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

EXPLAINING THE STRUCTURE AND

OWNERSHIP OF THE MEDIA SECTOR

◼ A Private Ownership is a company or organisation that is owned by just the founder or their family such as Virgin Atlantic and Iceland Supermarket

Advantages◼ When we are talking about owning a private radio show is

that you can choose how the whole show works and what it structure is, this could mean that you can choose what songs go on air and what you as a presenter talk about

Disadvantages◼ But as well as having good things about it, there are some

bad things are that people may not like what you are choosing to put up or if the company isnt making the money you would have to sort advertisment out to play along the show to dodge bankruptcy

TYPES OF OWNERSHIP: PRIVATE OWNERSHIP

◼ A Public Service Ownership is a company or organisation that is owned by a group of people own it such as government where the public pay the tax for the government to make the company and produce like the BBC

Advantages◼ Public Service is where the public has a say in the company

and it should be suited for each and everyone because they are paying for it through taxes

Disadvantages◼ people might not like what is being played and it could all

go down from there

TYPES OF OWNERSHIP: PUBLIC SERVICE

◼ A Multinational Ownership is a organisation that owns different part of the company in different countries

Advantages◼ because this is in more than one countries the company can

get more views and viewers or listeners

Disadvantages◼ there is a large amount of money invloved in Multinational

Organisations because they have to pay for the different branches through out the world and this could effect the company depending on how the company is going

TYPES OF OWNERSHIP: MULTINATIONAL

◼ A Independent Ownership is when one single person owns the company and controls and does everything that involves in the company and is privately owned

Advantages◼ You have full control over all matters and then you don’t

even have to play by the rules

Disadvantages◼ You are taking a risk and you may lose money or even all of your

company if it is not successful and you might have to work a mass amount of hours and not take holidays off

TYPES OF OWNERSHIP: INDEPENDENT

◼ A Conglomerate Ownership is a company that owns different kinds of companies such as Tv and Radio

Advantages◼ Some advantages are that there is less risk because you are

spreading it over all products and markets and there is a high profit opportunity which gives you the ability to grow profitable

Disadvantages◼ Some disadvantages would be that if one of the businesses go

down then the rest will come down with it and there would be a lack of management experience

TYPES OF OWNERSHIP: CONGLOMERATE

◼ Horizontal Integration is a structure that differs from vertical and has fewer layers, the departments have lots of different functional areas overseen by individual and then he reports to the top management

Advantages◼ Some advantages are that the employees have a greater

satisfaction in horizontal structure because of the greater freedom and the use of cross function teams can also lead to bigger levels of cooperation throughout the organisation

Disadvantages◼ Some of the disadvantages are that there could be finger pointing

if there is a lack of control and this could hinder productivity and if a management wants to change from a vertical integration then they will face challenges

TYPES OF COMPANIES:HORIZONTAL INTEGRATION

◼ Vertical Integration is organised where there would be a President or Chief executive at the top and then a series of different people like vice president who then sees a specific functional area

Advantages◼ Some of the advantages is that they can provide clear lines

of authority and a tight span of control, which then could be leading to high operating efficiency and in general an organisation is split up in to small departments

Disadvantages◼ Some disadvantages is there employees at the bottom may

feel less valued and it could take a lot of time when people at the top make decisions to communicate with people throughout to the bottom

TYPES OF COMPANIES: VERTICAL INTEGRATION

◼ A Cross Media Divergence is where a company is split into different sections but still make the same product like Apple with their iPhone, they have iTunes, Camera, Software and other features that make one

Advantages◼ Some advantages would be that there would be a reduced

cost on certain products like tesco and there would be a business security like sony, if one market fails then they can focus on another

Disadvantages◼ Some disadvantages that there is a massive database of

personal information and if the company gets a privacy hack then all that information is now revealed and there is a flow of information where providers control selections,organisation

CROSS MEDIA DIVERGENCE

Synergy is when everyone that is working with each other gets something out of it and they all work because if the other one didnt then they would not be able to operate like the X Factor, Simon Cowell, Sony, ITV where X Factor would not be able to play songs if they didn't have sony to licence it and then X Factor would not be able to pay for itself if it didnt have Simon Cowell and then ITV would have to be there for X Factor to be played on TV

SYNERGY