Given the sprawling scope of the mass media, the study of their economic conditions poses a number of complicated questions. For example, does the government need to play a stronger role in determining who owns the mass media and what kinds of media products are manufactured? Or should the government step back and let competition and market forces dictate what happens to mass media industries? Should citizen groups play a larger part in demanding that media organizations help maintain the quality of social and cultural life? Does the influence of American popular culture worldwide smother or encourage the growth of democracy and local cultures? Does the increasing concentration of economic power in the hands of several international corporations too severely restrict the number of players and voices in the media?

Answers to such questions span the economic and social spectrums. On the one hand, critics express concerns about the increasing power and reach of large media conglomerates. On the other hand, many free-market advocates maintain that as long as these structures ensure efficient operation and generous profits, they measure up as quality media organizations. In order to probe these issues fully, we need to understand key economic concepts across two broad areas: media structure and media performance.⁵

Media Economics and the Global Marketplace