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MGTECON 328: Economics of the Media, Entertainment,and Communications SectorSyllabusWinter 2022Instructor InformationInstructorEmailOffice LocationAli Yurukogluayurukog@stanford.eduE318General InformationDescriptionMGTECON 328 is an elective centered on the media, entertainment, and communications sectors. We willexplore a variety of historical and current day topics from markets such as film, television, streaming, music,news, print, radio, wireless, broadband, gaming, sports, among others. We will combine industry institutionalknowledge with economic and statistical analysis.Course DeliverablesYour grade is based on class participation and preparedness (66%) and a group book report (34%). Before eachclass, there will be a set of discussions questions to answer and submit on Canvas concerning the readings forthat session. These must be submitted these by 9 am on the day of the class.The group book review/report is due by noon on the final day of the quarter. You will submit a preferenceranking from a list of suggested books and will be assigned a group accordingly.All provisions of the Stanford Honor Code apply.PrerequisitesThis course is taught at level that assumes some familiarity with microeconomics and statistics as taught in thefirst year MBA courses at Stanford. Some of the material will be review of concepts from those courses, andsome new lessons will build off of what you learned in those courses. I will not review the concepts in suchdetail that you can have a full understanding if this is your only exposure. Taking the course concurrently withmicroeconomics and D&D is allowed, and indeed could be stimulating, but might also be challenging at times.Course AssistantBharat Chandar: chandarb@stanford.eduPage 1
Guest Speakers (in chronological order) Erik Allebest (Founder and CEO, Chess.com) Jeremy Erlich (Global Head of Music, Spotify) Ryan Nakashima (Bay Area News group) Jeff Small (CEO, Amblin Partners) Jeff Bewkes (Former Chairman and CEO of Time Warner) Regina Breslin (Head of Content Distribution, Roku) Andrea Wong (Media and entertainment executive (ABC, Lifetime, Sony), Boards of Roblox, Liberty Media) Tina Perry (President, Oprah Winfrey Network)Course ScheduleThe course schedule and due dates for all assignments are available on Canvas.DateTopics1/7IntroductionBook selection1/11Consumer demand and willingness-to-payRead:(1) Read: The Welfare Effects of Social Media (Intro, sections I.A, IV.C,V.A): https://www.aeaweb.org/articles?id 10.1257/aer.20190658(2) Watch: Real Sports Video Game Addiction segment:https://www.youtube.com/watch?v Mee6QRN Vxs(3) Read: Paying Not to go the Gym (Read abstract only)https://www.aeaweb.org/articles?id 10.1257/aer.96.3.694(4) Read: Netflix Will Start Automatically Cancelling InactiveAccounts: ) Read: Something to Talk About: Social Spillovers in MovieConsumption (Intro, section III, and section .1086/688177(6) Read: “Best Seller Lists and Product Variety” (Intro, section IV(ii)through 111/j.1467Page 2
DateTopics6451.2007.00327.x(7) Read: “Platforms, Promotions and Product Discovery: Evidencefrom Spotify’s Playlists” (Intro, Section 4.2)https://www.nber.org/papers/w247131/14Effects of media and communications on social behaviorGuest: Erik AllebestRead:(1) Read: kmate-chess-business-suddenly-booming-n1249134(2) Read: Economic and Social Impacts of the Media (Conclusion andscan Table /pii/B978044463685000019X(3) Read: Soap Operas and Fertility: Evidence from Brazil (Intro up to“Our paper is related to two strands of literature).https://www.aeaweb.org/articles?id 10.1257/app.4.4.1(4) /myanmarfacebook.html(5) Read: Information Manipulation, Coordination, and RegimeChange by Chris Edmond (Intro up to “Section 2 outlines (6) Read: 3G Internet and Confidence in Government (Intro up to“The only other multicountry study ”)https://doi.org/10.1093/qje/qjaa0401/18Pricing and bundlingRead:(1) Read: vision-channels-be-offered-a-la-carte/(2) Read: “Viacom, Cablevision Settle Antitrust Lawsuit OverChannel Bundling” in The Hollywood Reporter q/cablevision-832684Page 3
DateTopics(3) -subscriptionbundle-bloomberg-media/(4) Read: city-fee11577878719163.html(5) re-doing-bundlingus/?sh 1f4927f84a32(6) Read (option A): 7) Read (option s-substackthe-media-future-we-want(8) Read: United States vs Lowe’s Inc, A Note on Block Booking (readp152-154) Content Negotiations and Vertical Integration(1) Read: boost-espn-growth-1500299241?st 7cw34p82xyo08qs(2) Read: m-regionalsports-programming/(3) Read: ga-merger1119584(4) Read: https://tv5.espn.com/blog/newyork/knicks/post/ ity(5) Read: dd.html(6) youtube-tvPage 4
DateTopicsdisney-espn-channel-fx-abc-restored(7) Read: ns-customers-of-dropping-comcast-channels/(8) Read (option A): csquestionable-economics/(9) Read (option -musicspotify-contract1/25Buying and selling advertisingMeasuring advertising effectivenessMeasuring distaste for advertising(1) Read: Generalizable and Robust Effects of TV Advertising (ReadIntroduction and Relevant ?abstract id 3273476(2) Read: Ghost Ads: Improving the Economics of Measuring OnlineAd Effectiveness(Read Introduction and Literature tract id 2620078(3) Read: Super Returns to Super Bowl 29-016-9179-0(read Introduction)(4) Read: Measuring Consumer Sensitivity to Audio Advertising: AField Experiment on Pandora Internet enerDemandCurve.pdf (Read Section 2 “Experimental Design” and Section 3“Results” up to 3.1 on p 10).(5) Read: Advertising Prices in Equilibrium: Theory and Evidence(Intro)https://web.stanford.edu/ ayurukog/adprices.pdf(6) /ageism-inadvertisingPage 5
DateTopics1/28Two sided markets and mixed revenue modelsNYT paywallGuest: Ryan Nakashima(1) Read: d(2) Listen: Recode Media Podcast with NYT CEO Mark dia?selected VMP9343897128(3) Read: platform-competition(4) Read: -sayingno-to-ads(5) Read: Guest: Jeremy Erlich(1) html(2) /revenuestreams(3) Read Spotify 2019 Annual Report: Item 4, Sections A and B (p 4045), Risks Related to Business (p 7-10), Operating Results (p 5051)https://s22.q4cdn.com/540910603/files/doc on-Form-20-F.pdf(4) Read: The Editor and the Algorithm (introduction cfm?abstract id 33999472/4Content creation and “Peak TV”Page 6
DateTopics(1) han-500-tv-shows/(2) Watch: https://www.youtube.com/watch?v 5pzCXATxNjA(3) Read: Free Entry and Social Inefficiency in Radio Broadcasting(Intro and conclusion): https://www.jstor.org/stable/2556055(4) Read: The "New York Times" and the Market for LocalNewspapers? (Intro)https://www.jstor.org/stable/30034376(5) Read: Twin Movies in The Independent encefoster-jenkins-a8431091.html(6) Listen or read: est: Jeff Bewkes(1) Read: LA Times: The Very Model of a Modern Media Manager (May16, 2003)(2) Read: ncable-spinoff/(3) Read: time-warner-ceo-legacy-att/index.html2/11Guest: Jeff Small(1) Reading via Canvas2/15The labor market for talent(1) Read: Technical Change and Superstar Effects: Evidence from theRollout of Television s Koenig.pdfPage 7
DateTopics(2) Read: it.html(3) Read: sssecrets.html(4) Read: ) /?sh 257fd32939832/18Guest speaker: Andrea Wong(1) Read: “The Bachelor and His Barbies: Love at 25th Sight” NYT,Nov 17, 2002(2) Read: ictures-television1201189304/(3) Read: bertymedia-been-good-for-f1/(4) Read: 11/roblox-ipo/2/22Antitrust 1: Horizontal mergers(1) Read: Killer Acquisitions (Intro up to “This finding is abstract id 3241707(2) edia/01pixar.html(3) Read: mon-schuster11635866422?st mb0amogfyvxhero&reflink desktopwebshare twitter(4) acebookPage 8
ior-attorneys-general(5) Read: facebookto-move-forw(6) (Option A, part 1) explainer-carriersantitrust(7) Read (Option A, part 2): ds/(8) Read (Option B, part 1): https://www.fcc.gov/transaction/attcomcast/comcast pickdeclaration.pdf(paragraphs 1-8)(9) Read (Option B, part t 2: Monopolization allegations in search and digital advertising(1) Read: DoJ Complaint US vs Google (Paragraphs 1-13, file/1328941/download(2) Read: rdgovernment-antitrust-lawsuit.html(3) Read: rdgovernment-antitrust-lawsuit.html(4) Read: -fair(5) Read (optional): Maintenance of Monopoly: US vs Microsoft(2001): 5/04/MaintenanceMonopoly08.pdf3/1Regulation and AuctionsPage 9
DateTopics(1) Listen: Planet Money Podcast on Reverse Spectrum acking-theperfect-auction(2) Read: competition-regulator-to-put-limits-on-big-tech(3) Read: t/(4) Read: Reserve Prices in Internet Advertising Auctions: A FieldExperiment (Intro, Section 5.2, Conclusion)https://web.stanford.edu/ ost/papers/rp.pdf(5) Read: From Mad Men to Maths Men tract id 3428421(6) (Optional) Read: came-a-monopoly(7) (Optional) Read: erer-and-nobel-laureate(8) (Optional) Read: How two-way cable will change your life (1973):https://books.google.com/books?id fkktZ45KH3UC&lpg PA57&ots qrTV-69hFM&pg PA57#v onepage&q&f false3/4Guest: Regina Breslin(1) Read: ndcomcast-deal-bundling-and-no-blackouts.html(1) Read: osemerger-spanish-language-media-1234923348/(2) Read: 4-howto/(3) Roku 2021 10K Report: Scan p14-p25 (Risks Related to Business),Read p66 (Statement of Operations)3/8News media and horizontal differentiationFox News effectPage 10
DateTopicsRead:(1) Read: Bias in Cable News (Intro)https://www.aeaweb.org/articles?id 10.1257/aer.20160812(2) Read: 263710/fox-news-presidential-vote-study(3) Read: Social Media, News Consumption, and Polarization:Evidence from a Field Experiment (Intro)https://levyroee.github.io/Papers/Social Media and Polarization.pdf(4) Read: ignificance and Abstract)(5) 62/rest a arization (Figure 1 onp18)(6) Read e-from-us-newspapers3/11Guest: Tina Perry(1) Readings via CanvasPage 11
Jeff Bewkes (Former Chairman and CEO of Time Warner) Regina Breslin (Head of Content Distribution, Roku) Andrea Wong (Media and entertainment executive (ABC, Lifetime, Sony), Boards of Roblox, Liberty Media) Tina Perry (President, Oprah Winfrey Network) Course Schedule
