The problems that the print media are facing are all too common; loss of customer base, loss of advertising revenue, etc. Some major newspapers have shut down the doors, some are struggling dearly (i.e., New York Times). At the same time, the online media outlets are flourishing. Explain in terms of economic concepts that you have studied, (Production and Cost Analysis in the Short Run and Long Run, Perfect Competition, Monopoly & Monopolistic Competition, Oligopoly, and Pricing Strategies for the Firm) this phenomenon. For instance, what does this have to do with "spreading the overhead?" What does this phenomenon have to do with various market structures discussed? Do the print media have a future?© BrainMass Inc. brainmass.com October 10, 2019, 5:28 am ad1c9bdddf
Print Media is facing troublesome times the increasing influence of digital and online media is declining print readership. The increasing use of internet/web and smartphones to access online or digital content has dealt a severe blow to the growth and survival of print media.
If we explain this phenomenon in terms of economic concepts, the declining readership means it will be more difficult for print media such as newspapers to spread overhead, ie. distribute the total fixed costs across a large volume. With a lower volume, the related operating costs per unit rise, increasing per unit costs and ...