25 September 2009

I am working my way through your auction proposals.

Everyone did well with the Success Exercise but no one came even close to completing the list.  Which is good.  You will get the results next Friday.

Key points from today:

Making money in media is very far from making money with a very specific product or good.

It is possible to sell individual units with books, magazines, newspapers, movie tickets, dvds, games.

Money can also be made through subscription

Advertising is the core of making money with media.  Media need to acquire audiences that are valuable to advertisers and people that want to sell their actual products.

Product placements are another form of advertising which occurs in a wide array of content.

Measuring audiences is done in different ways in different media.

Movies, Video and Music all benefit from economies of scale which drop to zero when the cost of creative production is met.  So, every dollar made past the break-even point in almost complete profit.

Remember:

Potential Audience    Available Audiences     Actual Audiences


Potential audiences are everyone with the abilities or technologies which make it possible to consume your content.

For a book it means everyone who can speak the language it is written, for a cable TV show it is everyone with cable television, for a computer game it is everyone who has a way to play a game, etc.

Available audiences are everyone who is available for connection to your content.

For a book it means everyone that shops at the stores where your book is sold, for a cable TV show it is everyone who is watching their cable television, for a computer game is is everyone who owns the specific platform that will allow them to play your game.

Actual audiences are those that are actually using, reading, watching, playing or experiencing your content.

The actual audience depends on the available audience which depends on the potential audience.  The bottom line in media and design is the audience, whether it is a corporate or business audience for the communication designer or a mass audience for the 3D animation company.


until the next time...