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

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

DELETE THIS BIT WHEN YOUR DONE

Describe it and give an exampleWhat are the advantages and disadvantages of this type of ownership~

Private ownership is when a company is owned by one person or is funded by itself. An example of this is the Sky, owned by Rupert Murdock. As this is privately owned, they need to run adverts on all of their television or radio

shows as they need to be funded by their advertisers. An advantage of private ownership is advertising as this is how they get their funding. Another

advantage is that it’s owned by that company only and so they get to make all their decisions themselves and any money made all goes to them rather than

having to be shared out between companies. A disadvantage of private ownership is that if something doesn’t work as well as the company had

intended, they lose money themselves. As this is privately owned, they need to run adverts on all of their television or radio shows as they need to be funded by

their advertisers, this is also a disadvantage as well as an advantage as this is how they g et their funding although viewers dislike watching adverts and their

programmes being split up by adverts.

TYPES OF OWNERSHIP: PRIVATE OWNERSHIP

Public service is when a company is owned by one person or is funded by itself. An example of this is the BBC. Public service means that those that pay

television taxes (which is everybody) gets to be represented by the BBC which could be in their television programmes or their radio shows. The public are

paying for the BBC to be broadcasted and so they deserve a fair representation from the BBC. The advantages of this are that those that are paying for it are getting what they are paying for and also they are funded by the public so if something they intend to go really well, such as a new television series, and

make a lot of money for the BBC doesn’t go well then the public are still paying whether they like it or not and so the BBC always has funding. A disadvantage of

this is that it does actually cost to be represented in this media.

TYPES OF OWNERSHIP: PUBLIC SERVICE

Multinational means that a company is owned in more than one country. An example of this is Sky. An advantage of this is that there will be more money

made as there is a bigger audience. A disadvantage is that if the company invest too much money into Sky in other countries, they could end up losing it all if not

enough people buy it.

TYPES OF OWNERSHIP: MULTINATIONAL

TYPES OF OWNERSHIP: INDEPENDENT

Describe it and give an example

What are the advantages and disadvantages of this type of ownership

TYPES OF OWNERSHIP: CONGLOMERATE

Horizontal integration is when a company or product has to work with other companies or products to make it become successful. An example of this is the

popular television show ‘X Factor’. To make this television show successful, Simon Cowell’s record label is used, SyCo, the television channel is used, ITV, and the

music needs to be released by Sony Entertainment. The advantages of this are that if one thing fails with the companies working together then they do have money to fall back on. A single company cannot afford to lose £1million but if they horizontal integration loses £1million then the three companies won’t be too affected if they

lose a third of a million pounds. The disadvantage is that if not all three companies agree to something but it still goes ahead then they may be losing touch of their

own company and can be taken advantage of.

TYPES OF COMPANIES:HORIZONTAL INTEGRATION

Vertical integration is when a company or product works alone to become successful. An example of this is Apple, which owns iPhones, iTunes, iMacs,

iPads etc. To make these products, Apple is wealthy enough to be able to make expensive products that may flop as they’re a massive company that can afford

to lose money. The advantages of this is that Apple decides what Apple wants to do without any other input from any other companies interfering. Apple receives

every bit of profit it makes and doesn’t have to share it with anyone else. The disadvantages of this is that they can lose a lot of money themselves if an idea

does fail, even though it won’t effect them too much as they’re extremely wealthy.

TYPES OF COMPANIES: VERTICAL INTEGRATION

Cross media divergence means one type of media works across more than one type of media. An example of this is an iPhone. This uses the obvious call and

texting uses, but also internet, camera, videos and games. The advantage of that is that you only need to use one product to do many different things.

CROSS MEDIA DIVERGENCE

When companies or products come together to produce a common goal which is mutually beneficial for all companies involved and when they make money, they all win, meaning they all gain from it. This is good as it uses horizontal integration and

so it’s a win-win basis.

SYNERGY

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