JMM 102 Exam 2 Questions and Answers Latest Update 2025-2026
Why is media unique? - Answers 1. it defies scarcity
2. media firms have motivations beyond just profit
3. customers do not always directly pay for the product
Unique Attributes of Media - Answers 1. dual product markets
2. cultural good
3. intangible public good
4. high fixed cost
5. uncertainty
6. Baumol disease
Baumol Disease - Answers creative endeavors are labor intensive and labor costs rise faster
than inflation, making media more expensive to produce
Risk Mitigation Strategies - Answers 1. economies of scale
2. economies of scope
3. vertical integration
4. repetition
Economies of Scale - Answers Exists when marginal cost is lower than average cost, the higher
the output the less each additional unit costs so companies try to produce as much as possible
even if they don't know if it will succeed
Average cost - Answers total cost/viewers
total cost - Answers fixed cost + marginal cost
Economies of Scope - Answers having multiple product production within the same company
(theme parks and movies in the Disney company)
Synergy - Answers When conglomerates in a company benefit each other (theme park ride
promoting a movie), so that both combined are of greater value than both individually.
Vertical Integration - Answers When a company's producing model owns every step in the
supply chain, from production to distribution
Windowing - Answers media can be reformatted and sold through a different distribution
, channel (geographies and technologies) at different prices to different audiences at different
times.
Hollywood Accounting - Answers when you own each step of the supply chain, it allows you to
sell things to yourself guaranteeing you get paid before anyone else
Repetition - Answers relying on things you known work, resulting in derivative media (dating tv
shows being made over and over again)
Formatting - Answers when owners of intellectual property sell the idea to their show to
producers in a different country (Love Island US, UK, etc.)
Stars - Answers relying on a number of high profile stars to star in several pieces of media.
Funding your company - Answers Debt (loans from banks or groups) or Equity (investments
from institutions of people)
Making money on media - Answers direct sales, license fees, rentals, usage fees, subscriptions,
advertising
single or discrete media goods - Answers direct payments per unit (iTunes, a book, a ticket to a
movie)
Continuous media goods - Answers subscription model and/or advertising (Netflix, radio,
Spotify)
Demographics - Answers social groups, social class segmentation, combines education level
with your job to determine your class and how you will be segmented
Psychographics - Answers what you do and what you think about things; mindset, motivations,
attitudes, things you care about
Behavioral Data - Answers what you're actually doing online; a form of corporate surveillance
where the activities on your devices are tracked
Macromedia genres - Answers 1. entertainment
2. news
3. information
4. education
5. advertising
genre hybridity - Answers mixing of existing genres into a synthetic new genre
Hard News Genre - Answers fact based, timeliness, straight to the point and unbiased
Why is media unique? - Answers 1. it defies scarcity
2. media firms have motivations beyond just profit
3. customers do not always directly pay for the product
Unique Attributes of Media - Answers 1. dual product markets
2. cultural good
3. intangible public good
4. high fixed cost
5. uncertainty
6. Baumol disease
Baumol Disease - Answers creative endeavors are labor intensive and labor costs rise faster
than inflation, making media more expensive to produce
Risk Mitigation Strategies - Answers 1. economies of scale
2. economies of scope
3. vertical integration
4. repetition
Economies of Scale - Answers Exists when marginal cost is lower than average cost, the higher
the output the less each additional unit costs so companies try to produce as much as possible
even if they don't know if it will succeed
Average cost - Answers total cost/viewers
total cost - Answers fixed cost + marginal cost
Economies of Scope - Answers having multiple product production within the same company
(theme parks and movies in the Disney company)
Synergy - Answers When conglomerates in a company benefit each other (theme park ride
promoting a movie), so that both combined are of greater value than both individually.
Vertical Integration - Answers When a company's producing model owns every step in the
supply chain, from production to distribution
Windowing - Answers media can be reformatted and sold through a different distribution
, channel (geographies and technologies) at different prices to different audiences at different
times.
Hollywood Accounting - Answers when you own each step of the supply chain, it allows you to
sell things to yourself guaranteeing you get paid before anyone else
Repetition - Answers relying on things you known work, resulting in derivative media (dating tv
shows being made over and over again)
Formatting - Answers when owners of intellectual property sell the idea to their show to
producers in a different country (Love Island US, UK, etc.)
Stars - Answers relying on a number of high profile stars to star in several pieces of media.
Funding your company - Answers Debt (loans from banks or groups) or Equity (investments
from institutions of people)
Making money on media - Answers direct sales, license fees, rentals, usage fees, subscriptions,
advertising
single or discrete media goods - Answers direct payments per unit (iTunes, a book, a ticket to a
movie)
Continuous media goods - Answers subscription model and/or advertising (Netflix, radio,
Spotify)
Demographics - Answers social groups, social class segmentation, combines education level
with your job to determine your class and how you will be segmented
Psychographics - Answers what you do and what you think about things; mindset, motivations,
attitudes, things you care about
Behavioral Data - Answers what you're actually doing online; a form of corporate surveillance
where the activities on your devices are tracked
Macromedia genres - Answers 1. entertainment
2. news
3. information
4. education
5. advertising
genre hybridity - Answers mixing of existing genres into a synthetic new genre
Hard News Genre - Answers fact based, timeliness, straight to the point and unbiased
