Media Company Case Study

Task 1 Understand the structure

and ownership of the media sector

Kelsey Keighley

Private ownership is funded by advertising. This means it doesn’t need to meet the strict Securities and Exchange Commission filing requirements as public companies do.

An example of private ownership is ITV.

Private ownership has a lot of advantages but it also has its disadvantages, one advantage is that it runs only on advertising funds because there are a lot of companies that want their products to be advertised on TV and are willing to pay a lot of money. This is great for private ownerships because the more popular the channels are the more it will cost for companies wanting to advertise. A disadvantage is that channels like the BBC are public owners and they do a lot of research to find out exactly what the audience want before funding a show.

Types of ownership: private ownership

Public service ownership is funded by the government, which everyone with a TV pays for known as the TV license. Companies that are government run have to take on board the publics interests. For example is the public complain then the company will make the changes. Also if a show doesn't get a lot of views it will be cancelled.

An example of public ownership is the BBC.

One of the advantages of public ownership is that the public can watch shows that are designed for them; a wide variety of different shows to suit a wide audience. This is because the BBC run on what the public want. A disadvantage is that more people would rather sign up to companies such as Sky, to pay them money rather than pay for a TV license that only funds one channel (BBC).

Types of ownership: public service

Types of ownership: independent

An independent ownership operates without funding, for example an independent record label doesn’t having funding of or organizations of the major record labels.

An example of an independent ownership is ‘Dominos’ which Is an independent record label.

An advantage of an independent ownership is that they control everything they do, but a disadvantage is that it they don’t have as much money.

A media conglomerate is a company that owns large numbers of companies in different mass media, such as TV, radio, publishing, movies and the internet. Media conglomerates aim for policies that make it easier to control different markets around the world.

An advantage of Conglomeration, if a particular movie and television industry were to combine they can put out a television show then sometime down the road the movie side of the corporation can make a movie of the television show. A disadvantage that extra layers of management can increase costs.

Types of ownership: conglomerate

Horizontal Integration is where an organisation develops by buying up competitors in the same section of the market e.g. one music publisher buys out other smaller music publishers.

Some advantages are that it allows for greater control of both prices and costs, allows for increased presence in foreign markets and increases possibilities for deeper product diversity. A Disadvantage is that itIncreases possibilities of anti-trust prosecution. 

Types of Companies:Horizontal Integration

This is when a company has the ownership of the means of production. Distribution and exhibition of the film by the same company because of this, they receive all the profit

production, distribution, consumption Some advantages are it improves supply chain

coordination, reduce transportation costs if common ownership results in closer geographic proximity. Disadvantages are it potentially higher costs due to low efficiencies resulting from the lack of supplier competition.

Types of Companies: Vertical Integration

Cross Media Convergence is really a Business Studies term and refers to companies coming together . The example often cited in exams is of Working Title making use of its parent company to gain access to bigger stars and a better distribution network for their films. Advantages are that they get more companies to and the money will increase.

Cross Media convergence

Synergy is selling products to promote an artist or band, they might have a sight you could buy bandmerch from or at concerts you they will sell tops, phone cases, hats, mugs, posters and more. The money will get split between the artist or band and the music company they’re with.

Synergy

The structure of the music industry works in a pyramid system, you start from the top with a product or service and it filters down then reverses for people who pay for the product. It starts off as an idea first then the artists who creates the music will write the piece, if they haven't already signed upto a music company then they will do. The process begins after that, the process of sellling and promoting can be done through social media such as facebook, twitter and youtube. Then once it hits it's release date it will be prepared to be sold in shops around the world.

Describe the Structure and of Ownership of Either The Film, TV, Gaming or Music Industry

The company i have chosen is Walt Disney, they are a conglomerate global company. They run a series of TV subsidiaries and TV stations that show sport, kids, news, documentary channels. They also provide a music section where actors from shows on their channels have became artists, such as Miley Cyrus, Selena Gomez and Ariana Grande .

Walt Disney

The Walt Disney company is an Amercian diversified multinational mass media corporation, it is headquatered at Walt Disney Studios in Burbank, California. This company is the largest media conglomerate in the world. On October 16th, 1923 Disney was founded by Walt Disney and Roy O. Disney. It was known as the Disney Brothers Cartoon Studio, it was established as a leader in the American Animations Industry before diversifying into live-actin film production, TV and theme parks.

The company also used to operate under the names of Walt Disney Studios and Walt Disney Productions. After it took on it's name in 1986, it expanded is existing operations and started divisions focused on theatre, radio, music, publishing and online media.

The company is best known for the products of it's film studio (Walt Disney Studios) it is also the worlds largest and best known in Hollywood. Disney owns and operates alot of ABC broadcast television network; cable television networks such as Disney Channel, ESPN, A+E networks and ABC family publishing. Merchandising and theater divisions; and owns and licenses 14 theme parks around he world. It has a successful music division also.

Ownership

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

Disney Media Networks is the headquarters. it is 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.

Competitors

Walt Disney has quite a lot of competitors, their main three are 21st Century FOX, Time Warner and NBC Universal Media. All of these are global conglomerate companies they 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.

Disney Channels worldwide reach more than 300 million homes, with 95 entertainment channels and 35 different languages. Showing for families in 168 countries.

The company launched Disney Channel Russia, Greece, Ukraine and announced to launch a local launguage Disney Channel for South Korea in 2010.

In 2010 in the USA was Disney Channels most watched year on record in total day and viewers, amoung the key audiences of kids (6-11) and teens (9-14). Disney Channel celebrated its 8th consecutive year as TV's number No: 1 network primetime.

Audience

A few rumors were told about Walt Disney, he was long rumoured to be and anti-semitic during his life time. Rumors perisisted 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.

However, the most recent scandal about Miley Cyrus and how she has turned from Disney to an outrageous troublsome teen. A few amout of peple have claimed this is to do with Disney trying to steal her youth but other dissagree.

Scandals

http://www.imdb.com/name/nm0000370/

http:// disney.com/

http://thewaltdisneycompany.com/investors/annual_reports/2010/kb_cable_story.html

http://toxicmessiah.hubpages.com/hub/Walt-Disney-Secrets-Mistakes-And-Controversies

http://www.justdisney.com/walt_disney/

Bibliography

When you have finished your case study, create a blog entitled

YOUR NAME Unit 7 Understanding the Creative Media Sector

And post this finished PPT with the title: ‘Task One Structure and ownership of the media sector’

Email me your blog address to

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