Short answers, pulled from the story.
A niche market is a subset of the broader economy where specialized needs dictate survival. Unlike mass markets that chase volume, niche providers focus on narrow demographics to secure higher financial gain margins.
Hewlett-Packard maintains all-in-one machines for printing, scanning, and faxing specifically targeted for the home office niche. Simultaneously, the same company produces separate machines with single functions for big businesses to acknowledge that one size does not fit all.
A niche audience is an influential smaller audience that dictates the future of media while a mass audience represents a large number of people. Networks now target particular demographics such as Lifetime targeting women and MTV targeting youth to ensure their content reaches the right eyes.
Sports channels such as STAR Sports, ESPN, ESPN 2, ESPNU, STAR Cricket, FS1, FS2, and CBS Sports Network target the niche market of sports enthusiasts with surgical precision. These networks do not attempt to capture the entire population but instead focus on the specific desires of those who follow the game.
The final product quality is not dependent on the price elasticity of demand but the specific needs that the product is aimed to satisfy. Aspects of brand recognition including prestige, practicability, money saving, expensiveness, environmental conscience, or social status play a critical role.