Task 1 Understand the structure and ownership of the media sector. P1, M1, D1

EXPLAINING THE STRUCTURE AND

OWNERSHIP OF THE MEDIA SECTOR

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

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

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

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

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

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

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

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

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

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