CHAP 6

Who are the players in the media game?

• advertisers and media companies only
• consumers, advertisers, media companies, and employees of media companies
• consumers, advertisers, and media companies only
• advertisers, media companies, employees of media companies, and investors

A company selling basketballs is looking for a good channel to place ads. Which of the following would be the best use of money?

• a channel targeted at sports fans
• a channel targeted at basketball fans.
• a broad news network with a large general audience.
• A children’s network.

In the mass media industries, talent is primarily viewed as ______.

• artistic ability
• the ability to attract large audiences
• one’s natural ability to sing or act
• a combination of intelligence and creativity

Which of the following is an example of above-the-line talent?

• Lawyer
• Accountant
• HR associate
• Actor

You want to start a new video game company. Knowing that video games is a monopolistic competitive market, what do you need to do to succeed?

• convince consumers about your games to fulfill a specific need that other games do not
• make the very best games possible that appeal to everyone
• duplicate the success strategies of major companies
• advertise on social media, another monopolistic competitive market

Media companies have had to develop more revenue streams to deal with ______ audiences.

• declining
• aging
• fragmenting
• digitizing

You are a small independent book publisher, and your monthly expenditure for running your publishing house is $70,000. To maximize your economy of scale, what should you do?

• publish one book and sell it for $70,000
• publish two books and sell them for $35,000 each
• publish 70,000 books and sell them for a dollar each
• pay someone else to publish half your print runs

In which of the following ways do media companies maximize economies of scope?

• by increasing distribution channels
• by reducing expenses through economies of scale
• by hiring more below-the-line talent
• all of the above

After producing a movie, a film studio sells it on DVD, leases it to airline companies for showing during flights, and sells artifacts related to it. These are ways to ______.

• increase revenue streams
• minimize expenses
• attract people to niche audiences
• minimize risk

One radio station transmits only rap music enjoyed by youth and another radio station broadcasts only golden oldies enjoyed by elderly people. This is because these media organizations attempt to ______.

• increase revenue streams
• minimize expenses
• attract people to niche audiences
• minimize risk