This document discusses different types of organizational structures in the media industry. It describes horizontal integration as when a company owns multiple businesses across the same media sector, providing Warner Bros. Entertainment as an example. Vertical integration is defined as when a company owns businesses throughout the different stages of production. The document lists benefits and drawbacks of both horizontal and vertical integration, and gives co-operatives as another type of media organizational structure.

1. L E A R N I N G A I M :
U N D E R S T A N D T H E K E Y C H A R A C T E R I C S O F
M E D I A O R G A N I S A T I O N A L S T R U C T U R E S
Structure of Media
Organisations

2. O R G A N I S A T I O N S T H A T O W N M O R E T H A N O N E
C O M P A N Y A C R O S S A M E D I A S E C T O R
Horizontal Integration

3. W A R N E R B R O S E N T E R T A I N M E N T C A L L S
I T S E L F “ A F U L L Y I N T E G R A T E D B R O A D
B A S E D E N T E R T A I N M E N T C O M P A N Y ” W H I C H
O W N S F I L M S T U D I O S A N D T H E M E A N S T O
D I S T R I B U T E T H E F I L M S A S W E L L A S S O M E
O F T H E C I N E M A S I N W H I C H T H E Y A R E
S H O W N .
W A R N E R B R O S I N I T S E L F I S P A R T O F A N
E V E N B I G G E R C O N G L O M E R A T E C A L L E D
T I M E W A R N E R W H I C H I S A H U G E M E D I A
C O N G L O M E R A T E I N S T I T U T I O N W H I C H U S E S
H O R I Z O N T A L I N T E G R A T I O N T O
C O N S O L I D A T E I T S P O W E R A N D P R O F I T S .
Examples

4. Benefits and Drawbacks
 Increased profit margins
and market share
 Greater influence
 Agenda setting
 Rationalised operations
 Institutional Synergies
 Reduced choice and
competition
 Possible creation of
monopolies and
oligopolies
 Reduce media plurality
 Possible bias over
balance
 Control of information
 Reduced workforce

5. O R G A N I S A T I O N S T H A T O W N C O M P A N I E S
T H R O U G H O U T T H E D I F F E R E N T S T A G E S O F
T H E P R O D U C T I O N P R O C E S S
Vertical Integration

6. Benefits and Drawbacks
 Control over production
 Distribution and
Exhibition
 Greater synergies
 Increased profits
 Unfair economic and
political influence

7. H T T P : / / W W W . S L I D E S H A R E . N E T / M A T T H E W O
R E G A N / L E S S O N - 4 - I N D U S T R Y - 3 0 3 3 7 6 6 6
S L I D E 5
Examples

9. S H A R E D O W N E R S H I P S ,
C O L L A B O R A T I O N B E T W E E N M E M B E R S
D E M O C R A T I C D E C I S I O N M A K I N G
S U P P O R T N E T W O R K
S H A R E D R E S O U R C E S
P R O F I T R E T U R N E D T O M E M B E R S
Co-Operatives

10. H O R I Z O N T A L A N D V E R T I C A L L A D D E R
D R A W I N G
Activity