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  1. 1. Task 1 Understand the structure and ownership of the mediasector. P1, M1, D1
  2. 2.  Private ownership is when a company has full guardianship ofthe company and can do whatever they want within it. Apple inc is a successful example of private ownershipbecause they do not collaborate with other companies aboutthe their product One of the best advantages about private ownership is thatthe company gets all of the profit and don’t have to pay out toother companies However, a big disadvantage is that if they don’t sell theirproducts very well and lose money, they lose it all from theircompany and it won’t be split up into a variety of different
  3. 3.  Public service ownership is when the public pay for it throughthe TV license. This means we own it or maybe own shares ofanother company. Advantages of public service ownership is that there isunbiased news reporting unlike private ownership. There are also opportunities for people to work within theindustry Disadvantages of this is that the public have to pay for publicservice ownership. An example of this is the BBC where the public have to pay theTV license which goes towards the public service ownership
  4. 4.  Multinational is when the company expands in manydifferent countries. Their a lot of advantages to multinational ownership.This is that they increase the investment level and thusthe income and employment can be used by the hostcountry to make the company bigger. Also it decreasesthe cost of production around the world. The disadvantage of a multinational ownership is that itwill destroy the company and create a monopoly whichis not good because the public never like when oneorganization control everything. This is because itdestroys our rights.
  5. 5.  Independent ownership is a company that is owned by aprivately held organization. These businesses areoperated in independent mode. Independent ownershipis usually have one sole owner of the company. Thebusiness is carried out in the name of the owner. The great advantage of the business is that the ownercan shape the business how ever he see’s fit. It is hard to get your business known because you donot have the power of a public or private ownership toadvertise your business.
  6. 6.  A conglomerate is corporation made up of a number ofdifferent companies that work in the same field so theycan boost the company and get a bigger profit acrossall the companies. The advantage is that you have to share the profit butbecause there are more companies working towardsthe same thing. So there is it is more likely they willsucceed and gain a large profit than if they weremultiple companies. The disadvantage of a conglomerate is that becausecompany is so large they are delving deep into new
  7. 7.  Horizontal Integration is where a business addsoutlets to chain to the company to enhance itscompetitiveness. A publisher might acquire apublishing house to keep a stable flow of editor andauthors coming though this increases the chance ofthese people seeing his business. A advantage and disadvantage is seen by regulatorsthat horizontal integration has an unfair advantage inthe market and must regulated a lot. This is anadvantage because you could use it and increaseyour business. This can also be used against you by
  8. 8.  This is where one single company owns multiplebusinesses. This in combination control the productionand selling the product. An example of this is that a Tvcompany, a radio show and a film producer can all usethe same product in their business. An advantage is that the experience and technology canoverlap to give the product a better chance in themarket against over products. A disadvantage is that the economics will decreasebecause of the different stages of production. So thebusiness will not thrive as well as other companies.
  9. 9.  Cross media divergence is when there is are a rangeof media platforms integrated into a single piece oftechnology. The Xbox 360 is a example of this isbecause it is a gaming console but also has a DVDplayer and a internet modem integrated inside of theconsole. A big advantage to this is that the consumer would seemore for their money and immediately want to buy it.Also this helps smaller companies sell their product. Ifthe DVD company were selling really badly they couldintegrate there product into the Xbox and take abetter share of the product because more units wouldbe sold.
  10. 10.  Synergy is where the different sectors of corporationwork together to get the same goal. An example ofthis is Disney as all their movies, toys and theme parksall work together to make profit to one big pot.Synergy “means the whole is greater than the sum ofits parts”. The advantages to a synergy is that the profit is bigdepending on the amount of parts that are in thebusiness. Also that each sector is different so they areaiming at a big audience. This also means if one sectorfails then they have the money to back it up or cut itoff. Finally operating a synergy is easier than othermethods because you have more than one personrunning a certain sector so thee pressure is not onone person.
  11. 11. American Film IndustryThe American Industry was developed from 1890 to 1930. In this time period the industry developed intoan important and popular medium. That are clearly set in the production and distribution elements. In the1930’s the American film industry thrived because of enhances in technology, is was known as thestudio era. A bad thing about the American industry is that it was controlled by five companies known asthe majors or the Big five. The American Film Industry (The Big Five) are all vertically integrated becausethey overseer all of the production, marketing, distribution right through to the consumer. This is agood thing because it allows them to keep track of what is going on across the board and fix anyproblems that might be happening. It is also a bad thing because it is expensive to keep track of therebusiness as it is so big. So they have to bring in more money to keep the companies on top. There arenow over 6 major film companies that run the American film industry which are “Warner Bros Pictures,20thCentury Fox, Paramount Pictures, Columbia Pictures, Walt Disney Pictures and finally Universalstudios. The advantage of having so many different companies at the top, is that if one company fails inthat sector they have other companies to back them up because they are al linked. The disadvantage isthat you have to share the profits across the boards to the other companies to keep this linkgoing.British Film IndustryThe British Film Industry is seen as a lot smaller compared to the American industry. When people see afilm they mostly relate it with American production or Hollywood. The British Film Industry works onsmaller productions. Also supporting a first time writer work on a feature film script that has greatpotential compared to the Hollywood productions using well known directors and script writers to geta clean and quality cut film. The advantage that British film industries get from small productions is thatthey can look for talented film makers and make progress in developing the industry. Even if the film is