2. Private Ownership
What is Private Ownership
Private ownership means that the company is run by itself not by
members of the public or other companies. One example of
private ownership is the technology company ‘Apple.’
Advantages
Advantages of private ownership is that the individual or group
can decide how to run the business and that the company can
keep all the profits itself.
Disadvantages
Disadvantages of private ownership is that if the business fails,
the company cant rely on other businesses to help out. This
means that if the company takes a loss it will be harder for the
business to make the money back meaning they are more likely to
go bust.
3. Public Service
What is Public Service Ownership
Public service ownership means that a certain percentage of the
company is owned by the public.
Advantages
Advantages of this is that the government provide services that
would usually have to come out of the businesses money.
Disadvantages
Disadvantages of this is that you are likely to have to pay a lot of
the companies profits in tax.
4. Multinational
What is Multinational Ownership
Multinational ownership means that company has either
investments or operations in two or more countries.
Advantages
Advantages of multinational ownership is that the cost of production
through out the world will cost a lot less.
Disadvantages
Disadvantages of multinational ownership is that it could create a
monopoly effect meaning that the public could turn on the company.
5. Independent Ownership
What is Independent Ownership
Independent ownership is where a company is owned by a small
organisation and is usually owned by one individual.
Advantages
Advantages of this could be that the owner of the company is in
charge of how the business is run without having restrictions from
other companies that have invested.
Disadvantages
A disadvantage of this is that the company will usually remain small as
the company wont have enough money to advertise as far as other
types of ownerships could.
6. Conglomerate
What is Conglomerate Ownership
Conglomerate ownership is where a company is made up of other
companies that all specialise in a certain field.
Advantages
Advantages of this is that all companies are likely to boost their
own profits from the business.
Disadvantages
The disadvantages of this is that company will eventually go into a
new area of business as the company will be that large meaning
that there is a higher risk of the company failing.
7. Horizontal Integration
What is Horizontal Integration
Horizontal integration is where a business will add on things such
as outlets in order to keep ahead of competitors.
Advantages
An advantage of this is that the company has greater control in
both prices and costs.
Disadvantages
A disadvantage of this type of ownership that there is a potential
collapse of organization due to sector downturn.
8. Vertical Integration
What is Vertical Integration
Vertical integration is where one company owns many different
businesses.
Advantages
An advantage of this is that the businesses will usually spread
across different sectors giving the businesses a better chance of
survival.
Disadvantages
A disadvantage is that because of the economy the business
altogether might not generate more income as other
businesses.
9. Cross Media Divergence
What is Cross Media Divergence
Cross media divergence is where different media platforms come
together in one such as a games console like Playstation or Xbox
as they also feature a DVD player as well.
Advantages
A advantage of this is that they are able to appeal to a wider
market meaning that they are more likely to generate more
income.
Disadvantages
A disadvantage of this is that they may have to share their profits
with other companies that they have joined with.
10. Synergy
What is Synergy
Synergy is where one corporation will branch into different
fields of business in order to make profit for example Disney.
They have films, TV, Books, Games, Toys, Theme parks, and even
Hotels.
Advantages
An advantage of this is that if one sector of the business starts to
fail there will be money to back it up from other sectors.
Disadvantages
A disadvantage is that if the public go against one sector of the
business they are then likely to go against all sectors.
11. The Structure and Ownership of The
Film Industry
Structure
The film industry generates most of their profit from cinema, if a film isn’t a
big hit at the cinema its likely that it wont sell as many DVDS either. Once a
film has been comissoned usually by the biggest institues such a ’20th
Century Fox, Warner Bros ect..’ then production will start. Once filming has
finished then the film will be edited before being played a cinema’s all
around the world and eventually be sold on DVD and be able to download.
Film institute
Production Post Production
Cinema’s StoresDownload
Ownership
