1. Direct payment is the type of payment used by a consumer in order to get a product or a service. It is a one-time (or ongoing) payment, which goes directly from the consumer to the actual payee, without any third parties. Examples: buying a movie/concert ticket, newspaper, magazine, book, or video game, paying for cable/satellite television or a cellphone, downloading a music file, getting a subscription for magazines, journals, and newspapers.In indirect payments, a third party is involved and a consumer doesn’t actually pay for a media product. There can be print or online indirect payments.
In the case of indirect payments, other companies (usually advertisers) pay for all or a part of a product/service in order to reach out to the customer by putting advertising in a publication or through online content (like broadcasts). It results in the fact that not the consumer but the advertiser becomes the media company’s client. Examples: Ad placements in newspapers and magazines, ads during streaming the online music, ads on YouTube.The biggest difference between these payments is that the customer doesn’t make the actual payment using the media product with indirect payments. a 2. Monopoly is an exclusive control granted by a government over a commodity or service where one producer (or several producers working together) controls supply and where the entry of new producers is impossible or restricted.
Examples: ComEd, Google, GasPeople, the company that makes the money (coins and bills) for the United States, production of operating systems by Microsoft. Oligopoly is a market situation with a handful of independent suppliers (usually a few (around 6) and not working together) controlling the supply and the price, creating a seller’s market. Those producers offer similar products and heavily rely on advertising and promotion in order to attract more customers. Examples: cellphone companies (T-Mobile, AT&T, Verizon, Sprint), airlines (United, American, Southwest, Spirit, Virgin), banking (Chase, Bank of America, Wells Fargo, Citi), petroleum (Shell, British Petroleum), automotive (Chevrolet, Dodge, Toyota), pharmaceuticals (CVS, Walgreens).Limited Competition is a market situation with many companies and sellers, but few products to sell.
Examples: the market of cereals (Apple Jacks, Froot Loops, Lucky Charms), the restaurant business, hotels, pubs, hairdressing. Oligopoly and Limited competition both represent an imperfect competition on the market unlike the monopoly, which is an example of a perfect competition. With imperfect competition, producers or consumers may have some control over market prices. With perfect competition, producers and consumers don’t have any control over the prices.
Oligopoly includes a few large firms and limited competition, on the contrary, contains a large number of small firms. Although monopoly is considered to be illegal in any country (because one company has exclusive control over a commodity or service in a market and can regulate the price over it), not every monopoly is illegal; for example, some companies produce such a superior product or they are so well-managed that they can win over their competitors while not violating any laws. Monopoly is strictly controlled by the government in order to protect the consumers from the unexpected price changes (if monopolies were not controlled, they would have raised the prices to the highest, knowing that people would still buy their products, as there were no other substitutes on the market).