1. Entertainment and Media: Markets and Economics
Professor William Greene

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

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

4. 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.

5. 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.

6. 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

7. 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

8. 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.

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

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

11. 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