BIMTECH
Birla Institute of Management Technology, Greater Noida
Academic Year 2023-25
Course: PGDM
Subject: Managerial Economics
ASSIGNMENT: REPORT ON MEDIA INDUSTRY
COMPANY: DISNEY
SUBMITTED BY:
NAME-RAJNANDANI SARAF
ROLL NUMBER-23DM176
SECTION-(C)
SUBMITTED TO- DR. RASHMI RASTOGI
MEDIA INDUSTRY OVERVIEW:
Definition: The media industry is a broad term that encompasses all
businesses and organizations that create, distribute, and promote information
and entertainment content.
Types of media: Traditional media outlets (newspapers, magazines,
television, radio) and digital media platforms (social media, streaming
services, video games).
Role of media: Informing, entertaining, and educating the public. Shaping
public opinion and culture.
Impact of digital technology: Digital technology has transformed the media
industry, leading to the decline of some traditional media outlets and the
emergence of new ones.
Size of the industry: The global media and entertainment industry was worth
an estimated $2.6 trillion in 2022.
MEDIA SECTOR MARKET STRUCTURE:
The media industry has an oligopoly market structure, meaning a small number of
large companies control a significant share of the market. This is due to the high
costs of producing and distributing media content, the need for economies of scale,
and the network effects that benefit large media companies.
However, the media industry is also highly dynamic and constantly evolving, with
new technologies and consumer preferences emerging all the time. As a result, the
media industry market structure is likely to continue to evolve in the coming years.
COMPANIES IN THE MEDIA INDUSTRY
The media industry is dominated by a small number of large companies, such as
Alphabet, Amazon, Apple, Comcast, Disney, Facebook, Fox Corporation, Hearst,
Netflix, News Corporation, Paramount Global, Sony Group, and Warner Bros.
Discovery. These companies operate in a variety of different media sectors,
including television, film, music, publishing, and digital media. They have a
significant impact on the way that we consume news, entertainment, and
information.
MARKET SHARE OF DISNEY:
Disney is a dominant media company with a significant market share in a number of
industries. This gives the company the ability to generate large amounts of revenue
and profits, and influence the media industry as a whole.
Even in industries where Disney has a smaller market share, it is still a major player
due to its strong brand and loyal customer base. Disney's market share is important
because it allows the company to invest in new content and technologies, which
helps it to maintain its dominance in the media industry.
PRODUCT DIFFRENTIATION OF DISNEY:
Disney is a dominant media company with a significant market share in a number of
industries. It differentiates its products from the competition through a number of
strategies, including:
Strong brand recognition
High-quality content
Focus on family-friendly content
Integration of its products and services
Innovation
ENTRY AND EXIT BARRIER OF DISNEY:
Disney has a number of entry and exit barriers in place, which help to maintain its
dominance in the media industry.
Entry barriers
High capital requirements: The media industry is a capital-intensive industry,
meaning that it requires large investments in production, distribution, and
marketing. This high cost of entry makes it difficult for new companies to
compete with established players like Disney.
Strong brand recognition: Disney has a very strong brand recognition, which
gives the company a significant advantage over new entrants. Consumers are
more likely to choose products and services from brands that they know and
trust.
Economies of scale: Disney benefits from economies of scale in production,
distribution, and marketing. This means that Disney can produce high-quality
content and services at a lower cost than new entrants.
Government regulations: The media industry is subject to a number of
government regulations, such as those related to broadcasting and copyright.
These regulations can make it difficult for new entrants to enter the market.
Exit barriers
High sunk costs: Disney has invested heavily in its production, distribution,
and marketing infrastructure. These sunk costs are costs that have already
been incurred and cannot be recovered. This makes it difficult for Disney to
exit the market, even if it were to face financial difficulties.
Employee commitments: Disney has a large number of employees, and it has
made commitments to them in terms of salaries, benefits, and job security.
These employee commitments make it difficult for Disney to exit the market.
Customer relationships: Disney has built strong customer relationships over
many years. These customer relationships make it difficult for Disney to exit
the market, as it would lose its customer base.
Disney's entry and exit barriers make it a very difficult company to compete with.
This has helped Disney to maintain its dominance in the media industry for many
years.
COMPANIES SURVIVING IN THE MEDIA INDUSTRY
AND HOW THESE COMPANIES RESPOND TO
ACTIONS OF OTHER FIRM
Media companies are surviving in the media industry by adapting to the changing
landscape and responding to the actions of other firms. This includes:
Investing in new technologies: Media companies are investing in new
technologies, such as streaming video and artificial intelligence, to reach their
audiences in new ways.
Creating original content: Media companies are creating original content that
is tailored to the interests of their target audiences. This includes exclusive
content for streaming services and podcasts.
Focusing on specific niches: Media companies are focusing on specific
niches, such as news, sports, or entertainment, to appeal to specific
audiences.
Partnering with other companies: Media companies are partnering with other
companies to reach new audiences and expand their offerings. For example,
media companies are partnering with social media platforms to distribute their
content.
Media companies are also responding to the actions of other firms in a variety of
ways. For example, when Netflix started offering streaming video, traditional TV
networks responded by launching their own streaming services. When Apple
launched its News+ subscription service, traditional news publishers responded by
offering their own subscription services.
PLAGIARISM REPORT
