5 Common Characteristics of Mass Communication Organizations
1) Usually produced by formal and complex organizations ("professional communicators")
2) Organizations have multiple gatekeepers
3) Need a great deal of money to operate
4) Exist to make a profit
5) Have a great deal of competition
3) Operating Expenses
Due to the size of the organization and the expense of operating channels, it takes a lot of money to be in the mass communication business
This will be a major factor in the "concentration of ownership" we'll study later.
In 1996, the average Hollywood film cost $53 million to make and market. By 2001, the cost had risen to $79 million. By 2013, it was over $160 million, and that's just the average budget. Worldwide marketing and advertising costs for a major release add another $200 million to the budget.
In 2009, the average cost of creating a "AAA" video game was over $15 million. By 2013 it was over $60 million, with a multiplayer, on-line game costing well over $150 million, almost as much as a major Hollywood movie.
This 2000 Super Bowl commercial cost about $2 million. For the 2015 Super Bowl, the same commercial cost over $5 million.
The graphic below shows the vast reach of the media giants. We'll look at this in more detail when discussing "Concentration of Ownership"
Most mass communications organizations exist to make money
Even the non-profit ones intend to stay in existence.
As a result, over time, decisions are ultimately based on the concept of generating income.
The fight for income is becoming increasingly complex due to advances in technology. Streaming, both of video and audio, is a disruptive technology that mass communications organizations are trying to harness.
"And if CDs are truly dead, then digital music sales are lying in the adjacent grave. Both categories are down double-digits in the last year, with iTunes sales diving at least 13 percent."
Intense competition exists between mass communication organizations. The competition helps fuel "Concentration of Ownership", which we'll study in Part 5 of Module 3.
6 record companies produce over 80% of all American CDs and cassettes.
The 5 largest US magazine groups publish over 50 different magazines.
8 of 10 new TV shows are canceled their first year.
Because of the competition, self-promotion is a major part of media survival. For a major movie, worldwide marketing and advertising costs often are double the cost of making the film. For a major video game, marking costs equal the cost of making the game.
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