The Issues Raised by Media Ownership in Contemporary Media

Practice

The Issues Raised by Media Ownership in Contemporary Media

Practice

Definition:How the ownership of the

production, distribution and exhibition companies affects

the type of films that are made.

Definition:How the ownership of the

production, distribution and exhibition companies affects

the type of films that are made.

Issues: Production/Distribution/Marketing/Exchangeraised byMedia Ownership: Majors/Independentsin Contemporary Media Practice: Film/Warner Bros

Issues: Production/Distribution/Marketing/Exchangeraised byMedia Ownership: Majors/Independentsin Contemporary Media Practice: Film/Warner Bros

KEY TERMS

Majors

Mini Majors

Media Conglomerate

Subsidiaries

Vertical Integration

Horizontal Integration

On your tables, brainstorm as many film companies as you can think of (both major

and independent)

On your tables, brainstorm as many film companies as you can think of (both major

and independent)

TASK:TASK:

Film:Film: Media Ownership

Media Ownership

• In you exam, you will need to discuss:

1. Mainstream Hollywood Cinema (Majors)– How their ownership affects the way they

produce, distribute, market and exhibit their films.

1. Independent Cinema (Indies) – How their ownership affects the way they

produce, distribute, market and exhibit their films.

• Media Ownership, within the film industry, refers to how GREATER FINANCES can enhance the different levels of an institutions construction & selling of a film.

Film:Film: The MajorsThe Majors

• A major film studio refers to:– A movie production and distribution company that

releases a substantial number of films annually.– A company that consistently commands a

significant share of box-office revenues in a given market.

• In the Western market, there are six film studios that make up 90% of the US box office revenue. They are known as ‘The Majors’ or ‘The Big Six’.

• The "Big Six” operate in & around Hollywood, & are centered in Film Studios that were active in Hollywood's 1930’s & 40’s Golden Age of cinema.

TASK:TASK:

Today’s ‘Big Six’ Majors

Today’s ‘Big Six’ Majors

11 22

33 44

55 66

Film:Film: Mini MajorsMini

Majors• Aside from The Majors’, there are also a set of independent

producers/distributors who perform very well financially in the film industry, they are often referred to as ‘Mini Majors’.

TASK:TASK:

The History of The Walt Disney Company

Film:Film: Media Conglomerate

Media Conglomerate

• These Major studios come under six diversified media conglomerates whose various movie production & distribution subsidiaries command the Hollywood market.

• A conglomerate is a large company that consists of divisions of seemingly unrelated businesses. It will be involved in a diversity of other businesses aside from the film industry.

• A media conglomerate describes companies that own large numbers of companies in various mass media such as television, radio, publishing, movies, and the Internet.

Film:Film: Subsidiary CompaniesSubsidiary Companies

• In order to cash in on the present day boom in independent film, the big six also include:– Formerly independent companies that have been

acquired & brought in under the corporate umbrella.

– Created independent companies, that have been designed to develop less commercial, character driven films appealing to the Art House market.

• The ‘Majors’ are primarily backers & distributors of films. They mainly focus on development & finance. Actual production is largely handled by these independent companies. For example:– Warner Bros & New Line Cinema - Paramount &

Paramount Vantage - Disney & Pixar - Universal & Working Title .

TASK:TASK:

The Walt Disney Company Distribution

TASK:TASK:

Catch Up QuestionsCatch Up Questions

Catch Up QuestionsCatch Up Questions

Catch Up QuestionsCatch Up Questions

Catch Up QuestionsCatch Up Questions

Catch Up QuestionsCatch Up Questions

TASK:TASK:

PRODUCTION

Often a single parent company will own multiple companies in the film industry.

HORIZONTAL

The parent company owns multiple subsidiary companies at the same stage of the film industry.

VERTICAL

The parent company owns multiple subsidiary companies across different stages of the film industry.

Question: What are the advantages for a parent company of each type of ownership?

EXHIBITION

DISTRIBUTION

For example The Walt Disney

Company owns:

Marvel Studios Productions (Production)

Walt Disney (Distribution)

Disney Land Park resorts, Disney Publishing, Disney Home Entertainment

Film:Film:Horizontal &

Vertical Integration

Horizontal & Vertical

Integration

MARKETING

MARKETING

MARKETING

• Conglomerate:Time Warner

• Parent Division: Warner Bros: Entertainment Group, HBO

• Major Studio Subsidiary: Warner Bros: Pictures

• Other Mainstream/Art House Subsidiaries: New Line Cinema, HBO Films, Castle Rock Entertainment, Warner Bros: Animation

Warner Bros. Pictures is the number 1 biggest player in the film industry. Securing

the rights to major films like:

• Harry Potter• Superman• Batman

• The Matrix• Star Wars

• Conglomerate:Viacom

• Parent Division: Paramount Motion Pictures Group

• Major Studio Subsidiary: Paramount Pictures

• Other Mainstream/Art HouseSubsidiaries:

• Nickelodeon Movies, MTV Films,Paramount Vantage

Paramount Pictures continues to be one of the most

successful film production companies in the world.

Securing the rights to major films like:

• Star Trek• War of the Worlds

• Mission Impossible Series• Transformers

• Tropic Thunder

• Conglomerate:Sony

• Parent Division: Sony Pictures

• Major Studio Subsidiary: Columbia Pictures

• Other Mainstream/Art HouseSubsidiaries: Sony Pictures Animation, Sony Pictures Classics

Columbia Pictures remains a big player in the business.

Some of this company's recent successes include:

• James Bond Series• The Da Vinci Code

• 21 Jump Street

• Conglomerate:General Electric/Vivendi

• Parent Division: NBC Universal

• Major Studio Subsidiary: Universal Studios

• Other Mainstream/Art HouseSubsidiaries: Universal Animation Studios, FocusFeatures, Working Title

Universal Studios know what it takes to make money in this

industry, and this is demonstrated through major

hits like:

• The Bourne Series• The American Pie Series

• Knocked Up• American Gangster

• Conglomerate:News Corporation

• Parent Division: Fox Filmed Entertainment

• Major Studio Subsidiary: 20th Century Fox

• Other Mainstream/Art HouseSubsidiaries: 20th Century Fox Animation, NewRegency, Fox Searchlight

Some of the biggest and most successful movies from Rupert

Murdoch’s empire include:

• Mr. and Mrs. Smith• Star Wars Episodes II & III,

• Taken Series• Planet of the Apes

In groups note down the advantages and disadvantages of Avengers Assemble/Attack the Block being produced/not produced by a media conglomerate, such as Disney

In groups note down the advantages and disadvantages of Avengers Assemble/Attack the Block being produced/not produced by a media conglomerate, such as Disney

TASK:TASK:

Past Exam Question Past Exam Question

• Individually, answer the following past exam question supplied by OCR

TASK:TASK:

KEY POINTS:• The film industry is dominated by major

Hollywood studios. These Majors are hugely financially successful & have millions to spend on their movies (Budget). Something independent institutions do not have.

• Major studios own companies (Subsidiaries) that cover all aspects of the filmmaking process. They can therefore spend a large amount of money not only on production, but also the distribution & marketing of a film.

• These giant institutions are able to use their size and ownership of a wide range of media to cross promote their films (& other media) across their wide media empires. The synergies of cross-promoting that can be created by these media organisations is astonishing.

Film:Film: OverviewOverviewWHAT YOU NEED TO CONSIDER:

• What is the affect of media ownership on the British film industry, Independent filmmakers & of course the Major Film Studios?

• How can indies survive in the British marketagainst the high concept, big-budget films?

• What kinds of niche audiences are left for indies to attract?

• Are mass audiences out of reach for indies, given their genres & budgets?

• How successful have indies been in reaching mass audiences with their films?

• How healthy is it that just a few mega media groups can own such a range of media?