Introduction 1:A - 1(12) Entertainment and Media: Markets and Economics Professor William Greene

Introduction 1:A - 2(12) Professor William Greene Department of Economics KMC, Rm people.stern.nyu.edu/wgreene people.stern.nyu.edu/wgreene/entertainmentandmedia/course.htm Find link on NYUClasses

Introduction 1:A - 3(12) Course Objective Economics based examination of the forces that shape the entertainment and media markets

Introduction 1:A - 4(12) 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.  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.

Introduction 1:A - 5(12) 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

Introduction 1:A - 6(12) 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.  Note interesting special characteristics of the experience industry  Features of the demand  Aspects of supply and production  Examine specific markets: Art, Movies, Music, etc.

Introduction 1:A - 7(12) /entertainmentandmedia/course.htm

Introduction 1:A - 8(12) Course Agenda 1: The Demand for Experience Goods 2: Supply. Production, Costs, Markets, Vertical Integration 3: Contracts, Boundaries of the Firms, Conglomerates, Digital Entertainment Business Models 4: Intellectual Property: Laws, Movies, Books, Music 5: Markets: Sports, Art, Gambling, Theater, Publishing, etc. 6: TV, Print Media, Others

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