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. Define the following and given an example of a company
that does this eg Apple for vertical integration:
(This is part 1 of your “ownership of the media sector”
power point. Add these two power points together then
add it to your blog - after completing this try and add
more of these technical terms and definition to your case
study - this will gain you merits and distinctions)
Also you should realistically be doing a full page of
writing AND DON’T CUT AND PASTE OFF WIKIPEDIA
DELETE THIS BIT WHEN YOUR DONE

3. Private ownership is exactly what the title implies, it is a company owned by
themselves. A good example of a privately owned company is XFM. They rely
on nobody and everything they do is ‘off their own backs’ and is done at
their own risk. The advantages of this is that anything they do good will be
praised but however a disadvantage is that anything they do wrong will
reflect badly on them.
TYPES OF OWNERSHIP: PRIVATE OWNERSHIP

4. An example of a public service is the BBC who are funded by the television
license, the radio stations and TV programs provided by the BBC are chosen
to suit the widest audiences and have to include something for everyone.
The BBC have many different channels each with a certain genre of
programs or radio shows. The main disadvantage of a public service is that
the public have a right to know what's going on with the company. An
advantage is there is no need for adverts as the BBC are funded by the
public.
TYPES OF OWNERSHIP: PUBLIC SERVICE

5. Disney is a multinational company that is well known world wide and have
many media outlets mainly in television and film. The company has films
that are shown in many countries and languages this is why they have done
so well. An advantage of a multinational company is there is a lot more
people to buy the products and watch shows. A disadvantage would be
having to produce the shows or films in different languages.
TYPES OF OWNERSHIP: MULTINATIONAL

6. An independent company usually has quite a few people running it
compared to a privately owned company like virgin media which is owned by
one person. The advantages of an independent company is that like
privately owned, they have their own free will and aren't controlled by the
public like the BBC for example. A disadvantage is that the independent
company runs all the risks in what they do and aren't reliant on anybody
else.
TYPES OF OWNERSHIP: INDEPENDENT

7. Conglomerates are corporations that engage in various business pursuits
that are completely unrelated in nature. Sometimes referred to as a multi-
industry corporation, the assets of a conglomerate will be used to set up
business operations in two or more fields that have nothing to do with one
another. The basic idea behind a conglomerate corporation is to ensure that
there is enough generated revenue from all the business interests to allow
for the continued operation of each business enterprise. This would be true
even if one of the interests is currently experiencing a downturn in revenue.
TYPES OF OWNERSHIP: CONGLOMERATE

8. An example of horizontal integration is SYCO which is a company ran by
Sony and Simon Cowell who make the x factor. The company use BBC to
show the X factor and they help to promote each other. A benefit of
horizontal integration is that any losses are split between them which
means any profit is also divided equally.
TYPES OF COMPANIES:
HORIZONTAL INTEGRATION

9. An example of vertical integration is Apple who design and make all or most
of the components and software for their products meaning they do not
have to involve any other company. The main advantage of this is Apple are
not having to share any profit and they can make the product however they
like, a disadvantage is that any problems or losses apple are the only people
to face the consequences.
TYPES OF COMPANIES:
VERTICAL INTEGRATION

10. Cross media divergence is when a product has a wide range of media
platforms integrated into a single piece of technology. A good example of
this is Apples iPhone which is a phone, a camera, mp3 player and a web
browser. The advantage to this is that all the things people use are in one
piece of equipment which means they no longer need to carry all the items
separately.
CROSS MEDIA DIVERGENCE

11. Disney uses synergy to promote its products and characters, they do this
by making children's toys and other collectables as well as having the
Disneyland resorts where people can go and see their favourite Disney
characters. An advantage of this is a greater profit for the company along
with more people seeing and owning their products. Some Disney
products are collected by all ages and can be worth lots of money.
SYNERGY