The document discusses different types of media sector ownership structures, including private ownership (e.g. ITV), public service (e.g. BBC), multinational ownership, independent ownership, conglomerate ownership, horizontal integration, vertical integration, cross media marketing, cross media divergence, and synergy. For each type of ownership, the document provides examples and outlines the potential advantages and disadvantages.

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. Private Ownership is a situation in which a company is owned by private
stockholders (citizens), as opposed to being owned by a government. An
example of a privately owned company is ITV… This explains why they have
adverts on their channel as they need to make money because people
aren't paying them due to them not being publicly owned. ITV work with
SyCo and Sony to produce and process all the media so this way all the
profits are split into 3rd
s if one goes down hill.
Advantages of private ownership are: you own it so you make all the
decisions and you can control everything.
Disadvantages of private ownership are: you have to put all your own money
into your projects from your company and there's not always a 100%
guarantee that people are going to watch it so if you don’t make it you’ve
basically wasted your money and time and you’re left with not a lot.
TYPES OF OWNERSHIP: PRIVATE OWNERSHIP

3. Public Service refers to government provision of goods and services; the
commercial or business activities of the state. Public service is the opposite to
private ownership… For example, the BBC don’t use adverts so it is beneficial to
the public as they can just watch their programmes with no disruptions.
Some advantages of public service are: It is not an individual who holds the
authority, and it is not guided by an individual interest so it pleases everyone.
Also its content is usually more prescriptive, with no pressure to attract high
ratings or to generate advertisement revenue.
Some disadvantages of public service are: Public service in media can be used
frequently by the autocratic government as the propaganda tools. Public owned
media are also criticized for the boundary they impose in media competition.
Unlike independent media, state owned media cannot ensure people's
acquisition of unbiased information.
TYPES OF OWNERSHIP: PUBLIC SERVICE

4. Multinational ownership is organisations that are owned or control
productions of goods or services in one or more countries. For example,
when a corporation is registered in more than one country or has operations
in more than one country, it may be attributed as multinational ownership.
Advantages of multinational ownership are: Greater availability of products
for local consumers and greater access to high quality managerial talent
which tens to be scarce in host countries. Also there are jobs and career
opportunities at home and abroad in connection with overseas
opportunities.
Disadvantages of multinational ownership: The effective management of a
globally dispersed organization and the slow down in the growth of
employment in home countries. Also, trade restrictions are imposed at the
government-level and taxes or tariffs imposed on imports from other
countries.
TYPES OF OWNERSHIP: MULTINATIONAL

5. 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.
Advantages of independent ownership are: 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.
Disadvantages of independent ownership are: Owning a business can expose
you to financial risk. You may have to go into debt or invest substantial personal
funds to start your company. You may lose it all if your company isn't successful.
Once your business is established, its income may be sporadic, highly variable
or seasonal. You may have to cover unexpected shortfalls.
TYPES OF OWNERSHIP: INDEPENDENT

6. A media conglomerate ownership group is a company that owns large numbers
of companies in various mass media such
as television, radio, publishing, movies, and the Internet. As a legal construct a
media conglomerate has become a standard feature of the global economic
system since 1950.
Advantages of conglomerate ownership are: Due to the combination of
companies being so big they can promote largely across the world and have
great control and power of the media on a whole.
Disadvantages of conglomerate ownership are: Critics have accused the larger
conglomerates of dominating media, especially news, and refusing to publicize
or deem "newsworthy" information that would be harmful to their other interests,
and of contributing to the merging of entertainment and news (sensationalism)
at the expense of tough coverage of serious issues.
TYPES OF OWNERSHIP: CONGLOMERATE

7. In business, horizontal integration is a strategy where a company creates or
acquires production units for outputs which are alike - either
complementary or competitive.
Advantages of horizontal integration are: Employees may attain greater
satisfaction in a horizontal structure due to greater freedom and autonomy.
The use of cross-function teams can also lead to high levels of cooperation
throughout the organization.
Disadvantages of horizontal integration are: The decentralized structure
could lead to a loose ship as the team and project leaders have high levels
of responsibility for achieving results but little real authority over their team
members. A resulting lack of control can lead to finger-pointing when things
go awry, which can hinder productivity, according to the Practical
Management website.
TYPES OF COMPANIES:
HORIZONTAL INTEGRATION

8. Commercial institutions try to combat the power of the BBC by becoming larger
and creating vertical integration. This is where an institution has shares or owns
each part of the production and distribution process. For example: Warner Bros
Entertainment calls itself a fully integrated broad based entertainment company
which owns film studios and the means to distribute the films as well as some of
the cinemas in which they are shown.
Advantages of vertical integration are: 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.
Disadvantages of vertical integration are: 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 emphais on pleasing the boss.
TYPES OF COMPANIES:
VERTICAL INTEGRATION

9. 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.
CROSS MEDIA DIVERGENCE

10. Synergy is the interaction of multiple elements in a system to produce an effect
different from or greater than the sum of their individual effects. Synergy is the
strategy of synchronising and actively forging connections between related areas
of entertainment. Synergy defined is linking up various companies to make
profits from one product.
The advantages of synergy are: Due to various companies coming together it
promotes the product further and more widely, it enhances the companies
image, synergy influences the publics opinion and it develops sharing skills and
team work skills between companies.
The disadvantages of synergy are: It’s difficult when all the different companies
involved have very different ideas, it can include loss of jobs in big companies
such as Sony (they laid off 19,500 workers in one year). Also companies could
end up in competition due to uneven distributions of power, etc.
SYNERGY