LO1: Media Ownership

LO1: Media Ownership

Two types of media ownership: Independent and conglomerate

Media Conglomerate - a media organization that owns subsidiary (smaller) companies e.g. 21st Century Fox which owns the subsidiaries: 20th Century Fox, Fox, Fox TV, Sky News etc. However 21st Century Fox is now a subsidiary of Disney. However, Fox is still a conglomerate but is also owned by a conglomerate. Owning/controlling these subsidiaries allows for a conglomerate to produce multiple kinds of media. This is called cross media ownership (owning more than 1 media type). 

Advantages:

-Allows for a conglomerate to reach a wider audience due to being able to produce different forms of media.

-Allows for cross promotion/synergy in releasing a particular IP alongside the same IP in a different media form, increasing profit. This is as well as promoting a film for example made by subsidiaries in the conglomerate and advertising it within a magazine or newspaper owned by the same conglomerate.

-Monopoly over the content audiences consume e.g. Brain Murdoch created Fox and 5 billion people consume 1 piece of media from him everyday (1 person having innate and large influence)

-Tentpole productions can be made to increase income to fund independent productions from subsidiaries. 

-reputation in household names (trusted conglomerate that produces trusted products). 

-Audience becomes mass/wide meaning higher profits.

Production - making the product

Distribution - Releasing the product onto platforms (e.g. cinemas, streaming services, TV, radio etc.) and advertising the product.

Exhibition - Audiences view/are given access to the product 

Vertical Integration - How a media product is produced, distributed and exchanged/exhibition within a conglomerate by a subsidiary (subsidiaries produce, distribute and exchange the product). This gives the conglomerate complete control of the product.

Horizontal Integration - The effect of vertical integration. To be able to distribute products onto different platforms. E.g. If Disney makes a film, they will release it on Disney+ (as a streaming site), on the platforms that Disney's subsidiaries own (so the film will also release on 21st Century fox's subsidiaries like Fox TV in adverts or as a program). This film will also be advertised on magazines or newspapers Disney owns. Marketing and releasing on platforms the conglomerate owns. Makes synergy.

Cross Media Ownership - Owning subsidiaries that can produce different forms of media.

Synergy/Cross Promotion - The effect of horizontal integration. Advertising on products/platforms you (as a conglomerate) already own. 

Independent Companies - A company not owned by a conglomerate and work for themselves. Distribution is often helped by a conglomerate however. Commonly work in a Joint Venture with another company to produce a product and or distribute a product (e.g. Warp and Channel 4). To reach a national or international audience, these independent companies do their distribution with a conglomerate (Joint Venture).

Public Service Broadcaster (PSB)

BBC is the largest PSB in the UK: they're funded via the TV license with a remit to 'inform, educate and entertain. PSB's used to be known as terrestrial channels. Channel 4,5 and ITV are also PSBs. 

The BBC are a conglomerate who benefit from cross media ownership as they can produce multiple different kinds of media such as radio, film and TV. Due to the TV license the BBC cannot get income from commercials however, Dave (a BBC channel) is their workaround (and only way) to achieve some income from adverts.

Regulation Bodies - Companies which oversee a certain type of media and make the rules that producers must follow such as:

• PEGI
• Ofcom
• ASA
• Ipso 
• W3C