structure of a media sector

1. STRUCTURE OF A MEDIA
SECTOR
Kayleigh

2. INTRODUCTION
In this PowerPoint, I will be looking at two film organisations, and
explaining the difference in publically and commercially funded films.
I have chosen to look at 20th Century Fox and Film4, as they are both
well established film production studios.
Film4 is publically owned by Channel 4, which is commercially
funded. 20th Century Fox is privately funded, and is part of a large
media conglomerate.

3. 20TH CENTURY FOX & FILM 4
20th century fox:
 20th century fox film corporation is an
American film studio owned by Fox
entertainment.
One of the ‘big six’ American film
studios.
Fox Film Corporation is owned by the
media conglomerate 21st Century Fox,
which merged in 1935 to create 20th
Century Fox.
Provides 8 services, 6 of which being
digital entertainment divisions, and
including a radio/music station, which
deals primarily with film music and
soundtracks.
Film 4:
 Film 4 is a British free-to-air
television channel, owned by
Channel 4 television corporation.
It was first launched in 1998 as
a public Freeview channel.
Originally a subsidiary of the
independent broadcasting
authority (IBA).
 Its standard-definition channel
is available as an FTA (free-trade
area) network, its high-definition
variant is offered as a ‘pay
television’ service (subscription).

4. STRUCTURE OF 20TH CENTURY FOX
20th Century Fox Film Corporation is a subsidiary of Fox Incorporated,
which is owned by Rupert Murdoch. It produced some of the bigger
box office hits like ‘Star Wars’ and is now expanding into related
areas of entertainment through their separate divisions, such as Fox
Animation.
Through the separate division, Fox incorporated has a total of 2300
employees, but only 360 for 20th Century Fox.
The 360 employees of 20th Century Fox are responsible for their own
jobs – the bigger people (such as directors/producers) are
responsible for the larger decisions.
A total of $1.2 billion sales have been made by 20th Century Fox since
1996.

5. STRUCTURE OF FILM 4
There have been 4 key figures responsible for Channel 4’s film
production (film 4). These people are David Rose, David Aukin, Paul
Webster and Tessa Ross. Their responsibilities include:
- Ensure that Channel 4 keeps its key commitments to promoting
British film culture.
- Preside over film and drama through the changes of the corporate
structure and financing of the channel.
They were also responsible for managing film 4 through the
deregulation of the television industry, and the expansion of the
independent production sector, through the growth of multi-channel
and digital television.

6. PRIVATE OR PUBLIC COMPANY
Film 4:
Film 4 is a public company.
It is owned by the public
owned, commercially funded
public service broadcaster,
Channel 4.
It does not receive public
funding.
It is owned by channel 4,
which is a British self, public
service broadcaster, meaning
the broadcasting is intended
for public benefit, rather than
to serve commercial
interests.
20th Century Fox:
20th Century Fox is a private
company.
They produce and distribute
films in theatres.
The company also sells movies
and television content on DVD’s.
It is a multinational
conglomerate, as it distributes
content internationally.
It is wholly owned by the media
conglomerate 21st Century Fox,
which is partially owned by
Rupert Murdoch.

7. ARE THEY PART OF A LARGER
CONGLOMERATE
20th Century Fox:
20th Century Fox is part of a larger,
multi national conglomerate.
The films that are made in these
studios are distributed by the ones
that make them.
20th Century Fox own companies
across a range of platforms, and
use them to promote and market
their films.
Film 4:
Film 4 is not part of a multi
national conglomerate.
Film 4 is a British film
production company, owned by
Channel 4.
The company is known for its
large number of films made in
the United Kingdom, and is best
known for its gritty and ‘kitchen
sink’ style films.

8. WHAT MEDIA PRODUCTS DO THEY
MAKE?
20th Century Fox:
Film:
- Fox 2000 pictures (The Beach)
- Fox Searchlight Pictures (the shape of
water)
- Blue Sky Studios (robots)
- 20th Century Fox Animation (ice age)
Cable entertainment:
-20th Century Fox Television (American
Horror Story)
-Fox 21 Television Studios (American
Crime Stories)
-Fox Television Animation (This is Us)
Film 4:
Film (The Festival)
TV – Channel 4:
- documentaries (shipwrecked)
-comedy (catastrophe)
- drama (90210)
- world drama (rise upon the storm)
- entertainment (hollyoaks)
- factual (SAS: who dares wins)
- lifestyle (four in a bed)
- sports (vice world of sports)

9. PROFITABILITY AND SALES
20th Century Fox:
The company makes money
depending on the success of a
newly released film – the more
successful the film is, the more
the gross profit and revenues
increase. The companies gross
profit margin improved from
2016 to 2017, but then
deteriorated in 2018. From 2016
to 2018, the gross profit margin
increased from $10,197 to
$10,631 million, and revenues
increased from $28,987 to
$30,400 million.
In 2017, The Walt Disney
Company, announced an
agreement to buy 21st Century
Fox for $52.4 billion, but then
increased it to $71.2 billion.
Film4:
Film 4 is a public broadcaster,
meaning it makes most of its
money through advertising. In
2016, the annual report
showed that channel 4’s
revenues had rapidly grown.
The revenues totalled to £995
million, compared with £979
million the previous year.
The most profitable film to
date was the 2011 spin-off
film, ‘The Inbetweeners’, which
increased revenues to £17.8
million.

10. COMPETITORS
Film 4:
As film 4 is owned by Channel 4, they
share the main competitors:
oEach other
oBBC
oITV
oCHANNEL 5
oSKY
oUKTV
oAMC NETWORKS
oFOX NETWORKS
20TH Century Fox:
As 20th Century Fox has many subsidiaries they
share competitors. The main competitors of 20th
Century Fox are:
oEACH OTHER
oSONY PICTURES
oSKY
oAMC NETWORKS
oTHE WALT DISNEY COMPANY
oTIME WARNER
oCBS
oNETFLIX
oNBC UNIVERSAL

11. HORIZONTALLY OR VERTICALLY
INTEGRATED
Horizontal integration is when a conglomerate uses smaller, independent
companies to help with the marketing and distribution of a film,
Vertical integration is the use of all media conglomerates companies to
produce, market and distribute the film and all of the official merchandise.
20th Century Fox is vertically integrated, as it uses all of its platforms (e.g. –
21st century fox, fox incorporated etc.) to promote the film. 20th Century Fox
produced big budget studio films, so has the resources to be a part of a larger
media conglomerate to promote and distribute the film.
Film4 is horizontally integrated, as it uses smaller, more independent
conglomerates to promote and market the film and they usually produce
smaller, ‘kitchen sink’ style productions. However, Film4 is also vertically
integrated as they sometimes will synergise with a bigger conglomerate to
make a big production studio film, such as ‘12 years a slave’, and use the
bigger conglomerates, like 20th Century Fox, to market the film.