy 4.3.3 Distribution Policy 4.3.4 Communication Policy 4.4 Organizational Management 4.4.1 Organizational Differentiation Functional Organization Object-Oriented Organization 4.4.2 Organizational Integration Integration Through Hierarchy Matrix Organization Project Organization Integration Through Guidelines and Plans Integration Through Self-Determination in Groups 5: Business Models and Value Creation in the Newspaper and Magazine Market 5.1 Range of Products and Services 5.1.1 Newspapers 5.1.2 Magazines 5.2 Interactions of Market Participants 5.3 Value Creation Structures 5.4 Core Assets and Core Competencies 5.5 Business Models 5.5.1 Revenue Models 5.5.2 Service Creation Model 5.5.3 Business Model for Newspaper Publishing 5.5.4 Business Model for Magazine Publishing 6: Business Models and Value Creation in the Book Market 6.1 Range of Services 6.2 Interactions of Market Participants 6.3 Value Creation Structures 6.4 Core Assets and Core Competencies 6.5 Business Models 6.5.1 Revenue Models 6.5.2 Service Creation Model 6.5.3 Business Model of Book Publishing House 7: Business Models and Value Creation in the Movie Market 7.1 Range of Services 7.2 Interactions of Market Participations 7.3 Value Creation Structures 7.4 Core Assets and Core Competencies 7.5 Business Models 7.5.1 Revenue Model 7.5.2 Service Creation Model 7.5.3 Movie Production and Distribution 8: Business Models and Value Creation in the TV Market 8.1 Range of Services 8.1.1 Free-TV 8.1.2 Pay-TV 8.1.3 Teleshopping and Call-in-TV 8.2 Interactions of Market Participants 8.3 Value Creation Structures 8.4 Core Assets and Core Competencies 8.5 Business Models 8.5.1 Revenue Models 8.5.2 Service Creation Model 8.5.3 Business Models 9: Business Models and Value Creation in the Radio Market 9.1 Range of Services 9.2 Interactions of Market Participants 9.3 Value Creation Structures 9.4 Core Assets and Core Competencies 9.5 Business Models 9.5.1 Revenue Models 9.5.2 Manufacturing Model 9.5.3 Business Model of Established Private Radio Providers 10: Business Models and Value Creation in the Music Market 10.1 Range of Services 10.1.1 Record Producers 10.1.2 Music Publishing House 10.2 Interactions of Market Participants 10.3 Value Creation Structures 10.4 Core Assets and Core Competencies 10.5 Business Models 10.5.1 Business Model of Record Producers 10.5.2 Business Model of Music Publishing Houses 11: Business Models and Value Creation in the Video and Gaming Market 11.1 Range of Services 11.2 Interactions of Market Participants 11.3 Value Creation Structures 11.3.1 Game Hardware Industry 11.3.2 Game Software Industry 11.4 Core Assets and Core Competencies 11.5 Business Models 11.5.1 Revenue Model 11.5.2 Manufacturing Model 11.5.3 Business Model of a Console Manufacturer 12: Business Models and Value Creation in the Internet Market 12.1 Range of Services 12.2 Interactions of Market Participants 12.3 Value Creation Structures 12.4 Core Assets and Core Competencies 12.5 Business Models 12.5.1 Content 12.5.2 Commerce 12.5.3 Context 12.5.4 Connection 12.5.5 Business Models in Social Media Definition Social Media 13: International Media Management 13.1 Introduction 13.1.1 Definition and Characteristics of International Media Management Definition International Media Management (Wirtz 2003b) 13.1.2 Specifics of International Media Management 13.2 Internationalization Strategies of Media Companies 13.2.1 Market Entry and Market Cultivation Strategies Export Licensing Joint Ventures and Strategic Alliances Direct Investment-Related Solo Efforts Mergers 13.2.2 Target Market Strategies Market Presence Strategies Market Selection Strategies Market Segmentation Strategies 13.2.3 Timing Strategies 13.3 Sections of International Media Management 13.3.1 Procurement Management of International Media Companies 13.3.2 Production Management of International Media Companies 13.3.3 Marketing Management of International Media Companies Product Policy of International Media Companies Price Policy of International Media Companies Distribution Policy of International Media Companies Communication Policy of International Media Companies 14: Integrated Media Conglomerates and Cross-Media 14.1 Introduction 14.2 Fundamentals of Cross-Media Management Definition cross-media (Wirtz 2013b) Definition cross-media management (Wirtz 2013b) 14.2.1 Manifestations of Cross-Media 14.2.2 Causes and Catalysts of Cross-Media 14.2.3 Cross-Media Strategies, Processes, and Success Factors 14.3 Integrated Value-Added Structures and Business Models 14.3.1 Dimensions of Integration Strategies 14.3.2 Characteristics of Integration Strategies 14.3.3 Evaluation of Integration Strategies 14.4 Development Prospects 15: Case Studies 15.1 Google/Alphabet Case Study 15.1.1 Google ́s Organizational History and Development 15.1.2 Google ́s Integrated Business Model 15.1.3 Google ́s Market Environment 15.1.4 Case Analyses and Structure of Solutions 15.1.5 Google Case: Questions and Solutions 15.2 Market-Specific Case Studies 15.2.1 Craigslist Case Study 15.2.2 Knopf Doubleday Publishing Case Study 15.2.3 Fox Filmed Entertainment: The Blockbuster ``Avatar ́ ́ Case Study 15.2.4 Hulu Case Study 15.2.5 Last.fm Case Study 15.2.6 iTunes Case Study 15.2.7 Xbox One X Case Study 15.2.8 21st Century Fox Case Study References This textbook offers business, communication, journalism and media science students an introduction to media management. It covers a broad range of topics, including the management of print and audio-visual media as well as digital media outlets. Adopting a structured analysis approach, it compares different sectors of the media industry, with a particular focus on business models in media management. It also features case studies, including on Google, iTunes and Craigslist, to provide readers with hands-on, practical examples of media management, while review questions at the end of each chapter help them understand the content discussed. Given its scope, the book will appeal to undergraduates and graduates of (media) management, communication science and business administration, as well as practitioners. "Digitalization significantly changes the media. To cope with this change and to exploit new market opportunities is a major challenge for media corporations. Bernd Wirtz provides a valuable guideline for this new world, combining theory, facts, and practice." Dr. Hubert Burda, Publisher and Managing Corporate Partner of Hubert Burda Media Holding KG "The media business is subject to substantial change while differences between distinctive media areas are fading away. This is due to technical innovation in areas like transmittance of content, bearer of content and recording devices but also due to new formats, trends and constant change of consumer behavior." The textbook "Media Management" stays abreast of changes and covers this topic on a well-founded and comprehensive basis. It makes a valuable contribution to theory and practice in media management and is highly recommendable to media managers." Christoph Mohn, Chairman of the Supervisory Board, Bertelsmann AG "The world of media is full of challenges and dynamic conditions for its field. The dynamic of this market is accelerated even more by new digital technologies and ongoing globalization. This book "Media Management" is an absolute "must have" for everyone who wants to know more about the basics, conditions and requirements of modern media management. The analytical clearness and structure make this publication highly relevant for students, but also for managers." Urs Rohner, Chairman of the Board of Directors, Credit Suisse Group AG