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  1. 1. Task 1Understand thestructure andownership of themedia sector. P1,M1, D1EXPLAINING THESTRUCTURE ANDOWNERSHIP OF THEMEDIA SECTOR
  2. 2.  Private ownership is when a company has full guardianship of the companyand can do whatever they want within it. Apple Inc. is a successful example of private ownership because they do notcollaborate with other companies about the their product One of the best advantages about private ownership is that the company getsall of the profit and don’t have to pay out to other companies However, a big disadvantage is that if they don’t sell their products very welland lose money, they lose it all from their company and it won’t be split upinto a variety of different ones.TYPES OF OWNERSHIP: PRIVATE OWNERSHIP
  3. 3.  Public service ownership is when the public pay for it through the TVlicense. This means we own it or maybe own shares of another company. Advantages of public service ownership is that there is unbiased newsreporting unlike private ownership. There are also opportunities for people to work within the industry Disadvantages of this is that the public have to pay for public serviceownership.TYPES OF OWNERSHIP: PUBLIC SERVICE
  4. 4. Multinational is where the company has operations subsiding in two ormore countries. Or the company has investments from two countries.Their a lot of advantages to multinational ownership. This is that theyincrease the investment level and thus the income and employment canbe used by the host country to make the company bigger. Also itdecreases the cost of production around the world.The disadvantage of a multinational ownership is that it will destroy thecompany and create a monopoly which is not good because the publicnever like when one organization control everything. This is because itdestroys our rights.TYPES OF OWNERSHIP: MULTINATIONAL
  5. 5.  Independent ownership is a company that is owned by a privately heldorganization. These businesses are operated in independent mode.Independent ownership is usually have one sole owner of the company.The business is carried out in the name of the owner. The great advantage of the business is that the owner can shape thebusiness how ever he see’s fit. It is hard to get your business known because you do not have the powerof a public or private ownership to advertise your business.TYPES OF OWNERSHIP: INDEPENDENT
  6. 6.  Conglomerate is the trend toward media ownership being concentratedamong relatively few corporations, leading to few viewpoints beingpresented. It is a corporation made up of a number of differentcompanies that work in the same field so they can boost the companyand get a bigger profit across all the companies. The advantage is that you have to share the profit but because there aremore companies working towards the same thing. So there is it is morelikely they will succeed and gain a large profit than if they were multiplecompanies. The disadvantage of a conglomerate is that because company is so largethey are delving deep into new area. So there is more chance of riskspreading.TYPES OF OWNERSHIP: CONGLOMERATE
  7. 7.  Horizontal Integration is where an organisation develops by buying upcompetitors in the same section of the market e.g. one music publisherbuys out other smaller music publishers. A publisher might acquire apublishing house to keep a stable flow of editor and authors comingthough this increases the chance of these people seeing his business. A advantage and disadvantage is seen by regulators that horizontalintegration has an unfair advantage in the market and must regulated alot. This is an advantage because you could use it and increase yourbusiness. This can also be used against you by the competitors.TYPES OF COMPANIES:HORIZONTAL INTEGRATION
  8. 8. This is where one single company owns multiple businesses. This incombination control the production and selling the product. An example ofthis is that a TV company, a radio show and a film producer can all usethe same product in their business.An advantage is that the experience and technology can overlap to givethe product a better chance in the market against over products.A disadvantage is that the economics will decrease because of thedifferent stages of production. So the business will not thrive as well asother companies.TYPES OF COMPANIES:VERTICAL INTEGRATION
  9. 9.  Cross media divergence is when there is are a range of mediaplatforms integrated into a single piece of technology. The Xbox 360 isa example of this is because it is a gaming console but also has a DVDplayer and a internet modem integrated inside of the console. An advantage to this is that the consumer would see more for theirmoney and immediately want to buy it. Also this helps smallercompanies sell their product. If the DVD company were selling reallybadly they could integrate there product into the Xbox and take a bettershare of the product because more units would be sold.CROSS MEDIA DIVERGENCE
  10. 10. Overall, synergy is the combined working together of two or more parts ofa system so that the combined effect is enhanced than the sum of theefforts of the parts. In business and technology, the term describes ahoped-for or actual effect resulting from different individuals,departments, or companies working together and motivating new ideasthat result in greater productivity. The process of synergy as a way ofcreating new ideas or building new discoveries can be compared tochance, in which ideas and discoveries develop apparently bycoincidence. An example of this would be an artist in the music industryexpanding their work by creating something like a perfume or even aclothing range. This means two media products working together to makea bigger impact on something or someone.SYNERGY
  11. 11. If looking at the film industry compare the American and UK industry.Explain what types of companies they are (horizontal or vertical) Explainthe benefits / weaknesses of thisIf looking at the music industry look at companies from the “big three” toan independent as well as subsidiaries.Look at who is involved and how it is structuredThis site might help…Aim to do 500 wordsDESCRIBE THE STRUCTURE AND OFOWNERSHIP OF EITHER THE FILM INDUSTRYOR MUSIC INDUSTRY