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The main key-content to know the difference between the two is about the source. People as media are the ones who gives out the information to a wider audience. Whereas, People in media are the ones who gives out the information, of whom they would give to people as media; and again, people as media are the ones who gives out the information to a wider audience.
Difference in example.
People as media relay the message to everyone as the messenger.
People in media give the messenger the message to relay to everyone.
Messenger can be a reporter, journalist, advertiser, etc.