2. BTEC ExtendedDiplomainCreativeMediaProduction
Understand the structure and ownership of the creative media sector
Use this workbook to help you with this learning outcome. There is some guidance
and further notes which you should read and then remove, replacing it with your own
answers.
Provide a definition of the following different types of ownership and
provide an example of a company which is owned in such a way.
Private ownership is…being owned by a private individual rather than by the
public or government.
Public service broadcasting is…TV programmes that are broadcast for the public
benefit rather than for commercial purposes. These can include local news, arts
and religious programmes.
Multinationals are…companies that work/operate in several countries, they could
be owned by larger corporations or they could own many smaller businesses.
Independents are… a corporation that is of/influenced by government or
corporate interests which refers to newspapers, the Internet or television.
Conglomerates are…A conglomerate is something grouped together therefore
having smaller businesses being run by a bigger/well known business.
Voluntary or not for profit organisations are…These are a charity business that
does not gain profit, does it for the community and shows, exports media that is
serious e.g. disabilities. If they do gain money it will be to go straight back in to
that business to help it, the charity it shows and to make the business better.
3. BTEC ExtendedDiplomainCreativeMediaProduction
What are some of the challenges faced by independent media companies?
Some of the challenges faced by independent media companies could consist of
having a smaller profit than what a bigger company could be getting, being taken
over by a conglomerate company or not doing well enough (not gaining any
profit) therefore going under or being bought by someone else in to their
company.
What are some of the challenges faced by multinational media companies?
Some of the challenges faced by multinational media companies could consist of
being found by a big company and being bought in to their name. An example of
this would be Lucas film that was acquired by Disney in 2012.
What is cross media ownership?
This is a business/organisation that owns more than one type of media company
for example a television show and a magazine. An example of this would be
marvel They have comics which are basically magazines and also have television
shows as well as films.
What is diversification?
This is when a business starts out small with just one type of media e.g. a radio
station that then expands and takes on more medias such as a television show,
magazines, newspapers etc..
What is horizontal integration?
Organisations that own more than one company at the same level of production
E.g. many different companies that could be working on a project that is at the
same level of production which could be Post-production in a filming corporation
which is when the images, sound, and visual effects of the recorded film are
edited.
What is vertical integration?
Organisations that own companies at different levels of production e.g. Post-
production and distribution.
4. BTEC ExtendedDiplomainCreativeMediaProduction
1. the combination in one firm of two or more stages of production normally
operated by separate firms.
What are some of the advantages of these different ways of structuring a
company?
If a company e.g. Warner bros and marvel are working at the same level of
production on the same project they could exchange ideas to create a better final
product. Although this is good, there is a disadvantage. As the team and project
leaders have high levels of responsibility for achieving results but little real
authority over their team members this could result in lack of control and
therefore delay or mess up production.
Use the following table to show how the Disney Company is structured.
Production Walt Disney
pictures
Walt Disney
animation
studios
Distribution Walt Disney
studios motion
pictures
Screening Walt Disney
studio
What different ways can ownership are shared out?
Ownership of media organisation can be shared out in a variety of ways. Share
holders can choose to invest money in a company.
Limited ownership rules apply in the UK to control how much of the media people
can control.
20/20 rule – A company is allowed to own 20% of another but no more.
What is a merger? Why would companies merge together?
Mergers combine two previously separate organisations. Both organisations that
the merger takes on decide together that they should merge for advantages to
the businesses these are mostly to cut costs and increase profits.
5. BTEC ExtendedDiplomainCreativeMediaProduction
What is a takeover? Why do companies take each other over?
A takeover is the purchase of a smaller company by a much larger one. This can
produce the same benefits as a merger, but is not always a mutual decision. A
company can be bought by a takeover but not really have a say in the situation
but this has the same advantages as what a merger does.
What is cross media regulation?
Cross media regulations are about all the different types of media and who can
own what and how much of it. For an example, there are restrictions on national
and local newspaper groups and their ability to own a radio stations and TV
licenses. They are only allowed a certain percentage of a certain media type.
Should we have restrictions on the amount of media outlets people can
own?
Yes, if we didn’t there would be few people/businesses that acquire a lot of media
which would lead to problems from others due to them not having any of the
media licences and outlet or vies versa. A lot of people (being the public) could
have many small or large pieces of the media which would then lead to control of
public opinion and puts too much power in the hands of a few media owners.
You should select an organisation to work with to help you answer the following
questions. It can be in any media sector. Researching your company in detail will
help you produce stronger answers.
What income streams does your chosen company have?
(Discuss the different ways in which your company makes income. Depending on
the type of organisation you have chosen, there may be one stream or there may
be many.)
I have been looking in to a music magazine named ‘NME’ this is an alternative
rock magazine that has information on bands, tours, interviews, posters, many
images etc.. It was founded in 1952 by a man named Theodore Ingham. It is a
weekly magazine meaning there is a new edition published in shops, online every
week. This magazine makes its money by selling in shops and having
6. BTEC ExtendedDiplomainCreativeMediaProduction
subscribers, these are people who pay monthly to get the new edition delivered
to their door and follow everything that is going on with the company magazine.
What is product diversity? How diverse is your company’s product range?
This product has a lot of range to it. ‘It is largely associated with
rock, alternative and indie music. It started as a music newspaper, and gradually
moved toward a magazine format during the 1980s and 90s’
http://en.wikipedia.org/wiki/NME
The magazine includes a lot of information personal and non about the artists
within the music range. This could include interviews which could become
personal, tour dates, including posters, many images, freebies (free give aways).
What advantages does this give your company in the market place?
There are a few other music magazines who look in to the same genre e.g. Q
and Kerrang! But i think the fact that NME was once the biggest music
newspaper that followed on to become a music magazine helps keeps this
popular and gives a great chance on the market. I also think because a new
edition is published weekly that it is more up to date than the magazines that are
published monthly therefore more people are willing to buy this because they are
getting 3 times more information out of this magazine than they would with any
others.
Why is the profitability of a product range so important to a company?
NME runs a music magazine and this is enough for then as it does so well and
makes more than enough profit and has done ever since it started up in 1952.
The magazine has had peaks and drops in it’s time where the competitors have
been more popular for a couple of months but NME seem to find a way to keep
the numbers of subscribers and profit high.
What advances or disadvantages are there in making big budget,
mainstream products?
7. BTEC ExtendedDiplomainCreativeMediaProduction
The advantage of making a big budget, mainstream product is the profit. The
magazine is so well known and has a high number of buyers and subscribers that
they don’t need to worry how big of a budget they have as they will get a lot of
profit back from it.
What are some of the objectives of your chosen company?
Objectives of NME consist of keeping a high number of buyers and subscribers,
making profit for the business from the music magazine.
What are the advantages/disadvantages of taking part in a media
franchise?
(Use examples from your chosen company as well as others. Use specific
examples to help support your writing. Facts, figures and detail with help you
comprehensively explain the answers to these questions.)
What, if any, products does your company license?
NME doesn’t really have any merchandise but the artists they interview, give
information about in their magazines do e.g. t-shirts of bands and their names,
hoodies, wrist bands, jewellery etc. This still links to NME as they have a website
that sells these products. NME don’t have their logo on any of these items unless
they are to come specifically from the magazine but i think this is because NME
have a share in the business that make the merchandising for the bands and
NME is sort of an advertisement for the artists. Therefore when one of the
merchandise is sold NME get a share of that money to do advertising.
Who is in competition with your company? How successful is your
company in comparison?
There are a few competitors within this category of the media. Some of these are
Q and Kerrang!. NME is a very successful magazine as it has been around for a
lot longer than most therefore being more well known than others, Kerrang! Is
also a well known media due to the fact they have a music television station but
this doesn’t drastically decrease how well NME do as a business making music
magazines. They have an advantage as they being a new magazine edition out
weekly so essentially having more buyers and subscribers than any other music
8. BTEC ExtendedDiplomainCreativeMediaProduction
magazines.
Who are your customers?
(Customers can be categorised in a range of ways. They could be members of
the public or other businesses. They could be buying a product or a service.
Explain who they are and what they get from you. You could go further and
consider the age, gender and class of your audience, particularly if you are
selling directly to the end user.)
The customers for this product are members of the public. Stereotypically this
magazine is aimed more a th male gender due to the type of music but it is slowly
becoming realised that females like the alternative rock genre just as much as
males who listen to it. Also stereotypically it is aimed at teenagers due to how
reckless and disobedient that age group are and this is what this music and the
artist in this genre are like. They are in a sence role models for the younger
generation in a sense of trouble. This is not true though as some people e.g.
young adults listen to this music genre still and buy music magazines as they
have followed this magazine and music genre because they enjoy the artists and
music as NME have such a wide ranged of genre and history to talk about.
Which global media trends are affecting your company right now?
(Look at the list of trends and see how they could affect your company. It mobile
technology changing the services you have to provide? Is online news cutting
sales of your newspaper? Are downloads (illegal or legal), changing the way you
need to provide video games to your customers. Think about each trend, its
impact and what you company is doing about it.)
