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

Delete this bit when your done 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

Types of ownership: private ownership

Private ownership is a corporation owned by a single person or a group of people such as Sky or ITV. With private ownership they can choose what they want to show and not show anything they don’t like. The disadvantage Is that because it’s not publicly owned it has to use advertisements for an income.

Types of ownership: public service Public service is a company like the BBC that is paid for by

the television tax, the public pays for the service so you don’t have to by advertising. This is the best thing with public service, you don’t need adverts to be played between yours shows, though the down side is that you have to produce something to suit everyone.

Types of ownership: multinational A multinational business is a business that works across

multiple countries, like the BBC works in America as well as the united kingdom. Bigger the company, more profit the company will gain, but if you spread out to big you could risk wasting your money and making the company collapse.

Types of ownership: independent Independent business ownership refers to the privately held

organizations. An independent business is operated in an independent mode, an independent ownership allows the owner to do as wish, they don’t have a lot of money to as you please, by creating something fails you don’t have the money to back you up.

Types of ownership: conglomerate Conglomerate is two more companies combined together to make

one bigger company. Often, a conglomerate is a multi-industry company. Conglomerates are often large and multinational. CBS is a conglomerate which is a spinoff of viacom. The advantage is a better access to capital markets, the disadvantage is is the Failure in one business will drag down the rest.

Types of Companies:Horizontal Integration Horizontal integration is where multiple companies are equal

to produce the same product. For example; X-Factor, the companies SyCo, Sony and ITV work together by doing different things to produce the same product. The advantage is if your company is short of the knowledge to complete a product, you could team up with another company to get the product completed. Profit has to be shared, though so does the loss and because you are all in it together, all the companies have to agree on the same thing.

Types of Companies: Vertical Integration Vertical Integration is where they are in control of their own

production and advertising and nobody else helps them. For example, apple follows vertical integration as they make their own hardware and software, they have their own shops, they have everything they need to support their products. An advantage would be if they win, they get all their profit none of it being shared, if it was to fail you’d be the one to suffer and just you.

Cross Media divergence Cross media divergence means where a product crosses

media sectors. Like for example the iPhone, that uses cross media divergence as it has a camera, internet, video and messaging. This is also an advantage for bands as they won’t just be making money from their music, they would be making money from their websites, their tours, their pictures and everything else. Though the disadvantage is if the product goes so does everything else, where as only one thing would of broke if you had them separate.

Synergy All synergy means is that everybody wins, when multiple

company's work together to try and get the same goal which is mutually beneficial to all of the companies. For example Dell uses intel's processers, so they work together to get the same goal so they both benefit from this.

- No disadvantage

Describe the Structure and of Ownership of Either The Film Industry or Music Industry

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