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Media Company
Case Study
Task 1 Understanding the structure
and ownership of the media sector
Reece Cordingley
Types of ownership: private ownership
Private ownership has both negatives and positive aspects, they can make
whatever kinds of programme they choose whether it is sport, reality shows or
documentaries they are also not subject to the strict publicly owned rules such as
no advertisements and the major factor they are also aloud to sell advertising to
anyone they want where as companies like the BBC can’t sell advertising.
It can result in better quality products due to competition and the threat of losing
market share to another competitor makes firms put forward their most popular
and best shows. Although, private ownership leads to media firms sometimes
placing profit above public interest and can also lead to a lack interest in the
public’s eyes when products they don’t like are aired such as TV soaps or reality TV
shows known as car crash TV.
Types of ownership: public
service
•The British Broadcasting Corporation (BBC) is a British public service
broadcasting statutory corporation. Its main responsibility is to provide impartial
public service broadcasting in the United Kingdom they provide advert free TV
stations they gain their money through TV licences paid for by the British taxpayer.
• http://en.wikipedia.org/wiki/Public_broadcasting
Types of ownership:
independent
Music companies that are independent can profit from all three
of production, distribution and consumption they run their own
company and require no help bands such as the Arctic Monkeys
are assigned to independent record labels but some artist’s even
run their own independent music companies so that they alone
can promote and discover new talent and sign them up.
The ways the companies sign and promote their artists
are things such as live gigs, social media, free music
tracks and launch parties.
Types of ownership:
conglomerate
Conglomerate companies are companies that branch
out and own a variety of different subsidiary
companies who all provide different services such as
Walt Disney who do kid’s TV, mainstream American
sport, American news, music and films
There are others such as virgin and sky who now
provide a range of services to customers such as
internet and broadband provider this is so they can
expand the markets that they currently sell
themselves in.
Types of Companies:
Horizontal Integration
Horizontal integration is an absorption into a single firm of several
firms involved in the same level of production and sharing
resources Horizontal integration is mostly full of advantages it
means you have expanded your company and also expanded it’s
production line and scouting for new talent. It also gives you
increased market power and a larger percentage of the markets
value
On the other hand, it does have its disadvantages. One of them
being legal repercussions. Higher integration can lead to a
‘monopoly’, which is highly discouraged by many governments
due to lack of competition. With a monopoly makes it also harder
for new ideas and products and services to come into he market
and compete with larger companies the government have done
what it can by limiting companies to only having a maximum of
40% of the market value
All of these
companies are
examples of
horizontal
integration
through Time
warner
Types of Companies:
Vertical Integration
Vertical integration is when a company profits from production, distribution and
consumption. It used to be only large companies such as Time Warner that could
actually afford to profit from production, distribution and consumption. But now,
due to the internet via social media and websites such as soundcloud small
companies can also vertically integrate, such as independent record labels.
Advantages such as improved coordination throughout the supply chain. There is
also a greater market share and secured distribution channels. Disadvantages are
the higher costs if the company is incapable to manage new activities efficiently,
The ownership of supply and distribution channels can sometimes lead to lower
quality products and reduced efficiency because of the lack of competition, and new
competencies may clash with old ones and lead to competitive disadvantage.
Cross Media convergence
Cross media coverage is where companies from
the media world but completely unrelated
collaborate to produce a service or a product such
as a new game will have a soundtrack so Sony
music could sell a track from the arctic monkeys
to be the trailer music for the new Call of Duty
game or they could have a music show on TV such
as the X-factor or voice these use music and
television and turn it into a competition to
compete for a music contract this is an example of
two types of media converging and overlapping
Synergy
Synergy is selling products to promote an
artist so at a concert you might be able to
buy t-shirts, mugs and posters all related
to the artist the money for merchandise is
then split between the music company for
the promotion of the tour/concert and the
artist
Describe the Structure and of
Ownership of Either The Film, TV,
Gaming or Music Industry
It works in a pyramid system you start from
the top with the product or service and it
filters it’s way down and then it the reverse
for the people who pay for the product or
service it starts off as an idea and then the
artist who creates the music will write the
piece and if not already signed up to a music
company will then do then begins the
process of selling and promoting it this can
be do through social media e.g. twitter,
Facebook and YouTube then once it hits it’s
release date it will have been prepared to be
sold in shops all across the world
Walt Disney
The media company I'm going to do is one of the biggest
media franchises there is.Disney, they are a conglomerate
global company who now run a series of TV subsidiaries
they run TV stations that do sport, kids, news and
documentary channels they also provide a music section
where they have made artists such as Miley Cyrus, Selena
Gomez and Ariana Grande
Ownership
The Walt Disney Company, commonly known as Disney, is an American diversified
multinational mass media corporation headquartered at the Walt Disney Studios in
Burbank, California. It is the largest media conglomerate in the world in terms of
revenue. Disney was founded on October 16, 1923, by Walt Disney and Roy O. Disney
as the Disney Brothers Cartoon Studio, and established itself as a leader in the
American animation industry before diversifying into live-action film production,
television, and theme parks. The company also operated under the names Walt Disney
Studio and Walt Disney Productions. Taking on its current name in 1986, it expanded
its existing operations and also started divisions focused upon theatre, radio, music,
publishing, and online media.
The company is best known for the products of its film studio, the Walt Disney
Studios, which is today one of the largest and best-known studios in Hollywood.
Disney also owns and operates the ABC broadcast television network; cable television
networks such as Disney Channel, ESPN, A+E Networks, and ABC Family publishing,
merchandising, and theatre divisions; and owns and licenses 14 theme parks around
the world. It also has a successful music division.
Disney Media Networks is the headquarters it’s horizontally integrated with a variety of
different TV companies. The Walt Disney Company that contains the company's various
television networks, cable channels, associated production and distribution companies
and owned and operated television stations
Disney–ABC Television Group
ABC Television Network
ABC Family Worldwide
ABC Family
ABC Owned Television Stations Group
A+E Networks (50%)
Disney Channels Worldwide
Radio Disney
Disney Television Animation
Walt Disney
Competitors
Walt Disney's main three competitors are 21st
Century
FOX, Time Warner and NBC Universal Media. All of
these are global conglomerate companies these 4
companies control over 65% of the media and TV’s
market value
These companies don’t really have an issue with
distribution and production as they all have there own
production and distribution lines so they never are
competing against each other.
Audience
With 95 entertainment channels and feeds distributed in 35
languages, Disney Channels Worldwide reaches more than 300
million homes, serving as a daily touchstone for the Disney brand
for families in 168 countries.
In 2010, the Company launched Disney Channel in Russia,
Greece and Ukraine, and announced a joint venture to launch a
local language Disney Channel in South Korea
In the United States 2010 marked Disney Channel’s most watched
year on record in total day and total viewers, as well among the
key audiences of kids (6-11) and tweens (9-14). Disney Channel
also celebrated its eighth consecutive year as television’s No. 1
network in primetime among kids (6-11) and its 10th year at No. 1
with tweens (9-14), thanks to a strong slate of original
programming.
Walt Disney Scandals
Disney was long rumoured to be anti-Semitic during his lifetime, and such rumours
persisted after his death. Animator Art Babbitt claimed to have seen Disney and his
lawyer, Gunther Lessing, attending meetings of the German American Bund, a pro-
Nazi organization.
The most recent scandal is the whole debacle over Miley Cyrus and how she turned
from Disney girl to some sort of outrageous troublesome teen many claim this is to
Disney trying to steal her youth
Bibliography
http://thewaltdisneycompany.com/investors/annual_reports/2010/kb_cable_story.html
http://disney.com/
http://toxicmessiah.hubpages.com/hub/Walt-Disney-Secrets-Mistakes-And-Controversies
http://www.imdb.com/name/nm0000370/
http://www.justdisney.com/walt_disney/
Unit 7 Blog
paul.rossington@salfordcc.ac.uk

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Task 1 ownership case study

  • 1. Media Company Case Study Task 1 Understanding the structure and ownership of the media sector Reece Cordingley
  • 2. Types of ownership: private ownership Private ownership has both negatives and positive aspects, they can make whatever kinds of programme they choose whether it is sport, reality shows or documentaries they are also not subject to the strict publicly owned rules such as no advertisements and the major factor they are also aloud to sell advertising to anyone they want where as companies like the BBC can’t sell advertising. It can result in better quality products due to competition and the threat of losing market share to another competitor makes firms put forward their most popular and best shows. Although, private ownership leads to media firms sometimes placing profit above public interest and can also lead to a lack interest in the public’s eyes when products they don’t like are aired such as TV soaps or reality TV shows known as car crash TV.
  • 3. Types of ownership: public service •The British Broadcasting Corporation (BBC) is a British public service broadcasting statutory corporation. Its main responsibility is to provide impartial public service broadcasting in the United Kingdom they provide advert free TV stations they gain their money through TV licences paid for by the British taxpayer. • http://en.wikipedia.org/wiki/Public_broadcasting
  • 4. Types of ownership: independent Music companies that are independent can profit from all three of production, distribution and consumption they run their own company and require no help bands such as the Arctic Monkeys are assigned to independent record labels but some artist’s even run their own independent music companies so that they alone can promote and discover new talent and sign them up. The ways the companies sign and promote their artists are things such as live gigs, social media, free music tracks and launch parties.
  • 5. Types of ownership: conglomerate Conglomerate companies are companies that branch out and own a variety of different subsidiary companies who all provide different services such as Walt Disney who do kid’s TV, mainstream American sport, American news, music and films There are others such as virgin and sky who now provide a range of services to customers such as internet and broadband provider this is so they can expand the markets that they currently sell themselves in.
  • 6. Types of Companies: Horizontal Integration Horizontal integration is an absorption into a single firm of several firms involved in the same level of production and sharing resources Horizontal integration is mostly full of advantages it means you have expanded your company and also expanded it’s production line and scouting for new talent. It also gives you increased market power and a larger percentage of the markets value On the other hand, it does have its disadvantages. One of them being legal repercussions. Higher integration can lead to a ‘monopoly’, which is highly discouraged by many governments due to lack of competition. With a monopoly makes it also harder for new ideas and products and services to come into he market and compete with larger companies the government have done what it can by limiting companies to only having a maximum of 40% of the market value All of these companies are examples of horizontal integration through Time warner
  • 7. Types of Companies: Vertical Integration Vertical integration is when a company profits from production, distribution and consumption. It used to be only large companies such as Time Warner that could actually afford to profit from production, distribution and consumption. But now, due to the internet via social media and websites such as soundcloud small companies can also vertically integrate, such as independent record labels. Advantages such as improved coordination throughout the supply chain. There is also a greater market share and secured distribution channels. Disadvantages are the higher costs if the company is incapable to manage new activities efficiently, The ownership of supply and distribution channels can sometimes lead to lower quality products and reduced efficiency because of the lack of competition, and new competencies may clash with old ones and lead to competitive disadvantage.
  • 8. Cross Media convergence Cross media coverage is where companies from the media world but completely unrelated collaborate to produce a service or a product such as a new game will have a soundtrack so Sony music could sell a track from the arctic monkeys to be the trailer music for the new Call of Duty game or they could have a music show on TV such as the X-factor or voice these use music and television and turn it into a competition to compete for a music contract this is an example of two types of media converging and overlapping
  • 9. Synergy Synergy is selling products to promote an artist so at a concert you might be able to buy t-shirts, mugs and posters all related to the artist the money for merchandise is then split between the music company for the promotion of the tour/concert and the artist
  • 10. Describe the Structure and of Ownership of Either The Film, TV, Gaming or Music Industry It works in a pyramid system you start from the top with the product or service and it filters it’s way down and then it the reverse for the people who pay for the product or service it starts off as an idea and then the artist who creates the music will write the piece and if not already signed up to a music company will then do then begins the process of selling and promoting it this can be do through social media e.g. twitter, Facebook and YouTube then once it hits it’s release date it will have been prepared to be sold in shops all across the world
  • 11. Walt Disney The media company I'm going to do is one of the biggest media franchises there is.Disney, they are a conglomerate global company who now run a series of TV subsidiaries they run TV stations that do sport, kids, news and documentary channels they also provide a music section where they have made artists such as Miley Cyrus, Selena Gomez and Ariana Grande
  • 12. Ownership The Walt Disney Company, commonly known as Disney, is an American diversified multinational mass media corporation headquartered at the Walt Disney Studios in Burbank, California. It is the largest media conglomerate in the world in terms of revenue. Disney was founded on October 16, 1923, by Walt Disney and Roy O. Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, and theme parks. The company also operated under the names Walt Disney Studio and Walt Disney Productions. Taking on its current name in 1986, it expanded its existing operations and also started divisions focused upon theatre, radio, music, publishing, and online media. The company is best known for the products of its film studio, the Walt Disney Studios, which is today one of the largest and best-known studios in Hollywood. Disney also owns and operates the ABC broadcast television network; cable television networks such as Disney Channel, ESPN, A+E Networks, and ABC Family publishing, merchandising, and theatre divisions; and owns and licenses 14 theme parks around the world. It also has a successful music division.
  • 13. Disney Media Networks is the headquarters it’s horizontally integrated with a variety of different TV companies. The Walt Disney Company that contains the company's various television networks, cable channels, associated production and distribution companies and owned and operated television stations Disney–ABC Television Group ABC Television Network ABC Family Worldwide ABC Family ABC Owned Television Stations Group A+E Networks (50%) Disney Channels Worldwide Radio Disney Disney Television Animation Walt Disney
  • 14. Competitors Walt Disney's main three competitors are 21st Century FOX, Time Warner and NBC Universal Media. All of these are global conglomerate companies these 4 companies control over 65% of the media and TV’s market value These companies don’t really have an issue with distribution and production as they all have there own production and distribution lines so they never are competing against each other.
  • 15. Audience With 95 entertainment channels and feeds distributed in 35 languages, Disney Channels Worldwide reaches more than 300 million homes, serving as a daily touchstone for the Disney brand for families in 168 countries. In 2010, the Company launched Disney Channel in Russia, Greece and Ukraine, and announced a joint venture to launch a local language Disney Channel in South Korea In the United States 2010 marked Disney Channel’s most watched year on record in total day and total viewers, as well among the key audiences of kids (6-11) and tweens (9-14). Disney Channel also celebrated its eighth consecutive year as television’s No. 1 network in primetime among kids (6-11) and its 10th year at No. 1 with tweens (9-14), thanks to a strong slate of original programming.
  • 16. Walt Disney Scandals Disney was long rumoured to be anti-Semitic during his lifetime, and such rumours persisted after his death. Animator Art Babbitt claimed to have seen Disney and his lawyer, Gunther Lessing, attending meetings of the German American Bund, a pro- Nazi organization. The most recent scandal is the whole debacle over Miley Cyrus and how she turned from Disney girl to some sort of outrageous troublesome teen many claim this is to Disney trying to steal her youth