2. Independent Companies
An independent company is an company that works on their own; they make decision on their
own and are free of influence by government or corporate interests. Independent
companies are different to subsidiaries as Independent companies are not owned by any
conglomerate. Compared to major companies, independent companies are not well
known, normally major companies would have high budget films and the best editing and
special effects.
Advantages
Disadvantages
- All the money an independent company makes, company
keeps it as their own profit.
- Difficult to survive against competition; larger companies
that are well known.
- The company has full control on everything they do.
- Competition can lead to bankruptcy
Independent ownership is a company that is owned by a privately held organisation. The
ownership is usually has one sole owner of the company who own everything. The owner
is personally liable for the debts and may have to pay for losses made by the business out of
their own pocket.
3. Global Companies
A global company is an world wide diverse company, that has products all over the world and the company
operates in more than one country. Global companies also own many different smaller companies that
operate in different markets.
Examples film companies owned by Global companies; Columbia Picture Industries, Inc.
Sony Pictures Entertainment is an example of a global company. Sony Pictures Entertainment owns Columbia
Pictures Industries, Inc. which a is one of the leading film studios in the world, a member of the socalled Big Six one of the major film companies. As well as Sony Pictures Entertainment owning Columbia
Pictures, they also own three record labels Columbia Records, Epic Records and RCA Records. Sony
Pictures Entertainment also own Sony Online Entertainment which is a video game developer and a video
game publisher.
The advantages and disadvantages for a film company of being owned by a Global company.
Advantages
Disadvantages
- Global companies already have
a reputation and is well known.
- Profits made will have to be
distributed, the owner can not
keep all the profits.
- Lots of money to support the
film, high budget films.
4. Monopolies vs. Oligopolies
Monopolies is where one company dominates an industry or market for example British Telecom, where as
oligopolies is when the market is dominated by a small number of companies for example
Tesco, Sainsbury's, Asda and Morrisons.
Oligopolies that exist within the film industry;
•
20th Century Fox
•
Warner Brothers
•
Disney
•
Paramount
These major film companies and many more are the oligopolies that exist within the film industry, they
dominate the industry.
What are the advantages and disadvantages of both types of ownership for the film industry
