Media Management and Economics 2004 Abstracts
Media Management and Economics Division
Journalists and the Workplace: How Organizational Goals and Priorities Influence Job Satisfaction and Ratings of Journalistic Performance • Randal A. Beam, Indiana University • Data from a national survey of about 1,150 U.S. journalists suggest that perceptions about a news organization’s goals and priorities are associated with journalists’ job satisfaction and with their assessment of how well their organization is informing the public. The findings show that job satisfaction is higher at organizations where employees feel that they have autonomy, influence and frequent communication with supervisors. In addition, job satisfaction is positively correlated with perceptions that the organization values employee morale and that journalism quality is rising.
Tax Economics and Censorship of Foreign-licensed Publications Distributed in Egypt: The Case of the “Cyprus Press” • Ralph D. Berenger, The American University in Cairo • Foreign-licensed publications distributed in Egypt have florished tax-free in the past decade in exchange for government censorship of their news content. Meanwhile, Egypt- licensed publications exchange illusory press freedom for a hefty tax on advertising and circulation revenues. This paper compares two similar, competing publications amid comparative governmental regulations that allow for neophytic press competition in Egypt. However, recent political and tax decisions might end the tax advantages with a negative effect on readership and the general economy.
Toward a Theory of Innovation Adoption by Media Firms: Strategic Entrepreneurship and the Commercialization of the New Media Technologies •Sylvia M. Chan-Olmsted, University of Florida • This paper proposes a theoretical framework for exploring the factors that shape the innovation adoption decision and process of media firms. The analytical framework addresses the adoption of new media technologies through the integration of various theoretical perspectives such as entrepreneurship, strategic networks, and innovation adoption. Eight sets of antecedent variables in firm characteristics (e.g., size and organizational traits), media technology characteristics (e.g., newness and compatibility), perceived strategic value, alternatives available, strategic networks, market conditions, competition, and regulation/policy are proposed to influence a media firm’s decision whether, how much, and/or when to invest in the commercialization of a new media technology.
The World Media Landscape: A Comprehensive Examination of Media Markets and Their Determinants in 98 Countries • Sylvia M. Chan-Olmstead and Goro Oba, University of Florida • This paper surveys the media markets in 98 nations around the world, comparatively examining the degree of media multiplicity, diffusion, openness, and new media potential in these countries. The study also investigates how various environmental factors, including economic, cultural, social, political, technological, and other supporting industrial characteristics, influence the media markets in these countries. Relationships were found to exist between countries and most suggested factors, especially those associated with the technological and political characteristics of a country.
Devising a Practical Model for Predicting Theatrical Movie Success: Focusing on the Experience Good Property • Byeng-Hee Chang and Eyun Jung Ki, University of Florida • This study attempts to devise a new theoretical framework to efficiently classify and develop predictors of box office performance for theatrical movies by examining the experience good property of movies. Moreover, this research selects and devises practical variables that field practitioners can apply for anticipating performance at the box office. Three dependent variables, such as (domestic) total box office, first week box office, and length of run were adopted. Based on the theoretical framework, independent variables were categorized into four groups; brand-related variables (sequel, director, actor), objective features (budget, genre, MPAA rating), information sources (critic rating, audience rating), and distribution-related variables (market power of distributor, release period, number of first week screens).
Relative Constancy of Advertising Spending: A Cross-National Examination of Advertising Expenditures and Their Determinants • Byeng-Hee Chang and Sylvia Chan-Olmstead, University of Florida • This study empirically examines the Principles of Relative Constancy (PRC) across more than 70 nations over time (1991-2001). Focusing on the relationship between advertising spending and national economy as reflected by GDP, the authors found that while there is a significant relationship between GDP and advertising spending, the relationship is neither proportionate nor exclusive. The degree of applicability of the PRC might be different depending on the types of media and the characteristics of the nations.
How Demographics, Income, Work Experience, Staff Size, Newsroom Policy, and Intent to Stay in Journalism Affect Newspaper Reporters’ Overall Job Satisfaction • Li-jing Arthur Chang, Jackson State University • This study explores the relationships between a group of factors and overall job satisfaction of newspaper reporters. Results showed age, marital status, college education, income level, work experience, staff size, newsroom policy emphasis, and intent to stay in journalism are significant predictors of overall job satisfaction. After the original sample is divided into three sub-samples according to circulation categories, the research also probes how the predictors of overall job satisfaction differ when sub-samples are tested.
Playing Favorites: Clear Channel Air Play and Touring Clear Channel Artists • Donna Dearmon and Mark D. Harmon, University of Tennessee at Knoxville • Trade press articles claim Clear Channel uses its dominance as both radio chain and concert promoter to give extra air play to the artists it represents. The authors use Contemporary Hits playlists and concert data to check the allegation. No preference was found if one looked only at artists represented by Clear Channel. However, if one includes secondary affiliations (artists in Clear Channel promoted concerts but not necessarily represented by the company) Clear Channel stations were giving more airplay to Clear Channel artists when compared to artists not represented by Clear Channel and stations not part of the chain.
Notes toward an economic theory of media diffusion based on the parameters (r and K) of the logistic growth equation • John Dimmick and Tao Wang, Ohio State University • The paper suggests that the logistic growth equation is the model underlying media diffusion. The logistic is shown to be a good fit to the diffusion of US communication media such as radio, TV, cable, VCR and the home computer. The paper proposes that the r and K parameters of the logistic can be interpreted, respectively, as gratification-utilities and economic conditions. Hypotheses are tested concerning the role of anticipated gratification-utilities in the diffusion of the home computer and cable as well as the role of disposable income in the diffusion of several US mediums.
Failure of Project Eyeball: A Case of Product Over-pricing or Market Over-crowding? • Marc Edge, Nanyang Technological University • The closure in mid-2001 by Singapore Press Holdings of its experimental tabloid newspaper, Project Eyeball, after less than one year of publication, was popularly attributed to overpricing and competition from a pair of free tabloids that entered the market hot on its heels. An examination of the newspaper’s brief history also looks to the Principle of Relative Constancy and the influence of stock prices on publicly-traded newspaper companies, into which category SPH falls.
Vertical Integration, Movie Foreclosure, and Exhibitors’ Screening Behavior in the Singapore Cinema Market • W. Wayne Fu, Nanyang Technological University • This article examines the impact of distributor-exhibitor integration on the screening pattern of films in theaters in Singapore. Based on the anticompetition model of vertical integration, the hypothesis is tested that integrated movie players discriminate against independent competitors both in the distribution and exhibition markets such that the extent to which a film is screened at theaters depends on the film-theater relationship. Using data on films exhibited during 2002-2003, econometric models demonstrate the influence of vertical operation. Tobit and survival analyses show that both the screening and the life of a film in a theater shift with the vertical relationship.
Economic Impact of the Internet on Electronic Media Industry • Sung-Hee Joo, University of Michigan; and Ki-Young Lee, Michigan State University • To address the mismatch between the fast growth of the Internet and the lack of studies on its impact at a macro level, this study explores the economic impact of the Internet on other electronic media. More specifically, this study analyzes the extent to which the growth of the Internet has affected other media in terms of audience and advertising revenue share. The results from a series of regression analyses suggest the growth of the Internet has a unique, separate contribution to the erosion of network TV advertising revenue share.
Bigger, Better and Happier? Roles of Newspaper Size, Quality and Supervisors in Copy Editors’ Job Satisfaction • Susan Keith, Rutgers University • Job satisfaction reported by 470 copy editors from 100 newspapers surveyed in 2002 was relatively low, and copy editors at smaller newspapers (those with circulations between 25,000 and 50,000) were particularly dissatisfied with their salaries and their prospects for advancement. As in studies of other journalists, there were correlations between job satisfaction, supervision, and perceived newspaper quality.
Programming Spin-offs as Brand Extensions: Capitalizing on the Brand Equity of Network Television Hit Series • Daphne E. Landers, University of Florida • This research applied principles of branding and brand extensions to the analysis of television programming spin-offs from the 1955 -1956 to the 2002 – 2003 primetime broadcast television season. Using multiple regression and binary logistic regression, this research examined the changing nature of television program spin-off deployment, uncovered underlying relationships, and assessed the collective prediction — and individual contributions — of specific attribute, association, and competitive positioning variables on three measures of spin-off performance: spin-off longevity, parent brand advancement, and network advancement.
Strategic Alliances as Brand Extensions in the Media Industries: Focusing on Naming Strategies • Seung-Eun Lee and Byeng-Hee Chang, University of Florida • Applying the concept of brand extensions into strategic alliances (“SAs”), this study analyzed naming strategies of SAs, including joint ventures, in the media industry. By examining a total number of 1372 media SAs, this study found that, when deciding the name of a newly formed entity, firms actively used co-branding strategy to leverage the established brand equity of participating firms. This study proposed factors affecting the naming decision of SAs: initiative, industry relatedness, and nation relatedness. The analysis indicated the effect of the initiative on naming decision, showing that the name of the firms with the initiative in a SA deal was found to be a header brand in most of the co-branded alliances.
Characteristics of Entry and Exit in Weekly Newspaper Markets: An Exploratory Study • Hugh J. Martin, The University of Georgia • A study of Georgia weekly newspapers found 86 papers entered the industry from 1990 to 2000; 56 papers exited. Entry was concentrated in suburban and metropolitan markets. Increasing ownership concentration did not affect entry rates. Annual patterns of entry and exit were erratic, which is expected in a mature industry. Entering and exiting weeklies had larger than average circulation. Barriers to entry in weekly markets appear to be lower than barriers in daily markets.
Revealing a Double Jeopardy Effect in Radio Station Audience Behavior • Walter S. McDowell, University of Miami; and Steven Dick, University of Southern Illinois at Carbondale • Scores of consumer behavior studies have found a so-called double Jeopardy effect, whereby brands earning small market shares attract not only fewer buyers than their more successful competitors, but also disproportionately fewer loyalists in terms of repeat purchasing. This study hypothesized that a similar effect can be found in radio listening. Using turnover ratio and exclusive cume as operationalizations for listener loyalty, a ratings analysis of over 1600 stations revealed a significant double jeopardy effect along with program format as an intervening variable.
Local Decision Making in a Consolidated Radio Industry: Program Directors and Airchecking • Tad Odell, University of Oregon • The radio industry has changed dramatically since 1996’s ownership deregulation. Large corporations control more stations, and market structures are more concentrated. This paper analyzes how radio program directors influence the way stations manage their announcers in this new environment through a method called airchecking. The study found that program directors’ attitudes strongly influence the amount they aircheck, indicating that local managers have independence to set their own priorities.
A Preliminary Examination of the Predictors of Radio Station Advertising Price and Revenue before the Telecommunications Act of 1996 • Heather Polinsky, Central Michigan University • This study conducts a simplified investigation which factors are indicative of radio station advertising price and revenue from 1995 radio industry data, just before the passage of the Telecommunications Act of 1996. This investigation finds that station audience and ownership variables predict advertising price and station revenue in both AM and FM stations, but that signal strength, market variables and format variables are significant predictors in only FM stations.
Ukrainian Television Media Management In Transition • Ardyth Sohn, University of Colorado and Alyona Bondar, Kyiv, Ukraine • This case study of a television station in Kyiv, Ukraine, provides descriptive analysis of how media are developing in a country undergoing economic, social, political and cultural changes. The study, which provides preliminary baseline data, outlines the opportunities and challenges for one television station’s media managers presently and in the future. Results indicate that while political turmoil creates considerable constraint in some areas (i.e. domestic news) other arenas such as advertising and film production are being exploited with some success. Early results also show modest strength for multi-country distribution of media products.
Striking It Niche — Extending The Newspaper Brand By Capitalizing In New Media Niche Markets: A Baseline Study Of Daily Newspaper Niche Web Sites • Jennifer Wood, Hampton University • This is the first nationwide study to examine newspaper niche Web sites. It will serve as a baseline for studying long-term changes in this area. Online directors at U.S. daily newspapers were surveyed to determine if they were creating niche Web sites, what types of niche sites were produced, how they were selecting and targeting specific audiences for the sites and what marketing or advertising plans were in place to achieve consumer brand loyalty.
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