my case study for media- ownership

1. Media Company Case
Study
Task 1 Understand the structure
and ownership of the media sector
Sarah Murray

2. Private Ownership is when communication is provided for purpose and generating a profit. They
could just be owned by their selves or by stockholders rather than the government. Its like being
self employed. You're not tied to anyone you can do whatever you please. No one is there to tell
you that you cant do something.
Advantages
∗They don’t have to meet strict securities
∗And they don’t have to exchange commission filing requirements of public companies
Disadvantages
∗You obviously have to please your viewers and try your hardest to keep them happy
∗They need to be consistently making profits to keep going and to stay around
Types of ownership: private ownership
http://www.qfinance.com/dictionary/private-ownership http://www.investopedia.com/terms/p/privatecompany.asp
http://uk.ask.com/question/a-disadvantage-of-privately-owned-media-is-its

3. Public ownership is owned and funded by the government. It’s the same concept as
private, the main key is to please the audience. A good example in the UK is the BBC
they’re owned by the government and are one of the biggest TV and Radio
broadcasters in the UK.
Advantages
∗In some countries they are the only stations available
∗As its owned by the government there isn't a huge danger of loosing the funding's for it
Disadvantages
∗it is really restricted as to what you can report. For example journalists
∗Editorial output is closely monitored by political leaders
Types of ownership: public service

4. Types of ownership: independent
Independent ownership is similar to private ownerships, it is obviously privately owned. So they’re
their own thing don’t really belong to nobody or any specific company/broadcaster.
Advantages
∗An advantage of independent ownership is that you have complete control of what happens, you call the
shots. You don’t have to be told of others how to do things.
∗You’re your own boss, therefore you don’t answer to no one, you make all of the decisions. The clues in the
name really, independent. This means you’re completely independent you chose your own work hours. Also,
depending on the type of business you can choose where you work from. You could really work from home.
Disadvantages
∗Being part of a private owner ship can expose you to financial risk, starting up can be hard. You may have to
get into debt or use your own money to get yourself going. And then there is always that risk that your
company may not be successful. Therefore you’ll loose everything!
∗There can also be downfalls, you may have periods where you loose money. Like I mentioned previously
there is always that risk that you could easily loose money.
∗http://finance.mapsofworld.com/ownership/independent.html
∗http://smallbusiness.chron.com/advantages-disadvantages-business-ownership-20258.html

5. Conglomerate ownership is a company within the media industry that owns not just one
platform of the media. But numerous ones. For example one that owns Radio, television,
movies, internet and publishing. Sony is a good example for this.
Advantages
∗ An advantage of this is that you’ll obviously have a bigger income. There will be a lot of money flowing
through the company with all the different platforms. Therefore they will have a huge amount of power
throughout the industry.
∗ Like I mentioned in the point above the company should be pretty wealthy. Therefore they can be more
ambitious when making such things as movies and employ bigger stars. They will not have to collaborate to
secure funding as they should have enough money.
Disadvantages
∗ One of the major disadvantages of conglomerate ownership is that even though the companies make shed
loads of money, nobody like paying out an awful lot of money at once. More often than not, if the company
was making a new m0vie or sh0w they may have to fork out a lot of money to cover costs. Even though in
the long run it is for the best. But it can be a LOT of money
∗ Culture clashes can destroy the value of the company; the extra layers of management can increase costs.
Therefore more loss in the financial sector.
Types of ownership: conglomerate
http://www.slideshare.net/sandraoddy2/media-ownership-skyfall-ill-manors
http://intromassmediasp11.blogspot.co.uk/2011/02/conglomeration-advantages-and.html
http://en.wikipedia.org/wiki/Media_conglomerate

6. Horizontal integration is where a production company expands into other aspect areas of the
industry. This means that certain companies can then buy out other original companies that
specialize in that area, if they’re successful at it.
Advantages
∗ Horizontal Integration is good for getting better possibilities in the foreign market, brings more
opportunities.
∗ It can also increase possibilities for bigger product diversity, so more different avenues in which something
could stem off to. So more directions and varieties.
Disadvantages
∗ Horizontal integration can have downfalls like possible collapse in organization due to sector downturn. For
example if there was a sudden loss in funds it could effect the whole of the company.
∗ Also being a company maybe creating a new product or service. Need to be aware of competitors and how
times change. For example it is really hard to keep a track of maintaining innovations. In the past it has been
very poor of companies keeping a track of this. A good example is new mobile phones, companies seriously
need to keep a track of new ones being released.
Types of Companies:
Horizontal Integration
https://uk.answers.yahoo.com/question/index?qid=20060831003323AAx7f6j
http://en.wikipedia.org/wiki/Horizontal_integration
http://www.slideshare.net/LiamDonnelly/vertical-horizontal-integration
A good example of this is the company Apple.

7. In management, vertical integration is where the supply chain of a company is owned by that company. More
often than not each member of the supply chain produces a different product or market-specific service, and the
products combine to satisfy a common need. It is contrasted with horizontal integration. One of the first, largest
and most famous examples of vertical integration was the Carnegie Steel company.
Advantages
∗one advantage is that companies get higher and earn more control in the value chain. They get more
responsibility and higher in the pecking order so therefore earn more control over things.
∗Vertical integration also offers more ability to control the costs throughout the whole distribution process.
Meaning that they can make profit of selling their product or service.
Disadvantages
∗Vertical integration reduces manufacturing flexibility, lengthening design time and ability to introduce new
products.
∗It may also require radically different skills and or capabilities
Types of Companies:
Vertical Integration
http://en.wikipedia.org/wiki/Vertical_integration
http://smallbusiness.chron.com/advantages-vertical-integration-strategy-20987.html
Richard Branson an his World wide company Virgin is a good example of Vertical
Integration. He started of in a little record shop. Now he’s one of the richest men in the
world!

8. Media convergence is when two or more different mediums in the media industry come together, combine with
one another. The different mediums are Film, Radio, TV, Computer, Website and Graphics. A good example is
when a music industry comes together with the Film industry. For example When Linkin Park created numerous
songs for the transformers films, they released “What I've Done” for the first film (2007) and it featured a few
times in the movie. Then “New Divide” for ‘Revenge of The Fallen’ the second film (2009). Then “Iridescent” for
the third film “Dark Of The Moon” . And there is rumour for them creating a song for the new film coming out in
2014.
Advantages
∗It helps promote the film or programme more. And it promotes the artist. Its a win -win for
both industries everyone gets noticed for their hard and good work.
Disadvantages
∗By having 2 different industries combining, you’ve got to remember you have got to try please
a larger audience. Really, it is 2 separate and different audience’. It may put someone off an
artist if a song is for a complete different style movie to the genre of music. Or vice versa.
Cross Media convergence
http://www.slideshare.net/sandraoddy2/synergy-and-cross-media-convergence-15537127

9. Synergy's are what producers in the media industry use to promote a certain programme or
service. For example Lady Gaga released a perfume called ‘The Fame’ in 2012. This obviously
promoted her a lot in the way she would of made a lot of money off of it. It is similar to the cross
media convergence in the way it is purely to promote . Promoters use numerous techniques. For
example, games, songs, merchandise like T-shirts, scarves, hats, wrist bands, artwork. Also
maybe collectable items and or toys.
Advantages
∗ An obvious advantage for synergies is that it is more money for the promoters, artist or if its
for a film industry then for them.
Disadvantages
∗ And again an obvious disadvantage would be if the extra wasn't successful and you ended
up loosing out on money if the product or extra didn't sell.
Synergy

10. Horizontal- BBC and ITV.
Vertical- Channel 4 and E4.
BBC is the biggest TV and Radio broadcaster in the United Kingdom with 8 channels, 2 for children and the rest are of
different genres. And the radio has 11 national stations, 6 nations and 42 local. They have a station for lets say every
genre. The BBC are an individual station
Then there is the ITV which is similar to the BBC however ITV do not own any part of the radio industry. It is just
television. The ITV are the BBC’s biggest competitors. Also the ITV is commercial. The BBC is completely
independent. The ITV have a number of different channels as well these are ITV, ITV2, ITV3, ITV4, ITVHD, CITV, The
Store, ITVBE, ITV Encore, ITV PLAY, ITV SPORT, ITV NEWS and more. So both companies are highly successful and
own some of the most popular programmes and shows world wide.
Channel 4 is similar to ITV just a lot of a smaller scale. The channel Four Television Corporation is a publicly owned and
operate the station. Channel 4 have had some successful shows to come from them.
E4 is very similar to channel 4, it just has a different target audience therefore broadcasts different shows to apply to
different people. E4 is part of the Channel Four Television Corporation along with channel 4, More 4, 4 Music, Film 4,
4seven and 4oD. So again, a really successful channel.
BBC Structure-
The BBC has 4 different categories of people involved in their structure. These are Royal Charter which
deal with setting out the public purposes and editorial independence, BBC Trust this is setting the
strategic direction of the BBC, Executive these are responsible for the operational management.
Then last of all its the Media Regulators, these are pretty much the governors. These are
responsible for the broadcasting.
Describe the Structure and of
Ownership of Either The Film, TV,
Gaming or Music Industry

11. The media company I have decided to do is Sony, this is from the music and
television sector. Sony also make electrical goods such as TV’s and
Laptops. Sony pictures have produced many films some examples are
‘Made In Dagenham’ (2010) ‘Bad Education’ (2004) and ‘Lone Star’
(1996). Sony is a Conglomerate company, it owns Sony corporation which
owns Sony computer entertainment, Sony pictures entertainment, Sony
music entertainment, Sony Ericson and Sony financial. Sony have also got
some of the biggest names in music to this day on their own music label.
For example AC/DC, Alicia Keys, Beyonce, Jimi Hendrix, Michael Jackson,
Taylor Swift and so many more. Sony is a huge company to be signed to, It
would be a privilege to be part of them.
Sony

12. Ownership
Like I mentioned in the previous slide, Sony are a huge company and have
lots of different branches in which it stems off to. So they have a huge
income through all of the products and services they offer. They’re a
Conglomerate company like I mentioned previous but they're in fact
owned by their shareholders. Sony have numerous different
shareholders, these are; Japan Trustee Services Bank, Moxley and
Company, The Master Trust Bank of Japan, SSBT OD05 Omnibus China
Treaty 808150, Japan Trustee Services Bank, State Street Bank and
Trust Company, Japan Trustee Services Bank, Ltd. Japan Trustee
Services Bank, Ltd and Mellon Bank.

13. Sony is a vertical company. Sony themselves allowed it to
become a vertically integrated company.
Vertical

14. Sony has different competitors depending on the aspect of the media industry its from. For example in
the electrical side their main competition is LG, Samsung, Toshiba, Canon, Nikon, HP Invent and
Phillips. In film and television it is Columbia, Tri-Star, Warner Brothers, Universal, Paramount and
20thCentry Fox. In music their competition is Universal, Columbia, Epic and RCA. And in gaming the
main competition will be Xbox and Nintendo as Sony are the creators of the Play station probably
the biggest console in the world. Obviously the competition is high with Sony, so they have to try
their hardest to keep their standards up and to not disappoint when bringing out a new film or
signing a new artist. Even when new music videos drop, if they’re good and please the audience it
should keep the competition under control. And obviously one of the biggest problem with any
company in the creative media industry is illegal downloading. Sony have high copy right on their
music and products but you're never going to fully stop people illegally downloading. This would
effect any company. This has rocketed in the past decade as computer technology is HUGE and
completely not what it used to be so it does bring a lot of loss to big companies like this and even
music artists and others involved.
Competitors

15. With a company like Sony which produces and manufactures a number of devices,
services and products they don’t have specific ages on their products. Obviously
you wouldn’t see a child going into a store to by a 42” plasma screen TV. Its
highly unlikely. But maybe a child might have a plasma TV at home. One thing I
thought about an age would be films or music they produce which has a
certificate for a specific age range. In the UK the movie certificates are U, PG, 12,
12A, 15, and 18. it’s the same with games. And CD’s would say “Parental
Advisory, explicit content”. And again demographics don’t matter, they do a
number of varied products they can suit anyone. However some of their
products are expensive so maybe you might have to have a steady income to be
able to afford lets say a TV, Camera, Laptop, a DVD collection and CD Collection.
Life now in the 21st
century consists of technology, everyone has a phone,
everyone has an email address. Everything is on computers now!
Audience

16. Multidivisional organizations such as Sony have divisions that become
flexible as in the sense that they are able to merge, add or close divisions.
This is apparent in the fact that Sony's mobile division merged with
Ericsson to create the Sony Ericsson walkman phones, they were like one
of the first phones which were specifically for listening to music on and
was easily accessible should you want to change over a song and control
it.
New strategies were made When howard stringer joined as the CEO of Sony
Global Japan. he made new strategies to restructure the organization to
be in-line with these strategies. The core competencies of the company
was what he looked at first. He focused mainly on the games, electronics
and entertainment sector. He established a growth strategy saying “our
target is for the Sony Group to achieve consolidate sales of over 8 trillion
yen an operating profit margin of 5% electronics4% by the end of fiscal
year 2007.

17. In 2006 there was a huge burst of controversy across the world where
there was a fault with some of the Sony Notebook laptops. There was a
certain material in the battery that was overheating and exploding.
Causing fires. Obviously these were a huge risk as 1000’s of them had
been sold. So Sony did a recall on all of them and tried to fix the
problem. This was the biggest recall in history. Other companies were
also advised to maybe do recalls if they had used this same material in
their batteries. Still it cost Sony a lot of money but they soon redeemed
themselves!
http://en.wikipedia.org/wiki/Sony

18. ∗ http://www.qfinance.com/dictionary/private-ownership
∗ http://www.slideshare.net/sandraoddy2/synergy-and-cross-
media-convergence-15537127
∗ http://www.investopedia.com/terms/p/privatecompany.asp
∗ http://smallbusiness.chron.com/advantages-vertical-integration-
strategy-20987.html
∗ http://finance.mapsofworld.com/ownership/independent.html
∗ http://www.slideshare.net/LiamDonnelly/vertical-horizontal-
integration
Bibliography