Media economics is concerned with the relationship between the mass media and the economic environment, especially how changing economic forces and policies determine the choices of managers, practitioners and other decision-makers across the media. In simple terms, media economics is about how the media make money and how they manage material and human resources to save, make or spend money. It looks at advertising success or failure and how to improve on this, including sales other income generating sources of the media. You know that some media organisations do other things to make money; some have publishing firms to do such businesses by the side, some even organize beauty pageant to make money. So media economics primarily looks at how media houses make money, how they could save money by making the right decisions, how not to waste money, how government economic policies affect activities of media houses. Decisions on these issues are the primary focus of media economics.
At micro level, a media organisation is looking at decisions on how to make, save or spend money, how to utilise material and human resources effectively; at macro level the organisation is worried about how government policies for instance, affect the media industry, including that specific organisation. Media economics sees media content as products; news for instance, is a product which is demanded and supplied to readers. You should know the most appropriate news items that appeal to your audience so as to have high audience attention which attracts advertising revenue.Media economics sees media output as commodities that exist in an economic environment. Revenue generation activities of the media such as advertising, programmes marketing, sale of newspapers or magazines, receive attention here.
Media economics is a specialized branch of mass communication which deals with income and expenditure activities of the media, including how macro and micro economic activities in the society influence media products. It is a branch of communication studies that focuses on the media as an economic unit involved with management of resources to generate income, determines cost effective way of avoiding cost ineffective expenditure, examines and packages media products to educate, entertain, and inform the audience while also generating income.