Media Company Case StudyMedia Company Case Study
Task 1 Understand the structure and
ownership of the media sector
Types of ownership:
private ownershipA company whose ownership is private. As a result, it does
not need to meet the strict Securities and Exchange
Commission filing requirements of public companies.
Private media ownership can result in better quality products
due to competition. The threat of losing market share to a
competitor forces firms to put forth their best products.
On the other hand, private ownership leads to media firms
placing profit above public interest. It can also lead to
cultural decay in that popular media can become
Types of ownership:
Public broadcasting includes radio, television and other
electronic media outlets whose primary mission is public
service. Public broadcasters receive funding from diverse
sources including license fees, individual contributions, public
financing and commercial financing.
•What are the advantages and disadvantages
of this type of ownership
Types of ownership:
An independent business is operated in an independent mode. It usually denotes privately held
firms in contrary to those public corporations, which have been owned with the help of allocation
of shares in the stock market. In majority of cases, the independent businesses usually take the
shape of sole proprietorship companies.
Sole proprietorship companies are those companies that have only one owner and the legal entity
of the company cannot be separated from the owner. The business is carried out in the name of
Being an owner of an independent business can be beneficial from many aspects. The independent
business owner has the option of beginning on a fresh note with absolute command over the
shape of the business and how it is going to be supervised. The independent business owner does
not have the necessity to enter into contractual responsibilities with the franchisees and also does
not have any legal requirements fixed by the earlier business owner.
An independent business owner has the opportunity to launch an innovative product or a product,
which is protected by copyright or patent or trademark and this can aid the independent business
owner to rule the market. The independent business owner may start the business in a fast or slow
tempo according to the financial resources, as well as the objectives of the business enterprise. No
necessity is there for a compulsory upfront investment. The independent business owner is also
free to select the place of business according to his choice, ascertain the commodities and service
that he is going to sell and make a decision regarding the workforce.
Types of ownership: conglomerate
• Describe it and give an example
• What are the advantages and disadvantages of this type of
A media conglomerate, media group or media
institution is a company that owns large numbers
of companies in various mass media such as
television, radio, publishing, movies, and the
Internet. Media conglomerates strive for policies
that facilitate their control of the markets around
Types of Companies:
Horizontal integration is the opposite to vertical
integration, where companies combine multiple stages
of production of a small number of production units
Allows for greater control of both prices and costs. Allows for increased
presence in foreign markets.
Increases possibilities for deeper product diversity.
Increases possibilities of anti-trust prosecution.
Potential collapse of organization due to sector downturn. Horizontal
integration, in effect, puts all the company's eggs in one basket.
Types of Companies:
Vertical integration is the process by which a media
institution - a media conglomerate - owns several
companies at different stages of production or the
Vertical integration is important for multi-national media
conglomerates because it enables them to squeeze out
competition from independent filmmakers who cannot
compete on the same level.
Cross Media convergence
My understanding of cross-media convergence is the way that
different products are produced and distributed on different
platforms. E.g. the Guardian used to be a purely paper-based
media product. Now it's produced and distributed on iPhone
and iPad apps, the website, etc. I'd say cross-media
convergence also applies to marketing strategies whereby
products are marketed using print, web, film, TV-based
it means that a media institution divides a
media product into other formats for
people to access, like, Walt Disney films
then divide into DVD formats, video
games, soundtracks, books, toys etc. to
make a profit.
Describe the Structure and of
Ownership of Either The Film, TV,
Gaming or Music Industry
My example is Harry Potter, a huge movie franchise, is a good example of how Warner
Bros. has used vertical integration in order to maximise the potential earnings from
Harry Potter and the Deathly Hallows: Part Two, was created by Warner Bros.
pictures, in association with Heyday Films.
It was then distributed by Warner Bros. Distribution.
The film was marketed using several of Time Warner's companies. For instance, HBO
ran a behind the scenes making of HP7 before its cinematic release. CNN, another
Time Warner company, was able to use its position as a news station with worldwide
reach to promote HP7 through its Larry King Special programme which interviewed
HP7 actors before the red carpet premiere.
Time magazine also ran special features on Harry Potter before and after the film was
released to not only ensure people went to watch it at the cinema but keep interest up
for DVD sales.
The company I have chosen is going to be Disney they are a
conglomerate global company who now run a series of TV subsidiaries
they run TV stations that do sport, kids, news and documentary
channels they also provide a music section where they have made
artists such as Miley Cyrus, Selena Gomez and Ariana Grande Walt
The Walt Disney Company, commonly known as Disney, is an American diversified
multinational mass media corporation headquartered at the Walt Disney Studios in
Burbank, California. It is the largest media conglomerate in the world in terms of revenue.
Disney was founded on October 16, 1923, by Walt Disney and Roy O. Disney as the
Disney Brothers Cartoon Studio, and established itself as a leader in the American
animation industry before diversifying into live-action film production, television, and
theme parks. The company also operated under the names Walt Disney Studio and Walt
Disney Productions. Taking on its current name in 1986, it expanded its existing
operations and also started divisions focused upon theatre, radio, music, publishing, and
online media. The company is best known for the products of its film studio, the Walt
Disney Studios, which is today one of the largest and best-known studios in Hollywood.
Disney also owns and operates the ABC broadcast television network; cable television
networks such as Disney Channel, ESPN, A+E Networks, and ABC Family publishing,
merchandising, and theatre divisions; and owns and licenses 14 theme parks around the
world. It also has a successful music division. Ownership
Disney Media Networks is the headquarters it’s horizontally integrated
with a variety of different TV companies. The Walt Disney Company
that contains the company's various television networks, cable
channels, associated production and distribution companies and owned
and operated television stations
Disney–ABC Television Group
ABC Television Network
ABC Family Worldwide
ABC Owned Television Stations Group
A+E Networks (50%)
Disney Channels Worldwide
Disney Television Animation
Walt Disney's main three competitors are
21st Century FOX, Time Warner and NBC
Universal Media. All of these are global
conglomerate companies these 4
companies control over 65% of the media
and TV’s market value
These companies don’t really have an
issue with distribution and production as
they all have there own production and
distribution lines so they never are
competing against each other. Competitors
Disney Channels Worldwide reaches more than 300 million
homes, with 95 entertainment channels and 35 different
languages, showing for families in 168 countries.
The Company launched Disney Channel in Russia, Greece
and Ukraine, and announced a joint venture to launch a
local language Disney Channel in South Korea
In 2010 the USA marked Disney Channel’s most watched
year on record in total day and total viewers, as well among
the key audiences of kids (6-11) and tweens
(9-14). Disney Channel also celebrated its eighth
consecutive year as television’s No. 1 network in
A few rumours were told about Walt
Disney, he was rumoured to be an Semitic
during his lifetime, and these rumours
persisted after his death. Animator Art
Babbitt claimed to have seen Disney and
his lawyer, (Gunther Lessing) attending
meetings of the German American Bund, a
However, the most recent scandal is about
Miley Cyrus and how she turned from
Disney star to an outrageous troublesome
teen. Many people claim this is to Disney
trying to steal her youth, but others