The document discusses the structure and ownership of the media sector. It defines different types of ownership like private ownership, public service broadcasting, multinationals, and independents. It also discusses challenges faced by independent and multinational media companies. The document then covers concepts like cross media ownership, diversification, horizontal and vertical integration. It uses Disney as an example to show its integrated structure across production, distribution, and screening.

1. BTEC Extended DiplomainCreativeMediaProduction
Unit 7: Understanding the Creative
Media Sector
Learning outcome 1:
Understand the structure and ownership
of the media sector
Name: Robert Trelfa
Understand the structure and ownership of the creative media sector

2. BTEC Extended DiplomainCreativeMediaProduction
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 who is owned by people rather than being owned
by the government, this is different to public ownership were as the public
company is funded by the public a private company it funded by its owners.
Private company usually have a better quality of product, this can lead to cultural
decay in that popular media can become uniformed and similar.
Public service broadcasting is a broadcasting company who isn't purely for
commercial gain this includes content such as the news, art programs and
religious programs, these types of companies can be state owned or
commercially owned, state owned means its owned by the government and
commercially owned means they make money rough selling advertisements and
product placements. Channel 4 is a commercially owned company making money
through advertising.
Multinationals are large companies who operate in many other countries They can
be, but are not always, owned by larger corporations or they could own them
selves. If the company puts its buildings in the right country and place they can
get away with no tax. The company may have problems when laws change in
different countries and it is hard to keep control of the whole company spread out
across different territories.
Independents are is radio, television, newspapers or the internet that is free of
influence from the government and corporate interests.
Conglomerates are…

3. BTEC Extended DiplomainCreativeMediaProduction
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.)
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.)

4. BTEC Extended DiplomainCreativeMediaProduction
What is horizontal integration?
Horizontal integration is when an organisation owns more than one production
company e.g. Warner Brother Films, Warner Brother Games, DC Comics. This
would happen when a company like EA would buy out Ubisoft to merge their
companies and cover more products.
What is vertical integration?
Vertical integration is when an organisation owns every step of making a product.
From designing it to manufacturing and then distribution, a good example of this is
Apple.
What are some of the advantages of these different ways of structuring a
company?
The advantages of having a horizontal integration is that as a company you have
a wider audience and because of this you will be making a lot more money. The
advantages of having a Vertical integration is that as a company you own every
step of the way to make your products and your in more control over what
happens to that product.
Use the following table to show how the Disney Company is structured.
Production Walt Disney
Studios
Marvel Pixar
Distribution Disney Media Marvel
Television
Buena Vista
Home
Entertainment
Screening Walt Disney
Motion Pictures
Marvel
Entertainment
HollyWood
Pictures

5. BTEC Extended DiplomainCreativeMediaProduction
What different ways can ownership be shared out?
Owner ship can be shared out with share holders, another way it can be shared
out is selling it to other companies, for example when EA bought out Ubisoft.
What is a merger? Why would companies merge together?
A merger is when two companies decide that it is in their best interest to merge
together so they can benefit off of each other.
What is a takeover? Why do companies take each other over?
A takeover is when a larger company buys a smaller company, this can only
happen with the smaller company’s consent. This can come with its problems
though because the larger company buys the smaller company they also get all of
its problems.
What is cross media regulation?
Cross media regulation dictates who can own what across different forms of
media e.g. if a national news paper owns a 20% of the market they can not
expand and own a radio station.
Should we have restrictions on the amount of media outlets people can
own?
Yes because it stop companies becoming too powerful and being allowed to
control the market. It also helps smaller companies from being bought out.

6. BTEC Extended DiplomainCreativeMediaProduction
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?
Blizzard makes its income by making video games
What is product diversity? How diverse is your company’s product range?
Product diversity is the variety of products a company makes, for example a
company could make plastic bottles and also plastic toys this would give them a
wider audience. My company only makes video but they do a wide range of video
games, so in the gaming world they have quit a variety.
What advantages does this give your company in the market place?
Advantages of product diversity make the company have a wider and more
understanding of the market
Why is the profitability of a product range so important to a company?
Because having a wider range of products will increase the income and the
company will make more money
What advantages or disadvantages are there in making big budget,
mainstream products?

7. BTEC Extended DiplomainCreativeMediaProduction
Advantage - console their money intake, they know its going to do well.
Disadvantage - People might not buy their game, they don't get to branch out if
they keep doing making big budget games, they might not make the money back
What are some of the objectives of your chosen company?
Blizzard’s mission statement are these following values
1) gameplay first
2) commit to quality
3) play nice; play fair
4) embrace your inner geek
5) every voice matters
6) think globally
7) lead responsibility
8) learn & grow
What are the advantages/disadvantages of taking part in a media franchise?
An advantage of media franchises would be that each company would be making
more money
A disadvantage of media franchises are that with the new deal the company can
easily ruin the larger organisations name
What, if any, products does your company license?
My company has licensed many games that include, World of Warcraft, Diablo,
Starcraft, Hearthstone, Heroes of the storm and Overwatch. They have done this
so no one can steal their work.
Who is in competition with your company? How successful is your
company in comparison?

8. BTEC Extended DiplomainCreativeMediaProduction
Blizzard has been know to have some competition with EA. EA was making a
game called ‘Star Wars: The Old Republic’ which is an mmorpg very much like
Blizzards ‘ The World of Warcraft’. In the first few months of the old republics beta
Wow lost 2 million subscribers and the old republic got the the ‘ The wow killer’.
Who are your customers?
Blizzards customers are members of the public who enjoy video games mainly of
the fantasy setting and also fans of their earlier work.
Which global media trends are affecting your company right now?
FPS shooters are a constant threat to blizzards company so much so they have
just made their own. Most people get bored of blizzards games and their play
style and just get bored and opt for something more fast paced like call of duty.