Entertainment and Media: Markets and Economics Professor William Greene

Professor William Greene Department of Economics KMC, Rm. 7-90 212.998.0876 people.stern.nyu.edu/wgreene wgreene@stern.nyu.edu people.stern.nyu.edu/wgreene/entertainmentandmedia/course.htm Find link on NYUClasses

Course Objective Economics based examination of the forces that shape the entertainment and media markets

Why “Entertainment Industry Economics?” There are commonalities that allow conventional economic analyses Production concepts – the nature of production and supply, technological change. Market dynamics – market structure, market power, market outcomes. Demand concepts – elasticity, consumer surplus, pricing.

Why “Entertainment Industry Economics?” There Are Unique Aspects of the Market Creative talent in production – the creator has a personal interest in the product. Pricing decisions – many opportunities for strategic pricing. Zero marginal cost, production vs. replication/distribution. Relationship between buyer and seller – artists and fans. Market complementarities shape market structures – winner take all markets. Demand aspects are unlike conventional commodity markets.

Analyzing The Experience Economy Examine the entertainment and media business with conventional economic tools Demand: Nature and Source Supply: Characteristics of Production and Distribution Costs and Profits Pricing: How prices are determined “Value” Market Outcomes: Structure, Prices, etc. Broad theme for the economics segment: Might as well turn right to the issue. Purposes of this segment of the course are Examine the EMT industries through the familiar lens of microeconomics Look at those characteristics of delivery of an experience to consumers that set these industries apart, both demand and supply

Analyzing The Experience Economy Note interesting special characteristics of the experience industry Features of the demand - interdependencies Aspects of supply and production Examine specific markets: Art, Movies, Music, etc. Broad theme for the economics segment: Might as well turn right to the issue. Purposes of this segment of the course are Examine the EMT industries through the familiar lens of microeconomics Look at those characteristics of delivery of an experience to consumers that set these industries apart, both demand and supply

Segments of The Entertainment and Media Market Movies Television (Broadcast, Cable) and Radio Theater Publishing (Print, Electronic, Music) Music Sports Art Gambling Electronic Games (Internet) Amusement and Theme Parks Hobbies Social Media Others? Set up the arena for the conversation. Try to establish at this point that we are Interested in a whole set of industries, not just movies and music. Mention economic principles That cut across all of these, some that are more applicable in some than others, Such as uncertainty as it enters the different businesses differently.

people.stern.nyu.edu/wgreene/entertainmentandmedia.htm

http://people. stern. nyu. edu/wgreene/entertainmentandmedia/course http://people.stern.nyu.edu/wgreene/entertainmentandmedia/course.htm

Course Agenda Part 1: The Demand for Experience Goods Part 2: Supply. Production, Costs, Markets, Vertical Integration Part 3: Contracts, Boundaries of the Firms, Conglomerates, Digital Entertainment Business Models Part 4: Intellectual Property: Laws, Movies, Books, Music Part 5: Markets: Sports, Art, Gambling, Theater, Publishing, etc. Part 6: TV, Print Media, Others