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Task 1 ownership case study
1. Skye Nel
MEDIA COMPANY CASE
STUDY
TASK 1 UNDERSTANDING
THE STRUCTURE AND
OWNERSHIP OF THE MEDIA
SECTOR
2. TYPES OF OWNERSHIP: PRIVATE OWNERSHIP
Private ownership is both good and bad. They can make all kinds of programmes
they choose whether it be documentary's, game shows and sport shows. They are
also don’t have the strict publicly owned rules such as no advertisements and the
major factor they are also aloud to sell advertising to anyone they want but a
publicly owns TV shows cant.
It can result in better quality products and the threat that other Shows and
programmes might come up wit the same idea, they have to put there best ideas
forward first. On the other hand, private ownership leads to the media sometimes
placing profit above public interest and can also lead to the loss of interest with the
public. when products they don’t like are aired such as TV soaps or reality TV shows
known as car crash TV.
3. TYPES OF OWNERSHIP: PUBLIC SERVICE
• The BBC is a British public service broadcasting statutory corporation. Its main
responsibility is to provide impartial public service broadcasting in the United
Kingdom they provide advert free TV stations they gain their money through TV
licences paid for by the British taxpayer. This means they have to create loads of
programmes for loads of different genera's or people.
• http://en.wikipedia.org/wiki/Public_broadcasting
4. TYPES OF OWNERSHIP: INDEPENDENT
Music companies that are independent can profit from all three of
production, distribution and consumption. They run their own company
and require no help bands such as the Arctic Monkeys are assigned to
independent record labels but some artist’s even run their own
independent music companies so that they alone can promote and
discover new talent and sign them up. This is very good because it gives
new people a bigger chance.
The ways the companies sign and promote their artists are things such as
live gigs, social media, free music tracks and launch parties. This means
more people hear them and they get out more.
5. TYPES OF OWNERSHIP: CONGLOMERATE
Conglomerate companies are companies that branch
out and own a variety of different subsidiary
companies who all provide different services such as
Walt Disney who do kid’s TV, mainstream American
sport, American news, music and films
There are others such as virgin and sky who now
provide a range of services to customers such as
internet and broadband provider this is so they can
expand the markets that they currently sell themselves
in.
6. TYPES OF COMPANIES:
HORIZONTAL INTEGRATION
Horizontal integration is an absorption into a single firm of several
firms involved in the same level of production and sharing
resources Horizontal integration is mostly full of advantages it
means you have expanded your company and also expanded it’s
production line and scouting for new talent. It also gives you
increased market power and a larger percentage of the markets
value
On the other hand, it does have its disadvantages. One of them
being legal repercussions. Higher integration can lead to a
‘monopoly’, which is highly discouraged by many governments due
to lack of competition. With a monopoly makes it also harder for
new ideas and products and services to come into he market and
compete with larger companies the government have done what it
can by limiting companies to only having a maximum of 40% of the
market value
All of these
companies are
examples of
horizontal
integration
through Time
warner
7. TYPES OF COMPANIES:
VERTICAL INTEGRATION
Vertical integration is when a company profits from production, distribution and consumption. It
used to be only large companies such as Time Warner that could actually afford to profit from
production, distribution and consumption. But now, due to the internet via social media and
websites such as soundcloud small companies can also vertically integrate, such as independent
record labels.
Advantages such as improved coordination throughout the supply chain. There is also a greater
market share and secured distribution channels. Disadvantages are the higher costs if the
company is incapable to manage new activities efficiently, The ownership of supply and
distribution channels can sometimes lead to lower quality products and reduced efficiency
because of the lack of competition, and new competencies may clash with old ones and lead to
competitive disadvantage.
8. CROSS MEDIA CONVERGENCE
Cross media coverage is where companies from
the media world but completely unrelated
collaborate to produce a service or a product such
as a new game will have a soundtrack so Sony
music could sell a track from the arctic monkeys to
be the trailer music for the new Call of Duty game
or they could have a music show on TV such as the
X-factor or voice these use music and television
and turn it into a competition to compete for a
music contract this is an example of two types of
media converging and overlapping
9. SYNERGY
Synergy is selling products to promote an
artist so at a concert you might be able to
buy t-shirts, mugs and posters all related
to the artist the money for merchandise is
then split between the music company for
the promotion of the tour/concert and the
artist
10. DESCRIBE THE STRUCTURE AND OF OWNERSHIP OF
EITHER THE FILM, TV, GAMING OR MUSIC INDUSTRY
It works in a pyramid system you start from the
top with the product or service and it filters it’s
way down and then it the reverse for the people
who pay for the product or service it starts off as
an idea and then the artist who creates the
music will write the piece and if not already
signed up to a music company will then do then
begins the process of selling and promoting it
this can be do through social media e.g. twitter,
Facebook and YouTube then once it hits it’s
release date it will have been prepared to be
sold in shops all across the world
11. WALT DISNEY
The media company I have chosen is going to be Disney
they are a conglomerate global company who now run a
series of TV subsidiaries they run TV stations that do sport,
kids, news and documentary channels they also provide a
music section where they have made artists such as Miley
Cyrus, Selena Gomez and Ariana Grande
12. OWNERSHIP
The Walt Disney Company, commonly known as Disney, is an American diversified multinational mass media
corporation headquartered at the Walt Disney Studios in Burbank, California. It is the largest media
conglomerate in the world in terms of revenue. Disney was founded on October 16, 1923, by Walt Disney and
Roy O. Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American
animation industry before diversifying into live-action film production, television, and theme parks. The
company also operated under the names Walt Disney Studio and Walt Disney Productions. Taking on its
current name in 1986, it expanded its existing operations and also started divisions focused upon theatre,
radio, music, publishing, and online media.
The company is best known for the products of its film studio, the Walt Disney Studios, which is today one of
the largest and best-known studios in Hollywood. Disney also owns and operates the ABC broadcast television
network; cable television networks such as Disney Channel, ESPN, A+E Networks, and ABC Family publishing,
merchandising, and theatre divisions; and owns and licenses 14 theme parks around the world. It also has a
successful music division.
13. Disney Media Networks is the headquarters it’s horizontally integrated with a variety of different TV companies.
The Walt Disney Company that contains the company's various television networks, cable channels, associated
production and distribution companies and owned and operated television stations
Disney–ABC Television Group
ABC Television Network
ABC Family Worldwide
ABC Family
ABC Owned Television Stations Group
A+E Networks (50%)
Disney Channels Worldwide
Radio Disney
Disney Television Animation
Walt Disney
14. COMPETITORS
Walt Disney's main three competitors are 21st Century
FOX, Time Warner and NBC Universal Media. All of these
are global conglomerate companies these 4 companies
control over 65% of the media and TV’s market value
These companies don’t really have an issue with
distribution and production as they all have there own
production and distribution lines so they never are
competing against each other.
15. AUDIENCE
With 95 entertainment channels and feeds distributed in 35
languages, Disney Channels Worldwide reaches more than 300
million homes, serving as a daily touchstone for the Disney brand
for families in 168 countries.
In 2010, the Company launched Disney Channel in Russia,
Greece and Ukraine, and announced a joint venture to launch a
local language Disney Channel in South Korea
In the United States 2010 marked Disney Channel’s most watched
year on record in total day and total viewers, as well among the
key audiences of kids (6-11) and tweens (9-14). Disney Channel
also celebrated its eighth consecutive year as television’s No. 1
network in primetime among kids (6-11) and its 10th year at No. 1
with tweens (9-14), thanks to a strong slate of original
programming.
16. WALT DISNEY SCANDALS
Disney was long rumoured to be anti-Semitic during his lifetime, and such rumours
persisted after his death. Animator Art Babbitt claimed to have seen Disney and his
lawyer, Gunther Lessing, attending meetings of the German American Bund, a pro-Nazi
organization.
The most recent scandal is the whole debacle over Miley Cyrus and how she turned from
Disney girl to some sort of outrageous troublesome teen many claim this is to Disney
trying to steal her youth
