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Task 1 ownership case study

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Task 1 ownership case study

  1. 1. Media Company Case StudyMedia Company Case Study Task 1 Understand the structure and ownership of the media sector Rose Bishay
  2. 2. 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 homogenized
  3. 3. Types of ownership: public service 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 •http:// en.wikipedia.org/wiki/Public_broadcasting
  4. 4. Types of ownership: independent 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 the owner. 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.
  5. 5. Types of ownership: conglomerate • Describe it and give an example • What are the advantages and disadvantages of this type of ownership • http://en.wikipedia.org/wiki/Media_conglomerate 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 the world.
  6. 6. Types of Companies: Horizontal Integration Horizontal integration is the opposite to vertical integration, where companies combine multiple stages of production of a small number of production units ADVANTAGES: Allows for greater control of both prices and costs. Allows for increased presence in foreign markets. Increases possibilities for deeper product diversity. DISADVANTAGES: 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.
  7. 7. Types of Companies: Vertical Integration Vertical integration is the process by which a media institution - a media conglomerate - owns several companies at different stages of production or the supply chain 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. http://www.examiner.com/article /vertical-integration-of-film- industry-threatens-independent- filmmakers
  8. 8. 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 platforms.
  9. 9. Synergy 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.
  10. 10. 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 productions. 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.
  11. 11. disney 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 Disney
  12. 12. Ownership 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
  13. 13. 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 Family ABC Owned Television Stations Group A+E Networks (50%) Disney Channels Worldwide Radio Disney Disney Television Animation
  14. 14. Competitors 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
  15. 15. Audience 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 primetime. Audience
  16. 16. 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 pro-Nazi organization. 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 disagree.
  17. 17. Bibliography www.imdb.com/name/nm000370/ www.disney.com www.thewaltdisneycompany.com/investos/annual_re ports/2010/kb_cable_story.html www.toxicmessiah.hubpages.com/hub/Walt-Disney- Secrets-Mistakes-And-Controversies www.justdisney.com/walt_disney/ Bibliography

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