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Media and Communications: Introduction

Segments

Cable and Other Program Distribution

Companies broadcast television programs for free to the public and for cable subscribers. Broadcasts and programming, production, and post-production services are major sources of revenue.

Cellular and Other Wireless Telecommunications

Companies in this segment operate and maintain switching and transmission facilities in order to provide telecommunications services via airwaves.

Movies and Television Production

Companies in this industry primarily produce, or produce and distribute, television programs, television commercials, or videos.

Music

Companies in this industry produce, sell, and license musical recordings; they may also own and license musical copyrights.

Printed Media

Companies in this industry publish newspapers, magazines and other periodicals, books, directories, and mailing lists, as well as items such as calendars, greeting cards, and maps.

Satellite Telecommunications

Communications satellites are used to relay and amplify radio telecommunications signals via a transponder to create a communication channel.

Telecommunications Reseller

Companies in this segment purchase network access and capacity from telecommunications carriers and resell wired and wireless telecommunications services to businesses and households.

Wired Telecommunications Carriers

In this segment, companies provide services including local and long-distance calling, Internet access, and TV program distribution over fixed-line telecommunications networks.

The Media and Communications industry is Highly Concentrated. The production in this industry is dominated by a small amount of large firms that are able to shape the industry’s direction and price levels.

Primary Demand Drivers

  • Purchases from businesses, telephone companies, cable companies, data communications providers, and TV and radio broadcasters

Profitability Drivers

  • Technological innovation
  • Ability to secure high-volume contracts from large customers

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Airfare and Cell Phone Plan Prices Increase in the U.S.—Does France Have the Solution?

Thomas Philippon, French native, moved to the United States in 1999 to pursue a graduate’s degree. While in the U.S., he noticed that cell phone plans and airfare were much more expensive in comparison to the prices in France. Twenty years later, he discovered that these prices were not only lower in France, but in Europe and Asia as well.

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Sources

  1. Hoovers (Date Accessed: 6/1/2017)