How to Understand Media Economics

Media economics applies the principles and methods of economics to the media to provide a better understanding of the media industry. Because economics studies how societies allocate scarce resources, media economics scholar Alan Albarran suggests that media economics studies how media firms use their resources to produce material that informs and entertains their audience. Media economics emerged as a field of study in the 1970s and has become increasingly important in an era in which traditional media outlets, such as newspapers, are struggling for survival in an age dominated by the Internet. Understanding media economics requires you to undertake some reading and research but will help make you a more knowledgeable and sophisticated media consumer.

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  Read "Understanding Media Economics" by Gillian Doyle or "Media Economics: Understanding Markets, Industries and Concepts" by Alan B. Albarran. Both books provide a strong overview of basic economic concepts and link them to the media industry. In addition, both authors examine various issues facing traditional media, such as television and newspapers, as well as the new media, exemplified by the Internet. Both authors write in a style that does not require prior knowledge of economics.

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  Complete a course in media economics, introductory mass media or basic economics at your local university or community college. You are most likely to find a more specialized media economics course at a local university, while a community college will have introductory courses in economics, mass communications, journalism or mass media. A basic course in economics will introduce you to economic principles that will inform your understanding of the economy in general, while an introductory course in mass communications or mass media will provide an overview of the modern media and the issues they face. The course should cover all types of media, including publishing, advertising, television, film, music and the Internet.

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  Expand your understanding of media economics by following news related to the media and communications industries. Be sure to rely on a reputable news source. The Wall Street Journal website, for example, has a section devoted to news from the media and marketing industries.