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

2. Is basically where only one company or individual is in control, other than
it being co-owned by companies or the public; more than one owner. An
massive and main example of this is Apple as they do not collaborate or
join with other companies about the their product.
The main advantages of having a private ownership is that the said
company, in this case, Apple get 100% of the profit because they don’t
have any contracts with other companies to share the profits.
However the main disadvantage of a private company is that if the
company takes a hit, they will completely take the loss. Because they
don’t have any backing they can not pick themselves up from their loss
and could potentially go out of business (it will more than likely will go out
of business if it is a small business as it will affect them too much).
TYPES OF OWNERSHIP: PRIVATE OWNERSHIP

3. This is where the company or a shared percent of the company is owned
by the government or measured percent of the public. Complete public
ownership of a company is called “nationalization”
The main advantages of this is that all vital 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. The meaning of Multinational is where a enterprise/company ect is
completely managed from one main country location, but is operating I n
several different counties
An example of a Multinational enterprise is Sony, managed in Tokyo, it is
still operating in more or less every country in the world, and is a massive
worldwide name.
Some advantages of Multinational are as followed, employment levels will
be increased as it is operating in many counties, and income level of the
host country increases.
A prime example of a disadvantage of Multinational is that investments in
foreign countries is more profitable, which may mean it will neglect the
home countries industrial and economic development.
TYPES OF OWNERSHIP: MULTINATIONAL

5. Independent ownership is basically a company that is owned by a
privately held body. These businesses are functioned in independently.
Independent ownership is usually have one sole holder of the company.
The business is passed out within the name of the owner.
The best advantage of the business is that the owner can shape the
business how ever he see’s fit, and has clear ideas, and will not have to
compromise.
However, 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. What Conglomerate means is that a number of different things or parts
that are engaged together to become a whole for the same result, but
remain distinct entities.
An example of Conglomerate is within Co-oprative Banking, and Britannia
Banking. They have both merged together to form one task, yet they
remain distinct entities.
An advantage of this is that it brings in the brains, experience and ideas of
more than one company, and with ideas of more than one can generate
better ideas to improve the overall aim.
A disadvantage of this is that as it is merged, it may cause problems with
the internal staff as issues may occur, as they are still technically
competitors, they may have different ideas on how to run the place
TYPES OF OWNERSHIP: CONGLOMERATE

7. An example of Horizontal Integration is between two or more
companies/people such as, Simon Cowell, Sony and ITV.
How these 3 all integrate horizontally is with them all having one aim, and
they are all needed equally to complete this aim. The example with these
three is X Factor. Simon has the idea, he needed in on a national TV
station; along comes ITV, and when they program is done, a record label
is needed for the winning artist…Sony. The upside to having it split three
ways is that each of them all split the same risk (rather than all being
risked by one) so if it a “flop” not only one gets effected big time, they can
share it, which will not have as a big of impact. But this also means if it is
successful, they all share the praise and profit, and not all going to just
one.
TYPES OF COMPANIES:
HORIZONTAL INTEGRATION

8. This is where one single company owns multiple businesses (but all link
together in some way down the line). 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 understanding and technology can intercept to
give the product a improved chance in the market alongside over
products.
A disadvantage is that the financial side will decline due to the changed
phases of production. So the business will not thrive as well as other
companies.
TYPES OF COMPANIES:
VERTICAL INTEGRATION

9. This is basically when there is are a range of media platforms combined
into a single piece of technology. The Xbox 360 is a great example of this
is due to it being a gaming console but also has a DVD player and a
internet modem integrated inside of the console, being a lot of things into
one product.
A massive advantage of this is that the customer would see more for their
money and straightaway want to buy it, rather buying them separately,
they can have it all in on device. Also this helps smaller companies sell
their product. If the DVD company were selling really badly they could mix
there product into the Xbox and take a better share of the product
because more units would be sold.
CROSS MEDIA DIVERGENCE

10.  This is basically where the dissimilar segments of business work side by side
towards the same outcome and goal (target). 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”.
 A main advantage to a synergy is that the profit is large subject on the amount
of parts that are in the business. Also that each sector is altered so they are
directing at a vast audience. Also, what this also means if one sector fails
then they have the money to back it up or cut it off. Similarly, functioning with
a synergetic layout 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. 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