Make sure to take at least two of the concepts from the PowerPoint and used them in the writing. The other file is where you will find everything you need to do
Profit Maximization
Goal: You can explain about the four strategies of big media corporations.
◦ Synergy
◦ The Logic of Safety
◦ Planned Obsolescence
◦ Celebrity and Spectacle
Contents:
◦ Pop Quiz: Go to the Blackboard and click the folder of “Pop Quizzes” under the
“Readings” (10 min)
◦ Lecture about the profit maximization strategies of media corporations (40 min)
◦ Group & Class discussion about the consequences of the media system (25 min)
Recap: Political Economy Analysis
In understanding media,
this approach pays attention to
the industrialized system of production & distribution
as the foundation that has an impact on the features of media contents
based on Marxist theory.
Marxist Theory: a social theory that explain societies based on the
movement of capital (money making more money) as the
source of social change and power.
Recap: Four Patterns of Media Ownership
1) Concentration:
The phenomenon in which the media are owned & controlled by a small group of
powerful companies.
2) Conglomeration:
The hierarchical structure in which a parent company owns and controls
a host of subsidiary companies.
3) Integration:
The pattern where the subsidiary companies or branches within a corporation are
strategically interrelated.
4) Multinationalism:
The phenomenon where a media corporation is presented in multiple countries,
allowing for the production and distribution of media products on a global scale.
1st Strategy of Profit Maximization: Synergy
◦ Refers to the involvement of multiple subsidiary companies in the cross-
development, production, and distribution of a media brand for the purpose of
exploiting it for all the profits possible.
◦ Synergy is made possible by horizontal integration.
i.e., Summer blockbusters are at the heart of cross-promotional efforts.
◦ Synergy also happens between media industry and non-media industry like food.
i.e., Mega-budget blockbuster gets made only when it can appeal to a wide audience,
and can be marketed to children through toy lines, and the fast-food industry.
McDonald’s Global ‘Shrek’ Movie Promotion (2007)
https://adage.com/article/news/mcdonald-s-unveils-global-shrek-movie-promotion/116573/
https://adage.com/article/news/mcdonald-s-unveils-global-shrek-movie-promotion/116573/
2nd Strategy of Profit Maximization: Logic of Safety
◦ Financial risk avoidance is primary principle.
à Exploiting proven formulas (i.e., “Sex sells.” “Violence sells.” etc.), demanding of a
guarantee of success à Reluctant to produce highly original, innovative, or creative content.
◦ Sequels, Remakes, & Spin offs
In Movie Industry: Sequel of The Hangover (2009): cost ($35 million), gross profit ($467)
à The Hangover Part II (2011) à The Hangover Part III (2013)
https://www.the-numbers.com/box-office-records/domestic/all-movies/cumulative/released-in-2020
In music industry: Remakes or “Covers”
In TV industry, Spin-offs focus on a popular or even secondary character from the original.
https://www.the-numbers.com/box-office-records/domestic/all-movies/cumulative/released-in-2020
3rd Strategy of Profit Maximization:
Planned Obsolescence
◦ A business strategy or practice in which the obsolescence (the process of
becoming obsolete – that is, unfashionable or no longer usable) of a product is
planned and built into it from its conception.
à To have consumers feel a need to purchase new products and services and
consume media continuously
à Especially when the content endlessly being churned out is formulaic rather
than creative.
(1) Technological Obsolescence
◦ It occurs when a development in technology causes the previous generation of that
technology to become obsolete.
Cassette Tapes < CD (Compact Disc) < Digital Device
Cell Phone
New
Old New
Old New
Old New
Old New
Old New
Old New
Old New
Old New
Old New
Old New
SE
7 &
7 plus
2016
8
8 plus
X
2017
XS
XS Mas
&XR
2018
11
11 Pro
11 Max
2019
12
12 Pro
2020
…
Example of the Video Game Industry
◦ New game consoles released every couple of years are specifically designed to
prevent backwards compatibility.
◦ Preventing backwards compatibility means that the newer systems will NOT play
older games.
Q: Any experience of frustration in relation to No compatibility in a video game?
(2) Psychological Obsolescence
◦ A business strategy or practice which creates a “Newness” to make consumer feel a constant
need to re-consume.
◦ Structure to pump a constant wave of ‘newness’
e.g., Up-to-the minute news on 24-hour cable news network
Billboard chart in music
Continuous birth of a ‘new star’ from Audition-based TV program
such as American Idol and The Voice etc.
Q: How do you feel about social media which are also run 24-hour?
: Do you feel urge to check out ‘new updates’ of your people in social media?
Or any pressure to provide ‘what’s new’ about yourself ?
4th Strategy of Profit Maximization:
Celebrity and Spectacle
1. Discuss about what celebrity and spectacle are based on the textbook (pp. 42-43)
in a group.
2. Find one example about how celebrity or spectacle is related to a profit
maximization practice of the media industry.
Q: What would be the consequences of
the ownership patterns and profit maximization strategies of media?
1) Cost for promotion
2) Entry of a small or new media company
3) Journalism
4) Voice or influence of different individuals on media
Q: What would be the consequences of
the ownership patterns and profit maximization strategies of media?
1) An increase in media cross-promotion and a decrease in media products that are not
suitable for cross-promotion.
2) A difficult environment in which a small or new media company competes with
mega-scale media corporations like Big 6.
3) “The Holliwoodization/Tabloidization of the news,” weakened role of journalism
due to its incorporation of sensationalism (i.e., focus on crime reporting, celebrity
gossips etc.)
4) Media can be easily swayed by few super-rich owners as their political asset (i.e.,
Silvio Berlusconi, a media magnate and Italian prime minister elected three times,
Michael Bloomberg, New York City mayor in 2001)
1) How well do media industries represent Americans or American life/culture?
2) Any implication in terms of intercultural communication
(e.g., stereotypes about Americans etc.)?
What about the environmental impact
of such profit maximization strategies of big media corporations?
Question:
Is there any alternative or emerging new possibility
against the profit maximization strategies of
big media corporations
both as an audience member and
a small-scale media producers?
1
COMM 303: MEDIA THEORY AND ANALYSIS
The Exam on Foundation on February 22 (Mon)
(20%, 200 points)
• Length: 1,000-1,200 word-essay (References are not counted.)
• Due Date: Upload your essay (Word or PDF format) to the Blackboard by 11:15am on 2/22.
• Paper Format: Typed in black, 12-point, Times New Roman font, double-spaced, with one-inch
margins, & APA citation style (see only in-text citation & reference; Refer to the
online source at https://owl.english.purdue.edu/owl/resource/560/01/)
Objective:
The purpose of this exam is for you to have a chance to respond to a media-related public debate.
Essay-writing Procedure:
1. Read the below two news articles of The New York Times, one announcement of Apple,
and one announcement of Facebook very carefully.
[The New York Times] Facebook Takes the Gloves Off in Feud with Apple
https://www.nytimes.com/2020/12/16/technology/facebook-takes-the-gloves-off-in-feud-with-
apple.html
[The New York Times] Facebook Said to Consider Suing Apple Over App Store Practices
[Apple] Data Privacy Day at Apple: Improving transparency and empowering users
https://www.apple.com/newsroom/2021/01/data-privacy-day-at-apple-improving-transparency-and-
empowering-users/
[Facebook] Speaking Up for Small Businesses
https://www.facebook.com/business/news/ios-14-apple-privacy-update-impacts-small-business-ads
You can also check below Ad campaign of Facebook over Apple’s new iPhone privacy policy.
2
COMM 303: MEDIA THEORY AND ANALYSIS
2. Take your position to support Apple or Facebook or neither company after carefully
evaluating the above four sources and considering what you have learned in this course
so far.
3. Write a persuasive essay about explaining reasons why you support Facebook or Apple
or neither company by considering following conditions.
(1) Incorporate at least two concepts or ideas you have learned in the course to your
essay directly and in detail.
(2) Feel free to cite the above four and other credible sources in writing your
essay.
(3) Treat your opinion basically as your argument. To make your argument persuasive,
clearly elaborate your reasons to support Apple or Facebook or neither.
(4) You can use or modify the following outline if helpful.
(5) Read the following grading rubric carefully and confirm that you essay satisfies all
criteria.
3
COMM 303: MEDIA THEORY AND ANALYSIS
Introduction (one paragraph)
• Present the issue at stake and who you support
Body (four or five paragraphs)
• In each paragraph, discuss each reason and elaborate your thoughts along with proper
examples to persuade your audience effectively.
• Your argument should be clearly grounded in what you learned during the classes. Also, feel
free to add any other materials as long as they are credible public sources.
Conclusion (one paragraph)
• In your conclusion, emphasize your points again in relation to your argument.
Grading Rubric for Essay (200 pts)
Exemplary Accomplished Developing Beginning
Title
(10 pts)
(9-10 pts)
Intriguing title that
captures your
position
and attracts your reader
effectively
(8 pts)
Clear title that
represents your
position
(6-7 pts)
Title made
(0 pts)
No title
Position
(30pts)
(27-30 pts)
Your position is formed
and presented clearly and
interestingly.
(24-26 pts)
Your position is
clear and
recognizable.
(21-23 pts)
Your position is
vague, which
needs to be
clarified further.
(0-20 pts)
Your position is
not developed at
all or
unrecognizable.
Reasons
(50 pts)
(45-50 pts)
Reasons to support
the chosen position
are articulated clearly
and thoroughly
throughout the essay
(40-44 pts)
Reasons are
expressed clearly in
general.
(35-39 pts)
Reasons are
addressed, but
vaguely.
(0-34 pts)
Reason is rarely
addressed or
unrecognizable
Supporting
details to
back up each
reason
(40 pts)
(36-40 pts)
Interesting, original,
or relevant details are
organized to support
a chosen position
well. Presented
details are accurate,
(32-35 pts)
Most of presented
details are
interesting
relevant, and
original.
(28 -31 pts)
Presented details
are less accurate,
unclear, or less
developed in
supporting a
(0-27 pts)
Scarce details
are presented to
back up a
chosen
position.
4
COMM 303: MEDIA THEORY AND ANALYSIS
specific, and
persuasive to
understand the
position.
Some details are
less connected to
supporting a
chosen position.
chosen position in
general.
Presented detail is
very difficult to
understand or
irrelevant.
Concepts or
ideas
incorporated
(30 pts)
(27-30 pts)
Two or more concepts
or ideas learned from
class are accurate and
they are incorporated
into the flow and
content of the essay
very well.
(24-26 pts)
Two or more
concepts or ideas
learned from class are
correct and they are
incorporated into the
essay.
(21-23 pts)
Concepts or ideas
learned from class
appear, but they’re
less informative or
correct or vaguely
connected to the
content of the essay.
(0-20pts)
Concepts or
ideas are not
incorporated or
incorrect or
unrecognizable.
Mechanics
(30 pts)
(30 pts)
No issue in spelling,
punctuation, grammar,
and in-text
citation
(25 pts)
Minor issue in
spelling, punctuation,
grammar, and in-text
citation
(20 pts)
Some issues in
spelling,
punctuation,
grammar, and in-text
citation
(15 pts)
Constant issues in
spelling,
punctuation,
grammar, and in-
text citation
Bibliography
(10 pts)
All of used sources are listed in an APA citation style.
Pass: 10 pts Fail: 0 pts
Total: ________ out of 200 points
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Formatting
Title Page
Citation
Outline
