1. EXPLAINING THE Task 1
STRUCTURE AND Understand the
structure and
ownership of the
OWNERSHIP OF THE media sector. P1,
M1, D1
MEDIA SECTOR

2. TYPES OF OWNERSHIP: PRIVATE OWNERSHIP
An example of a private ownership company is Mars, which started in 1911
and is now one of the largest manufactures is snack food and pet food. The
products that Mars own are M&M's, Snickers, Milky Way, 3 Musketeers,
Pedigree, Skittles, Starburst, Whiskas, Sheba and Uncle Ben's foods. Each
one 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. The
whole company is owned by the Mars family and the mars family only this
has been the way for over 100 years. It employs 700,000 people and made
a huge sum of $30 billion in 2010.

3. TYPES OF OWNERSHIP: PUBLIC SERVICE
BBC is a type of public owned company due to the fact we have to pay a TV
license fee which they goes towards the BBC and the show it makes. The
BBC’s main job is to educate, inform and entertain which is why they cater
for some many people and have so many different shows. As a public we
have a say what the BBC shows due to the fact if the BBC aren't providing
us with interesting and useful programs they aren't doing they're job
property and people will complain. If people don’t watch a certain show
which the BBC are showing then they will get rid of the program because it’s
a waste of time however we still have to pay for it. An advantage of public
service is that you don’t loose out as an owner due to the fact the public are
still paying.

4. TYPES OF OWNERSHIP: MULTINATIONAL
Multinational ownership is where a company is owned by more than one
country. Its usually a large company which sells goods in many country's. It
can also be referred to as a international corporation. An example of a
multinational company is Canon INC. Canon was originally in Japan Tokyo
but then grew as a company and now as Cannon USA, Canon UK and its
main stock exchange is in NY. Canon is also owned by countries in Europe
and is still one of the biggest electric good companies in the world.
An advantage of being a multinational company is that it allows you
business 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 also
have to be shared amongst the other countries that own part of your
company.

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. TYPES OF OWNERSHIP: CONGLOMERATE
A conglomerate is a combination of two or more company's which fit under
the same roof. They are usually very large companies that and
international. An example Louis Vuitton which is a international clothes
band who are know for targeting the up market clientele. They own a wide
range of makes from Marc Jacobs to Emilio Pucci. By owning a wide range
of company's allows them to intake more money.

7. TYPES OF COMPANIES:
HORIZONTAL INTEGRATION
Horizontal Integration is where more than one company is involved in the making process. An example of
horizontal integration is Xfactor. Xfactor is owned by Simon Cowell who owns his own record label called syco
which 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 and
preform 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 the
consequences.
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 good
communication skills.
Another disadvantage is that if one part of the company falls then ever other part of production has to stop
and wait for that part of the company to get its self back on track.

8. TYPES OF COMPANIES:
VERTICAL INTEGRATION
Vertical integration is where everything is done under one roof, where every aspect of the company is done
under 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. iTunes
allows you to buy and download music you wish to listen to this once again gains Apple more money due to
the 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 other
company.
-Another advantage is that they also have more control over everything that’s being done with no
communication lost.
-A disadvantage of vertical integration is that if something goes wrong within Apple with part of there
software 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 to
fund you due to the fact you'll need a warehouse to get started. You will also loose skill because you need
people who specalise in a certain area.

9. CROSS MEDIA DIVERGENCE
Cross Media Divergence means where us as people can now access any
type of media they want from one type of device such as mobile phones. If
you have a smart phone you can now download apps from you daily
newspaper to a navigation system if you get lost. This is a great advantage
for people who don’t like to carry heavy bags around. This saves a lot of time
and effort for some people. A great example of a smart phone is iPhone due
to the fact they have a app which caters for everything . An advantage of
cross media divergence is that is easy to carry around and everything's in
one item which allows you to spend less time worrying about where stuff is.

10. SYNERGY
Synergy means when two different things such as two different companies
come 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 all
kinds or media related subjects. For example Disney make films which Kids
will want to watch. Children then can watch these films and programmes on
Disney channel which caters for anything Disney. From there merchandise
can be made such as Mickey Mouse toys and so on which people can buy
from the Disney store. If children buy stuff from the Disney store they may
also want to visit Disney Paris/Florida which also makes Disney profit. From
all the films made people have been inspired and made musicals such as
the Lion King and made Ice shows such as High School Musical on Ice.

11. DESCRIBE THE STRUCTURE AND OF
OWNERSHIP OF EITHER THE FILM INDUSTRY
OR MUSIC INDUSTRY
American and UK film industry's are very different from one another. If we take a look at American film industry we can see that more
American film companies get their films into cinemas then English film companies do. An example of an American film company is 20th
Century Fox which has produced many big budget films such as X-men, The Simpsons and family guy. 20th century fox is a example of
vertical integration due to the fact Greater New York Film Rental and Fox were both merged together and made in 20th century fox. Both
the 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 successful
film. Film4 productions is an independent company which means its works mainly on its own however many of its films are also made and
funded 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 independent
companies 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 massive
difference from X-men. Both films are very different from one another along with many other British films made which don’t tend to have
very 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 Fox
Television and Fox Star Studios. This is a massive company which we don’t tend to have in British cinema. Film4 productions however
dose not own any other companies.