Refer to your textbook on pg. 160 (Chapter 7). Read or reread the “Local Research” Case Study, and briefly respond to the questions asked at the bottom.
What is the one concept of Chapter 8 that you find the most applicable to your present or desired career? Explain your answer.
As a consumer, what kind of internet and digital advertising is the most influential (pg. 207)? Which type of ad would most likely compel you to interact with it (i.e: click on it, purchase from it, read it, etc.)? Why?Management of Electronic and
Digital Media
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
From the Cengage Series in Communication Arts
General Mass Communication
Belmas/Shepard/Overbeck, Major Principles of Media Law, 2016 Edition
Biagi, Media/Impact: An Introduction to Mass Media, Twelfth Edition
Fellow, American Media History, Third Edition
Lester, Visual Communication: Images with Messages, Sixth Edition
Straubhaar/LaRose/Davenport, Media Now: Understanding Media, Culture,
and Technology, Ninth Edition
Zelezny, Cases in Communications Law, Sixth Edition
Zelezny, Communications Law: Liberties, Restraints, and the Modern Media,
Sixth Edition
Journalism
Bowles/Borden, Creative Editing, Sixth Edition
Davis/Davis, Cengage Advantage Books: Think Like an Editor:
50 Strategies for the Print and Digital World, Second Edition
Hilliard, Writing for Television, Radio, and New Media,
Eleventh Edition
Kessler/McDonald, When Words Collide: A Media Writer’s Guide
to Grammar and Style, Ninth Edition
Rich, Writing and Reporting News: A Coaching Method,
Eighth Edition
Public Relations and Advertising
Diggs-Brown, The PR Styleguide: Formats for Public Relations
Practice, Third Edition
Drewniany/Jewler, Creative Strategy in Advertising, Eleventh Edition
Hendrix/Hayes/Kumar, Public Relations Cases, Ninth Edition
Newsom/Haynes, Public Relations Writing: Strategies and Structures,
Eleventh Edition
Newsom/Turk/Kruckeberg, Cengage Advantage Books:
This is PR: The Realities of Public Relations, Eleventh Edition
Radio, Television, and Film
Albarran, Management of Electronic and Digital Media, Sixth Edition
Alten, Cengage Advantage Books: Audio Basics, First Edition
Alten, Audio in Media, Tenth Edition
Eastman/Ferguson, Media Programming: Strategies and Practices, Ninth Edition
Gross/Ward, Digital Moviemaking, Seventh Edition
Hausman/Messere/Benoit, Modern Radio and Audio Production: Programming
and Performance, Tenth Edition
Hilmes, Only Connect: A Cultural History of Broadcasting in the
United States, Fourth Edition
Mamer, Film Production Technique: Creating the Accomplished Image, Sixth Edition
Lewis, Essential Cinema: An Introduction to Film Analysis, First Edition
Osgood/Hinshaw, Cengage Advantage Books: Visual Storytelling: Videography
and Post Production in the Digital Age, Second Edition
Zettl, Sight Sound Motion: Applied Media Aesthetics, Eighth Edition
Zettl, Television Production Handbook, Twelfth Edition
Zettl, Video Basics, Seventh Edition
Research and Theory
Baran/Davis, Mass Communication Theory: Foundations, Ferment, and Future,
Seventh Edition
Sparks, Media Effects Research: A Basic Overview, Fifth Edition
Wimmer/Dominick, Mass Media Research: An Introduction, Tenth Edition
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Management of Electronic and
Digital Media
Sixth Edition
Alan B. Albarran
University of North Texas
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial
review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to
remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous
editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by
ISBN#, author, title, or keyword for materials in your areas of interest.
Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version.
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Management of Electronic and Digital Media,
Sixth Edition
Alan B. Albarran
Product Director: Monica Eckman
Product Manager: Kelli Strieby
Associate Content Developer: Rachel
Schowalter
Product Assistant: Alexis Mackintosh-Zebrowski
© 2017, 2013, 2010 Cengage Learning
WCN: 02-200-203
ALL RIGHTS RESERVED. No part of this work covered by the copyright
herein may be reproduced, transmitted, stored, or used in any form or by
any means graphic, electronic, or mechanical, including but not limited to
photocopying, recording, scanning, digitizing, taping, Web distribution,
information networks, or information storage and retrieval systems,
except as permitted under Section 107 or 108 of the 1976 United States
Copyright Act, without the prior written permission of the publisher.
Marketing Manager: Sarah Seymour
IP Analyst: Ann Hoffman
IP Project Manager: Nick Barrows
Manufacturing Planner: Doug Bertke
Art and Design Direction, Production
Management, and Composition:
Lumina Datamatics, Inc.
Cover Image: © Khakimullin Aleksandr
For product information and technology assistance, contact us at
Cengage Learning Customer & Sales Support, 1-800-354-9706
For permission to use material from this text or product,
submit all requests online at www.cengage.com/permissions.
Further permissions questions can be emailed to
permissionrequest@cengage.com.
Library of Congress Control Number: 2015942187
ISBN: 978-1-305-07756-0
Cengage Learning
20 Channel Center Street
Boston, MA 02210
USA
Cengage Learning is a leading provider of customized learning solutions
with employees residing in nearly 40 different countries and sales in more
than 125 countries around the world. Find your local representative at
www.cengage.com.
Cengage Learning products are represented in Canada by
Nelson Education, Ltd.
To learn more about Cengage Learning Solutions, visit
www.cengage.com.
Purchase any of our products at your local college store or at our
preferred online store www.cengagebrain.com.
Printed in the United States of America
Print Number: 01
Print Year: 2015
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
This book is dedicated to the memory of
my teacher, mentor, and friend,
Dr. C. A. “Ace” Kellner
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents
Preface xvii
Abbreviations and Acronyms
1
xxv
Managing Electronic and Digital Media
1
An Overview of Electronic and Digital Media in Society
Radio 5
3
AM Radio 5
FM Radio 6
HD Radio 7
Satellite Radio 7
Internet Radio 8
Television 8
Multichannel Video Services: Cable, Satellite, and Telcos
Telecommunications Industry 10
Digital Video Platforms 10
Social Media 11
Management in the Electronic and Digital Media 11
9
Levels of Management 11
Management Skills 13
Management Functions 15
Management Roles 19
Summary 20
Case Studies 21
References for Chapter 1 23
2
The Media Business Environment: Markets, Business
Models, Mergers, Alliances, and Partnerships 25
Electronic and Digital Media Markets
26
Defining the Market 26
Dual-Product Markets 26
Geographic Markets 27
vii
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
viii
Contents
Market Structure
28
Concentration in the Market 28
Product Differentiation 29
Barriers to Entry 29
Cost Structures 29
Vertical Integration 30
Types of Market Structure 30
Business Models 32
Forces Affecting Markets
33
Economic Conditions 33
Technological Forces 33
Regulatory Forces 34
Global Forces 35
Social Forces 35
Synergy 36
Alliances and Partnerships
36
What Is a Strategic Alliance? 37
SWOT Analysis 38
The Development of Mobile TV 39
Alliances to Develop and Market Content and Applications
Alliances for Newsgathering 39
Alliances to Expand Domestic and Global Markets 39
Alliances to Develop Social and Interactive TV 40
Mergers and Acquisitions 40
Factors Behind Mergers 41
39
Implications for Management 41
Summary 42
Case Studies 43
References for Chapter 2 45
3
Ethics of Management
47
What Is Ethics? 48
Ethical Decision Making in the Media Industries
Norms Used in Moral Decision Making 50
49
The Golden Mean 51
The Judeo-Christian Ethic 52
The Categorical Imperative 52
Utilitarianism 52
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents
Egalitarianism 53
Relativism 53
Social Responsibility Theory 54
Deontological and Teleological Ethics
ix
54
Ethical Codes and Mission Statements
54
Codes of Ethics 55
Mission Statements 55
Ethical Issues in Media Management
59
Serving the Market or the Marketplace
Controversies over Content 59
Ethics in News and Public Affairs 61
Ethics in Sales and Marketing 63
59
Implementing an Ethics Program 64
Summary 65
Case Studies 66
References for Chapter 3 69
4
Theories of Management
71
Management as a Process 71
Approaches to Management 72
Classical School of Management 72
Human Relations School of Management 75
Modern Approaches to Management 79
Management and the Media Industries
Summary 84
Case Studies 85
References for Chapter 4 87
5
Financial Management
84
89
What Is Financial Management? 90
Meeting Financial Goals 90
Implementing Financial Growth 91
Budgeting 92
Setting Priorities and Goals in Individual Departments
Capital Budgeting 93
Compiling the Budget 93
92
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
x
Contents
Budgetary Flexibility 94
Forecasting 94
Monitoring Financial Performance
94
Balance Sheet 94
Income (P&L) Statement 98
Statement of Cash Flows 99
Other Financial Statements 101
Sarbanes-Oxley Act 101
Ratio Analysis 102
Break-Even Analysis 103
Depreciation and Amortization 106
Reporting Financial Performance 107
Summary 108
Case Studies 109
References for Chapter 5 113
6
Managing Personnel
115
Personnel Management
116
The Hiring Process 117
Interviewing 119
Orientation 121
Probationary Work Period 123
Performance Reviews 123
Promotion 125
Termination 126
Part-Time Employees 127
Interns 127
Working with Personnel 128
Legal Issues in Personnel Management
Equal Employment Opportunity Guidelines
Sexual Harassment 129
Other Labor Laws 131
Working with Unions 132
Structure, Communication, and Personnel
Summary 135
Case Studies 136
References for Chapter 6 139
128
129
134
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents
7
xi
Audiences and Audience Research 141
Audience Research and Analysis
142
Demographic Research Data 142
Psychographic Research Data 143
Geodemographic Research 144
Geolocation Research 144
Big Data 144
Sources of Audience Research Data
145
Nielsen 145
Rentrak 147
comScore 147
Edison Research 147
National Research Services for Radio 148
Industry and Trade Associations 149
Consulting Firms 149
Internal Research Departments 150
Using Audience Data 150
Market Terminology 153
A Word Regarding Samples
154
Standard Error and Confidence Intervals
154
Ratings Accuracy 155
Social Media Analytics 155
Research Application 156
From Mass Media to Consumer Media 157
Summary 158
Case Studies 159
References for Chapter 7 162
8
Content: Strategy and Distribution
165
The Program Manager/Director 165
Radio and Audio Programming 167
Target Existing Audiences 168
Develop a Niche 168
Format Variables 168
Television and Video Programming
171
First-Run Syndication 172
Off-Network Syndication 173
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
xii
Contents
Ad Hoc Networks 174
Original Programs on the Web and Digital Platforms
Local Broadcast Programming 175
Networks and Programming 175
Multichannel Programming 180
Management Issues in Programming
174
181
Intense Competition for Audiences 182
Demand for More Research 182
Brand Development and Brand Extension
Rising Costs of Programming 182
Regulatory Concerns 183
The Multiplatform Environment 183
182
Summary 184
Case Studies 185
References for Chapter 8 189
9
Marketing
191
The Four Ps of Marketing 192
Personnel in Electronic and Digital Media Marketing
Marketing Strategies 194
193
Segmentation 194
Positioning 194
Branding 195
Sales versus Marketing
196
Expanding Selling to Marketing 196
Understanding Clients and Their Needs
The General Sales Manager
Local Advertising 197
196
197
The Local Sales Staff: Account Executives
Role of the Local Sales Manager 200
Radio Revenue Rates 200
Television Revenue Rates 201
Cable Revenue Rates 202
National Advertising
198
203
Spot Advertising 203
National Sales Staff 204
Role of the Rep Firm 204
Working with the Rep Firm
205
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents
xiii
Cooperative (Co-op) Advertising 206
Internet and Digital Advertising 206
Sales Terminology 208
Promotion as a Form of Marketing
Duties of the Promotion Manager
Types of Promotion 213
212
212
Evaluating Marketing Efforts 214
Summary 214
Case Studies 215
References for Chapter 9 218
10
News and News Management
The Importance of News
221
222
Localism 223
News as Content/Programming
224
Organization of a News Department
226
Staffing the News Department 227
Budgeting and the News Department 230
Issues in News Management
231
Erosion of the News Audience 232
Convergence Efforts 232
Negotiations with News Talent 232
Ratings and Sweeps 233
News Ethics 234
Race and Ethnicity Issues 235
Unions and Union Contracts 235
Summary 236
Case Studies 236
References for Chapter 10
11
239
Regulatory Influences on Media Management
Regulatory Influences: The Federal Government
241
241
The Executive Branch 242
The Legislative Branch 242
The Judicial Branch 242
Role of State and Local Law
243
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
xiv
Contents
Role of the Federal Communications Commission
243
The FCC: A Brief History 243
The Contemporary FCC 245
FCC Regulatory Policies: What the FCC Does 247
The FCC and Broadcasting 247
The FCC and Programming Policies 251
The FCC and Cable Television 254
The FCC and Telecommunications Regulation 256
Other Federal Departments and Agencies
258
Department of Justice 258
Federal Trade Commission 259
National Telecommunications and Information Administration
Federal Aviation Administration 259
Informal Regulatory Forces
259
259
Consumer Groups 260
Self-Regulation 260
The Press 261
Summary 261
Case Studies 262
References for Chapter 11 264
12
Technology Influence on Media Management
267
Technology Trends 267
Social 268
Key Players in Social Media 269
Audience Use of Social Media 270
Advertising and Social Media 270
Social Media Strategy 271
Mobile
275
Smartphones 275
Tablet Devices 275
Wearable Technology
Cloud
276
276
Cloud Services 277
Business Models 278
Applications 279
Subscriptions 279
Pay for Play 280
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents
Management Issues
xv
280
Personnel 281
Fragmentation 281
Creating Enterprise Value 282
Summary 283
Case Studies 284
References for Chapter 12
13
285
Media Management: The Manager/Leader/
Entrepreneur 287
Management
288
Growing as a Manager 289
Personal Development 291
Developing Your Employees for Management and Leadership
Roles 292
Leadership
294
Leadership Theories
294
Entrepreneur 297
Use of Social Media as a Manager
Summary 300
Case Studies 301
References for Chapter 13 302
Glossary of Key Terms
Index
299
305
317
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Preface
The electronic and digital media industries are in the midst of continuing
change and evolution due to a combination of technological, economic,
regulatory, global, and social forces. Contemporary media managers face
a unique and constantly changing competitive environment. The goal of
Management of Electronic and Digital Media, sixth edition, is to give
the reader insight into this challenging profession along with the necessary skills to prepare for entry into a managerial position.
The media industries continue to evolve, with electronic and digital
media companies offering a combination of traditional and digital platforms that offer information and entertainment to attract audiences and
advertisers. Mergers and acquisitions continue to alter the key players
who operate networks, station groups, and multichannel providers like
cable, satellite, and telecommunication providers. Social media has added
new opportunities and challenges to the business of communications media. The elimination of regulatory barriers, the growth of alliances and
partnerships among media companies, and a global marketplace for content have all contributed to the changing managerial environment.
Managers no longer oversee a single operation. Today’s media
managers may be responsible for multiple stations, regional hubs, and
numerous platforms. Versatility and multitasking have become common characteristics of media managers. Social and economic changes
have affected the makeup of employees. The workforce is leaner,
more diverse, and more gender-balanced and relies more heavily on
part-time employees than ever before.
Further, managers are expected to do more than just manage a
unit or an enterprise. They must also lead their employees with integrity, passion, and a sense of vision. Today’s managers are also expected to think and act like entrepreneurs, to be innovative, and help
develop new products and services to reach untapped markets. Hence,
this edition focuses on developing the twenty-first-century manager/
leader/entrepreneur, a new focus that differs from earlier editions.
This book is designed to help you understand the complex
contemporary world of electronic and digital media management.
Targeted primarily toward undergraduate and graduate students,
Management of Electronic and Digital Media will also be useful to
media managers and practitioners. The focus is on domestic (U.S.)
managerial topics, but the majority of these topics are also applicable
xvii
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
xviii
Preface
to other nations. Every effort has been made to make the information
relevant, timely, and understandable.
New to This Edition
Management of Electronic and Digital Media has been thoroughly
updated to include the most cutting-edge information on the issues and
challenges found in managing electronic media enterprises and digital
platforms. There are six major changes in this edition. First, this edition
addresses management, leadership, and an entrepreneurial mind-set
throughout the book. Second, all of the chapters in this new edition have
been updated to reflect the latest industry standards and practices, including extensive and expanded revisions to Chapter 2 (The Media Business
Environment), Chapter 8 (Content), and Chapter 12 (Technology Influence on Media Management). Third, there is also a brand new chapter
(Chapter 13) to this edition devoted to the topic of Media Management:
The Manager/Leader/Entrepreneur. Fourth, the role of social media and
its influence on management is now presented throughout the text rather
than a stand-alone chapter. Fifth, there are many new and revised case
studies found at the conclusion of every chapter. For students and professors, Management of Electronic and Digital Media continues to offer the
most case studies of any text devoted to media management. These case
studies are easily adaptable to classroom discussions, group projects, or
homework assignments. Sixth, the glossary and terminology have been
updated and expanded to reflect changes since the previous edition.
Here is a breakdown of the major changes you will find in each
chapter:
Chapter 1

Revised for greater emphasis on entrepreneurship and leadership in
media management

New section on social media’s function in media management

New case study: “The Manager’s First Review”
Chapter 2

New section on business models

New section on SWOT analysis

Revised section on the development of mobile TV

Revised section on the development of social and interactive TV

Revised section on mergers and acquisitions

Revised section on implications for management

New case study: “Conducting a SWOT Analysis”
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Preface
xix
Chapter 3

Updated examples of ethical controversies in media

New section on ethical issues of social media

New case study: “Severe Weather Decisions”
Chapter 6

New section on using social media to recruit new hires

Revised section on orientation, including tips for welcoming a new
employee

New section on probationary work periods
Chapter 7

New sections on geolocation research and “big data”

Information on new sources of audience research data: comScore
and Edison Research

New section on social media analytics
Chapter 8

New section on localism

New information on audio programming available via the Internet
and digital platforms

New section on original programs on the Web and digital platforms

New case study: “Pitching a New Program for Online Distribution”
Chapter 9
New information regarding online advertising

New section on outsourcing advertising sales

New section on digital marketing, including a list of basic terms

Chapter 10

Updated to emphasize digital news
Chapter 11

Updated organizational chart of Federal Communications Commission
Chapter 12

Much of Chapter 13 in the previous edition has been moved to
Chapter 12

Updated research and statistics on technology trends

New sections on audience use of social media, advertising on social
media, and social media strategy

New section on mobile technology, including information on smartphones, tablet devices, and wearable technology

New section on cloud technology and cloud-based services
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
xx
Preface
Chapter 13

Completely new chapter covering the multifaceted role of media
manager

Information on the following aspects:

Personal and professional development

How to develop employees for management and leadership roles

The basic role of the mentor

Prominent leadership research and theories

How to become an entrepreneurial leader

Use of social media as a manager

New case studies: “Planning Your Professional Development”;
“Going Mobile”
Chapter Review
Management of Electronic and Digital Media begins with an overview
of electronic and digital media in society. Chapter 1 introduces you to
the main industries that make up the electronic and digital media and
presents the various functions, skills, and roles of electronic media
managers. The chapter also provides an introduction to the expanded
roles of leader and entrepreneur.
Chapter 2 examines the contemporary media marketplace with a
discussion of the different types of markets, alliances, and partnerships
found across the media industries and factors influencing the media
industries.
Chapter 3 centers on ethics in media management. This chapter
examines different types of ethics, ethical norms, and situations in
which ethics are challenged in the management of different types of
media organizations.
Chapter 4 provides a discussion of management theory by examining the three schools of management thought. Contemporary managerial theories and their application to the media industries are
presented in this chapter, as are differences between management and
leadership, the latter of which is expanded in this edition.
Chapter 5 details the importance of financial management in a
media organization. The chapter includes sections on budgeting, financial statements, financial ratios, and financial analysis.
In Chapter 6, you will learn about managing personnel by looking
at recruitment, selection, orientation, and termination of employees.
This chapter also covers the use of performance reviews and the legal
aspects of managing people.
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Preface
xxi
Audience and market-based audience research is the focus of
Chapter 7. Readers will gain an understanding of the different types
of audience research and other methods used to evaluate and measure
audiences, critical information desired by advertisers and marketers.
New material includes a discussion of “big data” and the Nielsen
acquisition of Arbitron.
Content development and distribution are discussed in Chapter 8
in the context of the traditional broadcasting and multichannel and
digital industries, at both the national and local levels. Part of
this chapter examines Web and alternative platforms to distribute
content.
Marketing, an essential business skill in all industries, is presented
in Chapter 9. There is an introduction to basic marketing principles
and strategies, along with information on marketing to advertisers
and the role of promotion in marketing campaigns. New material on
digital advertising is presented in this chapter.
Chapter 10 is devoted to the topic of news and newsroom management. News plays an important role in the media industries in its
ability to attract audiences and advertisers. The chapter examines the
importance of news and topics related to managing the news
department.
Chapter 11 reviews the role of government regulation on the
media industries. The Federal Communications Commission remains
the single greatest influence on telecommunications policy in the
United States, as well as all three branches of government and a host
of other federal agencies that impact the regulatory process.
Chapter 12 examines the influence of technology on management. The chapter begins with a look at technology trends, followed
by an expanded discussion of three major trends impacting the media
industries: social, mobile, and cloud.
The sixth edition concludes with Chapter 13, a capstone to the
book taking a deeper look at the role of the manager/leader/entrepreneur in the twenty-first century. Each area is explored, along with
new material on how to grow as a manager and how every manager
needs to develop his or her own social media strategy.
Each chapter begins with a list of learning objectives and an
overview summarizing its contents. Case studies are found at the end
of each chapter to stimulate thought and discussion on various management topics and issues. This edition offers a number of new and
revised cases. Each of the cases is designed to put the reader in the
role of a manager or other leader in a decision-making environment.
A glossary of key terms used in the text is also included for easy
reference.
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
xxii
Preface
Resources for Instructors
This text is accompanied by an instructor’s manual that offers teaching
suggestions, assignment ideas, exam questions, and other resources
that will help instructors integrate Management of Electronic and Digital
Media, sixth edition, into their classes. The instructor’s manual is
available for download at login.cengage.com.
Acknowledgments
The sixth edition of this book, like previous editions, is a product of
many years of experience and interactions with a variety of media
practitioners—first as an employee, then as a manager, and, finally, as
a media educator and consultant. Throughout my own professional
career, I have been fortunate to work with a number of good manager/leaders, first in the radio industry and later in television. Each of
them in some way influenced my ideas about media management.
In addition to the professionals who contributed to the earlier editions, this edition drew insight from a number of professional media managers who shared their ideas and perspectives. For the sixth edition, my
thanks go to Pat Stacy and Brad Streit (Raycom Media), Brian Hocker
(Comcast/NBCUniversal), Dan Bennett (Cumulus Media), Ronda Joines
(Pandora), Dan Halyburton, Becky Munoz-Diaz, and Lee Salzberger.
A number of reviewers examined various chapters and made valuable suggestions that improved this book. My sincere thanks to Glenda
Alvarado, University of South Carolina; Lesley Bowers, Howard University; Rockell Brown Burton, Texas Southern University; John Cooper,
Eastern Michigan University; Geoffrey Graybeal, Texas Tech University;
Krishna Jayakar, Pennsylvania State University; Jong Kang, Illinois State
University; Karen Kearns, California State University, Northridge; Hongmei Li, Georgia State University; Lance Liguez, The University of
Texas at Arlington; Carolyn Lewis, Ohio University; John McGuire,
Oklahoma State University; AJ Miceli, Gannon University; Joe Staniunas, Radford University; Elanie Steyn, University of Oklahoma; and
Dale Van Cantfort, Piedmont College. I’m grateful to UNT colleague
Phyllis Slocum, along with Catherine Salzman and Desiree Hill, who reviewed specific chapters for this edition. Thanks as well to UNT colleague Xiaoqun Zhang for his work on the instructor’s manual.
I thank my wife and best friend, Beverly, for her love and
constant support. I’m also grateful for the support of the faculty and
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Preface
xxiii
staff in the Department of Media Arts at the University of North
Texas and the undergraduate and graduate students who challenge
me in the classes I teach to do the best job I can as a professor.
As in previous editions, this book is dedicated with respect and
admiration to the memory of the man who taught me the most about
media management—my former professor and mentor at Marshall
University, Dr. C. A. “Ace” Kellner. Ace died in November 1996,
followed by his beloved wife, Toni, who passed just after Christmas
that same year. Beverly and I cherish their memory. We grew to be
close friends after their retirement and we visited the Kellners several
times in their Florida home during the 1980s and 1990s. One of the
greatest joys in my life was having him receive the first edition of this
book. He was so proud and honored to have the book dedicated to
him. My continuing hope is that the sixth edition of this book will
continue to be helpful to students and inspire them to reach their full
potential in life just as Ace Kellner inspired his students to do.
Alan B. Albarran
University of North Texas
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Abbreviations and Acronyms
ABC—American Broadcasting Company
ACT—Action for Children’s Television
AE—Account Executive
AM—Amplitude modulation
AQH—Average quarter hour
AR&D—Audience research and development
AT&T—American Telephone & Telegraph
AWM—American Women in Media
CAB—Cable Advertising Bureau
CBS—Columbia Broadcasting System (former
name)
CEO—Chief Executive Officer
CHR—Contemporary hit radio
CNN—Cable News Network
CPM—Cost per thousand
CPP—Cost per point
CW—CW Network (formerly WB/UPN)
DAB—Digital audio broadcasting
DARS—Digital audio radio services
DBS—Direct broadcast satellite
DMA—Designated market area
DOJ—Department of Justice
DSL—Digital subscriber line
DTV—Digital television
DVD—Digital video disc
EAS—Emergency Activation System
EBS—Emergency Broadcast System
EEO—Equal employment opportunity
EEOC—Equal Employment Opportunity
Commission
ESPN—Entertainment and Sports Programming
Network
FAA—Federal Aviation Administration
FBC—Fox Broadcasting Company
FCC—Federal Communications Commission
Fin-Syn—Financial interest–syndication
rules
FM—Frequency modulation
FRC—Federal Radio Commission
FTC—Federal Trade Commission
GI—Gross impressions
GM—General Manager
GRP—Gross rating points
GSM—General Sales Manager
HBO—Home Box Office
HDTV—High definition television
HD Radio—Hybrid digital radio
HH—Households
HR—Human Resources
HUT—Households using television
IAB—Interactive Advertising Bureau
ISP—Internet Service Provider
JSA—Joint services agreement
LAPS(test)—Of literary, artistic, political, or
scientific value
LMA—Local marketing agreement
LSM—Local Sales Manager
LUR—Lowest-unit-rate
MBO—Management by Objectives
MFJ—Modified final judgment
MMDS—Multipoint multichannel distribution
services
MP3—Audio compression technology (MPEG-1
or MPEG-2 audio layer III)
MRC—Media Ratings Council
MSO—Multiple system operator
MSTV—Maximum Service Television
MTV—Music Television
NAB—National Association of Broadcasters
NATPE—National Association of Television
Program Executives
NBC—National Broadcasting Company
NCTA—National Cable & Telecommunications
Association
NMMS—Nielsen Metered Market Service
NSM—National Sales Manager
NTIA—National Telecommunications and
Information Administration
P&L—Profit and loss
PD—Program Director
PDA—Personal digital assistant
PEG—Public, educational, and government
channels
PICON—Public interest, convenience, or
necessity
P-O-M-C—Planning, organizing, motivating,
controlling
PPM—Portable people meter
PPV—Pay-per-view
PSC—Public service commission
xxv
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
xxvi
Abbreviations and Acronyms
PTAR—Prime-time access rule
PUC—Public utility commission
PUR—Persons using radio
RAB—Radio Advertising Bureau
RADAR—Radio’s All Dimensional Audience
Research
RBDS—Radio broadcast data system
RBOC—Regional Bell operating company
ROR—Rate of return
RTDNA—Radio-Television Digital News
Association
SBC—Southwestern Bell Corporation
SDTV—Standard digital television
SMATV—Satellite Master Antenna Television
SMSA—Standard metropolitan statistical area
SPJ—Society for Professional Journalists
SRDS—Standard Rate and Data Service
TQM—Total quality management
TSA—Total Survey Area
TSL—Time spent listening
TVB—Television Bureau of Advertising
TVHH—Television households
UHF—Ultra high frequency
UPN—United Paramount Network (now CW)
USTA—United States Telecommunications
Association
VALS—Values, attitudes, and lifestyles
VHF—Very high frequency
VIP—Viewers in profile
VNR—Video news release
WB—Warner Brothers network (now CW)
WWW—World Wide Web
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
C H A P T E R
Managing Electronic and Digital Media
1
In this chapter you will learn
• An overview of the contemporary electronic and digital media
industries
• The levels of management found across the media industries
• The skills, functions, and roles of electronic and digital media
managers
• The demands placed on managers by audiences, advertisers, and
owners
Managing an electronic or digital media enterprise in the twenty-first
century is a constantly evolving challenge. The interplay of economic, technological, and regulatory forces, along with globalization and changing
audience tastes and preferences, means constant change and adaptation to
new ideas and new ways of doing business. For much of the twentieth century, a media manager focused on one product—a television or radio station, a newspaper, or a cable system. Today’s managers operate in a
multiple platform 24/7/365 environment where consumers control what
they access and when they access entertainment and information content.
Contemporary media managers have adapted to this new landscape
by learning new processes, refining their skills, and constantly evaluating
the entities they manage. Today’s best managers—regardless of the
industry in which they work—are now expected to do more than just
manage. Managers are also expected to be leaders and provide a vision
for those they lead. They are also expected to think like entrepreneurs—
to recognize new approaches and trends and to encourage innovation
and new ways of doing business.
1
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
2
CHAPTER 1 • Managing Electronic and Digital Media
The sixth edition of this book thus presents a major change from
previous editions. This version considers the expanded roles that contemporary media managers in the twenty-first century now play as
managers-leaders-entrepreneurs. Management and leadership have
always been intertwined; entrepreneurship has typically been treated
separately as an occupation or a field of study. The reason is that
entrepreneurs in the literal sense are adept at starting new businesses,
taking risks, and often selling their new business—ideally for a profit.
However, today’s media managers need to think like entrepreneurs
and function with an entrepreneurial spirit to remain relevant in a rapidly evolving landscape. So in this new edition, entrepreneurial ideas
are intertwined throughout the text, along with leadership and managerial concepts.
Let’s consider some working definitions for each of these areas. In
this text, management is continued to be defined as a process by which
individuals work with and through other people to accomplish organizational objectives. The electronic and digital media refers to the traditional radio, television, cable/satellite, and telecommunications
(telephone) industries—and “new media” like Internet sites and other
digital platforms, including social media. Management is not a static
concept but a dynamic process involving many different skills such as
decision making, problem solving, creativity, negotiation, and interpersonal relations.
Leadership is traditionally defined as leading a group of people or
an organization. But leadership is a much broader and more complicated concept. Leaders cast a vision for their unit and organization;
they are good at motivating individuals and helping each person grow
and develop. Leaders are also expected to provide a “moral compass”
and exhibit strong ethical principles and integrity. Leadership is multifaceted and complex.
Entrepreneurship is classically defined as someone who starts a
new business. But a broader definition of entrepreneurship has evolved
that is more suitable to our needs. Dictionary.com defines entrepreneurship as “a person who organizes and manages any enterprise,
especially a business, usually with considerable initiative and risk”
(http://dictionary.reference.com/browse/entrepreneurship?s=t, n.d.). Here
entrepreneurship refers to any business and not just a new start-up.
Robinson (2014) offers one view by listing seven traits of an entrepreneur: tenacity, passion, tolerance of ambiguity, vision, self-belief,
flexibility, and rule-breaking. Clearly, one can see how many of
these traits should also be embodied in what anyone might call a
good contemporary manager/leader.
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
An Overview of Electronic and Digital Media in Society
3
By integrating management-leadership-entrepreneurship throughout
this edition, it is hoped that this approach will better reflect the twentyfirst-century realities in the electronic and digital media industries. Further, expanding the scope of this text will hopefully better educate students and other readers interested in careers in media management.
An Overview of Electronic and Digital Media in Society
Despite the proliferation of many different media-related technologies, the electronic and digital media occupy an important place in
American society. The electronic and digital media industries provide
a variety of entertainment and information platforms, influence culture, and help make sense of our social reality (McQuail, 2010). The
electronic and digital media are also a critical component of the economic system. In the United States and other developed nations, most
firms engaged in the electronic media operate in the private sector
and thus deliver their content and services for profit (Albarran,
2010). As in any other business, managers in the electronic media
must maintain efficient, profitable operations to meet the expectations of owners and stockholders.
The electronic and digital media pervade society, and levels of
media usage reflect this trend. Digital media, consisting of using the
Internet, mobile devices, and other platforms, were expected to top
other media usage in 2013 (Kleinman, 2013). Television viewing,
radio listening, and reading print are also daily leisure activities in
U.S. households (see Figure 1-1). Audiences can access information
and entertainment content via many different distribution platforms
(e.g., broadband, wireless, and terrestrial) and consumer technologies
(e.g., TV and radio receivers, computers, mobile devices, video game
consoles, and DVRs). Media managers must respond to the needs of
their customers, recognizing that their audience has numerous options
for entertainment and information content.
Several demands—for information and entertainment by the audience, for profits by stockholders, and for access by advertisers—place
managers of electronic media facilities in a challenging position as
they try to serve the needs of the market along with the needs of the
marketplace. This balancing act is made all the more difficult by constant changes in competition, technology, regulatory issues, social
issues, and consumer tastes and preferences.
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
4
CHAPTER 1 • Managing Electronic and Digital Media
FIGURE 1-1
6:00
Hours per Day
Daily Media Use in
the United States
(Estimates for 2013)
4:48
Source: Kleinman (2013).
3:36
2:24
1:12
0:00
Digital
TV
Radio
Print
Traditional electronic media companies like broadcasters and
cable and satellite systems engage in similar activities. Sherman (1995)
identifies four separate but interrelated activities: development, production, distribution, and exhibition. Development is concerned with
new technological innovations. Technology stimulates the growth of
the electronic and digital media and improves the quality of media
consumption. Advances in mobile delivery and the adoption of multiple platforms are but two examples of changing innovation in the
media industries. Technology will continue to change the nature of
the media business and the way society uses the media.
Production consists of the manufacture of both hardware and
software for the electronic media. Hardware includes television and
radio receivers, satellite dishes, DVRs, video game consoles, set-top
boxes, and mobile devices like smartphones and tablet devices. Software includes such products as television and radio programs, sound
recordings, and advertising messages.
Distribution, the focus of Chapter 8, is concerned with getting
content products to consumers. Today many forms of distribution
platforms are available, ranging from the traditional broadcast networks to satellite-delivered services, the Internet, broadband, cloudbased services, and applications for mobile devices.
The fourth activity, exhibition, is where the consumer uses and
engages the product. The pervasiveness and portability of technology
means that exhibition can occur at any time and place. This flexibility
has added to the challenge of reaching targeted audiences, since consumption of media content can take place in the home, in the car, at
work, or during a workout.
Though the media share similar activities, each industry experienced considerable change as a result of media convergence, which is
now considered to be complete. Media convergence is usually thought
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Radio
5
of as the integration of video, audio, the Internet, and computing
systems, as well as distribution technologies (Steinfield, Baldwin, &
McVoy, 1996). Because corporations dominate the media industries
with multiple holdings in many cities, companies have been engaged
in converging operations to save resources. For example, in the radio
industry, a company can own a maximum of eight stations in the
same market. Leading radio companies such as iHeart Media (formerly Clear Channel), CBS, and Cumulus have merged operations
and eliminated staff overlap. In television, many markets feature duopolies, or two stations owned by the same company. As these operations are merged, financial efficiencies can be realized, primarily in a
reduction in the number of employees and the need for a single physical plant.
Companies with multiple media holdings may involve combinations of traditional and new media platforms, such as 21st Century
Fox, Gannett, and Raycom Media. Virtually every media company
considers ways to integrate newsgathering operations, as well as sharing office support functions, marketing, and engineering.
The twenty-first-century media landscape is filled with converged
media operations, but the industries had distinct, separate beginnings.
The following sections provide a brief overview of the development of
the electronic and digital media industries in the United States.
Radio
Radio formally began in the United States during the 1920s. The radio
industry established many practices for other industries to follow by
introducing the sale of hardware (receivers), the marketing of commercial time (advertising), the practice of networking, and the distribution
of programming to audiences. Radio broadcasting consists of two primary types of services: AM and FM. HD (hybrid digital) radio is an
extension of terrestrial radio. Internet radio and satellite radio (available via paid subscription) represent other extensions of radio.
AM Radio
AM radio consists of 107 channels operating between 535 and 1,705
kilohertz (kHz). AM channels are restricted to 10 kHz of channel
space, which reduces signal quality. Because the signals are transmitted
via amplitude modulation, that is, by varying the amplitude of the
radio wave, the transmissions became known as AM radio. In 1982
the Federal Communications Commission (FCC) authorized AM
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
6
CHAPTER 1 • Managing Electronic and Digital Media
stereo service but refused to set a technical standard for receivers and
transmitters (Klopfenstein & Sedman, 1990). As a result, AM stereo
never really developed.
The FCC established four classes of AM service (Classes A, B, C,
and D) to ensure that everyone would have access to radio broadcasting. Class A stations are the most powerful, operating as clear channels
during evening hours, which means they have exclusive rights to their
assigned frequency beginning at sunset. From a management perspective, the clear channel stations represent the best class of AM stations
in the country. Class B, or secondary channels, are also strong stations
but must defer to the power and direction of the more dominant Class
A stations. Class C stations are best thought of as regional operations,
while Class D—or local—stations are usually restricted to a local geographical area and operate at levels of transmitter power even lower
than that of the Class C stations.
Approximately 38 percent of all the radio stations in the United
States are commercial AM radio stations. Research indicates that AM
listeners are, for the most part, older than FM listeners and that AM
listening accounts for a smaller share of radio listening. The most popular formats on AM radio include news and talk, sports, and niche
music and ethnic formats.
FM Radio
FM radio operates at a much higher frequency than AM, between
88 and 108 megahertz (MHz). Each channel is allocated 200 kHz for
broadcasting, 20 times the capacity of an AM channel, giving FM the
potential for outstanding quality.
FM channel assignments begin at 88.1 MHz and continue
through 107.9 MHz. FM stands for frequency modulation, meaning
the frequency of the radio wave is varied while transmitted. FM broadcasting also differs from AM in that the signals follow the curvature of
the earth. The height of the station’s antenna and the power of the
transmitter affect the range of coverage.
The FCC also uses a classification system (Classes A, B, C, and D)
for FM stations based on the height of the antenna and the transmitter’s
power. Class A stations are limited to a power of 3 kilowatts (kW) and a
range of 15 miles. Class B stations can operate up to a power of 50 kW
and a 30- to 40-mile range. Class C, clearly the most attractive from an
ownership perspective, can broadcast up to 100 kW with a range of
60 or more miles. Class D stations were originally classified as lowpower (less than 10 watts) radio stations usually assigned to universities
or religious organizations. In 1980 the FCC began eliminating Class D
stations by forcing them to raise power or share frequencies with others.
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Radio
7
One other interesting aspect of the FM band is the portion of the
service reserved for educational and noncommercial use. All stations
assigned a frequency between 88.1 and 91.9 MHz operate as noncommercial stations. These stations are typically licensed to a college, university, religious organization, or, in some cases, a high school.
Though these stations are not permitted to accept advertising, they
may engage in underwriting for programming and on-air fund drives.
Here you will find programming from National Public Radio (NPR),
as well as the alternative music formats found on most college radio
stations.
FM came of age during the 1970s and surpassed AM in total
listeners. Today’s FM band is dominated by music formats (adult
contemporary, country, urban, hip-hop, and contemporary hits),
although sports and talk programming have an increasing presence on
FM channels.
The major radio group owners for radio include iHeart Media,
CBS, Cumulus, Entercom, Emmis, and Cox. Annual listings of the top
radio groups can be found in Broadcasting and Cable and Radio Ink,
two industry trade publications.
HD Radio
HD radio debuted in 2006 to enable terrestrial stations to extend their
programming options in a digital environment. Existing radio stations
can offer additional channels on the HD band, but the new service is
not compatible with existing radio receivers—requiring consumers to
purchase new radios. HD radio has not yet been fully embraced by
the automobile industry as either a standard or an optional feature on
new cars nor embraced by consumers who lack awareness of the
service and confuse it with HD television. Approximately 2,100 HD
stations are on the air, according to the HD Radio Alliance, but the
technology faces an uncertain future.
Satellite Radio
In 1994 the FCC authorized satellite-distributed digital audio licenses
to provide programming to consumers on a national basis. These services became known as satellite radio, with two original providers,
XM Radio and Sirius, offering a subscription service for a monthly
fee. Both services initially offered 100 channels of music and information, most commercial-free. XM and Sirius spent millions of dollars
signing key talent like Oprah Winfrey (XM) and Howard Stern (Sirius)
to attract listeners, but the total number of satellite subscribers only
reached about 14 million in 2007. With soaring costs, XM and Sirius
agreed to merge in 2007 and, in the summer of 2008, received
approval by the FCC to proceed with the merger. The combined entity
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
8
CHAPTER 1 • Managing Electronic and Digital Media
was renamed Sirius XM Radio. By the end of 2013, Sirius XM had
over 27 million subscribers.
Internet Radio
Internet radio has become extremely popular in the twenty-first century, fueled by computer and smartphone applications for services
like Pandora, Spotify, iHeartRadio, and iTunes Radio. Internet radio
allows the user to create their own “stations” reflecting artists and
genres of interest. The services are available for streaming via the Internet. Internet radio competes with other forms of radio for listeners and
is very popular with younger (18–34) audiences. Internet radio is now
a standard feature in most new automobiles and is also available on
most Internet-enabled television receivers.
Television
Although the television industry began in the postwar years of the
1940s, it did not grow significantly in the United States until the
1950s. In 1952, the FCC ended a four-year moratorium on television
licensing known as the “TV freeze.” The freeze allowed the nascent
industry to solve technical problems and create new geographical station assignments. An important outcome of the freeze was the addition
of 70 channels (from 14 to 83) in the UHF (ultrahigh frequency) band
to complement the existing VHF (very high frequency) band of 12
channels (from 2 to 13). Unfortunately, the UHF signals required
higher power and were more subject to interference problems than
their VHF counterparts.
The UHF stations languished for several years because the FCC
failed to require manufacturers of television receivers to include the
UHF reception technology until 1964. For that reason VHF stations
dominated TV for many years in much the same way FM dominates
AM radio today. As cable television emerged in the 1970s, UHF stations found parity with VHF signals in cable households. Both types
of service (VHF and UHF) could be received with ease by cable with
no differences observed in the quality of the signal.
Networks developed quickly in television after years of refinement in the radio industry. The three big networks—ABC, CBS, and
NBC—each acquired TV stations to form the basis for their network
TV operations. The network owned and operated stations (O&Os)
are the most profitable TV stations in the world. Other stations that
carry network programs are affiliates. ABC, CBS, NBC, and Fox
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Multichannel Video Services: Cable, Satellite, and Telcos
9
serve approximately 200 affiliates each. The other networks (CW and
MyTV) have a smaller affiliate base. There are also several Spanishlanguage networks that operate similarly to their English-language
competitors: market leaders Univision, Telemundo, and Telefutura,
followed by smaller networks Estrella TV and Azteca America. Affiliates play an important role in the network through the clearance or
acceptance of network programming and advertising. Initially, the
networks provided compensation (cash payments) to affiliates to carry
programs, but over the years the evolving economics led to compensation being eliminated for most stations.
Consolidation in the television industry escalated with the
passage of the 1996 Telecommunications Act, which increased the
percentage of national audience reach from 25 to 35 percent. This
allowed TV groups to acquire more stations. The networks were particularly aggressive buyers, adding several new stations to their existing portfolios. Another increase occurred in 2004 when the cap
increased to 39 percent of the national audience. With NBC’s acquisition of the media assets of Vivendi Universal to become NBC Universal in 2004, all the major broadcast networks were aligned with the
major Hollywood studios, enabling synergies and economies of scope
between film and television program/film production. In addition to
the networks, major television groups operating in the United States
include Sinclair, Gannett, Raycom Media, Tribune, and Hearst.
Multichannel Video Services: Cable, Satellite, and Telcos
Multichannel services are available through monthly subscription to
cable, satellite, and telecommunications (telco) providers. In the United
States, over 90 percent of all television households subscribe to one of
these services. In heavily populated markets, there is fierce marketing
and pricing competition, as the cable operators and telcos offer
“triple-play” packages of telephone, Internet, and video services.
Most services provide a menu of local broadcast channels and popular
networks, HD channels, premium services, pay-per-view (PPV) services, and video-on-demand (VOD) services. Cable systems usually
designate a few channels for public, educational, and governmental
use as part of their community franchise requirements. These are called
PEG channels.
The cable industry produces a variety of revenue streams:
monthly subscriber fees offering different tiers of service, the selling of
local insertion advertising, high-speed Internet services, equipment
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
10
CHAPTER 1 • Managing Electronic and Digital Media
rental (set-top boxes, HD and regular digital video recorders), and
premium/PPV programming. The largest cable operators also offer
telephone services. Cable consolidation escalated during the 1990s.
Larger companies began clustering systems together as companies
sought to group large numbers of subscribers and potential subscribers
together geographically.
Satellite service is available through two national operators,
DirecTV and Dish Network. Satellite offers a digital environment
with its channel lineup but lacks the multiple revenue streams that
cable generates. Satellite pricing is very competitive, enabling the services to acquire new subscribers, often at the expense of cable
operators.
The primary telco competitors are Verizon and AT&T. Verizon’s
service is FiOS, built on a fiber-optic backbone. AT&T’s service is
called U-Verse and features a similar structure. Both companies also
offer mobile phone services in addition to a triple-play package.
Telecommunications Industry
Over the years telecommunications became a blanket term for enterprises engaged in communication-related activities involving the telephone, telegraph, data services, switching equipment, and terminal
equipment. The telecommunications industry, like the media industries, has undergone considerable consolidation and change.
For decades, little competition existed in the telecommunications
industry. In 1982 American Telephone & Telegraph (AT&T) settled a
long-standing antitrust suit with the Department of Justice, resulting in
the breakup of the regional Bell operating companies (RBOCs) in
1984. Since then, mergers and acquisitions have reduced the number
of operators each year, to where there are now two major operators,
Verizon and AT&T. CenturyLink, which serves primarily the northwest, is a third operator.
Digital Video Platforms
In addition to delivery of video via terrestrial, cable, satellite, and telecommunication distribution systems, consumers can now access content
via a number of digital platforms, either in their home or with mobile
devices. These include services like YouTube, iTunes, Netflix, Hulu,
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Management in the Electronic and Digital Media
11
Amazon Prime, Vudu, HBO, and many other competitors that offer
content free, via subscriptions, or by single purchase (as in the case of
iTunes). More companies will be offering streaming services. New competitors expected in 2015 include Showtime, Sony, and Vox.
The proliferation of video platforms has encouraged some consumers to cancel their existing cable/satellite/telco subscriptions, a practice labeled as “cord cutting” to lower household expenses. Much like
consumers dropping fixed wired telephone service to their homes in
favor of mobile phones, it is easy to see that cord cutting may become
a wider practice, especially as costs continue to rise for cable/satellite/
telco subscriptions.
Social Media
Social media sites have mushroomed in popularity in the twenty-first
century, and electronic and digital media companies have now fully
embraced social media as another platform to engage audiences and
advertisers. Research has found that consumers access social media
while consuming live television events (Stefanone, Lackaff, & Rosen,
2010; Wohn & Na, 2011). There are three key considerations for management revolving around social media: (1) the major social media platforms to utilize (e.g., Facebook, Twitter, Instagram, YouTube) in
helping promote your media enterprises; (2) developing an internal
social media presence for content and services connected with your
enterprise; and (3) managerial uses of social media, such as marketing,
promotion, and monitoring, to name a few. These considerations and
other aspects of social media will be discussed throughout the text.
Management in the Electronic and Digital Media
The remainder of this chapter examines management in closer detail at
the micro level—at the level of the actual manager. This section begins
with a discussion of the levels of management found in the media
industries, followed by an analysis of the skills, functions, and roles
managers play in their daily activities.
Levels of
Management
A common misconception many individuals have regarding management is that there is one person—the Manager—who leads an
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
12
CHAPTER 1 • Managing Electronic and Digital Media
organization. Overused clichés such as “the buck stops here” suggest a
single leader makes all the decisions in an organization. In reality,
managers are found at many levels within organizations, and this is
true for the electronic and digital media industries. Different managers
serve to complete a variety of tasks within an organization.
Consider a single radio station cluster in a local market with five
management positions. The Program Director is responsible for the onair sound of the stations. The General Sales Manager is charged with
the responsibility of advertising sales. A Traffic Manager coordinates
the scheduling of commercial advertisements and other program material. The Chief Engineer makes sure everything functions from a technical standpoint. The General Manager (or Market Manager, if
overseeing multiple stations) monitors and continually evaluates the
entire operation and reports to the station owners. Each individual
manager has specific areas of responsibility, supervises coworkers,
and contributes to the overall performance of the organization.
While titles vary, there is wide agreement that most organizations
support three levels of management. A study involving over 1,400
managers found that the responsibilities of first- or lower-level managers, middle managers, and executives at equivalent levels were similar, regardless of the type of organization (Kraut, Pedigo, McKenna, &
Dunnette, 1989). For example, lower-level managers center on supervising others and monitoring individual performance. Such would be
the case with a Program Director, who evaluates the on-air staff of a
radio station, or a Local Sales Manager, who monitors advertising
sold by local account executives. Middle managers typically plan and
allocate resources and manage groups of people. An example of a middle manager in the electronic media would be a General Sales Manager, who coordinates the activities of the sales department at both
the local and national levels. Top-level or executive managers monitor
the entire organizational environment, identifying internal and external
factors that impact their operation. General Managers for TV, radio,
cable, digital, and telecommunications facilities must keep pace with
such diverse factors as local business economics, social trends, the regulatory climate in Washington, and the internal activities of their
respective operations.
As these examples illustrate, one encounters different responsibilities at different management levels. Although tasks and duties vary
through these levels, all managers share certain skills, functions, and
roles. Management skills refer to the basic competencies needed by
electronic media managers. Management functions refer to the tasks
that managers perform. Management roles refer to the different roles
managers adopt as they interact with different constituencies, such as
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Management in the Electronic and Digital Media
FIGURE 1-2
Management Skills,
Functions, and Roles
Source: © Cengage
Learning.
Skills
Functions
Roles
Technical
Human
Conceptual
Financial
Marketing
Entrepreneurial
Planning
Organizing
Motivating
Controlling
Facilitating
Communicating
Negotiating
Leader
Representative
Liaison
13
employees, owners, consumers, and peers. Figure 1-2 charts the various skills, functions, and roles of managers in the electronic media.
Management
Skills
Management theorists (e.g., Hersey, Blanchard, & Johnson, 2012)
identify three broad areas of skills needed in the management process:
technical, human, and conceptual. To this list three other skills crucial
to successful electronic and digital media management are added:
financial, marketing, and entrepreneurial skills.
Electronic and digital media managers need to understand the technical aspects of their operations, for technology and
innovation constantly impact the communication industries. While
technological advancements make it impossible to keep up with all
the changes taking place, managers still need basic competencies in
such areas as equipment operation, signal transmission, content distribution, and digital applications. The ability to provide hands-on training is an important managerial skill, because employees usually have
greater respect for managers with technical expertise.
Technical Skills
Most managers identify this area as the single
most important skill in the process of management (Hersey, Blanchard,
& Johnson, 2012). Successful managers exhibit strong interpersonal
skills and are particularly adept at leading and motivating employees.
Electronic and digital media managers need to be dynamic, visionary,
and motivated in order to lead their operations effectively and create a
spirit of cooperation and participation among all employees. In this
sense, managers are also perceived as good leaders.
Human, or People, Skills
Managers must understand
the complexities of the internal and external environment and make
Conceptual, or Problem-Solving, Skills
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
14
CHAPTER 1 • Managing Electronic and Digital Media
decisions based on sound judgment. Because change is constant in the
media, managers must be able to respond quickly to the environment—
whether the changes concern audience tastes and preferences, technology, or employee relations. Electronic and digital media managers must
deal with a variety of issues and solve problems in an efficient and timely
manner.
Financial Skills A heavily competitive environment and constantly
evolving economic systems place incredible demands on media managers to be conscious of the bottom line and constantly trying to
increase the value of the enterprise. Managers need strong financial
skills in order to meet financial goals, manage budgets, and deal with
unexpected contingencies. Understanding how to read financial statements, construct a budget, and forecast break-even analysis is critical
(see Chapter 5).
With many options available for entertainment and
information content, managers need a strong understanding of marketing. They must know how to position their product(s) effectively and
know what vehicles and platforms are needed to build audiences.
Understanding how to use the four Ps of marketing—price, product,
promotion, and place—in interactions with consumers as well as
advertisers remains an invaluable management skill (see Chapter 9).
Marketing Skills
As mentioned in the introduction, managers in
the twenty-first century need to have basic entrepreneurial skills
applied to the enterprise they are managing. Whether it is the organization as a whole or a department or unit, today’s managers must
think and work as an entrepreneur. Today’s managers need to be
innovative, tenacious, and not afraid to take risks, as well as exhibit a
sense of passion.
Though these skills are common across the electronic media, the
degree of skill required at different managerial levels varies. For example, at the supervisory level technical skills are needed daily, while
executives are likely to use conceptual and financial skills more regularly. Human skills are crucial at every management level. Figure 1-3
illustrates how these skills vary across levels.
Managers can develop their skills via continuing education, years
of experience, membership in professional associations, networking,
and attendance at managerial seminars and workshops (Bigelow,
1991). Regardless of how they learn, managers in the electronic and
digital media need some knowledge in all the skill areas. Conducting a
Entrepreneurial Skills
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Management in the Electronic and Digital Media
FIGURE 1-3
Skills across
Managerial Levels
Source: © Cengage
Learning.
15
Entrepreneur
Executive
Financial
Mid-level
Managers
Conceptual
Human
Marketing
Supervisors
Technical
self-assessment can help you identify what skills you need to develop.
Finding individuals with this range of expertise is a continuing challenge,
as well as identifying managers who understand other media industries in
a time of consolidation, innovation, and heavy competition.
Management
Functions
A frequently asked question in the study of management concerns
management functions: What exactly do managers do? One of the earliest investigations into management functions came in 1938 with
Chester Barnard’s (1968) book, The Functions of the Executive.
Barnard identifies three managerial functions: (1) providing a system
of organizational communication, (2) procuring proper personnel, and
(3) formulating and defining the purposes and objectives of the
organization.
Henri Fayol was another major influence in the study of management functions. Fayol (1949) was a French theorist who specified the
functions of planning, organizing, commanding, coordinating, and
controlling referred to as the POC3 model. Later management scholars
replaced commanding and coordinating with motivation, thus forming
the P-O-M-C model of management (see Figure 1-4). Many management books show a heavy bias toward the Fayol model (Carroll &
Gillen, 1987). But do managers spend most of their time planning,
organizing, motivating, and controlling? Many studies have examined
management functions to determine if the classical functions theorized
by Fayol still exist.
Mintzberg (1975) found that most of the P-O-M-C functions
form part of the folklore that inaccurately describes management; the
author identified 10 distinct managerial functions. Other studies
(Hales, 1986; Kotter, 1982) question the validity of the classical
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
16
CHAPTER 1 • Managing Electronic and Digital Media
FIGURE 1-4
The P-O-M-C
Managerial Model
P
Source: © Cengage
Learning.
C
O
M
management functions. Kanter (1989) claims acquisitions and divestitures, reductions in personnel and levels of hierarchy, and an increased
use of performance-based rewards result in a new managerial work
environment with different management functions.
These studies present conflicting views of management functions.
Which functions actually occur in the daily activities of electronic and
digital media managers? An integrated approach, combining both classical and modern perspectives, is the most reasonable way to describe
management functions in the twenty-first-century media industries.
Media managers are involved in planning, organizing, motivating, and controlling, but they also exhibit three other important functions in managing their organizations: facilitating, communicating,
and negotiating.
Planning Planning involves establishing organizational objectives and
providing others with the resources needed to accomplish their tasks.
Both short- and long-term objectives need to be established in the planning process. Ideally, managers and employees should share in the creation of objectives. The contemporary electronic and digital media
management environment leans heavily on strategic planning as an
important management tool (Gershon, 2000).
Strategic planning has been complicated given the transition of
traditional electronic media to new forms of digital media. For example, companies involved in broadcasting recognize that terrestrial
broadcasting, their “traditional” media, still has incredible value and
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Management in the Electronic and Digital Media
FIGURE 1-5
Strategy
Strategy
Considerations
Source: © Cengage
Learning.
17
Traditional
Media
(EM)
New Media
Social Media
Digital
Platforms
FB, Twitter,
Instagram,
YouTube
the ability to attract audiences and advertisers. At the same time,
“new” media in the form of digital platforms have emerged, forcing
companies to move in to these areas to reach audiences who are
migrating and using other forms of digital media. The growing importance of social media and its potential impact in terms of reaching
audiences must also be considered (see Figure 1-5).
The organizing function determines who or what unit is
responsible for specific company objectives. Most electronic and digital
media operations maintain departments (such as operations, sales,
engineering, and news) to handle individual responsibilities. Each
department needs its own planning objectives, budget, and staff to
meet necessary goals, which then allows upper-level managers to concentrate on other activities. Managers of individual departments are
linked to the overall structure of the organization to create a holistic
environment. Tensions may arise between individual departments over
the best way to address problems. When this occurs, top-level managers must mediate and resolve conflicts.
Organizing
Motivating employees to a high level of performance
helps any organization accomplish its goals. On the other hand, if
motivation is low, productivity suffers. Certain positions in the electronic and digital media need less oversight than others in this regard
because the incentives are built in. For example, audience feedback,
ratings, and public recognition drive talent positions, while commissions motivate account executives. For other areas such as production, research, and engineering, motivation can be an important
managerial function. Numerous theories on motivation exist (see
Chapter 4), but many studies yield similar findings: Employees want
managers to recognize them for their individual achievements and
contribution to the organization, and they want opportunities for
continued growth and advancement (Buckingham & Coffman, 1999;
Herzberg, 1987).
Motivating
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
18
CHAPTER 1 • Managing Electronic and Digital Media
As a management function, control involves several areas
of responsibility: (1) giving feedback to other managers and employees,
(2) monitoring the progress toward completion of organizational
objectives and financial goals, and (3) making changes as situations
demand. Feedback can be written, verbal (telephone), face to face,
and electronic (e.g., text messaging, e-mail). A common criticism of
managers is that they do not offer enough feedback to employees to
let them know how they are performing. Positive feedback helps motivate employees. Feedback should not be limited to annual performance
reviews (see Chapter 6).
Monitoring is another essential control function. Managers must
keep tabs on the progress of organizational objectives and help solve
related problems. Finally, the ability (and at times courage) to make
changes is an important control mechanism. Ultimately, such changes
impact other personnel and perhaps even lead to their termination.
While managers must be sensitive to the needs of their employees,
they must also keep the goals and objectives of their operations in
mind.
Controlling
Facilitating As facilitators, managers must empower their employees
with the needed resources to complete organizational tasks. These
resources may include personnel, money, or equipment. The facilitator
function is most prominent at the executive and middle levels of management. For individual units to function, managers must provide
more than just moral support. They must articulate the needs of their
unit when they develop a budget (see Chapter 5) and seek additional
resources as needed on an ongoing basis.
A function that permeates all areas of management
is communication. Media managers have many ways to communicate
with employees, who need and expect managers to keep them abreast
of information important to their jobs. Formal lines of communication
include newsletters, memos, and performance reviews. Informal lines
of communication, however, are also important. As in any field, managers should not stay isolated in an office on the phone or in front of a
computer during working hours. Managers who regularly visit
employees in studios, offices, and workstations establish a participatory climate beneficial to the organization (see Chapter 4). Managers
encourage communication from employees by granting access in many
ways—through e-mail and messaging, regular meetings in which ideas
and concerns are shared, and an open-door office policy as opposed to
visiting with employees only by appointment.
Communicating
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Management in the Electronic and Digital Media
19
All electronic and digital media managers serve as negotiators in a variety of situations. For instance, negotiation with
employees may involve salary and benefit packages, contracts for talent, bargaining with guilds or unions, dealing with vendors, and
requests from low- and mid-level managers for new personnel positions. In program acquisition, the fees for copyrighted material, license
fees, news services, and local productions are all negotiable. Equipment needs often constitute a third area of negotiation. Managers
often bargain for the price of expensive items such as production
equipment. Similarly, advertising prices are determined by the available supply of commercial inventory and the demand by advertisers.
Other forms of negotiation may involve owners, regulators, community leaders, business organizations, and audience members. In all
types of negotiation, managers attempt to seek the best possible solution for their operations.
Negotiating
Management
Roles
Management roles are those behaviors associated with or expected of
managers. In the electronic and digital media, managers perform a
variety of tasks and wear many hats in completing these tasks. One
classic study identified three types of roles managers adopt in their
daily environment: interpersonal, informational, and decisional
(Mintzberg, 1975). Interpersonal roles are concerned with leadership,
while informational roles address communication. Decisional roles, as
expected, involve decision making. Three roles best exemplify contemporary electronic media managers: leader, representative, and liaison.
Each role is discussed further.
Managers are expected to provide effective leadership for
their individual department and organization. Being a good leader
involves accepting responsibility for the organization as well as for its
employees. Adapting to change, making decisions, maintaining open
lines of communication, and leading others to the completion of goals
are essential qualities of strong leaders, along with setting a vision and
exhibiting passion.
Leader
Managers in the electronic and digital media serve as
representatives in many settings. To the public and local community,
media managers for broadcast stations serve as figureheads in a variety
of contexts. The General Manager may serve on community boards.
The News Director may be asked to speak to a high school or college
class. The Sales Manager represents the station to a number of clients.
Managers also represent various trade and professional organizations,
Representative
Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
20
CHAPTER 1 • Managing Electronic and Digital Media
such as the National Association of Broadcasters (NAB), the National
Cable & Telecommunications Association (NCTA), and the Radio
Television Digital News Association (RTDNA), as well as organizations at the state and local levels. Tasks in these organizations may
involve serving on committees, consulting with regulators, and working with lobbyists at the national and state levels.
The majority of the media companies in the United States are
owned by corporations, some of which are privately held. Executive-level
managers serve as important liaisons to the parent company. Accountable
to the parent corporation, managers regularly report on progress and problems in their operations. In turn, managers filter information from the corporate level back to their individual staffs. As expected, this role demands
strong communication and negotiating skills.
This discussion of management levels, skills, functions, and roles
indicates that electronic media managers are unique and talented individuals who work with and through other professionals to accomplish
organizational objectives.
Liaison
Summary
This chapter began by introducing two terms used throughout the
book: (1) management, defined as a process through which individuals
work with and through other people to accomplish organizational
objectives, and (2) electronic and digital media, used in this text to represent the radio, television, cable/satellite, telecommunications industries, and Internet-based digital platforms such as social media. Media

Purchase answer to see full
attachment




Why Choose Us

  • 100% non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How it Works

  • Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.