Commercially funded TV and Public service TV

With the development of economics, some large media companies have enough money to buy, merger or build a TV station. But the first TV is public service TV. In developed country, the commercial TV has a big market, and people like the programmes of it. While, it rare and not popular in most developing and ‘Third Word’ countries, because government ‘controlling’ the TV station.

The common point of commercial TV and public TV is that the quality of the programme, presentation of the report and the principle of journalism are no fundamental difference. On the other hand, the public TV is a government-funded service for the public. The commercial TV is client-oriented (Bai Du net, 2008, online).

Professor Zhan Li said that the commercial television is by capitalists or consortia, in order to ad-based revenue, and use the pornography, violence, crime and vulgar entertainment programmes to reach profit, but it also meet people’s demand. The public television refers to the national assembly by the government. It is funded by fees paid by the public and state funding, some supported by advertising revenue. The purpose is to make television services in strict accordance with the public, so that raise people's level of education by watching TV, the promotion of country development and the provision of high ideals and goals of entertainment( Mao, 2005, online).

Even though the commercial TV makes profit as purpose, it can not be denied the position that in people’s daily lives. Commercial TV offers a lot of entertainment for people to relax. Furthermore, the commercial television also made a lot of reform. For example, FOX television that is under News Corporation also has a series of non-pure entertainment programmes, such as news programme. The aim is to reach the audience's request, and change the commercial television’s original impression in the hearts of the most public.

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The Value and Function of Journalism

Does journalism is a product? It is argued about many times. This is dependent on the journalism of the dual attributes. Picard said that journalism as a ‘dual product’ (1989). Media company create two commodities, first is content, it includes television programmes, newspaper copy, magazine articles, etc., and second is audience. The content what viewers and readers consumed become a product. Another product is this audience, so that the company could sale these audience group to advertise through packaged and priced (Doyle, 2002).

Journalism is a product, it can be used and exchanged, and they show the value of journalism. Journalism industry is about supplying content to consumers (Doyle, 2002). When seller sold the information means the content will be helpful and useful for public. Journalism products meet people's need of information and entertainment, so it has a very high level of use value. Moreover, journalism product can be defined as the products and services which have to exchange in order to satisfy the demand of people consume the information and entertainment. Therefore, journalism has exchange value (Qian, 2008).

Journalism is one of the links in the mass media. Overall, it has four main functions. Reporting, that is the function of telling, it lets the people who live in the diversified and variable society know living environment, accommodate living environment and even improve living environment through the mass media. Education: journalism will constantly disseminate the new concepts, new knowledge and new technologies which are necessary in modern society to the public, it is not only a media that implement the social education but also make up for the shortage of school education. Entertainment: the entertainment component of news, such as the interesting reporting, cartoons, pictures, supplements of newspaper and so on, relieve people from anxiety. Advertising: the advertisements in the media put the distance between producers and consumers more closely. It promotes the boom of economy and commercial development, and even improves the living standard of national (Yang, 2003, online).

Reference:

Doyle, G. (2002), Understanding Media Economics, SAGE Publications, London

Qian, X. W. (2008), Dang Dai Chuan Mei Jing Ying Guan Li, Zhong Shan University Press (Chinese Book), Guangzhou

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Advertising on newspaper

Advertising is a bridge between producers and consumers and also to ensure the normal operation of the blood of the newspaper.

Modern newspaper advertising revenue increasing large area, There were generally 50% to 60% of the American press need to advertising, or media would be hard to maintain.

According to 1995 statistics, Newspaper advertising revenue in the proportion of the economy in the United States is 86%, 61% in the UK. To Japan is 41%, newspaper advertising is the real economy, major mining sources.In addition, advertising is an important part of the newspaper information, contact the community newspapers link.

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Today, the Internet has swept the globe, the traditional media, and particularly press was hard attracted by the Internet. Internet is hardest hit people for young readers and traditional way of reading. As the newspaper main income - advertising, are now being replaced by network ads.

Since the 1990's, the major developed countries are showing the press continued to decline in circulation, advertising revenue fell, the challenges of international competition, so there are a lot of people think that the traditional newspaper will be replaced by the network.

Reference: Meida Intorduction (Chinese book)

Advertising on web

Compare with traditional media, as the existence of the network, even if it is living at home, the people can publish and find information they needed arbitrarily though the classified ads web, and without any fees. Nowadays network is an exponential growth, explosive growth, because of convenience, more and more people recognize that the Internet, the growth of internet users is more far that traditional media.

As the world media magnate Rupert Murdoch says that with the expansion of Internet classified advertising market, the volume of traditional newspaper publishers is shrinking, the operation of commercial mode is facing a growing threat, newspaper classified ads will be gradually moving towards extinction. Classified ads should be faced by the general public. In other words, where their needs exist, where the classified ads exist, the lives of ordinary people are real, and therefore classified ads should also be pragmatic

Advertising is a big industry, and it developed very quickly and changed a lot. Advertising will changed by new technology, market and media model. The advertising spend raised fast last 15 years, but the advertising spend dropped by credit crunch recently. The downturn began in 2007, and it will come more in 2009. It was reported that the UK advertising spend to fall nearly 6% in 2009, and UK media will feel worst about ads than any other developed countries (Sweney, 2008).

The newspaper advertising will drop by 12% in 2009; moreover, TV advertising will drop by 6%, radio ads by 8% and magazine ads by 8.5 %( Zykova, 2008). However, the online ads grow fast and strong in 2006 to 2009. Group M shown the internet ad spend growth rate in 2009 down from 20% to only 4%. Because the effect of online ad spend, the traditional media will be drop 10% year on year in 2009 and 9% in 2009 (Sweney, 2008).

Reference:

Anderson, C. (2006:88), The Long Tail, Business Book, London

Doyle, G. (2002), Understanding Media Economics, SAGE Publications, London

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4 business models for online business

The development of science, technology and digital created the Internet and the Internet economy. As a kind of journalism products, the Internet's economic model has a certain difference with other journalism products. Internet economy is more interactive, personalized, virtual sex and globalization. Internet economy is not only confined to the audience and advertising, and there are other ways to obtain profits.

There are four business models for online business :

Profitable way 1: C2C (consumer to consumer) model
C2C stands for consumer to consumer. This model is mainly in the form of personal auction. The world famous C2C sites are eBay, Google and yahoo. The operation of such sites is hard. It is hard to establish credibility and the cost of operation and promotion is very high.

Profitable way 2: online ads
It is the common way to make profits from online ads. It has diversified forms, for example banner, logo, flash multimedia animation, online video and so on. From the view of charging, now charging based on click rate is very popular. Search engine like Google and BaiDu mainly take advantage of such ads. In 2005 the revenue of Google is 3.1 billion dollars, most of they originate from this kind of ads.

Profitable way 3: online retailing (B2C)
When talk about the online retailing, the initial response is Amazon. Amazon is the biggest online retail store in the world. Last year the revenue of Amazon was more than 6.9 billion dollars. Usually the online retailing has two ways to operation: one is to distribute your own products through the internet, another way is to build retail platform and help other people to sell their products through your site.

Profitable way 4: B2B
B2B stands for business to business. That’s to say the business between manufactory. Common parlance, the buyers and sellers ate both businesses. They make use of internet and different business net platform to complete the process of deal. This can help enterprises to reduce costs.