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Ownership

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  • 1. By DenniHepburnEXPLAINING THESTRUCTURE ANDOWNERSHIP OF THEMEDIA SECTOR
  • 2. Private Ownership such as, MTV and Sky Sports own their own channel, thismeans that they don’t rely on the public or another company to work with.The advantages to this is that they can put whatever they want on TV andthey gain all the profits with out sharing. The disadvantages are that if thecompany makes no profits, it will be the one company in debt. This can be avery large problem when being a private owner.TYPES OF OWNERSHIP: PRIVATE OWNERSHIP
  • 3. Public Service is the opposite to private ownership. Public service such as,the BBC, work with another company, in this case, the public. The public payfor the BBC to keep going through Tax. The advantages are that there are noadverts and there are many channels that suit different demographicswhich means there is something for everyone. The disadvantages are thatthe public could stop paying for the BBC to air.TYPES OF OWNERSHIP: PUBLIC SERVICE
  • 4. Multinational means that a company such as Sky or Virgin, serve more thanone nation. Virgin, for example, are in England and America. This is a goodidea because they can serve a wider audience and this way they can makemore money, also, meaning they will be more well known. The down falls arethat if the company struggles, it will be known by more than one nation,leaving them with a bad name and with no profits.TYPES OF OWNERSHIP: MULTINATIONAL
  • 5. This is where a company doesn’t work with any other companies. It workson it’s own and is not joined with any other company, For example Apple.They work independently.The advantage to this is that they get all the profit from their products,however, the disadvantage to this is that they if they don’t do well they haveno fall back option from other companies.INDEPENDENT
  • 6. This is where a company owns other companies in different types of mediasectors. Such as, television, radio and publishing.The advantages to this is that they can make profit from across all mediasectors.The disadvantages to this is that it has the risk of having no control becauseit’s such a big company.CONGLOMERATE
  • 7. Horizontal companies such as, Simon Cowell, he works along with ITV. Theywork together, rather than Simon Cowell working for him or IVT working forSimon Cowell. This helps them brand their company, making their companystronger.The advantage to this is that if they don’t do as well as they thought, itwouldn’t affect them as much as a company working on their own.The disadvantage is that they have to share the money between the twocompanies.HORIZONTAL INTEGRATION
  • 8. Companies such as Apple are a Vertical company. They are a company thatwork on their own and produce more than one kind of product. Someonecould have an AppleMac, IPod, IPhone and an IPad. This is an advantagebecause the company don’t have to share the profits. Also, they havecontrol in what is sold and what they make. The disadvantage is that if thecompany stops making money, they won’t be able to share their debt.TYPES OF COMPANIES:VERTICAL INTEGRATION
  • 9. This is when there is a range of media platforms integrated into single pieceof technology. Things such as the PS3, it can also be a blue-ray player. It hastwo uses.The advantage to this is that their audience will see that they are gettingmore than just a game console. This will help increase their selling rates.However the disadvantage is that if they focus on two things their focus onthe main thing, the game console, may not be as good as is could be.CROSS MEDIA DIVERGENCE
  • 10. Synergy is when a company promotes and sales a product. For example, theSpider man films have brought out games and toys to constantly advertisethe film and the characters. This has found to help film sales. Theadvantages are that the film is constantly advertised and will hopefullyincreases film sales. People such as, Walt Disney was the founder of this inthe 1930’s, he let adverts use Mickey Mouse and use him in products too.SYNERGY
  • 11. If looking at the film industry compare the American and UK industry.Explain what types of companies they are (horizontal or vertical) Explainthe benefits / weaknesses of thisIf looking at the music industry look at companies from the “big three” toan independent as well as subsidiaries.Look at who is involved and how it is structuredThis site might help… http://www.planetoftunes.com/industry/industry_structure.htmAim to do 500 wordsDESCRIBE THE STRUCTURE AND OFOWNERSHIP OF EITHER THE FILM INDUSTRYOR MUSIC INDUSTRY

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