OwnershipExplaining the structure and ownership of the media sector.

Private OwnershipWhat is Private OwnershipPrivate ownership means that the company is run by itself not by members of the public or other companies. One example of private ownership is the technology company ‘Apple.’

Advantages Advantages of private ownership is that the individual or group can decide how to run the business and that the company can keep all the profits itself.

DisadvantagesDisadvantages of private ownership is that if the business fails, the company cant rely on other businesses to help out. This means that if the company takes a loss it will be harder for the business to make the money back meaning they are more likely to go bust.

Public Service

What is Public Service OwnershipPublic service ownership means that a certain percentage of the company is owned by the public.

AdvantagesAdvantages of this is that the government provide services that would usually have to come out of the businesses money.

DisadvantagesDisadvantages of this is that you are likely to have to pay a lot of the companies profits in tax.

Multinational What is Multinational OwnershipMultinational ownership means that company has either investments or operations in two or more countries.

AdvantagesAdvantages of multinational ownership is that the cost of production through out the world will cost a lot less.

DisadvantagesDisadvantages of multinational ownership is that it could create a monopoly effect meaning that the public could turn on the company.

Independent OwnershipWhat is Independent OwnershipIndependent ownership is where a company is owned by a small organisation and is usually owned by one individual.

AdvantagesAdvantages of this could be that the owner of the company is in charge of how the business is run without having restrictions from other companies that have invested.

DisadvantagesA disadvantage of this is that the company will usually remain small as the company wont have enough money to advertise as far as other types of ownerships could.

ConglomerateWhat is Conglomerate OwnershipConglomerate ownership is where a company is made up of other companies that all specialise in a certain field.

AdvantagesAdvantages of this is that all companies are likely to boost their own profits from the business.

DisadvantagesThe disadvantages of this is that company will eventually go into a new area of business as the company will be that large meaning that there is a higher risk of the company failing.

Horizontal Integration

What is Horizontal IntegrationHorizontal integration is where a business will add on things such as outlets in order to keep ahead of competitors.

AdvantagesAn advantage of this is that the company has greater control in both prices and costs.

DisadvantagesA disadvantage of this type of ownership that there is a potential collapse of organization due to sector downturn.

Vertical IntegrationWhat is Vertical IntegrationVertical integration is where one company owns many different businesses.

AdvantagesAn advantage of this is that the businesses will usually spread across different sectors giving the businesses a better chance of survival.

DisadvantagesA disadvantage is that because of the economy the business altogether might not generate more income as other businesses.

Cross Media DivergenceWhat is Cross Media DivergenceCross media divergence is where different media platforms come together in one such as a games console like Playstation or Xbox as they also feature a DVD player as well.

AdvantagesA advantage of this is that they are able to appeal to a wider market meaning that they are more likely to generate more income.

DisadvantagesA disadvantage of this is that they may have to share their profits with other companies that they have joined with.

Synergy

What is SynergySynergy is where one corporation will branch into different fields of business in order to make profit for example Disney. They have films, TV, Books, Games, Toys, Theme parks, and even Hotels.

AdvantagesAn advantage of this is that if one sector of the business starts to fail there will be money to back it up from other sectors.

DisadvantagesA disadvantage is that if the public go against one sector of the business they are then likely to go against all sectors.

The Structure and Ownership of The Film Industry

StructureThe film industry generates most of their profit from cinema, if a film isn’t a big hit at the cinema its likely that it wont sell as many DVDS either. Once a film has been comissoned usually by the biggest institues such a ’20th Century Fox, Warner Bros ect..’ then production will start. Once filming has finished then the film will be edited before being played a cinema’s all around the world and eventually be sold on DVD and be able to download.

Film institute

Production Post Production

Cinema’s StoresDownload

Ownership