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From the industry side, the part of the media culture often invisible to
us, matters of quality are secondary to economic and market concerns. There the questions
asked are: What will it cost to produce? Will it make money? Will it compete successfully
with other similar products? Grant and Wood offer us the benefit of their separate
experience in the cultural industries, and explain things as Sony, Time Warner, or CanWest
might see them.
b. the 640 chapter on “Curious Economics”
(i) the nature of the cultural commodity
The essential contradiction defining cultural commodities is two-fold: (i) they are unlike other
commodities in that we consume their “meaning”; (ii) they are bought and sold like any other
commodities. The problem that haunts the cultural commodity is that the dialectic between
cultural and economic (or market) considerations is increasingly favouring the economic.
Cultural commodities are consumed for their symbolic and meaningful content, and in this
sense might be regarded as “experience goods.” They are produced for personal aesthetic
reasons (a writer, artist, or filmmaker needs to express her or himself), and not always
because there is proven market demand; there thus tends to be an oversupply of cultural
commodities in the market.
(ii) the nature of the cultural production process
Cultural commodities have high “sunk costs.” That is, they typically require a large and non-
recoverable investment a无忧论文 【http://www.uklunwen.com】t the outset in the form of technical equipment, salaries for crew
and talent, marketing, etc. They also have low “marginal costs.” That is, once the sunk costs
are paid, the marginal cost (that is, the cost of producing one additional unit) decreases
radically. The cost of producing a single copy of a movie can involves millions of dollars; the
cost of additional copies of that print or the DVD made from it are very low.
(iii) the nature of consumption
Cultural commodities are “non-rival” goods (their use by one person does not limit its use by
another, e.g., you lend a friend a book you just read, or get it from the library). They are also
“not substitutable,” meaning that because each cultural good is unique (e.g., an Atwood
novel, a “Coldplay” CD), they cannot readily be substituted for one another.
The fact that cultural goods are unique in this sense is given legal recognition through
copyright. The unique nature of cultural goods means that demand for one is largely
independent of demand for others (the fact that you like Adam Sandler movies has no
bearing on the appeal of Clint Eastwood movies). Cultural goods are most attractive in the
societies in which they’re produced (e.g., Bollywood films in India as compared to their
appeal in North America); outside their cultural of origin, they suffer a “cultural discount” (i.e.,
they typically have less appeal outside their original context).
(iv) the predictability of demand
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