In Medias Res was asked to discuss the supply and demand in the industry.
Dow Jones Industry Tracker - Media
Supply and Demand
Media is a big part of our daily lives. My family watches the daily news every morning and evening, as well as listening to music, using organizations such as Facebook and Twitter. But, we as a society also use media every second of every day. Almost everyone has a smart phone, where media can be stored and accessed twenty-four seven.
Media is a tricky industry to follow. It can have a good month or a bad one depending on the products sold. The graph above shows the Dow Jones Industry Tracker for Media for one year. Since October, the stock for media has been steadily rising. However, as you can see, mid-July and early August shows that there was a significant drop in the media industry. What caused this drop?
Media is a quick changing industry. In the words of Heidi Klum, “One day you’re in. The next day you’re out.” This quote holds true to any industry, media especially. Demand for media is getting higher and higher. And supply is as well. The producers are listening to customer input as well as predicting what the customers want in the future. Smart phones weren’t a huge demand. Yet, the producers still made the phones. Now, some people can’t live without their smart phones for more than one minute.
Society is now demanding more online or on-the-go products some of which include e-books, applications for smart phones, and new gaming systems. There is also quite a demand for music these days. i-Tunes isn’t the only cite you can download from. There are illegal ways to download as well as cites like Pandora where you can create your own play list, YouTube and Grooveshark are other examples as well. As long as media is ever changing, the supply and demand for media will be forever changing as well.
Dow Jones Industry Tracker - Media
Supply and Demand
Media is a big part of our daily lives. My family watches the daily news every morning and evening, as well as listening to music, using organizations such as Facebook and Twitter. But, we as a society also use media every second of every day. Almost everyone has a smart phone, where media can be stored and accessed twenty-four seven.
Media is a tricky industry to follow. It can have a good month or a bad one depending on the products sold. The graph above shows the Dow Jones Industry Tracker for Media for one year. Since October, the stock for media has been steadily rising. However, as you can see, mid-July and early August shows that there was a significant drop in the media industry. What caused this drop?
Media is a quick changing industry. In the words of Heidi Klum, “One day you’re in. The next day you’re out.” This quote holds true to any industry, media especially. Demand for media is getting higher and higher. And supply is as well. The producers are listening to customer input as well as predicting what the customers want in the future. Smart phones weren’t a huge demand. Yet, the producers still made the phones. Now, some people can’t live without their smart phones for more than one minute.
Society is now demanding more online or on-the-go products some of which include e-books, applications for smart phones, and new gaming systems. There is also quite a demand for music these days. i-Tunes isn’t the only cite you can download from. There are illegal ways to download as well as cites like Pandora where you can create your own play list, YouTube and Grooveshark are other examples as well. As long as media is ever changing, the supply and demand for media will be forever changing as well.
"Smart phones weren’t a huge demand". What is backing this up? Was there an article you read? I think there was a point where demand was so high for blackberries, RIM could not keep up with the supply.
ReplyDeleteYou bring up a good point about how accessible everything is these days in media- especially when we look at music.
ReplyDeleteSo there is definitely a demand for it... but the internet makes it an unlimited supply. I mean- it's downloadable. You can listen to it as many times as you want if you just stream it. I worked at Best Buy over the summer, and I couldn't tell why half of what we had in stock was even there- very few people bother with CD's when they're all online.
I feel like media can be a tricky industry these days. As you mentioned, a constant threat to companies in the media industry is the rise in illegal downloading. Now anyone can simply log onto a peer-to-peer website and download torrents as well as convert youtube videos into mp3 files. It is becoming harder for movie/music studios to make money and as a result we are seeing the prices of movie tickets and music tracks increase.
ReplyDelete