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  1. 1. Task 1Understand thestructure andownership of themedia sector. P1,M1, D1EXPLAINING THESTRUCTURE ANDOWNERSHIP OF THEMEDIA SECTOR
  2. 2. A private ownership is where only one company or individual is in control.Rather than it being co-owned by companies or the public. An example ofthis is Apple because they do not collaborate with other companies aboutthe their product.Advantages of having a private ownership is that is rising then companygets 100% of the profit because they don’t have any contracts with othercompanies to share the profitsDisadvantage of a private company is that if the company takes a hit, it isonly them that does. Because they don’t have any backing they can notpick themselves up from their loss and could potentially go out ofbusiness.TYPES OF OWNERSHIP: PRIVATE OWNERSHIP
  3. 3. Public Service is where the company or a shared percent of the company(51%) is owned by the government or controlled percent of the public.Complete public ownership of a company is called “nationalization”Advantages of this is that all essential services are provided by thegovernment and you do not need to waste a percentage of the companiesmoney.Disadvantages of this is that the size of the organizations meansinefficient results and a you would lose a percentage of profits totaxpayer.TYPES OF OWNERSHIP: PUBLIC SERVICE
  4. 4. Multinational is where the company has operations subsiding in two ormore countries. Or the company has investments from two countries.Their a lot of advantages to multinational ownership. This is that theyincrease the investment level and thus the income and employment canbe used by the host country to make the company bigger. Also itdecreases the cost of production around the world.The disadvantage of a multinational ownership is that it will destroy thecompany and create a monopoly which is not good because the publicnever like when one organization control everything. This is because itdestroys our rights.TYPES OF OWNERSHIP: MULTINATIONAL
  5. 5. Independent ownership is a company that is owned by a privately heldorganization. These businesses are operated in independent mode.Independent ownership is usually have one sole owner of the company.The business is carried out in the name of the owner.The great advantage of the business is that the owner can shape thebusiness how ever he see’s fit.It is hard to get your business known because you do not have the powerof a public or private ownership to advertise your business.TYPES OF OWNERSHIP: INDEPENDENT
  6. 6. A conglomerate is corporation made up of a number of differentcompanies that work in the same field so they can boost the companyand get a bigger profit across all the companies.The advantage is that you have to share the profit but because there aremore companies working towards the same thing. So there is it is morelikely they will succeed and gain a large profit than if they were multiplecompanies.The disadvantage of a conglomerate is that because company is so largethey are delving deep into new area. So there is more chance of riskspreading.TYPES OF OWNERSHIP: CONGLOMERATE
  7. 7. Horizontal Integration is where a business adds outlets to chain to thecompany to enhance its competitiveness. A publisher might acquire apublishing house to keep a stable flow of editor and authors comingthough this increases the chance of these people seeing his business.A advantage and disadvantage is seen by regulators that horizontalintegration has an unfair advantage in the market and must regulated alot. This is an advantage because you could use it and increase yourbusiness. This can also be used against you by the competitors.TYPES OF COMPANIES:HORIZONTAL INTEGRATION
  8. 8. This is where one single company owns multiple businesses. This incombination control the production and selling the product. An example ofthis is that a Tv company, a radio show and a film producer can all use thesame product in their business.An advantage is that the experience and technology can overlap to givethe product a better chance in the market against over products.A disadvantage is that the economics will decrease because of thedifferent stages of production. So the business will not thrive as well asother companies.TYPES OF COMPANIES:VERTICAL INTEGRATION
  9. 9. Cross media divergence is when there is are a range of media platformsintegrated into a single piece of technology. The Xbox 360 is a example ofthis is because it is a gaming console but also has a DVD player and ainternet modem integrated inside of the console.A big advantage to this is that the consumer would see more for theirmoney and immediately want to buy it. Also this helps smaller companiessell their product. If the DVD company were selling really badly they couldintegrate there product into the Xbox and take a better share of theproduct because more units would be sold.CROSS MEDIA DIVERGENCE
  10. 10. Synergy is where the different sectors of corporation work together to getthe same goal. An example of this is Disney as all their movies, toys andtheme parks all work together to make profit to one big pot. Synergy“means the whole is greater than the sum of its parts”.The advantages to a synergy is that the profit is big depending on theamount of parts that are in the business. Also that each sector is differentso they are aiming at a big audience. This also means if one sector failsthen they have the money to back it up or cut it off. Finally operating asynergy is easier than other methods because you have more than oneperson running a certain sector so thee pressure is not on one person.SYNERGY
  11. 11. American Film IndustryThe American Industry was developed from 1890 to 1930. In this time period the industry developed into an important and popular medium. That areclearly set in the production and distribution elements. In the 1930’s the American film industry thrived because of enhances in technology, is wasknown as the studio era. A bad thing about the American industry is that it was controlled by five companies known as the majors or the Big five. TheAmerican Film Industry (The Big Five) are all vertically integrated because they overseer all of the production, marketing, distribution right through to theconsumer. This is a good thing because it allows them to keep trackof what is going on across the board and fix any problems that might behappening. It is also a bad thing because it is expensive to keep track ofthere business as it is so big. So they have to bring in more money to keepthe companies on top. There are now over 6 major film companies that runthe American film industry which are “Warner Bros Pictures, 20thCentury Fox,Paramount Pictures, Columbia Pictures, Walt Disney Pictures and finallyUniversal studios. The advantage of having so many different companies atthe top, is that if one company fails in that sector they have other companiesto back them up because they are al linked. The disadvantage is that you haveto share the profits across the boards to the other companies to keep this linkgoing.British Film IndustryThe British Film Industry is seen as a lot smaller compared to the American industry. When people see a film they mostly relate it with Americanproduction or Hollywood. The British Film Industry works onsmaller productions. Also supporting a first time writer work on a feature film script thathas great potential compared to the Hollywood productions using well known directors andscrip writers to get a clean and quality cut film. The advantage that British film industriesget from small productions is that they can look for talented film makers and makeprogress in developing the industry. Even if the film is not successful.DESCRIBE THE STRUCTURE AND OFOWNERSHIP OF EITHER THE FILM INDUSTRYOR MUSIC INDUSTRY