1. Task 1
Understand the
structure and
ownership of the
media sector. P1,
M1, D1
EXPLAINING THE
STRUCTURE AND
OWNERSHIP OF THE
MEDIA SECTOR

2.  Private ownership is when a company has full guardianship of the company
and can do whatever they want within it.
 Apple Inc. is a successful example of private ownership because they do not
collaborate with other companies about the their product
 One of the best advantages about private ownership is that the company gets
all of the profit and don’t have to pay out to other companies
 However, a big disadvantage is that if they don’t sell their products very well
and lose money, they lose it all from their company and it won’t be split up
into a variety of different ones.
TYPES OF OWNERSHIP: PRIVATE OWNERSHIP

3.  Public service ownership is when the public pay for it through the TV
license. This means we own it or maybe own shares of another company.
 Advantages of public service ownership is that there is unbiased news
reporting unlike private ownership.
 There are also opportunities for people to work within the industry
 Disadvantages of this is that the public have to pay for public service
ownership.
TYPES OF OWNERSHIP: PUBLIC SERVICE

4. Multinational is where the company has operations subsiding in two or
more countries. Or the company has investments from two countries.
Their a lot of advantages to multinational ownership. This is that they
increase the investment level and thus the income and employment can
be used by the host country to make the company bigger. Also it
decreases the cost of production around the world.
The disadvantage of a multinational ownership is that it will destroy the
company and create a monopoly which is not good because the public
never like when one organization control everything. This is because it
destroys our rights.
TYPES OF OWNERSHIP: MULTINATIONAL

5.  Independent ownership is a company that is owned by a privately held
organization. These businesses are operated in independent mode.
Independent ownership is usually have one sole owner of the company.
The business is carried out in the name of the owner.
 The great advantage of the business is that the owner can shape the
business how ever he see’s fit.
 It is hard to get your business known because you do not have the power
of a public or private ownership to advertise your business.
TYPES OF OWNERSHIP: INDEPENDENT

6.  Conglomerate is the trend toward media ownership being concentrated
among relatively few corporations, leading to few viewpoints being
presented. It is a corporation made up of a number of different
companies that work in the same field so they can boost the company
and get a bigger profit across all the companies.
 The advantage is that you have to share the profit but because there are
more companies working towards the same thing. So there is it is more
likely they will succeed and gain a large profit than if they were multiple
companies.
 The disadvantage of a conglomerate is that because company is so large
they are delving deep into new area. So there is more chance of risk
spreading.
TYPES OF OWNERSHIP: CONGLOMERATE

7.  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. A publisher might acquire a
publishing house to keep a stable flow of editor and authors coming
though this increases the chance of these people seeing his business.
 A advantage and disadvantage is seen by regulators that horizontal
integration has an unfair advantage in the market and must regulated a
lot. This is an advantage because you could use it and increase your
business. This can also be used against you by the competitors.
TYPES OF COMPANIES:
HORIZONTAL INTEGRATION

8. This is where one single company owns multiple businesses. This in
combination control the production and selling the product. An example of
this is that a TV company, a radio show and a film producer can all use
the same product in their business.
An advantage is that the experience and technology can overlap to give
the product a better chance in the market against over products.
A disadvantage is that the economics will decrease because of the
different stages of production. So the business will not thrive as well as
other companies.
TYPES OF COMPANIES:
VERTICAL INTEGRATION

9.  Cross media divergence is when there is are a range of media
platforms integrated into a single piece of technology. The Xbox 360 is
a example of this is because it is a gaming console but also has a DVD
player and a internet modem integrated inside of the console.
 An advantage to this is that the consumer would see more for their
money and immediately want to buy it. Also this helps smaller
companies sell their product. If the DVD company were selling really
badly they could integrate there product into the Xbox and take a better
share of the product because more units would be sold.
CROSS MEDIA DIVERGENCE

10. Overall, synergy is the combined working together of two or more parts of
a system so that the combined effect is enhanced than the sum of the
efforts of the parts. In business and technology, the term describes a
hoped-for or actual effect resulting from different individuals,
departments, or companies working together and motivating new ideas
that result in greater productivity. The process of synergy as a way of
creating new ideas or building new discoveries can be compared to
chance, in which ideas and discoveries develop apparently by
coincidence. An example of this would be an artist in the music industry
expanding their work by creating something like a perfume or even a
clothing range. This means two media products working together to make
a bigger impact on something or someone.
SYNERGY

11. 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