Saudi Electronic University

ECOM-101

E-commerce 2013, 9e

Chapter 10 Online Content and Media

1)The publishing and entertainment industries make up the largest share of the commercial content marketplace.

2. The average American still spends more time watching television than using the Internet.

3. The impact of the Internet on media appears to be decreasing the total demand for media.

4. Internet users consume more media of all types than non-Internet users.

5. Today, the Internet generates over 25 percent of total media revenues.

6. The a la carte revenue model allows users to pay only for what they use.

7. Videos are the fastest growing form of paid content.

8. Amazon uses a kind of DRM called a "walled garden" to protect online music that it sells.

9. Smartphones are an example of technological convergence.

10. Online readership of newspapers is declining by more than 10% a year.

11. Cannibalization is a major challenge facing book publishers.

12. In the wholesale model of e-book distribution, pricing power is with the retailer.

13. By 2015, online video is expected to surpass music as the largest form of online revenue in terms of revenue.

14. The entertainment industry is generally considered to be composed of five players: television, Hollywood films, music, radio, and video games.

15. In 2011, online movie viewing doubled.

16. Which of the following is not a current trend in online content?
    1. Sales of music in digital form produce more revenue than sales of physical units.
    2. Readership of newspapers in print form continues to exceed online readership.
    3. Consumers increasingly accept the notion of paying for premium content.
    4. Console game sales stagnate in comparison to online gaming.

17. Which of the following most accurately reflects media consumption by the average American adult?
    1. The average American adult spends the most hours listening to the radio, followed by watching television, and using the Internet.
    2. The average American adult spends the most hours watching television, followed by listening to the radio, and using the Internet.
    3. The average American adult spends the most hours watching television, followed by using the Internet, and listening to the radio.
    4. The average American adult spends the most hours using the Internet, followed by watching television, and using the radio.

18. Which of the following type of online content does the highest percentage of Internet users purchase or view online?
    1. newspapers
    2. radio
    3. games
    4. music

19. Which of the following three forms of media account for over 75 percent of the hours spent consuming media?
    1. television, radio, and the Internet
    2. television, magazines, and the Internet
    3. the Internet, radio, and newspapers
    4. television, the Internet, and newspapers

20. In comparison to hours spent at work, the average American adult spends                              

consuming various media.

1. 1. a quarter as much time
   2. a third as much time
   3. an equivalent amount of time
   4. twice as much time

21. Which of the following generates the largest share of media revenues?
    1. video games
    2. television
    3. newspapers
    4. radio

22. Which of the following is the fastest growing segment of media revenues?
    1. television
    2. home video
    3. Internet
    4. newspapers

23. In 2012, total paid online content was estimated to be:
    1. 112 million.
    2. 1.12 billion.
    3. 11.2 billion.
    4. 112 billion.

24. All of the the following are examples of media convergence except:
    1. iPad.
    2. Amazon Books Publishing.
    3. Google TV.
    4. cell phones.

25. All of the following are aspects of content convergence except:
    1. language.
    2. design.
    3. production.
    4. distribution.

26. Which of the following occurs first in the process of media convergence?
    1. media integration
    2. media migration
    3. media transformation
    4. media maturity

27. Which of the following together comprised the largest component of online paid content in 2012?
    1. online games and online TV
    2. online music and online games
    3. online music and online video
    4. online video and online games

28. Which of the following is the fastest growing paid content area?
    1. online radio
    2. online games
    3. online music
    4. online video

29. All of the following statements about the online video audience are true except:
    1. Major television events tend to draw higher viewership than online videos.
    2. The online video audience is around 180 million monthly unique viewers.
    3. Google sites draws the highest number of monthly unique viewers of online video.
    4. The overall size of the online video audience is much smaller than the traditional television audience.

30. Which of the following was the most troubled segment of the publishing industry in 2012?
    1. books
    2. magazines
    3. newspapers
    4. periodicals

31. All of the following are true about the newspaper industry except:
    1. Newspaper management has been sluggish to respond to the opportunities on the Internet for news.
    2. Online readership of newspapers is declining.

1. 3. Newspaper management has failed to protect content from being distributed for free by aggregators.
   4. Offline readership of newspapers is declining.

32. Which of the following online newspaper sites or groups attracts the highest number of monthly unique visitors?
    1. USA Today
    2. Hearst Newspapers
    3. Wall Street Journal Online
    4. The New York Times Brand

33. All of the following charge for access to some or all its online content except:
    1. The Wall Street Journal.
    2. The New York Times.
    3. The Financial Times.
    4. Google News.

34. Which of the following is not one of the factors required to charge for online content?
    1. multiple delivery methods
    2. focused market
    3. specialized content
    4. high perceived net value

35. Which of the following is not a major contributing factor to net value?
    1. providing instantaneous, online access to information
    2. providing large, searchable historical archives
    3. enabling consumers to move online information to other documents easily
    4. offering variety of subscription models

36. What percentage of the Internet population in the United States read magazines online?
    1. almost one-quarter
    2. almost one-third
    3. almost one-half
    4. almost three-quarters

37. In 2012, digital magazine circulation:
    1. decreased by half.
    2. remained flat.
    3. doubled.
    4. tripled.

38. All of the following typically favor the elimination of DRM except:
    1. hackers.
    2. technology companies.
    3. content owners.
    4. telecommunications pipeline companies.

39. DRM refers to a combination of                             for protecting digital content.
    1. hardware and software methods
    2. technical and legal means
    3. user and publisher agreements
    4. local and remote policies

40. There are approximately                          online newspapers in the world. A) 1,000

B) 10,000

C) 25,000

D) 50,000

41. Around how many page views do online newspapers generate in a typical month?
    1. 41 million
    2. 410 million
    3. 4.1 billion
    4. 41 billion

42. Which of the following best describes the online newspaper industry's revenue model?
    1. mostly successful implementation of the subscription-fee model
    2. struggling to successfully implement a fee-based model
    3. abandonment of the subscription-fee model and return to free model
    4. mix of revenues from classified ad sales and subscription fees

43. Which of the following statements about the online newspaper audience is not true?
    1. The people who read newspapers online tend to be older than those who visit YouTube.
    2. The online newspaper audience is highly engaged.
    3. The people who read newspapers online tend to be less educated than those who visit YouTube.
    4. Online newspapers reach over 75% of individuals in households earning more than

$100,000 a year.

44. Who was the first major fiction writer to create an e-book-only volume of a new work?
    1. Mary Higgins Clark
    2. Stephen King
    3. Dan Brown
    4. Anne Rice

45. In 2012, Amazon's e-book and media store contained around how many book titles?
    1. about 10,000
    2. about 100,000
    3. about 1 million
    4. about 10 million

46. Which of the following is the earliest precursor to today's e-books and e-book readers?
    1. Apple iPod
    2. Project Gutenberg
    3. Franklin Reader
    4. Voyager Company's multimedia CDs

47. As of 2012, around how many Kindles of all types have been sold in the United States?
    1. 8 million
    2. 80 million
    3. 800 million
    4. 8 billion

48. E-book revenues in 2012 were approximately                            .
    1. $42 million
    2. $420 million
    3. $4.2 billion
    4. $42 billion

49. Which of the following is used by the highest percentage of people to read e-books?
    1. PC
    2. e-reader such as a Kindle or Nook
    3. cell phone
    4. tablet computer

50. In 2012, around what percentage of Americans had read an e-book?
    1. 5%

B) 15%

C) 20%

D) 30%

51. Which of the following statements about the wholesale and agency models for selling books is not true?
    1. In the wholesale model, the retailer decides at what price to sell a book to the consumer.
    2. Amazon surprised traditional publishers by selling e-books for below their wholesale cost.
    3. The Justice Department sued Amazon for engaging in predatory pricing.
    4. The agency model was developed in response to Amazon's pricing strategies.

52. Zinio is an example of which of the following?
    1. interactive book developer
    2. magazine aggregator
    3. e-reader platform
    4. vanity press

53. All of the following are subscription services except:
    1. Pandora.
    2. Spotify.
    3. iTunes.
    4. Rhapsody.

54. All of the following statements about the movie industry are true except:
    1. Over 60 million Americans were expected to watch movies online in 2012.
    2. In 2012, consumers were expected to view more and pay more for Web-based movie downloads, rentals, and streams than for DVDs or related physical products.
    3. Online movie viewing is growing faster than all video viewing.
    4. Internet and online distribution now make up the largest share of movie revenues.

55. Which of the following is not a leading factor in changing the television industry?
    1. increasing broadband penetration
    2. development of the mobile platform
    3. a willing industry
    4. inability to attract customers to traditional products

56. All of the following statements about television and premium are true except:
    1. The current transition to Internet delivery of television is leading to a decline in traditional television viewing.
    2. Television is the largest content provider in the United States.
    3. The largest online video distributor is Apple's iTunes.

1. 4. Over-the-top entertainment services are a threat to cable television distributors.

57. All of the following are reasons why the movie industry is likely to be less disrupted by the Internet than the music industry except:
    1. Movies are more difficult to move around the Web without detection.
    2. Movies typically have far larger file sizes than music tracks.
    3. The movie industry is a concentrated oligopoly.
    4. There are fewer firms competing for distribution rights.

58. In 2012, approximately how much were consumers expected to spend on digital music?
    1. $36 million
    2. $360 million
    3. $3.6 billion
    4. $36 billion

59. Which of the following is the largest producer of revenues in the entertainment industry?
    1. radio
    2. television
    3. films
    4. video games

60. Which of the following forms of online entertainment is expected to generate the most revenue in 2015?
    1. online video
    2. online games
    3. online music downloads
    4. Internet radio

61. In 2012, which of the following forms of online entertainment produced the least amount of revenue?
    1. online music downloads
    2. online video
    3. online TV
    4. Internet radio

62. In 2012, which of the following comprised the largest segment of the online gaming audience?
    1. social gamers
    2. mobile gamers
    3. casual gamers
    4. console gamers

63. Music download networks offer:
    1. high user control and high user focus.
    2. high user control and low user focus.
    3. low user control and high user focus.
    4. low user control and low user focus.

64. Traditional media programming offers:
    1. high user control and high user focus.
    2. high user control and low user focus.
    3. low user control and high user focus.
    4. low user control and low user focus.

65. Which of the following is the fastest growing online gaming audience?
    1. casual gamers
    2. mobile gamers
    3. social gamers
    4. console gamers

66. Google                         is Google's version of Apple's iTunes store.

67.                        describes the development of hybrid devices that can combine the functionality of two or more existing media platforms into a single device.

68. Content convergence describes convergence in the design, production, and                              of content.

69.                        convergence involves the merger of media enterprises into synergistic combinations that can create and cross-market content on different platforms.

70. Zynga relies primarily on the sale of                             .

71. YouTube's entrance into the content production business is an example of                              .

72. A business model that uses advertising revenue to provide some content for free, combined with an option to obtain additional content for a price is called a(n)                                                                        model.

73.                        refers to that portion of perceived customer value that can be attributed to the fact that content is available on the Internet.

74. In                       , sales of new digital products replace sales of traditional products.

75. Amazon's                         is not just an e-book reader but also a media and entertainment portable device.

76.                        refers to the use of the Internet to deliver entertainment services to the home on cable TV or FIOS networks.

77. In the                        model for e-books, prices are set by the publisher/manufacturer.

78. Apple is an example of a(n)                            model in the entertainment industry value chain.

79. An example of                          is a song downloaded from Rhapsody that expires, or cannot be played, if your monthly subscription fee is not paid.

80. Spotify is an example of a(n)                            music service.