Transcript Entertainment and Media: Markets and Economics Professor William Greene 1:A - 1(12) Introduction Professor William Greene Department of Economics KMC, Rm.

Entertainment and
Media: Markets and
Economics
Professor William Greene
1:A - 1(12)
Introduction
Professor William Greene
Department of Economics
KMC, Rm. 7-90
212.998.0876
people.stern.nyu.edu/wgreene
[email protected]
people.stern.nyu.edu/wgreene/entertainmentandmedia/course.htm
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Introduction
Course Objective
Economics based examination
of the forces that shape the
entertainment and media
markets
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Introduction
Why “Entertainment Industry Economics?”
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There Are Commonalities that Allow Conventional Economic
Analyses
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Production concepts – the nature of production and supply, technological
change.
Market dynamics – market structure, market power, market outcomes.
Demand concepts – elasticity, consumer surplus, pricing.
There Are Unique Aspects of the Market
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Creative talent in production – the creator has a personal interest in the product.
Pricing decisions – many opportunities for strategic pricing.
Zero marginal cost, production vs. replication/distribution.
Relationship between buyer and seller – artists and fans.
Market complementarities shape market structures – winner take all markets.
Demand aspects are unlike conventional commodity markets.
Introduction
Segments of The Entertainment
and Media Market
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Movies
Television (Broadcast, Cable) and Radio
Theater
Publishing (Print, Electronic, Music)
Music
Sports
Art
Gambling
Electronic Games (Internet)
Amusement and Theme Parks
Hobbies
Social Media
Introduction
Analyzing The Experience Economy
 Examine the entertainment and media business with conventional
economic tools
 Demand: Nature and Source
 Supply: Characteristics of Production and Distribution
 Costs and Profits
 Pricing: How prices are determined
 “Value”
 Market Outcomes: Structure, Prices, etc.
 Note interesting special characteristics of the experience industry
 Features of the demand
 Aspects of supply and production
 Examine specific markets: Art, Movies, Music, etc.
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http://people.stern.nyu.edu/wgreene
/entertainmentandmedia/course.htm
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Introduction
Course Agenda
1: The Demand for Experience Goods
2: Supply. Production, Costs, Markets, Vertical Integration
3: Contracts, Boundaries of the Firms, Conglomerates,
Digital Entertainment Business Models
4: Intellectual Property: Laws, Movies, Books, Music
5: Markets: Sports, Art, Gambling, Theater, Publishing, etc.
6: TV, Print Media, Others
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