Four Questions about Media Question 1. I

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In 1989, Sony Corporation of Japan acquired Columbia Pictures for $3.4 billion. For this amount of money, Sony could have readily elected to develop its own production film and television studio, but chose instead to purchase a U.S.-based company with an established reputation, market presence, and clear competitive advantage in what Hoskins, McFadyen, and Finn (1997) have characterized as the largest domestic market. At the same time that Sony acquired Columbia it acquired a production center that was possessed of the characteristics of the U.S. industry, more than competent in the Hollywood system, and fluent in English language filmmaking. These characteristics are seen by Hoskins, et al (1997) as highly instrumental in making an outright purchase of an existing production entity more valuable than developing a company from the ground up.

Further, Hoskins, et al (1997) noted that another facet of the large market size served by Columbia in the U.S. is the effect on the optimal production budget. Bigger domestic markets are associated with larger budgets for films. The U.S. involves audiences that expect big budget films and demands that studios respect these interests. Generally, Hoskins, et al (1997) state that the larger U.S. domestic market results in a larger optimal and profit-maximizing production budget for films and television programs. What this means is that it can be difficult for producers in other count

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il supplier. Additionally, Carincross (2001) is correct in noting that what the Internet provides is the creation of opportunities for new intermediaries in the supply and value chain to replace existing intermediaries. This is where disintermediation comes into play. It is not necessary that all intermediaries between an artist and/or production company and consumers are being eliminated. It is rather that a new or substitute intermediary and sales/marketing medium has emerged which threatens the existing industry structure. The possibility that an artist such as Chuck D could purchase production studio services to produce his own music without being affiliated with a major record label or even an independent exists and has existed for many years. What e-commerce and the Internet now makes available to a Chuck D or any other artist is the opportunity to eliminate the major labels and independents and their distribution systems by letting the artist directly contact and work with companies such as Napster who function entirely online. This creates a system in which the distance between the original maker of the work and the end user is reduced dramatically. At the same time, artists are unlikely to succeed in a high
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Some common words found in the essay are:
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Approximate Word count = 2662
Approximate Pages = 11 (250 words per page)

Four Questions about Media Question 1. I

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