OwnershipExplaining the structure and ownership of the media sector.
Private OwnershipWhat is Private OwnershipPrivate ownership means that the company is run by itself not bymembers of the public or other companies. One example ofprivate ownership is the technology company ‘Apple.’AdvantagesAdvantages of private ownership is that the individual or groupcan decide how to run the business and that the company cankeep all the profits itself.DisadvantagesDisadvantages of private ownership is that if the business fails,the company cant rely on other businesses to help out. Thismeans that if the company takes a loss it will be harder for thebusiness to make the money back meaning they are more likely togo bust.
Public ServiceWhat is Public Service OwnershipPublic service ownership means that a certain percentage of thecompany is owned by the public.AdvantagesAdvantages of this is that the government provide services thatwould usually have to come out of the businesses money.DisadvantagesDisadvantages of this is that you are likely to have to pay a lot ofthe companies profits in tax.
MultinationalWhat is Multinational OwnershipMultinational ownership means that company has eitherinvestments or operations in two or more countries.AdvantagesAdvantages of multinational ownership is that the cost of productionthrough out the world will cost a lot less.DisadvantagesDisadvantages of multinational ownership is that it could create amonopoly effect meaning that the public could turn on the company.
Independent OwnershipWhat is Independent OwnershipIndependent ownership is where a company is owned by a smallorganisation and is usually owned by one individual.AdvantagesAdvantages of this could be that the owner of the company is incharge of how the business is run without having restrictions fromother companies that have invested.DisadvantagesA disadvantage of this is that the company will usually remain small asthe company wont have enough money to advertise as far as othertypes of ownerships could.
ConglomerateWhat is Conglomerate OwnershipConglomerate ownership is where a company is made up of othercompanies that all specialise in a certain field.AdvantagesAdvantages of this is that all companies are likely to boost theirown profits from the business.DisadvantagesThe disadvantages of this is that company will eventually go into anew area of business as the company will be that large meaningthat there is a higher risk of the company failing.
Horizontal IntegrationWhat is Horizontal IntegrationHorizontal integration is where a business will add on things suchas outlets in order to keep ahead of competitors.AdvantagesAn advantage of this is that the company has greater control inboth prices and costs.DisadvantagesA disadvantage of this type of ownership that there is a potentialcollapse of organization due to sector downturn.
Vertical IntegrationWhat is Vertical IntegrationVertical integration is where one company owns many differentbusinesses.AdvantagesAn advantage of this is that the businesses will usually spreadacross different sectors giving the businesses a better chance ofsurvival.DisadvantagesA disadvantage is that because of the economy the businessaltogether might not generate more income as otherbusinesses.
Cross Media DivergenceWhat is Cross Media DivergenceCross media divergence is where different media platforms cometogether in one such as a games console like Playstation or Xboxas they also feature a DVD player as well.AdvantagesA advantage of this is that they are able to appeal to a widermarket meaning that they are more likely to generate moreincome.DisadvantagesA disadvantage of this is that they may have to share their profitswith other companies that they have joined with.
SynergyWhat is SynergySynergy is where one corporation will branch into differentfields of business in order to make profit for example Disney.They have films, TV, Books, Games, Toys, Theme parks, and evenHotels.AdvantagesAn advantage of this is that if one sector of the business starts tofail there will be money to back it up from other sectors.DisadvantagesA disadvantage is that if the public go against one sector of thebusiness they are then likely to go against all sectors.
The Structure and Ownership of TheFilm IndustryStructureThe film industry generates most of their profit from cinema, if a film isn’t abig hit at the cinema its likely that it wont sell as many DVDS either. Once afilm has been comissoned usually by the biggest institues such a ’20thCentury Fox, Warner Bros ect..’ then production will start. Once filming hasfinished then the film will be edited before being played a cinema’s allaround the world and eventually be sold on DVD and be able to download.Film instituteProduction Post ProductionCinema’s StoresDownloadOwnership