1. Explaining the structure
and ownership of the
media sector
Task 1 Understand the structure and ownership of the media sector.
P1, M1, D1

2. Types of ownership: private ownership
 Private ownership is a corporation owned by a single person
or a group of people such as Sky or ITV. With private
ownership they can choose what they want to show and not
show anything they don’t like. The disadvantage Is that
because it’s not publicly owned it has to use advertisements
for an income.

3. Types of ownership: public service
 Public service is a company like the BBC that is paid for by
the television tax, the public pays for the service so you don’t
have to by advertising. This is the best thing with public
service, you don’t need adverts to be played between yours
shows, though the down side is that you have to produce
something to suit everyone.

4. Types of ownership: multinational
 A multinational business is a business that works across
multiple countries, like the BBC works in America as well as
the united kingdom. Bigger the company, more profit the
company will gain, but if you spread out to big you could risk
wasting your money and making the company collapse.

5. Types of ownership: independent
 Independent business ownership refers to the privately held
organizations. An independent business is operated in an
independent mode, an independent ownership allows the
owner to do as wish, they don’t have a lot of money to as
you please, by creating something fails you don’t have the
money to back you up.

6. Types of ownership: conglomerate
 Conglomerate is two more companies combined together to make
one bigger company. Often, a conglomerate is a multi-industry
company. Conglomerates are often large and multinational. CBS is
a conglomerate which is a spinoff of viacom. The advantage is a
better access to capital markets, the disadvantage is is the Failure
in one business will drag down the rest.

7. Types of Companies:
Horizontal Integration
 Horizontal integration is where multiple companies are equal
to produce the same product. For example; X-Factor, the
companies SyCo, Sony and ITV work together by doing
different things to produce the same product. The advantage
is if your company is short of the knowledge to complete a
product, you could team up with another company to get the
product completed. Profit has to be shared, though so does
the loss and because you are all in it together, all the
companies have to agree on the same thing.

8. Types of Companies:
Vertical Integration
 Vertical Integration is where they are in control of their own
production and advertising and nobody else helps them. For
example, apple follows vertical integration as they make their
own hardware and software, they have their own shops, they
have everything they need to support their products. An
advantage would be if they win, they get all their profit none
of it being shared, if it was to fail you’d be the one to suffer
and just you.

9. Cross Media divergence
 Cross media divergence means where a product crosses
media sectors. Like for example the iPhone, that uses cross
media divergence as it has a camera, internet, video and
messaging. This is also an advantage for bands as they
won’t just be making money from their music, they would be
making money from their websites, their tours, their pictures
and everything else. Though the disadvantage is if the
product goes so does everything else, where as only one
thing would of broke if you had them separate.

10. Synergy
 All synergy means is that everybody wins, when multiple
company's work together to try and get the same goal which
is mutually beneficial to all of the companies. For example
Dell uses intel's processers, so they work together to get the
same goal so they both benefit from this.
 - No disadvantage