1. Task 1
Understand the
structure and
ownership of the
media sector. P1,
M1, D1
EXPLAINING THE
STRUCTURE AND
OWNERSHIP OF THE
MEDIA SECTOR

2. A private ownership is where only one company or individual is in control.
Rather than it being co-owned by companies or the public. An example of
this is Apple because they do not collaborate with other companies about
the their product.
Advantages of having a private ownership is that is rising then company
gets 100% of the profit because they don’t have any contracts with other
companies to share the profits
Disadvantage of a private company is that if the company takes a hit, it is
only them that does. Because they don’t have any backing they can not
pick themselves up from their loss and could potentially go out of
business.
TYPES OF OWNERSHIP: PRIVATE OWNERSHIP

3. Public Service is where the company or a shared percent of the company
(51%) is owned by the government or controlled percent of the public.
Complete public ownership of a company is called “nationalization”
Advantages of this is that all essential services are provided by the
government and you do not need to waste a percentage of the companies
money.
Disadvantages of this is that the size of the organizations means
inefficient results and a you would lose a percentage of profits to
taxpayer.
TYPES OF OWNERSHIP: PUBLIC SERVICE

4. Multinational is where the company has operations subsiding in two or
more countries. Or the company has investments from two countries.
Their a lot of advantages to multinational ownership. This is that they
increase the investment level and thus the income and employment can
be used by the host country to make the company bigger. Also it
decreases the cost of production around the world.
The disadvantage of a multinational ownership is that it will destroy the
company and create a monopoly which is not good because the public
never like when one organization control everything. This is because it
destroys our rights.
TYPES OF OWNERSHIP: MULTINATIONAL

5. Independent ownership is a company that is owned by a privately held
organization. These businesses are operated in independent mode.
Independent ownership is usually have one sole owner of the company.
The business is carried out in the name of the owner.
The great advantage of the business is that the owner can shape the
business how ever he see’s fit.
It is hard to get your business known because you do not have the power
of a public or private ownership to advertise your business.
TYPES OF OWNERSHIP: INDEPENDENT

6. A conglomerate is corporation made up of a number of different
companies that work in the same field so they can boost the company
and get a bigger profit across all the companies.
The advantage is that you have to share the profit but because there are
more companies working towards the same thing. So there is it is more
likely they will succeed and gain a large profit than if they were multiple
companies.
The disadvantage of a conglomerate is that because company is so large
they are delving deep into new area. So there is more chance of risk
spreading.
TYPES OF OWNERSHIP: CONGLOMERATE

7. Horizontal Integration is where a business adds outlets to chain to the
company to enhance its competitiveness. A publisher might acquire a
publishing house to keep a stable flow of editor and authors coming
though this increases the chance of these people seeing his business.
A advantage and disadvantage is seen by regulators that horizontal
integration has an unfair advantage in the market and must regulated a
lot. This is an advantage because you could use it and increase your
business. This can also be used against you by the competitors.
TYPES OF COMPANIES:
HORIZONTAL INTEGRATION

8. This is where one single company owns multiple businesses. This in
combination control the production and selling the product. An example of
this is that a Tv company, a radio show and a film producer can all use the
same product in their business.
An advantage is that the experience and technology can overlap to give
the product a better chance in the market against over products.
A disadvantage is that the economics will decrease because of the
different stages of production. So the business will not thrive as well as
other companies.
TYPES OF COMPANIES:
VERTICAL INTEGRATION

9. Cross media divergence is when there is are a range of media platforms
integrated into a single piece of technology. The Xbox 360 is a example of
this is because it is a gaming console but also has a DVD player and a
internet modem integrated inside of the console.
A big advantage to this is that the consumer would see more for their
money and immediately want to buy it. Also this helps smaller companies
sell their product. If the DVD company were selling really badly they could
integrate there product into the Xbox and take a better share of the
product because more units would be sold.
CROSS MEDIA DIVERGENCE

10. Synergy is where the different sectors of corporation work together to get
the same goal. An example of this is Disney as all their movies, toys and
theme parks all work together to make profit to one big pot. Synergy
“means the whole is greater than the sum of its parts”.
The advantages to a synergy is that the profit is big depending on the
amount of parts that are in the business. Also that each sector is different
so they are aiming at a big audience. This also means if one sector fails
then they have the money to back it up or cut it off. Finally operating a
synergy is easier than other methods because you have more than one
person running a certain sector so thee pressure is not on one person.
SYNERGY

11. American Film Industry
The American Industry was developed from 1890 to 1930. In this time period the industry developed into an important and popular medium. That are
clearly set in the production and distribution elements. In the 1930’s the American film industry thrived because of enhances in technology, is was
known as the studio era. A bad thing about the American industry is that it was controlled by five companies known as the majors or the Big five. The
American Film Industry (The Big Five) are all vertically integrated because they overseer all of the production, marketing, distribution right through to the
consumer. This is a good thing because it allows them to keep track
of what is going on across the board and fix any problems that might be
happening. It is also a bad thing because it is expensive to keep track of
there business as it is so big. So they have to bring in more money to keep
the companies on top. There are now over 6 major film companies that run
the American film industry which are “Warner Bros Pictures, 20th
Century Fox,
Paramount Pictures, Columbia Pictures, Walt Disney Pictures and finally
Universal studios. The advantage of having so many different companies at
the top, is that if one company fails in that sector they have other companies
to back them up because they are al linked. The disadvantage is that you have
to share the profits across the boards to the other companies to keep this link
going.
British Film Industry
The British Film Industry is seen as a lot smaller compared to the American industry. When people see a film they mostly relate it with American
production or Hollywood. The British Film Industry works on
smaller productions. Also supporting a first time writer work on a feature film script that
has great potential compared to the Hollywood productions using well known directors and
scrip writers to get a clean and quality cut film. The advantage that British film industries
get from small productions is that they can look for talented film makers and make
progress in developing the industry. Even if the film is not successful.
DESCRIBE THE STRUCTURE AND OF
OWNERSHIP OF EITHER THE FILM INDUSTRY
OR MUSIC INDUSTRY