Mediaownership

1. Task 1
Understand the
structure and
ownership of the
media sector. P1,
M1, D1
EXPLAINING THE
STRUCTURE AND
OWNERSHIP OF THE
MEDIA SECTOR

2. Define the following and given an example of a company
that does this eg Apple for vertical integration:
(This is part 1 of your “ownership of the media sector”
power point. Add these two power points together then
add it to your blog - after completing this try and add
more of these technical terms and definition to your case
study - this will gain you merits and distinctions)
Also you should realistically be doing a full page of
writing AND DON’T CUT AND PASTE OFF WIKIPEDIA
DELETE THIS BIT WHEN YOUR DONE

3.  TV has become one of the most influential forms of popular media with a number of
98% of households in the UK having a TV and to then half of them will have two TV's.
 TV is split into two ownership's, Public and Private Ownership.
 Private property is a legal designation of the ownership of property by non-
governmental legal entities.
 With it being a company that is owned by private shareholders it is up to that one
company to keep the object for example popular and making sure it is targeting the
audience.
 ITV is a network of television channels that operate regional television services as well
as sharing programmes between each other to be displayed on the entire network. In
recent years, several of these companies have merged so currently the fifteen
franchises are in the hands of three companies.
 ITV is part of a group with SYCO Entertainment and Sony Entertainment to create the
talent show X Factor, This means if X Factor was to loose all its money the debt would
be spilt between 3 company's so each Ownership of X Factor would owe a 3rd
of that
price.
TYPES OF OWNERSHIP: PRIVATE OWNERSHIP

4.  A public service company (or public utility company) is a corporation or other non-governmental business entity
(i.e. Limited partnership) which delivers public services - certain services considered essential to the public
interest.
 Public service is the total opposite to Private Ownership. BBC is a public service
 Public Private Partnerships are at the heart of the government's attempts to revive Britain's public services. BBC
News Online picks through the jargon to explain the bewildering variety of private sector involvement in the
public sector.
 When researching about the advantages and disadvantages of Public Service the main ones were;
Advantages
 Essential services are provided.
 Everyone shares in the profit from public ownership.
 Wasteful duplication of services is eliminated.
 Planning can be co-ordinated through central control.
Disadvantages
 Inefficiency results due to the size of the organisation.
 There is a lack of incentive for employees to perform if there is no share in the profit or there is an absence of
other motivators such as productivity bonuses - accelerated promotion; (this factor can also apply in the private
sector if the employee is not given any incentive to perform).
 Losses must be met by the taxpayer.
 Political interference can occur.
 They interfere with the free market forces.
 There may be difficulties in finding someone to deal with complaints, though this factor is applicable to any large
organisation.
TYPES OF OWNERSHIP: PUBLIC SERVICE

5.  A multinational organisation is a company which has its headquarters in one country but has assembly or
production facilities in other countries. Coca Cola, Nike and BP are examples of multinationals
 There are some reasons why companies wish to become multinationals:
To increase market share – companies may find they are at saturation point in the domestic market and
need a new outlet. They may start by exporting to other countries but eventually they will want to being production
overseas. Coca Cola started this way following US soldiers around the world after WW1.
To secure cheaper premises and labour – cost of land and labour will be cheaper in developing
countries. Sweatshops in the Far East are an example of cheap labour, whereas production plants opening in the
old Soviet Bloc nations like Poland, Bulgaria etc are examples of cheap factories.
To avoid tax or trade barriers – different nations have different levels of corporation tax and may have
different barriers to entry. The Japanese only allow a small percentage of foreign cars to be sold in Japan to
protect their own industry.
Government grants – many US companies were attracted to the UK in the 80s due to government giving them
money to open up operations here.
 Advantages of multinational companies includes Multinationals create jobs which boosts the local economy
and more workers to tax and they bring expertise in that skills of workforce are improved, some may use IT that
would never have before or other skills now deemed basic by the western or developing world.
 Disadvantages of multinational companies Include Multinationals can, however, be accused that
the jobs they create may be deskilled jobs (known by some as 'McJobs') and in fact may be low paid, repetitive
assembly line work And multinationals' profits are not usually kept in the host country. For example the money
made and saved by General Motors moving car assembly production to Mexico would still go back to HQ in
Michigan.
TYPES OF OWNERSHIP: MULTINATIONAL

6.  Independent business ownership refers to the privately held organizations. Sometimes,
independent businesses are also termed as sole proprietorship companies, which have only one
proprietor.
 An independent business is operated in an independent mode. It usually denotes privately held
firms in contrary to those public corporations, which have been owned with the help of allocation
of shares in the stock market. In majority of cases, the independent businesses usually take the
shape of sole proprietorship companies.
 Advantages of Independent Business Ownership
Being an owner of an independent business can be beneficial from many aspects. The
independent business owner has the option of beginning on a fresh note with absolute command
over the shape of the business and how it is going to be supervised. The independent business
owner does not have the necessity to enter into contractual responsibilities with the franchisees
and also does not have any legal requirements fixed by the earlier business owner.
An independent business owner has the opportunity to launch an innovative product or a product,
which is protected by copyright or patent or trademark and this can aid the independent business
owner to rule the market. The independent business owner may start the business in a fast or
slow tempo according to the financial resources, as well as the objectives of the business
enterprise. No necessity is there for a compulsory upfront investment. The independent business
owner is also free to select the place of business according to his choice, ascertain the
commodities and service that he is going to sell and make a decision regarding the workforce.
TYPES OF OWNERSHIP: INDEPENDENT

7.  A media conglomerate, media group or media institution is a company that owns large
numbers of companies in various mass media such as television, radio, publishing, movies,
and the Internet.
 The BBC is a conglomerate, It owns BBC radio, BBC news, BBC 1, 2 and 3, BBC.co.uk and
many more.
 Advantages
A conglomerate creates an internal capital market if the external one is not developed enough.
Through the internal market, different parts of conglomerate allocate capital more effectively
and a conglomerate can show earnings growth, by acquiring companies whose shares are
more discounted than its own. In fact, Teledyne, GE, and Berkshire Hathaway have delivered
high earnings growth for a time
 Disadvantages
The extra layers of management increase costs and accounting disclosure is less useful
information, many numbers are disclosed grouped, rather than separately for each business.
The complexity of a conglomerate's accounts make them harder for managers, investors and
regulators to analyse, and makes it easier for management to hide things.
TYPES OF OWNERSHIP: CONGLOMERATE

8. In business, horizontal integration is a strategy where a company
creates or acquires production units for outputs which are alike - either
complementary or competitive. One example would be when a company
acquires competitors in the same industry doing the same stage of
production for the creation of a monopoly.
Benefits of horizontal integration to both the firm and society may
include economies of scale and economies of scope. For the firm,
horizontal integration may provide a strengthened presence in the
reference market. It may also allow the horizontally integrated firm to
engage in monopoly pricing, which is disadvantageous to society as a
whole and which may cause regulators to ban or constrain horizontal
integration.
TYPES OF COMPANIES:
HORIZONTAL INTEGRATION

9.  The acquisition of additional business activities that are at the same level of the value chain in
similar or different industries. This can be achieved by internal or external expansion. Because the
different firms are involved in the same stage of production, horizontal integration allows them to
share resources at that level. If the products offered by the companies are the same or similar, it is
a merger of competitors. If all of the producers of a particular good or service in a given market
were to merge, it would result in the creation of a monopoly. Also called lateral integration.
 Vertical Advantages
Vertical organizations provide clear lines of authority and a tight span of control, which can lead to
high operating efficiency. In general, the organization is comprised of relatively small departments,
allowing managers to closely monitor and control the activities of their subordinates. Each layer of
the organization reports to the one directly above it, all the way up the chain to top management,
and each layer has its own clearly defined functions and responsibilities. Employees seeking
advancement within the organization also have a clearly defined "career ladder," with each layer of
the organization representing another rung the employee attempts to reach.
 Vertical Disadvantages
Employees at the bottom of a vertical structure may feel less valued than those higher up in the chain.
Some employees may not relish the accompanying culture of politics, which places heavy emphasis
on pleasing the boss. It can also take a great deal of time for top management decisions to filter
down through multiple layers, reducing the organization's ability to react quickly to a rapidly
changing business climate. Because of the centralized control of power, weak leadership at the top
can hamper the effectiveness of the entire organization.
TYPES OF COMPANIES:
VERTICAL INTEGRATION

10. CROSS MEDIA DIVERGENCE
Cross media marketing is a form of cross-promotion in which promotional
companies commit to surpassing the traditional advertisements and decide to
include extra appeals to their offered products. The material can be
communicated by any mass media such as e-mails, letters, web pages, or
other recruiting sources. This method can be extremely successful for
publishers because the marketing increases the ad’s profit from a single
advertiser. Furthermore, this tactic generates a good liaison between the
advertiser and the publisher, which also boosts the profits.
The advantages of cross media divergence are: they would receive a wider
distribution, for example when Channel 4 & Bauer media joined together, all
the fans of Bauer media and channel 4, would have joined together in this
new platform. A wider distribution means a higher overall profit.
The disadvantages of cross media divergence are: sometimes when a
conglomerate becomes so big and powerful they are forced to split up by the
government. An example of this is Microsoft.

11.  Combine your desktop devices together in to one cohesive experience. Synergy is
software for sharing your mouse and keyboard between multiple computers on your
desk. It works on Windows, Mac OS X and Linux.
 Synergy combines your devices together in to one cohesive experience.
 Seamlessly move your mouse to any computer and start typing.
 Works on all major operating systems (Windows, Mac OS X, and Linux).
 Share your clipboard (copy and paste) between your computers.
 Drag and drop files from one computer to another (Windows and Mac OS X).
 Encryption keeps sensitive data safe on public networks.
 Network-based (IP) software KVM switch (non-video).
 Synergy Worldwide is unlike any company you've seen before. They combine the
highest-quality products with the most innovative compensation plan in the industry.
They are 100% debt-free and provide a solid foundation where everyone can succeed.
SYNERGY