Lectures on probability theory and mathematical statistics

Contents......Page 5
List of Figures......Page 16
List of Tables......Page 19
I: Overview......Page 21
 1: Introduction......Page 22
  1.1 The Need for “Media Management”?......Page 23
  1.3 Approaches to the Teaching of Media Management......Page 24
  1.4 Outline of the Book......Page 25
  1.5 Outlook......Page 26
 2: The Information Environment......Page 27
   2.1.2 History......Page 28
   2.2.1 The Information Revolution......Page 29
   2.3.1 Characteristic #1 of Media and Information: High Fixed Costs, Low Marginal Costs—Very High Economies of Scale......Page 30
   2.3.2 Characteristic #2 of Media and Information: Network Effects......Page 31
   2.3.5 Characteristic #5 of Media and Information: Excess Supply......Page 32
   2.3.7 Characteristic #7 of Media and Information: Convergence of Technology......Page 33
   2.3.10 Characteristic #10 of Media and Information: The Presence of Non-Maximizers of Profit......Page 34
   2.3.13 Summary of Economic Properties......Page 35
   2.4.2 Quiz......Page 36
  Quiz Answers......Page 39
II: Production......Page 40
 3: Production Management in Media and Information......Page 41
    3.1.2.1 Special Characteristics in Content Production......Page 43
   3.2.2 Types of Production......Page 44
   3.2.3 Cost Characteristics: Film Versus Theater......Page 45
   3.2.5 History of the Film Production Industry......Page 46
    3.2.6.1 Books......Page 48
    3.2.6.2 Newspapers......Page 49
    3.2.6.4 Television Content......Page 50
   3.2.7 The Global Success of the Hollywood Production Industry......Page 51
     Cinema in France......Page 52
     Vivendi—The Parent Company......Page 53
   3.3.1 Supposed Advantage: Market Size? Language?......Page 54
    3.3.1.1 Small Country Versus Large Country......Page 55
   3.3.2 Supposed Advantage: Stars?......Page 56
   3.3.3 Supposed Advantage: Vertical Integration of Content with Distribution?......Page 57
    3.3.3.2 Reasons for Vertical Integration......Page 58
    3.3.3.4 Vertical Integration in Other Media Industries......Page 59
    3.4.1.1 Networked Production......Page 60
    3.4.1.2 Clustering......Page 62
     Independent Producers......Page 63
    3.4.2.2 Selection of Lower-Risk Projects......Page 64
    3.4.2.4 Step-Wise Investment (Option Contacts)......Page 65
    3.4.2.6 Content Portfolios and Diversification......Page 66
    3.4.3.1 Concept (Style)......Page 69
    3.4.3.2 Product Selection......Page 71
     Economic Tools for Product Selection......Page 73
     Market Research......Page 74
    3.5.1.2 Budgeting......Page 75
   3.5.3 Location and Supply Chain......Page 78
   3.5.4 Inventory Management......Page 79
   3.5.5 Production Scheduling......Page 81
   3.5.6 Capacity Planning......Page 84
    3.5.6.1 Linear Programming......Page 85
   3.5.7 Quality and Contingency Planning......Page 86
   3.6.1 Budget Control......Page 87
   3.6.2 Productivity Measurement......Page 88
    3.6.2.1 Production Functions......Page 89
    3.6.2.2 Cost Functions......Page 90
  3.7 Revenue Shares of Producers in Media......Page 91
  3.8 Content Production in the Next Generation of Technology......Page 92
    Fourth Strategy: Multiplatform Integration......Page 93
    Sixth Strategy: Content Mainstreaming and Globalization......Page 94
    Tenth Strategy: Financing......Page 95
    Conclusion: How Does It All Add Up for Canal Plus?......Page 96
  3.10 Conclusion: Success Elements for Content Production......Page 97
   3.11.1 Questions for Discussion......Page 98
   3.11.2 Quiz......Page 99
  Quiz Answers......Page 101
 4: Technology Management in Media and Information Firms......Page 102
   4.1.1 Technology Drivers and Trends......Page 103
   4.2.1 The Technology Function......Page 104
   4.2.2 Chief Technology Officer......Page 105
   4.2.3 Key Tasks for the CTO: Technology Assessment......Page 106
    4.2.3.1 Selection of R&D Projects for Funding......Page 107
   4.2.4 Integration of Technology with Firm Strategy......Page 111
   4.2.5 The Placement of R&D—In-House, Acquired, or Co-Developed?......Page 115
   4.2.6 The Organizational Structure of R&D Activities......Page 116
   4.2.7 Open Innovation— Community-Based R&D......Page 117
    4.2.7.1 Case Discussion......Page 118
   4.2.8 Budgeting for Innovation......Page 119
   4.2.9 Implementing R&D Alliances......Page 120
   4.2.11 Standards Strategy......Page 121
    4.2.11.1 Managing the Standards Setting Process......Page 122
  4.3 The Six Stages of Media Tech Convergence: The Six “Cs”......Page 123
    4.3.1.2 Components......Page 124
    4.3.1.3 Case Discussion......Page 125
    4.3.1.4 Control Code and Devices......Page 126
    4.3.1.5 The Computer......Page 127
     Mainframe Computers......Page 128
     Video Game Software......Page 129
     Case Discussion......Page 130
    4.3.2.2 Cellular Telephony......Page 131
    4.3.2.3 Case Discussion......Page 132
    4.3.3.1 Consumer Electronics......Page 133
    4.3.3.2 Television Sets......Page 134
    4.3.3.4 Case Discussion......Page 135
    4.3.4.2 Case Discussion......Page 136
   4.3.5 Convergence #5: The Media Cloud......Page 137
   4.3.6 Convergence #6: Bio-Electronics and Human Cognition......Page 138
  4.4 Case Conclusion......Page 139
  4.5 Outlook......Page 140
   4.6.1 Questions for Discussion......Page 141
   4.6.2 Quiz......Page 142
  Quiz Answers......Page 144
 5: Human Resource Management for Media and Information Firms......Page 145
    5.1.1.1 The Changing Focus of HRM......Page 147
    5.1.1.2 The HRM Organizational Structure......Page 148
   5.1.2 HRM Characteristics in Media, Information, and Digital Industries......Page 149
   5.2.1 The Rate of Return on Investment in Human Capital......Page 150
    5.2.1.1 Case Discussion......Page 151
    5.2.1.3 Case Discussion......Page 152
    5.2.2.1 Workforce Mobility......Page 153
    5.2.2.3 Case Discussion......Page 154
   5.2.3 The Use of Finance Theory in Analyzing Compensation......Page 155
    5.2.3.1 Case Discussion......Page 156
    5.2.4.1 Compensation and Tournament Theory......Page 157
    5.2.4.2 Case Discussion......Page 158
    5.2.4.3 Star Compensation......Page 159
    5.2.4.4 Productivity and Production Functions......Page 161
   5.3.1 The Industrial Workforce......Page 163
   5.3.2 The Crafts (Skilled) Media Workforce......Page 164
   5.3.3 The Creative Workforce......Page 165
    5.3.3.1 Case Discussion......Page 167
   5.3.4 Freelancers and Unions in the ‘New Economy’......Page 168
   5.3.6 Middle Managers......Page 169
   5.4.2 Managing and Motivating the Creative Workforce......Page 171
    5.4.2.2 Models of Motivation......Page 172
    5.4.3.1 Level 1: Physical Comfort Needs......Page 173
    5.4.3.2 Level 2: Safety Needs......Page 174
    5.4.3.3 Level three: Social Needs......Page 175
    5.4.3.4 Level 4: Esteem Needs......Page 176
    5.4.3.5 Level Five: Self-Actualization Needs......Page 177
    5.4.3.6 Corporate Culture......Page 178
   5.5.1 Employment Impacts......Page 180
   5.5.2 The Unequal Impact on Different Income Classes......Page 181
   5.5.5 The Fundamental Characteristics of the Digital Economy and their Impact on Employment......Page 182
   5.6.1 A Return of Unionization?......Page 183
  5.8 Review Materials......Page 184
   5.8.2 Quiz......Page 185
  Quiz Answers......Page 188
 6: Financing Media, Information, and Communication......Page 189
   6.1.3 Basic Factors in the Finance of Media and Communications......Page 191
   6.1.4 Case Discussion......Page 192
   6.2.1 Self-Financing......Page 193
   6.2.2 Case Discussion......Page 195
   6.2.3 Project Selection for Self-Funding......Page 196
   6.3.1 Pros and Cons of Debt......Page 197
    6.3.2.1 Senior Term Debt......Page 198
   6.3.4 Case Discussion......Page 199
   6.4.4 Commercial Paper......Page 200
   6.5.1 Corporate Bonds......Page 201
   6.5.3 Impact of Short Term Versus Long Term Debt on Media and Digital Tech Companies......Page 203
    6.6.1.1 Convertible Bonds......Page 204
    6.6.1.4 Case Discussion......Page 205
    6.6.2.1 Why Securitization?......Page 206
    6.6.3.1 Factors for Vendor Financing......Page 207
    6.6.3.2 The Impact of Vendor Financing on Content......Page 209
    6.6.4.1 Factors in Lease Financing......Page 210
    6.6.5.1 Methods of Government Support......Page 211
   6.6.6 Private Grant Financing......Page 213
   6.7.2 Risk Reduction Strategy #2: Shifting Risk......Page 214
   6.7.4 Risk Reduction Strategy #4: Hedging......Page 215
   6.8.1 Types of Equity Arrangements......Page 217
     The Basics of Partnerships......Page 218
     Film Partnerships......Page 219
     Technology Partnerships......Page 220
     Case Discussion......Page 221
     PE in the Media and Media Technology Industry......Page 222
     Major Telecom Private Equity Deals......Page 223
     VC Financing......Page 224
     Case Discussion......Page 225
     An Overview on IPOs......Page 226
     Impact of IPOs on Media Content and Conduct......Page 228
     Case Discussion......Page 229
   6.9.2 Institutional Investors......Page 230
   6.9.4 The Impact of Ownership on Content......Page 233
    6.10.1.1 The Pecking Order Approach to ­Determining the Capital Structure......Page 234
    6.10.1.2 Optimizing Company Value......Page 235
    6.10.1.3 Case Conclusion......Page 237
   6.10.2 The Life-Cycle of Capital Structure......Page 238
  6.11 Outlook......Page 243
   6.12.1 Questions for Discussion......Page 244
   6.12.2 Quiz......Page 245
  Quiz Answers......Page 247
 7: Intellectual Asset Management......Page 248
   7.1.2 History......Page 249
   7.1.3 Case Discussion......Page 251
  7.2 The Different Types of Intellectual Assets......Page 252
   7.2.1 Trade Secret Protections......Page 253
   7.2.2 Contract-Created Intellectual Assets......Page 254
    7.2.2.1 Case Discussion......Page 255
    7.2.3.2 How to Get a Patent......Page 256
     Case Discussion......Page 257
    7.2.3.4 Patents for Software and Business Methods......Page 258
    7.2.3.5 Patent Infringements......Page 259
    7.2.3.6 Are Patents Necessary?......Page 260
    7.2.4.1 Trademark Overview......Page 262
    7.2.4.3 Rights of Publicity......Page 263
    7.2.5.1 Copyright Overview......Page 264
    7.2.5.2 What can Be Copyrighted?......Page 265
    7.2.5.3 International Copyright Protection......Page 267
    7.2.5.5 “Fair Use” and “First Sale”......Page 268
   7.3.1 Assessing the Importance of an Intellectual Asset......Page 269
   7.3.2 Aligning Intellectual Assets with Strategy—IA Audits......Page 270
    7.3.2.1 Case Discussion......Page 271
    7.3.3.1 The Book Value Approach......Page 272
    7.3.3.3 Market Valuation......Page 273
    7.3.3.5 The Residual Approach......Page 274
    7.3.3.7 Case Discussion......Page 275
    7.3.4.1 Licenses......Page 277
    7.3.4.3 Strategic Licensing......Page 278
     Patent Pools – The MPEG-2 Patent Pool......Page 279
     The Mobile Patent Pool......Page 280
    7.3.4.5 Music Licensing......Page 281
     Music Licensing by Performing Rights Organizations......Page 282
     Factors in Book Licensing......Page 284
     Licensing Organizations for Print......Page 286
     Royalties for Film and TV Content Producers......Page 287
     Licensing of Online Video......Page 288
     Licensing by Syndicators to Retailers......Page 289
     Compulsory Licensing for Patents......Page 290
    7.3.4.10 Sports Licensing......Page 291
     Media Rights Licensing......Page 292
     Franchise Rights Licensing......Page 293
     Case Discussion......Page 294
   7.4.1 Piracy......Page 295
    7.4.1.2 File-Sharing of Unlicensed Music......Page 296
   7.5.2 Enlisting Government......Page 297
   7.5.3 Litigation......Page 298
   7.5.6 Technology Fixes......Page 299
   7.5.7 Business Responses......Page 301
    7.5.7.1 The Life-Cycle of Piracy......Page 302
    7.5.8.2 The Open Source Movement......Page 303
   7.6.1 Case Discussion......Page 304
  7.8 Review Materials......Page 305
   7.8.2 Quiz......Page 306
  Quiz Answers......Page 309
 8: Entertainment Law and Media Regulation......Page 310
   8.1.2 Case Discussion......Page 311
   8.1.3 The Relationship of Government and Media......Page 312
  8.2 The Legal and Public Affairs Functions in Media Firms......Page 313
   8.2.1 General Counsel: Head of Legal Department......Page 314
   8.2.2 Outside Counsel......Page 315
    8.2.4.1 How to Control the Costs of Outside Counsel......Page 316
     Case Discussion......Page 317
  8.3 Influencing Government and the Public......Page 318
   8.3.1 Lobbying......Page 319
    8.3.1.1 Case Discussion......Page 320
    8.3.1.3 Lobbying Strategies......Page 321
    8.3.1.5 Case Discussion......Page 323
    8.3.2.1 Managing Unfavorable Publicity......Page 324
    8.3.2.2 Case Discussion......Page 325
  8.4 The Regulatory Process......Page 326
   8.4.1 Self-Regulation......Page 327
    8.4.1.3 Cable TV Self-Regulation......Page 328
    8.4.1.4 Self-Regulation in the Advertising Industry......Page 329
    8.4.1.8 Managing the Self-Regulatory Process: Technical Standards......Page 330
    8.4.2.1 The Role of Government Regulation......Page 332
    8.4.2.2 The Strategic Use of the Regulatory Process......Page 334
    8.5.1.1 Defamation: Libel and Slander......Page 336
     Internet Libel......Page 337
    8.5.1.2 Morality and Child Protection......Page 338
     TV Political Balance......Page 339
    8.5.1.4 The Regulating of Advertising......Page 340
   8.5.2 Anti-trust and Anti-monopoly Law......Page 341
    8.5.2.4 Regulation of “Universal Connectivity”......Page 343
     Support for Domestic Cultural Production......Page 344
    8.5.2.7 Access Regulation......Page 345
    8.5.2.9 Privacy Regulation......Page 346
    8.5.2.10 Looking Ahead......Page 347
    8.5.2.11 The Future of Video Regulation......Page 348
  8.7 Review Materials......Page 349
   8.7.2 Quiz......Page 350
  Quiz Answers......Page 353
 9: Demand and Market Research for Media and Information Products......Page 354
   9.1.1 The Importance and Special Problems of Demand Estimation for Media Industries......Page 355
   9.1.2 Examples for the Problems of Forecasting Demand......Page 356
   9.1.3 Limits to Audience and Market Research......Page 357
   9.1.4 How Media Companies Organize Their Demand Research......Page 359
   9.1.5 Case Discussion......Page 360
   9.2.2 Measuring at the User Level......Page 361
    9.2.2.1 Personal Interviews, Mail Surveys, and Telephone......Page 362
    9.2.2.2 Focus Groups and Tests......Page 363
     Case Discussion......Page 364
    9.2.2.4 Biometric Testing......Page 365
    9.2.2.5 Automatic Audience Metering......Page 367
    9.2.2.6 The Measurement of Websites: User-Level Measurements of Internet Activities......Page 369
    9.2.3.2 Self-Reporting......Page 370
    9.2.3.3 Measuring Film Box Office Sales......Page 371
    9.2.3.5 Tracking Downloads and Uploads......Page 372
    9.2.3.7 Measuring Internet Website Traffic......Page 373
    9.2.3.9 Hybrid Web Measurement......Page 374
     Case Discussion......Page 375
    9.3.1.1 Ratings, Share, Cumulative Audience, and Other Measures......Page 377
    9.3.1.2 Quads and Q-Ratings......Page 378
    9.3.1.3 Stratification of Data......Page 379
    9.3.2.2 Expert Surveys: The Delphi Methodology......Page 380
    9.3.3.4 Clustering......Page 381
    9.3.3.7 Correlation......Page 382
    9.3.3.8 Regressions and Econometric Estimation......Page 384
     The Demand for Live Entertainment......Page 385
     The Effects of the General Economy on Advertising Revenue......Page 386
     Case Discussion......Page 388
    9.3.3.11 Statistical Inference: Sampling and Statistical Confidence......Page 389
    9.3.3.12 A/B Testing......Page 391
     Case Discussion......Page 392
    9.3.3.14 Factor Analysis and Principal Components......Page 393
     Case Discussion......Page 394
    9.3.3.16 Diffusion Models......Page 395
    9.3.3.17 Positioning Analysis......Page 396
    9.3.3.18 Autonomous Data Mining......Page 397
    9.3.3.19 What to Do with Data Mining......Page 398
    9.4.2.1 Challenge #1: Co-ordinating and Integrating User Data Flows......Page 399
    9.4.2.2 Challenge #2: Individualization......Page 400
    9.4.2.6 Challenge #6: Semantic Mining and Unstructured Data......Page 401
   9.4.3 Conclusion on Marketing Research......Page 402
   9.5.1 Questions for Discussion......Page 403
   9.5.2 Quiz......Page 404
  Quiz Answers......Page 407
III: Marketing......Page 408
 10: Marketing of Media and Information......Page 409
   10.1.1 What is Marketing?......Page 412
   10.1.2 The Marketing Function: Structure and Organization......Page 413
   10.1.4 Limited Attention......Page 414
  10.2 Case Discussion......Page 416
   10.3.1 The Marketing Role in Product Design......Page 417
  10.4 Product Positioning......Page 418
   10.4.1 Case Discussion......Page 419
    10.4.1.1 Case Discussion......Page 420
   10.4.2 Market Penetration......Page 421
   10.4.4 Branding......Page 422
   10.6.1 Promotion—General......Page 424
   10.6.2 Timing......Page 425
   10.6.3 Word of Mouth, Buzz, and Viral Marketing......Page 426
   10.6.5 Publicity and Public Relations......Page 427
   10.6.7 Product Placement......Page 428
   10.7.1 Advertising—General......Page 429
   10.7.2 Advertising Agencies......Page 430
    10.7.3.3 Competitive Parity......Page 431
    10.7.3.5 Marginal Analysis Approach......Page 432
   10.7.4 Valuing Customers......Page 433
   10.7.6 The Media Marketing Mix......Page 434
   10.7.8 Case Discussion......Page 436
   10.7.9 Allocation Within a Media and Marketing Category......Page 437
   10.7.10 Case Discussion......Page 438
  10.8 Promotion to Advertisers, Retailers, and Distributors......Page 439
   10.8.1 Promotion to Advertisers......Page 440
   10.8.2 Types of Ads Available......Page 441
   10.9.2 Direct Mail and Telemarketing......Page 442
  10.10 The Impact of the Internet on Marketing......Page 443
   10.10.1 Customization, Targeting, and Individualization......Page 444
   10.10.8 Social Marketing......Page 445
   10.10.11 Relationship Building and Supplemental Information......Page 446
   10.10.14 Creating a Marketplace for Online Advertising......Page 447
   10.10.15 Search Engine Marketing......Page 448
   10.11.2 TV & Cable Channels......Page 449
   10.11.4 Books......Page 450
   10.11.7 Video Games......Page 452
  10.12 The Marketing of Technology Products......Page 453
   10.13.1 Self-Regulation......Page 454
    10.13.2.2 Privacy Regulation......Page 455
   10.14.1 Advertising Analysis......Page 456
   10.14.4 Marketing Audit Tools......Page 457
  10.15 Marketing and the Product Life Cycle......Page 458
  10.16 Outlook......Page 459
   10.17.1 Questions for Discussion......Page 460
   10.17.2 Quiz......Page 461
  Quiz Answers......Page 464
 11: Pricing of Media and Information......Page 465
    11.1.2.2 Network Effects......Page 467
    11.1.2.5 Excess Supply......Page 468
   11.1.3 Case Discussion......Page 469
    11.2.1.1 Cost-Plus......Page 470
    11.2.1.2 Marginal Cost Pricing......Page 471
    11.2.1.3 Contribution Margin Analysis......Page 472
     Case Discussion......Page 473
    11.2.2.2 Market Price Determination Through Auctions......Page 474
   11.2.3 Dynamic Pricing and Peak-Load Pricing......Page 476
    11.2.5.1 Economic Theories of Value......Page 478
    11.2.5.2 Willingness to Pay......Page 479
     Factors Affecting Price Elasticity......Page 480
   11.3.1 Econometric Estimation of Price Elasticities and Hedonic Prices......Page 481
    11.4.2.2 Create a “Lock-In” of Customers......Page 483
     Case Discussion......Page 484
    11.4.2.6 Game Theory......Page 485
  11.5 Price Discrimination......Page 486
   11.5.1 Optimal Price Discrimination......Page 487
   11.5.2 Versioning......Page 488
   11.5.4 Second-Degree Price Discrimination......Page 489
   11.5.5 Third-Degree Price Discrimination: Differentiation by User Category......Page 490
   11.6.1 Skim (“Premium”) Pricing......Page 491
   11.6.2 Penetration (“Value”) Pricing......Page 492
   11.7.1 Flat Rate Versus Usage-Based Pricing......Page 493
   11.7.2 Regulated Retail Pricing......Page 494
   11.7.3 Regulation of Wholesale Prices Among Networks......Page 495
   11.7.4 Transfer Pricing......Page 496
   11.8.1 The Ethics of Pricing......Page 497
    11.8.2.1 Price Fixing......Page 498
    11.8.2.4 Predatory Pricing and Dumping......Page 500
    11.8.2.5 Anti-Bundling......Page 501
   11.9.1 “Free”?......Page 502
   11.9.3 Micro- and Nano-Pricing......Page 503
    11.9.3.1 Case Discussion......Page 504
   11.10.2 Pricing Strategies Over the Product Life Cycle......Page 505
   11.11.1 Case Discussion......Page 506
  11.12 Review Materials......Page 508
   11.12.2 Quiz......Page 509
  Quiz Answers......Page 512
 12: Distribution of Media and Information......Page 513
    12.1.2.4 Myth #4: Electronic Distribution Is Very Different from Physical Distribution and as a Result Everything Changes......Page 515
   12.1.3 Distribution Networks......Page 516
    12.1.4.2 Trend # 2: From Analog to Digital......Page 517
    12.1.4.5 Trend #5: From Wire to Wireless......Page 518
    12.1.4.9 Trend #9: From One-way to Two-way and Multi-way......Page 519
   12.1.5 Case Discussion......Page 520
   12.2.1 Economies of Scale......Page 521
   12.2.2 Network Effects......Page 522
   12.2.5 The Vertical Integration of Distribution with Production......Page 525
    12.2.5.1 Case Discussion......Page 526
    12.3.1.4 Distribution Architecture Model #4: The Star......Page 527
    12.3.1.5 Distribution Architecture Model # 5: The Mesh......Page 529
   12.3.2 Case Discussion......Page 530
   12.4.3 Network Analysis Tools of Urban Planners: Location Theory......Page 531
    12.4.5.1 Example: The Optimum Number of UPS Depots......Page 533
   12.4.6 Network Analysis Tools of Operations Research: Queuing Theory......Page 534
   12.4.7 Network Analysis Tools of Operations Research: Quality of Service (QoS) Analysis......Page 535
  12.5 Network Management......Page 536
   12.6.1 Third Party Distribution......Page 537
   12.6.2 Inventory Control in Distribution Logistics......Page 538
    12.6.2.3 Push Versus Pull Distribution......Page 539
   12.7.1 The Function of Wholesale Distribution......Page 540
    12.7.2.1 Film Distributors: General......Page 541
    12.7.2.2 Digital Film Distribution......Page 543
    12.7.3.1 Book Distributors: General......Page 545
   12.7.5 Magazine Wholesale Distribution......Page 546
    12.7.5.1 Case Discussion......Page 547
    12.7.6.1 Music Distribution: General......Page 548
    12.7.8.1 Film......Page 549
    12.8.1.1 Film Retail Distribution of Film—Channel #1: Theaters......Page 550
    12.8.1.3 Film Retail Distribution Channel #3: TV and Cable......Page 552
    12.8.2.1 Book Retail Distribution Channel #1: Stores......Page 553
     Retail Price Maintenance for Books......Page 554
    12.8.2.4 Book Retail Distribution: Channel #4: Print-on-Demand......Page 555
   12.8.3 Magazine and Newspaper Retailing......Page 556
   12.8.5 Case Discussion......Page 557
    12.9.1.1 Advertising-Based Content Provision......Page 558
    12.9.1.3 Subscription-Based Content......Page 559
   12.9.2 Online Distribution of Film and Video......Page 560
   12.9.3 Online Periodicals Distribution......Page 562
   12.9.6 Direct Electronic Distribution to Users: Streaming Music......Page 563
   12.10.1 Self-Distribution: Customer-direct Distribution by Producers......Page 564
   12.10.2 The Selection of Distributors......Page 565
   12.10.4 Retail Distribution: Conclusions on Trends......Page 566
  12.11 The Revenue Shares in the Distribution Chain......Page 568
   12.12.1 Distribution and Content......Page 569
   12.13.1 Case Discussion......Page 571
    12.13.2.3 Myth #3: Disintermediation......Page 572
   12.14.1 Questions for Discussion......Page 573
   12.14.2 Quiz......Page 574
  Appendix: Revenue Shares (. Tables 12.8 and 12.9)192......Page 577
  Quiz Answers......Page 581
IV: Feedback Loop......Page 582
 13: Accounting in Media and Information Firms......Page 583
    13.1.1.1 Accounting as Science Versus Accounting as Persuasion......Page 585
    13.1.1.3 A Company’s Accounting Function: General......Page 586
    13.1.3.1 Seriously Inflating Income or Understating Expenses......Page 587
    13.1.3.3 Misdating Stock Options in ICT Firms......Page 588
  13.2 Profit Accounting......Page 589
    13.2.1.1 Example......Page 590
   Profits from Disney’s Perspective......Page 592
   13.2.5 How Profit Participants Can Protect Themselves......Page 593
    13.3.1.3 Cash Flow Statement......Page 594
     Pro Formas......Page 595
    13.3.1.5 Investor Red Flags46......Page 596
     Ernst & Young......Page 597
    13.3.3.1 Government Regulation......Page 598
     International Accounting Standards......Page 599
  13.4 Analyzing Financial Statements and Valuation of Media Firms......Page 600
     Debt to Equity Ratio (Debt Load)......Page 601
     The P/E Ratio......Page 602
     Operating Ratio......Page 603
     Return on Assets......Page 604
    13.4.1.6 Growth Trends......Page 605
    13.4.1.7 Subscriber Count Measures......Page 606
    13.4.1.9 Social Accounting......Page 607
     Excepts from Disney’s Citizenship Report......Page 608
  13.6 The Balance Sheet......Page 610
   13.6.1 Assets......Page 611
   13.6.2 Accounting for Corporate Acquisitions of Assets and Liabilities......Page 613
   13.6.5 Depreciation and Amortization of Assets......Page 614
    13.6.5.1 Amortization of R&D, Intellectual Assets, and Networks......Page 615
    13.6.5.3 Inventory......Page 616
   13.7.1 Stock Options......Page 617
   13.7.2 Pension Plans......Page 618
    Off Balance Sheet Liabilities......Page 619
   13.8.1 Profits......Page 620
   13.8.3 Long-Term Contracts......Page 621
   13.8.5 EBITDA and Other Profit Definitions......Page 622
   Disney Income Statement......Page 623
    13.8.8.1 When Cost is Recognized: Expensing Versus Capitalization......Page 624
    13.8.8.2 Telecom Cost Accounting......Page 625
   13.9.3 Overhead and Indirect Cost......Page 626
   13.9.4 Transfer Pricing......Page 627
  13.10 Capital Accounting and Budgeting......Page 628
   13.12.1 Management Information Systems......Page 629
   13.12.2 Enterprise Resource Planning Systems......Page 630
    Use of ERP......Page 631
   13.12.4 Cloud-Based Accounting Systems......Page 632
   13.13.2 Conclusions on Accounting in Media......Page 633
   Tools Covered......Page 634
   13.14.2 Quiz......Page 635
  Quiz Answers......Page 638
 14: Strategy Planning in Media and Information Firms......Page 639
   14.1.1 What Is Different About Strategy Setting in Information Sector Industries?......Page 641
  14.3 Theories and Tools of Business Strategy......Page 642
    14.3.1.2 Case Discussion......Page 643
    14.3.1.4 Competitive Analysis (1970s)......Page 644
    14.3.1.5 The Core Competencies Approach (1980s)......Page 645
    14.3.1.6 Case Discussion......Page 646
    14.3.1.7 Adaptability Approaches......Page 647
   14.3.2 The Emergence of the Guru Industry......Page 648
  14.4 The Strategy Process......Page 650
    14.4.2.5 Middle Management as Strategy Setters......Page 651
    14.4.2.7 Dedicated Strategy Staff Group......Page 652
     Assessing the Market......Page 653
      Case Discussion......Page 654
    14.4.3.4 Competitive Advantages......Page 655
     Case Discussion......Page 657
   14.5.2 Internal Assessment: Leadership Resources......Page 658
   14.5.4 Internal Assessment: Financial Resources......Page 659
    14.5.5.1 Case Discussion......Page 660
    14.5.6.1 Case Discussion......Page 661
      Case Discussion......Page 662
    14.6.3.3 Hard Analytic......Page 663
     Net Present Value Analysis......Page 664
     Decision Tree Analysis......Page 665
    14.6.3.4 Case Discussion......Page 666
   14.7.1 Internal Communication......Page 667
   14.7.3 Budgeting......Page 668
   14.7.4 Monitoring, Control, and Feedback......Page 669
    14.8.1.1 Case Discussion......Page 671
  14.9 Review Materials......Page 672
   14.9.2 Quiz......Page 673
  Quiz Answers......Page 676
 15: Concluding Observations......Page 677
   15.2.2 Personal Motivation......Page 678
   15.3.3 The Search for a New Content Model......Page 679
   15.3.8 How Organizations Succeed......Page 680
   15.3.9 Organizational and Personal Responsibility......Page 681
Correction to: Managing Media and Digital Organizations......Page 682
Index......Page 684