Does the technological revolution change the basic rules of media Essay

Does the technological revolution change the basic rules of media economics - Essay Example In order to understand the impact of technology on media economics in cultural industries, it is essential to understand the concept of cultural industry (Albarran & Dimmick, 1996, 48). Cultural industry can defined as that industry that incorporates different types of medium including television, music, print media along with art and architecture. From research, it is evident that this industry has adopted technology. The developments and growth of mass media in the cultural industry created foundations for media economics. The concept of media economics first emerged in the fifties(Albarran, 2002, 32). The cultural industries played an important role in offering the main fundamentals for investigating and analyzing the economics of media. â€Å"Content providers, offering information and entertainment, became the suppliers, whereas consumers and advertisers formed the demand side of the market. Furthermore, various regulatory agencies (e.g., Federal Communications Commission [FCC] , Federal Trade Commission, and other government entities) affected macroeconomic market conditions, and the relationship among suppliers in various industries created microeconomic market conditions† (Albarran, 2002, 115). During the fifties, the emergence of media economics became the subject of study of several micro and macro economists. For instance, Rau concentrated on studying the competition between newspapers, Steiner studied the competition in the radio industry and Reddaway studied the economics of several newspaper firms (Albarran, 2002, 201). The initial studies related to television and cultural industry sought to understand the structure of the market and the competition it had with other forms of medium(Albarran & Dimmick, 1996, 48). Furthermore, it concentrated on studying the influence of technology on revenues. In the same