DIGITAL MEDIA ECONOMY
Instructional goals
The course aims to provide critical tools for analyzing and interpreting the transformation of media ecosystems, which have been deconstructed and reorganized by platforms. It analyzes their business models, dynamics of competitive advantage, restructuring of production chains and value co-creation networks, new media consumption models, and internationalization strategies. Additionally, it promotes student reflection and critical thinking on the potential and constraints that this transformation poses to Italian creative industries.
Intended learning outcomes
Knowledge and understanding.
Students will acquire an in-depth knowledge of digital media market and industry, understanding the transformation of media ecosystems and mastering their evoluton in terms of consumption and production. Students will develop an adequate understanding of the interaction between mass and social media; they will acquire a basic knowledge of media-related technologies (artificial intelligence, extended reality, metaverse) in a data-driven media system.
Students will be able to understand the strengths and weaknesses of the Italian media industry.
Applying knowledge and understanding.
Students will acquire the ability to critically analyze the media context, which will influence their professional activities in different aspects such as marketing, corporate reputation management, brand identity, crisis management. Students will also acquire a deep awareness of the impact of digital media on their social life, having to deal with critical issues such as echo chambers or fake news.
Students will be able to apply their understanding of industry and market to a rapidly evolving scenario and to update their knowledge in a context of continuous disruptions and innovations.
Making judgements.
Students will be able to analyze, evaluate and discuss media strategies and critically assess the evolution of the digital media system.
Communication skills.
Students will be able to communicate in a clear and coherent manner the results of their learning, using appropriate terminology. They will also be able to express a correct evaluation of the media context in which they will interact.
Learning skills.
Students will acquire the ability to increasingly improve their understanding of the digital media environment, as they will be able to conduct personal readings and research in the field of Media Industry Studies and more generally of Media Studies.
Course Contents
The course studies the platforms and media that make up digital ecosystems: it analyzes their business models, market organization, value co-creation processes, internationalization strategies, and fruition models. In particular, the course examines:
-SVOD streaming platforms (Subscription Video on Demand), which are reorganizing the global audiovisual industry and, thanks to their offering strategy, are creating a global consumer; their impact on the film industry will also be analized;
-post-television platforms (social media, video games, e-sports), which are innovating the ways media is consumed and revolutionizing the global advertising market;
-social media entertainment, which meets the needs of Generation Z in particular and creates professional and investment opportunities;
-the role of technologies (artificial intelligence, extended reality, metaverse) in creating media ecosystems.
Issues of sustainability and inclusion are addressed in relation to the carbon footprint and consumption of raw materials in digital ecosystems, usually underestimated in this regard, and in relation to the valorization of diversity in the post-television media universe.
Reference Books
REFERENCES
Balestrieri, L. (2021). Le piattaforme mondo. Roma: LUISS University Press.
Before each lesson, slides prepared by the teacher and related support materials (industry reports and scientific articles) will be available online at http://learn.luiss.it.
For non-attending students, two of the following texts must be added, as chosen.
Cunningham, S., Craig, D. (2019) Social Media Entertainment. New York: New York University Press.
Herbert, D., Lotz, A. D., Punathambekar, A. (2020) Media Industry Studies. Cambridge (UK): Polity Press.
Lotz, A. (2018) We Now Disrupt This Broadcast: How Cable Transformed Television and the Internet Revolutionized It All. Cambridge (MA): The MIT Press.
Teaching Methods
The course consists of lectures, analysis of relevant cases, and their discussion in the classroom, as well as group work for the development of projects. Special importance is given to cooperative learning methods: peer review among work groups is also used as a cooperative tool. Work groups will be required to develop a business project to be implemented on a social platform.
Assessment Method
Student evaluation takes place throughout the course. The evaluation of group work and participation in classroom activities accounts for 70% of the final grade: 30% is based on each work group's project, while 40% is based on individual presentations (each student must present a section of the group work) and contribution to the classroom discussion over the course of the program.
The final exam is oral and accounts for 30% of the final grade. Students must demonstrate their ability to communicate clearly and coherently the results of their learning using appropriate terminology.
Thesis assignment criteria
To be eligible for thesis assignment, a final grade of at least 27/30 is required after completing the course. A preliminary discussion on the thesis subject is required.
Week 1
ON CAMPUS
Course presentation and introduction to the topics covered.
The platform as a model for organizing the enterprise and the digital media market. Network effects and co-creation of value. Density of interactions, density of services, and density of data for value creation. The two media revolutions: video streaming and social media content.
ON CAMPUS
Organization of working groups: definition of objectives and roadmap, discussion on working method and explanation of verification criteria.
The groups will have to develop business projects on social platforms.
Week 2
ON CAMPUS
Why streaming has revolutionized the audiovisual industry. Business model and competitive advantage of S-VOD (Subscription Video-on-Demand) platforms: cost structure, pricing strategy, data analysis, artificial intelligence, supply chain organization.
Netflix: user experience, production strategy, internationalization.
The offer creates the consumer: globalization of media 4.0.
ON CAMPUS
Other streaming platform models: Amazon Prime Video in the context of the B2C Amazon services (video, music, gaming, e-commerce); Apple TV in the Apple ecosystem.
Week 3
ON CAMPUS
Cinema and streaming. S-VOD platforms as an alternative model for film production and distribution, overcoming the traditional film industry structure and release windows.
The search for a new balance between theaters and streaming in the post-pandemic era: analysis of the strategies experimented by Hollywood majors.
Disney/Disney+: special attention is dedicated to Disney, due to the merger of cinematic and serial content through the creation of the Marvel Cinematic Universe.
ON CAMPUS
From media companies to platform companies.The restructuring of the audiovisual industry under the pressure of streaming S-VOD platforms. The streaming war: winners and losers.
Week 4
ON CAMPUS
The impact of streaming S-VOD platforms on the Italian audiovisual industry. S-VOD platforms investments in Italy and production strategies: series and movies.
ON CAMPUS
S-VOD platforms investments in Italy and production strategies: entertainment formats.
Week 5
ON CAMPUS
Social media entertainment: the post-television revolution.
A new type of media consumer: communication needs, user experience and digital media. Generation Z and short videos.
ON CAMPUS
Social media content and advertising revenues. Trends in the advertising market: digital pure-play, mobile, social, and programmatic.
Advertising market and digital media in Italy.
Week 6
ON CAMPUS
Professionalization of user-generated content and investments in social media entertainment.
ON CAMPUS
Creators and monetization of content on platforms: Instagram and TikTok
Week 7
ON CAMPUS
Video games as platforms. Focus on live events on Fortnite; conflicts over value appropriation (Fortnite vs Apple and Google).
Gaming video content: a component of social media entertainment. Focus on Twitch.
ON CAMPUS
Carbon footprint and consumption of raw materials in the digital ecosystems.
Week 8
ON CAMPUS
Digital economy of news.
From push to pull offering, from editorial mediation to algorithmic mediation: production and distribution of news in digital ecosystems. Echo chamber risk and citizen journalism.
ON CAMPUS
The problem of fakes generated by AI and the possible strategies to combat them.
Week 9
ON CAMPUS
Digital economy of sports.
Use of sports rights in streaming platforms. Metaverse, digital twins, and NFTs (non-fungible tokens) in sports ecosystems.
ON CAMPUS
E-sports and digital media.
Week 10
ON CAMPUS
Platforms and globalization. Crisis of national media systems, as a result of broadcasting marginalization.
Cultural hybridization and platform media consumption. Focus on YouTube and creative industries in India.
ON CAMPUS
The Korean Wave as a model for internationalization of creative industries. Technological base and cultural innovation. K-pop and Korean dramas.
Week 11
ON CAMPUS
American and Chinese platforms. The alternative digital universe of China. The digital ecosystems of Tencent, Alibaba, Baidu, and ByteDance.
ON CAMPUS
TikTok’s rapid growth in the global market and the risk of digital decoupling.
Week 12
ON CAMPUS
Final presentation of group projects and their discussion.
ON CAMPUS
Final presentation of group projects and their discussion.