Sunday, February 6, 2011

Why does economics drive most media Companies?

Economics drive most media Companies because they would not be able to function without funding’s from outside corporations that do business with them. This allows for the media companies to budget their money so that they can do different things with it. When they get funding’s, the companies are then able to go out and o what they need to do, this allows them to gain revenue and commission from other companies. So on and so forth. With economics in media there wouldn’t be a media industry and people would be left homeless without jobs. Conglomeration is the process of companies being brought into common ownership but remaining distinct entities. This allowed for companies to keep on making profits without the new corporate policymakers to intervene it revenues faltered. Economics is the way that companies are able to make money. For instance people in the advertising industry work with other companies that want to buy airtime. The advertising industry uses economics in order to do business such that they make revenue and commission from closing a deal. They also make a profit with the company because in the long run the company that wants to advertise is making more money from the people that see their ad.

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