Tuesday, September 6, 2011

The three market party system is one that seems almost completely unnecessary to me. It works when one party (Advertisers) basically forces themselves into a realtionship between a network and its audience. They do this by paying the media industry to run one of their ads. From this the advertisers/ producers will charge a higher price for their product becasue the ad will bring more consumers to their product. So the consumers are eventually funding the ads which they then will see as ads in certain forms of media. This media (television) would otherwise be nearly free. So indirectly the audience is paying for the television networks even if they are not realizing it.
We are able then to see television networks such as NBC, CBS, Cw for "free" becasue we are enabling them to afford the ads by paying the higher price for the product because we saw the ads on television. "Free" is in quotation marks becasue it really is not free for us because we are paying higher prices in the stores, without the producers parying for ads on television we would be able to purchase their product at a cheaper price. This fact has never really struck me until reading this that television is funded by its audience paying inflated prices at stores. I feel the networks are getting the best end out of this deal; they are now receiving funds from a different arena than if they were not running the advertisements.

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