EXPLAINING THE   Task 1  STRUCTURE AND    Understand the                   structure and                   ownership of th...
TYPES OF OWNERSHIP: PRIVATE OWNERSHIPAn example of a private ownership company is Mars, which started in 1911and is now on...
TYPES OF OWNERSHIP: PUBLIC SERVICEBBC is a type of public owned company due to the fact we have to pay a TVlicense fee whi...
TYPES OF OWNERSHIP: MULTINATIONALMultinational ownership is where a company is owned by more than onecountry. Its usually ...
TYPES OF OWNERSHIP: INDEPENDENT An independent company is sometimes referred to as an indie. This is  where a company is ...
TYPES OF OWNERSHIP: CONGLOMERATEA conglomerate is a combination of two or more companys which fit underthe same roof. They...
TYPES OF COMPANIES:                        HORIZONTAL INTEGRATIONHorizontal Integration is where more than one company is ...
TYPES OF COMPANIES:                           VERTICAL INTEGRATIONVertical integration is where everything is done under o...
CROSS MEDIA DIVERGENCECross Media Divergence means where us as people can now access anytype of media they want from one t...
SYNERGYSynergy means when two different things such as two different companiescome together to make something. Synergy is ...
DESCRIBE THE STRUCTURE AND OF   OWNERSHIP OF EITHER THE FILM INDUSTRY            OR MUSIC INDUSTRYAmerican and UK film ind...
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Ownership

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Ownership

  1. 1. EXPLAINING THE Task 1 STRUCTURE AND Understand the structure and ownership of theOWNERSHIP OF THE media sector. P1, M1, D1 MEDIA SECTOR
  2. 2. TYPES OF OWNERSHIP: PRIVATE OWNERSHIPAn example of a private ownership company is Mars, which started in 1911and is now one of the largest manufactures is snack food and pet food. Theproducts that Mars own are M&Ms, Snickers, Milky Way, 3 Musketeers,Pedigree, Skittles, Starburst, Whiskas, Sheba and Uncle Bens foods. Eachone of these products are sold in over 100 countries and are very popular.Mars is the 3rd largest privately owned company in the United States. Thewhole company is owned by the Mars family and the mars family only thishas been the way for over 100 years. It employs 700,000 people and madea huge sum of $30 billion in 2010.
  3. 3. TYPES OF OWNERSHIP: PUBLIC SERVICEBBC is a type of public owned company due to the fact we have to pay a TVlicense fee which they goes towards the BBC and the show it makes. TheBBC’s main job is to educate, inform and entertain which is why they caterfor some many people and have so many different shows. As a public wehave a say what the BBC shows due to the fact if the BBC arent providingus with interesting and useful programs they arent doing theyre jobproperty and people will complain. If people don’t watch a certain showwhich the BBC are showing then they will get rid of the program because it’sa waste of time however we still have to pay for it. An advantage of publicservice is that you don’t loose out as an owner due to the fact the public arestill paying.
  4. 4. TYPES OF OWNERSHIP: MULTINATIONALMultinational ownership is where a company is owned by more than onecountry. Its usually a large company which sells goods in many countrys. Itcan also be referred to as a international corporation. An example of amultinational company is Canon INC. Canon was originally in Japan Tokyobut then grew as a company and now as Cannon USA, Canon UK and itsmain stock exchange is in NY. Canon is also owned by countries in Europeand is still one of the biggest electric good companies in the world.An advantage of being a multinational company is that it allows youbusiness to grow and then for you as a company to gain more money.However a disadvantage is that the profit you earn as a company will alsohave to be shared amongst the other countries that own part of yourcompany.
  5. 5. TYPES OF OWNERSHIP: INDEPENDENT An independent company is sometimes referred to as an indie. This is where a company is independently owned which is very common among new and up coming bands. An example on a independent record label is Blast first and caters for alternative music style bands who have a specific audience. A major disadvantage with being a independent label is that not many people know who you are and its hard to make money which you need to order to promote your band.
  6. 6. TYPES OF OWNERSHIP: CONGLOMERATEA conglomerate is a combination of two or more companys which fit underthe same roof. They are usually very large companies that andinternational. An example Louis Vuitton which is a international clothesband who are know for targeting the up market clientele. They own a widerange of makes from Marc Jacobs to Emilio Pucci. By owning a wide rangeof companys allows them to intake more money.
  7. 7. TYPES OF COMPANIES: HORIZONTAL INTEGRATIONHorizontal Integration is where more than one company is involved in the making process. An example ofhorizontal integration is Xfactor. Xfactor is owned by Simon Cowell who owns his own record label called sycowhich groups are signed to if they win the xfactor. Syco is a subsidiary of Sony which is major company.Simon Cowell also makes Sony record artist who have already been signed to the record label come andpreform on the xfactor. This gains more money for Sony and Simon Cowell.An advantage of horizontal integration is that if something goes wrong then more and one company faces theconsequences.Another advantage is that it makes the product or company more diverse because more people are involved.A disadvantage is that you may not trust part of the company and therefore you may not have goodcommunication skills.Another disadvantage is that if one part of the company falls then ever other part of production has to stopand wait for that part of the company to get its self back on track.
  8. 8. TYPES OF COMPANIES: VERTICAL INTEGRATIONVertical integration is where everything is done under one roof, where every aspect of the company is doneunder one roof. An example of this is Apple who build all their own stuff from the hardware to the iPhone,iMac, iPod, iPad. They also own all the programmes which you find on these items such as iTunes. iTunesallows you to buy and download music you wish to listen to this once again gains Apple more money due tothe fact they don’t need to pay any other software designer any money because it was all done by Apple.Apple also have an app store where you can purchase games which you can pay for or get for free.-An advantage with Apple is that they gain all the profit due to the fact they don’t need to pay any othercompany.-Another advantage is that they also have more control over everything that’s being done with nocommunication lost.-A disadvantage of vertical integration is that if something goes wrong within Apple with part of theresoftware then that’s Apples fault and they have to pay out due to the fact there the only company involved.-Another disadvantage with vertical integrations is that if you’re a small company they you need someone tofund you due to the fact youll need a warehouse to get started. You will also loose skill because you needpeople who specalise in a certain area.
  9. 9. CROSS MEDIA DIVERGENCECross Media Divergence means where us as people can now access anytype of media they want from one type of device such as mobile phones. Ifyou have a smart phone you can now download apps from you dailynewspaper to a navigation system if you get lost. This is a great advantagefor people who don’t like to carry heavy bags around. This saves a lot of timeand effort for some people. A great example of a smart phone is iPhone dueto the fact they have a app which caters for everything . An advantage ofcross media divergence is that is easy to carry around and everythings inone item which allows you to spend less time worrying about where stuff is.
  10. 10. SYNERGYSynergy means when two different things such as two different companiescome together to make something. Synergy is Greek for ‘working together’.Disney is a type of synergy due to the fact Disney have areas of work in allkinds or media related subjects. For example Disney make films which Kidswill want to watch. Children then can watch these films and programmes onDisney channel which caters for anything Disney. From there merchandisecan be made such as Mickey Mouse toys and so on which people can buyfrom the Disney store. If children buy stuff from the Disney store they mayalso want to visit Disney Paris/Florida which also makes Disney profit. Fromall the films made people have been inspired and made musicals such asthe Lion King and made Ice shows such as High School Musical on Ice.
  11. 11. DESCRIBE THE STRUCTURE AND OF OWNERSHIP OF EITHER THE FILM INDUSTRY OR MUSIC INDUSTRYAmerican and UK film industrys are very different from one another. If we take a look at American film industry we can see that moreAmerican film companies get their films into cinemas then English film companies do. An example of an American film company is 20thCentury Fox which has produced many big budget films such as X-men, The Simpsons and family guy. 20th century fox is a example ofvertical integration due to the fact Greater New York Film Rental and Fox were both merged together and made in 20th century fox. Boththe originally companies were both owned by William Fox. It is now one of the biggest film companies in America.Film4 Productions is a British film production company and has made films such as The inbetweeners movie which is a very successfulfilm. Film4 productions is an independent company which means its works mainly on its own however many of its films are also made andfunded by a second company such as Shaun of the dead which was also made by Big Talk Productions, Working Title Films, StudioCanal,Universal Studios and Rogue Pictures and Big talk productions. Film4 production films are usually funded by many other independentcompanies due to the fact they all cant afford to fund the film by themselves.If we compare American films to English films we can see many differences such as X-man included a lot of CGI and had a budget of$75,000,000 which is a huge sum of money however the inbetweeners movie only had a budget off £3.5 million which is massivedifference from X-men. Both films are very different from one another along with many other British films made which don’t tend to havevery big budgets and don’t tend to include a lot of CGI and special effects. However as a total sum X-men made a staggering$296,339,527 which is a very big profit and the Inbetweeners movie made £55 million which is a lot of money for a British film.Many of American film production company’s own smaller companies such as 20th century fox owns Fox Searchlight Pictures Fox Atomic,Fox Interactive, 20th Century Fox Home Entertainment, Fox Television Studios, Blue Sky Studios, 20th Television/20th Century FoxTelevision and Fox Star Studios. This is a massive company which we don’t tend to have in British cinema. Film4 productions howeverdose not own any other companies.

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