DIGITAL MEDIA ECONOMY
Instructional goals
The course aims to provide students with critical tools for analyzing and interpreting the transformation of media ecosystems, which have been deconstructed and reorganized by platforms. It examines their business models, dynamics of competitive advantage, the restructuring of production chains and value co-creation networks, new models of media consumption, and internationalization strategies. In addition, the course fosters critical reflection on the opportunities and constraints that these transformations pose for the Italian creative industries.
Intended learning outcomes
Knowledge and understanding.
Students will acquire an in-depth knowledge of digital media markets and industries, gaining an understanding of the transformation of media ecosystems and their evolution in terms of consumption and production. Students will develop a solid understanding of the interaction between mass media and social media; they will acquire a basic knowledge of media-related technologies (artificial intelligence, extended reality, metaverse) within a data-driven media system.
Students will be able to identify and assess the strengths and weaknesses of the Italian media industry.
Applying knowledge and understanding.
Students will acquire the ability to critically analyze the media context and its implications for professional activities such as marketing, corporate reputation management, brand identity, and crisis management. Students will also gain a deep awareness of the impact of digital media on their social life, addressing critical issues such as echo chambers and fake news.
Students will be able to apply their understanding of media industries and markets to rapidly evolving scenarios and continuously update their knowledge in contexts of ongoing 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 the results of their learning clearly and coherently, 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 develop the ability to increasingly enhance their understanding of the digital media environment, through independent reading and research in the field of Media Industry Studies and, more broadly, of Media Studies.
Course Contents
The course examines the platforms and media that constitute digital ecosystems: it analyzes their business models, market organization, value co-creation processes, internationalization strategies, and consumption models. In particular, the course focuses on:
-SVOD streaming platforms (Subscription Video on Demand), which are reorganizing the global audiovisual industry and, through their content strategies, are creating a global consumer; their impact on the film industry will also be analyzed;
-post-television platforms (social media, video games, e-sports), which are innovating media consumption practices and revolutionizing the global advertising market;
-social media entertainment industries, which particularly address the needs of Generation Z and create new professional and investment opportunities;
-the role of technologies (artificial intelligence, extended reality, metaverse) in the creation of media ecosystems.
Issues related to sustainability and inclusion are addressed with regard to the carbon footprint and consumption of raw materials in digital ecosystems, usually underestimated in this respect, 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, to be selected individually.
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 combines lectures, analysis of relevant cases, classroom discussions, and 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
Assessment is continuous. Group work and active participation in classroom discussions account for 30% of the final grade. The final exam is oral and accounts for 70% of the final grade. Students must demonstrate their ability to communicate the results of their learning clearly and coherently using appropriate terminology.
Thesis assignment criteria
To be eligible for thesis supervision, students must obtain a final grade of at least 27/30. A preliminary discussion on the thesis topic is required.
Week 1
ON CAMPUS
Presentation of the course and introduction to the main topics.
Initial analytical frameworks for understanding the integration of digital media into technological ecosystems, the transformation of media consumption, and the new phase of media globalization.
The notion of hyperreality: a critical reflection on how artificial intelligence is reshaping communication and media.
ON CAMPUS
The platform as an organizational model for media enterprises and digital media markets. Network effects and value co-creation. Density of interactions, density of services, and density of data for value creation. The two media revolutions: video streaming and social media content.
Formation of working groups: definition of objectives and project roadmap, discussion of working method and explanation of evaluation criteria. Groups will develop business projects focused on social platforms.
Week 2
ON CAMPUS
Why streaming has revolutionized the audiovisual industry. Business model and competitive advantages of SVOD (Subscription Video-on-Demand) platforms: cost structures, pricing strategies, data analysis, artificial intelligence, supply chain organization.
Explaining Netflix’s success: user experience, production strategies, and internationalization.
The offer creates the consumer: Media globalization 4.0.
ON CAMPUS
Other streaming platform models: Amazon Prime Video as part of Amazon’s B2C services ecosystem (video, music, gaming, e-commerce); Apple TV within the Apple ecosystem.
Week 3
ON CAMPUS
Cinema and streaming. SVOD platforms as alternative models for film production and distribution, overcoming the traditional structure of the film industry and its release windows.
The search for a new balance between theatrical exhibition and streaming in the post-pandemic era: an analysis of the strategies adopted by Hollywood majors.
ON CAMPUS
From media companies to platform companies. The restructuring of the audiovisual industry under the pressure exerted by streaming SVOD platforms. The streaming war: winners and losers.
Disney/Disney+: particular attention is devoted to Disney, due to the merger of cinematic and serial content through the creation of the Marvel Cinematic Universe.
Week 4
ON CAMPUS
The impact of streaming SVOD platforms on the Italian audiovisual industry. Investments by SVOD platforms in Italy and production strategies: series and movies.
ON CAMPUS
Investments by SVOD platforms 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-form videos.
ON CAMPUS
Social media content and advertising revenues. Trends in the advertising market: digital pure-players, mobile, social, and programmatic advertising.
The advertising market and digital media in Italy.
Week 6
ON CAMPUS
What is the creator economy.
The professionalization of user-generated content and the investments in social media entertainment.
Content creators and monetization on platforms: YouTube, Instagram and TikTok
ON CAMPUS
AI and the creator economy. Virtual persons and social content.
Are chatbots a new type of media?
Week 7
ON CAMPUS
Video games as platforms. The case of live events in Fortnite. Conflicts over value appropriation: Fortnite vs Apple and Google.
Gaming video content as a component of social media entertainment. Focus on Twitch.
ON CAMPUS
Mapping social media platforms: comparing positioning, user experience, engagement, opportunities for creators and ESG dimensions.
Week 8
ON CAMPUS
The economics of digital news. From push to pull models, from editorial to algorithmic mediation: news production and distribution in digital ecosystems. Echo chamber risks and citizen journalism.
ON CAMPUS
AI-generated fake news and strategies for mitigation and regulation.
Week 9
ON CAMPUS
Sports and digital media. Cost sustainability and the globalization of sports media rights. Streaming and sports rights.
Generation Z and sport media consumption: new viewing practices, the predominance of short-form content and social media. E-sports. Experimentation with new digital formats.
ON CAMPUS
The ecological impact of digital ecosystems. Power demand, carbon footprint, and the consumption of raw materials.
Week 10
ON CAMPUS
Platforms and globalization. The crisis of national media systems, driven by the declining weight of broadcasting in media consumption and advertising markets.
Cultural hybridization and platform-based media consumption. YouTube as an exemplary case and its support to creative industries in India.
ON CAMPUS
The Korean Wave as a model for internationalization of creative industries. Technological basis and cultural innovation. K-pop and Korean television series.
Week 11
ON CAMPUS
American and Chinese platforms: an analysis of the alternative digital universe of China. The digital ecosystems of Alibaba, Baidu, ByteDance, and Tencent.
ON CAMPUS
TikTok: the reasons for its success in international markets.
Prospects for digital decoupling in the global media system.
Week 12
ON CAMPUS
Final presentation and discussion of group projects.
ON CAMPUS
Final presentation and discussion of group projects.