The document discusses different types of media ownership structures including private, public, multinational, independent, conglomerate, horizontal integration, vertical integration, and cross media convergence. Private ownership means a single company owns a media channel without relying on public funding. Public service organizations like the BBC are funded by taxpayers. Multinational companies operate across multiple nations. Independent companies operate on their own without partnerships, while conglomerates own companies across different media sectors. Horizontal integration involves partnerships between companies, and vertical integration means a company produces multiple related products. Cross media convergence integrates different media onto single platforms.

1. By Denni
Hepburn
EXPLAINING THE
STRUCTURE AND
OWNERSHIP OF THE
MEDIA SECTOR

2. Private Ownership such as, MTV and Sky Sports own their own channel, this
means that they don’t rely on the public or another company to work with.
The advantages to this is that they can put whatever they want on TV and
they gain all the profits with out sharing. The disadvantages are that if the
company makes no profits, it will be the one company in debt. This can be a
very large problem when being a private owner.
TYPES OF OWNERSHIP: PRIVATE OWNERSHIP

3. Public Service is the opposite to private ownership. Public service such as,
the BBC, work with another company, in this case, the public. The public pay
for the BBC to keep going through Tax. The advantages are that there are no
adverts and there are many channels that suit different demographics
which means there is something for everyone. The disadvantages are that
the public could stop paying for the BBC to air.
TYPES OF OWNERSHIP: PUBLIC SERVICE

4. Multinational means that a company such as Sky or Virgin, serve more than
one nation. Virgin, for example, are in England and America. This is a good
idea because they can serve a wider audience and this way they can make
more money, also, meaning they will be more well known. The down falls are
that if the company struggles, it will be known by more than one nation,
leaving them with a bad name and with no profits.
TYPES OF OWNERSHIP: MULTINATIONAL

5. This is where a company doesn’t work with any other companies. It works
on it’s own and is not joined with any other company, For example Apple.
They work independently.
The advantage to this is that they get all the profit from their products,
however, the disadvantage to this is that they if they don’t do well they have
no fall back option from other companies.
INDEPENDENT

6. This is where a company owns other companies in different types of media
sectors. Such as, television, radio and publishing.
The advantages to this is that they can make profit from across all media
sectors.
The disadvantages to this is that it has the risk of having no control because
it’s such a big company.
CONGLOMERATE

7. Horizontal companies such as, Simon Cowell, he works along with ITV. They
work together, rather than Simon Cowell working for him or IVT working for
Simon Cowell. This helps them brand their company, making their company
stronger.
The advantage to this is that if they don’t do as well as they thought, it
wouldn’t affect them as much as a company working on their own.
The disadvantage is that they have to share the money between the two
companies.
HORIZONTAL INTEGRATION

8. Companies such as Apple are a Vertical company. They are a company that
work on their own and produce more than one kind of product. Someone
could have an AppleMac, IPod, IPhone and an IPad. This is an advantage
because the company don’t have to share the profits. Also, they have
control in what is sold and what they make. The disadvantage is that if the
company stops making money, they won’t be able to share their debt.
TYPES OF COMPANIES:
VERTICAL INTEGRATION

9. This is when there is a range of media platforms integrated into single piece
of technology. Things such as the PS3, it can also be a blue-ray player. It has
two uses.
The advantage to this is that their audience will see that they are getting
more than just a game console. This will help increase their selling rates.
However the disadvantage is that if they focus on two things their focus on
the main thing, the game console, may not be as good as is could be.
CROSS MEDIA DIVERGENCE

10. Synergy is when a company promotes and sales a product. For example, the
Spider man films have brought out games and toys to constantly advertise
the film and the characters. This has found to help film sales. The
advantages are that the film is constantly advertised and will hopefully
increases film sales. People such as, Walt Disney was the founder of this in
the 1930’s, he let adverts use Mickey Mouse and use him in products too.
SYNERGY

11. If looking at the film industry compare the American and UK industry.
Explain what types of companies they are (horizontal or vertical) Explain
the benefits / weaknesses of this
If looking at the music industry look at companies from the “big three” to
an independent as well as subsidiaries.
Look at who is involved and how it is structured
This site might help… http://
www.planetoftunes.com/industry/industry_structure.htm
Aim to do 500 words
DESCRIBE THE STRUCTURE AND OF
OWNERSHIP OF EITHER THE FILM INDUSTRY
OR MUSIC INDUSTRY