Task 1 structure and ownership of the media sector
Media Company Case
Task 1 Understand the structure
and ownership of the media sector
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 it
Increases possibilities of anti-trust prosecution.
Types of Companies:
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
Types of Companies:
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.
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 .
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
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.
Disney–ABC Television Group
ABC Television Network
ABC Family Worldwide
ABC Owned Television Stations Group
A+E Networks (50%)
Disney Channels Worldwide
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.
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
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
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.
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
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
Unit 7 Blog