This document provides guidance for understanding the structure and ownership of the media sector. It defines different types of media ownership like private, public service broadcasting, multinationals, independents, conglomerates, and voluntary organizations. It also discusses challenges faced by independent and multinational media companies. The concepts of cross-media ownership, diversification, horizontal and vertical integration are explained. Disney is used as an example of a integrated media company. The document poses questions about income streams, product diversity, profitability, objectives, competition, customers, and trends affecting media companies.

1. BTEC ExtendedDiplomainCreativeMediaProduction
Unit 7: Understanding the Creative
Media Sector
Learning outcome 1:
Understand the structure and ownership
of the media sector
Name: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

2. BTEC ExtendedDiplomainCreativeMediaProduction
Understand the structure and ownership of the creative media sector
Use this workbook to help you with this learning outcome. There is some guidance
and further notes, which you should read and then remove, replacing it with your
own answers.
Provide a definition of the following different types of ownership and
provide an example of a company, which is owned in such a way.
Private ownership is…
A company that is owned by a person or shareholder who has the money and is not
controlled by the government. An advantage of this is that it gives better quality
products. Private ownership can lead to problems such as cultural decay.
Public service broadcasting is…
Companies that produce content which is no used for personal gain. This
includes content such as the news, which is viewed publically. The government
can own public broadcasting, which would mean it is state owned and it can also
be commercially owned by adding product placement.
Multinationals are…
Larger companies that operate in multiple countries or could own lots small
companies.
They can encounter problems such as change in law regulations in the country
they operate in. this makes it hard for people to keep focus on the multiple
companies.
Less choice for consumer too much power to small number of people.
Independents are…
Any for of media like radio, internet and newspaper.
Free of influence from government
Puffington post Started as independent blog until 2011
Blitz game studios were formed in 1990 as interactive studios. They created a
range of games using people’s intellectual property.

3. BTEC ExtendedDiplomainCreativeMediaProduction
Conglomerates are…
Large companies that have multiple branches, examples are like time warner
who own lots of branches like HBO and DC.
Voluntary or not for profit organisations are…
What are some of the challenges faced by independent media companies?
(Use specific examples to help you explain. You could consider independents
that have gone out of business, that have been merged or taken over and also
those which are still in business.)
What are some of the challenges faced by multinational media companies?
(Use specific examples to help you explain. You could consider companies that
have gone out of business, that have been merged or taken over and also those
which are still in business.)
What is cross media ownership?
(Explain the concept of cross media ownership. Use specific examples of media
organisations that are cross media owners. Be specific about the different types
of media they own.)
When a company has many ways to show the product to cross reference and
cross media platforms to different audiences

4. BTEC ExtendedDiplomainCreativeMediaProduction
What is diversification?
(Provide a definition of the term. Provide an example of a diverse media
company. To add more detail, consider the advantages of this type of media
ownership for the company involved.)
Run lots of companies in sectors, that is randomand do not relate to the
starting media company
Advantage-moreconsumers
Disadvantage-no control
What is horizontal integration?
(Provide an explanation and then embellish it using examples)
What is vertical integration?
(Provide an explanation and then embellish it using examples)
This is the company’s level of production.
Advantage-company gets moremoney
Disadvantage-controlled
Companies owned by different shares the more shares the more money.
The better the company is doing the higher the price.
What are some of the advantages of these different ways of structuring a
company?
(Using real and detailed examples, discuss some of the advantages and
disadvantages of both horizontal and vertical integration.)

5. BTEC ExtendedDiplomainCreativeMediaProduction
Use the following table to show how the Disney Company is structured.
Production Pixar Walt Disney
studios
Marvel studios
Distribution Disney media Walt Disney
studios home
entertainment
Marvel
television
Screening Marvel
entertainment
Walt Disney
cinema
Hollywood
pictures
What different ways can ownership be shared out?
Another company that own apart of the organisation. EA own 20 per cent of
Ubisoft.
What is a merger? Why would companies merge together?
(Use specific examples to help with your explanation.)
The merge of different organisations such as a production and distributers who
come together to work for profits. Disney and marvel is an example of two
companies that came together in 2009.
What is a takeover? Why do companies take each other over?
(Use specific examples to help with your explanation.)
When a company purchases a much smaller company, the smaller company has
the decision as to whether or not it wants to be bought. This can cause issues
such as the debt carrying on. Employees carry on from the company. However
can offer benefits like a merger.
What is cross media regulation?
Cross media regulation is when an organisation is only allowed a 20% stake
because this would allow more competition in the market.

6. BTEC ExtendedDiplomainCreativeMediaProduction
Should we have restrictions on the amount of media outlets people can
own?
(Use your understanding from the lecture as well as your own research to help
you build a detailed and structured answer to this question. It is designed to let
you show off your knowledge and to let you create a debate in your answer.)
You should select an organisation to work with to help you answer the following
questions. It can be in any media sector. Researching your company in detail will
help you produce stronger answers.
What income streams does your chosen company have?
(Discuss the different ways in which your company makes income. Depending on
the type of organisation you have chosen, there may be one stream or there may
be many.)
What is product diversity? How diverse is your company’s product range?
(Be specific here. Talk us through what they make.)
What advantages does this give your company in the market place?
This means that SKY can earn more money and be able to promote more of their
products. They will also be more recognised.

7. BTEC ExtendedDiplomainCreativeMediaProduction
Why is the profitability of a product range so important to a company?
(Use examples from your chosen company or others to highlight how some of
their products may be very successful whilst others are not.)
It’s important because they need to afford to bring something new out with the
profit they earn.
What advantages or disadvantages are there in making big budget,
mainstream products?
(Think about what your company or other companies make.)
Advantage-
Disadvantage- if it flops then the company will lose lots of money in loss.
What are some of the objectives of your chosen company?
(Use the company’s website to help you here. You can provide a direct quote if
properly referenced but you should also discuss what you find. Simply quoting is
not a high level answer.)
The quote means that they take opportunities, which is what makes them have a
sustainable value.
What are the advantages/disadvantages of taking part in a media franchise?

8. BTEC ExtendedDiplomainCreativeMediaProduction
(Use examples from your chosen company as well as others. Use specific
examples to help support your writing. Facts, figures and detail with help you
comprehensively explain the answers to these questions.)
A collection of one piece of media that is distributed between different types of
media.
Advantages- lots more profit, from each product sold. Invest into the company and
get support from the company.
Disadvantage-
What, if any, products do your company license?
(Think about merchandise here not made directly by the company. For a higher-
level answer, discuss why they might do this. If they don't license anything,
consider why that might be.)
SKY license other products such as BT sports which is licensed by SKY.
Who is in competition with your company? How successful is your company
in comparison?
(This gives you lots of scope for a detailed answer. When considering competition,
you want to look at companies making the same product for the same type of
audience (age, gender and so on), to get the best comparison. Look at the range
of products, market presence and so on to help you establish who is leading your
market place.)
Who are your customers?
(Customers can be categorised in a range of ways. They could be members of the
public or other businesses. They could be buying a product or a service. Explain
who they are and what they get from you. You could go further and consider the
age, gender and class of your audience, particularly if you are selling directly to
the end user.)
Which global media trends are affecting your company right now?

9. BTEC ExtendedDiplomainCreativeMediaProduction
(Look at the list of trends and see how they could affect your company. It mobile
technology changing the services you have to provide? Is online news cutting
sales of your newspaper? Are downloads (illegal or legal), changing the way you
need to provide video games to your customers. Think about each trend, its
impact and what you company is doing about it.)