In terms of audiences’ advertisers and networks it seems that the networks are the ones that get the best deal out of this entire system known as the Business of Media. The largest issue with the advertiser is that the cost they incur to advertise their product or service through a network is 100% risk. There is a possibility that their product or service attracts no support or attention from the public and they essentially end up with a sunk cost of this advertisement.
I think that although the audiences get most of their information and entertainment for free on the networks, they are still tricked by the big business of the networks. First of all, the networks are already making money off of advertisers during time slots on their networks. In the case of cable, satellite or premium services, the audience also has to pay a fee for subscription. This is a win-win for the networks because in cases like this they are able to generate income from two different sources making them a lot more stable. The other factor where us as an audience is tricked is that by seeing these advertisements, we are essentially tricked into buying or consuming the products that are a part of the networks agenda.This is all important because media is such a huge part of all of our daily lives here in America. It is important to understand how these conglomerates and networks operate so that we are not manipulated by the system. As the article says, “there is no such thing as a free lunch”, and all of us need to understand how important media is to our economy. For the reasons listed above it seems that those in charge at the networks know how to be successful and are the current, “smartest guys in the room.
Here is an article that relates to this and it is about Facebook and its money hungry decisions to make it the most profitable network it can be by taking advantage of their audience and raking in the cash from advertisers.