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

EXPLAINING THE STRUCTURE AND

OWNERSHIP OF THE MEDIA SECTOR

Private ownership is like ITV where they have to have adverts to carry on funding the company. The advantage of this is you can put whatever you want onto the station. The disadvantage is that people might not watch your station because of the adverts.

TYPES OF OWNERSHIP: PRIVATE OWNERSHIP

Tis like what the BBC is. We pay for the bbc with the television tax. As a result of this they have to show what is popular with the public, also they do not have to show adverts and they cant say the name of a product/company.

TYPES OF OWNERSHIP: PUBLIC SERVICE

Multinational is a company that is owned in different countries. One of the disadvantages is that if you invest in a multinational company then you could end up wasting all your money. The advantage is that you could make a lot of money if you invest in a multinational company. An example of this is sky.

TYPES OF OWNERSHIP: MULTINATIONAL

Independent means when a company is on its own without any other form of sponsors. The advantage of this is that you have full control of the product but the disadvantage is that if you make a product and it doesn’t sell it could destroy your company. An example of this is ITV.

TYPES OF OWNERSHIP: INDEPENDENT

It is a type of media that has many products in it. An example of this is bbc. This is an example because they have the tv channels and the radio.

TYPES OF OWNERSHIP: CONGLOMERATE

An example of horizontal integration is the X factor. A horizontal integration is when all of the companies involved are equal. In X factor the three companies involved in this are Syco, ITV and Sony. An advantage of being in a horizontal integration is that you get less power over the show whereas the disadvantage is that the profit gets split three ways.

TYPES OF COMPANIES:HORIZONTAL INTEGRATION

An example of vertical integration is APPLE. Apple does everything to put the product together. The advantage of this is that you get 100% of the profit. The disadvantage of this is if it fails it only affects you.

TYPES OF COMPANIES: VERTICAL INTEGRATION

Cross media divergence is when one type of media goes over a load of types of media. An example of this is the iPhone even though this covers the normal phone and text services it has games, videos and a camera. The benefit of this is that more people would buy a product that covers more than one type of media.

CROSS MEDIA DIVERGENCE

Synergy is horizontal and vertical integretion. Its to do with different companies come up with a similar goal and mutual beneficial for example x factor. X factor has three different companies; Syco, ITV and Sony. Whenever the show makes profit each company gets a third of that profit

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 structuredThis 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