ownership and funding

7/31/2019 Ownership and Funding

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Ownership and

Funding Terms


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Global companies- Global companies are companies which

own assets in a lot of other companies around the world. An

example of a global company is Sony they have assets in the

main markets around the world.

Corporate- A corporate is a company that is made of a lot ofdifferent companies. Sony is not only a global company it is

also a corporate as it is made of many companies such as

Sony Music entertainment, Sony Pictures Entertainment.

Commercial- It is designed to make money, for exampleSKY is a system which was design to make money as you

have to pay for services you receive.

OwnershipOwnership


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Monopoly- Monopoly basically is when a company owns all or most of thealternatives in the market. Personally I dont know any case of monopoly inthe media industry, but and example of monopoly would be if Time-Warnerowned all the TV channels, newspapers, cables and satellites services andcinemas, in the USA, so people would have other alternatives for media,wherever they went they would have to go to would belong to Time-Warner.

Vertical integration- This happens when an a head company owns everycompany in a entire chain of production from the beginning to the end. Forexample Time-Warner, can be considered to have vertical integration as theyhave subsidiary companies in three main stages of the chain, production(Warner bros), distribution(Time Inc) and exhibition (HBO).

Horizontal integration- This is when a companies owns many companies in the

same stage of the chain. News corporation has horizontal integration as theyhave many companies in the same stage on the chain for example, they ownmany newspapers, The Sun, The Times, The Daily Telegraph, etc.

Public Service- This is design to improve the life of the public, it is not design tomake money, an example for this is BBC, BBC does not make profit, theysurvive due to the TV license paid by those citizens who have a TV at

home.


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Independent companies- This type of companies can be

owned by more than one person however this companies

dont belong to any other company. An example of an

independent company is Endemol, this is a independent

company they have to main owners, and they dont

belong to any other company.

Private- This is when the ownership is private, usually

there are very low type of shares involved, however theydo not trade this shares, they usually have one owner.

Sport Newspapers is a type of private company as they

do not trade their shares.


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Product Placement- These happens whencompanies pay movie producers to use theirproducts in the movie. For example in themovies of 007 James Bond, we can see that the

brand of watches that the actors wear areOmega, this happens because omega paid fortheir product to be used.

Advertising- TV advertisement is very effective,

so TV networks charge for commercial airtimeduring TV events. Other way of advertisement inmedia is through music, for example a labelmight pay for their music to be feature on a TV

event.

FundingFunding


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Private Capital- Private capital is one more usefulway of funding, this is when investors providefunds for a certain project. For example if a

young producer wants to produce a movie but hecan't get any funds from sponsorship oradvertising, he can get some investors who thinkthat his project is good to invest on it.

License Fee- As I explained before, somecompanies like BBC are not for profit, andsurvive due to licenses fees paid by citizens.


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Subscription- Some companies get funding by

subscription paid by their costumers for example

with SKY, costumers have to pay for the

subscription monthly, and that's one if the waysof how SKY is funded.

Pay-Per-View- This is a service in which the

people buy a certain event to view via a privatetelecast. An example of this is the Sky Box

Office. Customers buy certain events or movies

and they are broadcasted in respective channels.


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Sponsorship- Sponsoring a programme allows you to place a series of

short credit sequences, featuring your logo and a commercial

message, in and around a programme. For example, between X

Factor breaks there are always short credit sequences of Talk Talk

commercial and they say X Factor was brought to you by TalkTalk.

Development funds- This type of funding happens when regional

bodies for example the council of a certain place or some types of

companies fund the production of low budget movies as long as it

contributes for the development of the region where they are

filming. For example the East London Film Fund provides funds

for producers which are producing in the are of East London and

are willing to improve the area with the help of their production


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Financial aid- This type of fund is usuallyprovided by types of charities in the form ofgrants for low budget movies. Sometimes

organisations provide grants to producers ifthey are doing film on a subject related tothe organisation, for example Movies thatMatter are giving grants up to 5,000 toproducers who are making movies related tohuman rights.


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Ownership and Funding IssuesOwnership and Funding Issues

Media Dominance/Monopolies- One main issue in todaysindustry is the potential monopolies, if these do exist, the potential for corruptionwill also increase. News corp. is an example of how too much possession inmedia can lead to corruption. Rupert Murdoch is in court for a phone hackingscandal. However even if the newspapers that News corp. owns in the U.K get

prosecuted and major consequences occur, News corp. still has a lot morealternatives, as they own a lot of companies in the U.K and around the world.Another problem related to this are the news bias, News Corp. can influencepeople in the way they want through newspapers and also television. Peoplemight be watching different news of different channels which are subsidies ofNews Corp. they will be thinking that they are getting different news but they willbe getting what News Corp. wants them to get. The grossly inflated budgets are

also a problem in production, nowadays seems that everything is all aboutbusiness, so we can see that there is a lot of product placement and sponsorshipin movies with an high budget, so the question is, if it is possible to express artin these conditions. Producers of big budget movies have to write the scriptsthinking already of the product placement and sponsorship so art cannot beexpressed at its full.


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Digital Technology-The development of technology madehuge changes to the industry, and digital technology is makingmedia production lose its original nature. VHSs, normal DVD cdsare getting offset by expensive developments, in some years, the

experience of going to cinema will be completely different as mostof the movies or all movies will be of 3D technology or a even moredeveloped technology. However not everything is bad, thetechnology provided easier ways to do many things, for example ifIm a musician and I want people to know about my music I cancreate a blog, post my music there or create a YouTube account

and people will know about, some years ago it would be completelyhard to let people around the world know of you if you were notfamous. So as we can see there are good points and bad pointsrelated to digital technology.


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Piracy- This is a consequence of the development oftechnology, nowadays many people dont go to cinemas towatch a new movie, dont buy a brand new CD, they justillegally download them. Piracy affects every media

industry, I will give an example of how it affects the movieindustry. Large budget movies are usually profitable asthey might cost $70 million to make, but then earn $200million. This type of productions can afford to lose $50million due to piracy, they will still make profit, however

small producers will not get that kind of budget, they willprobably get $50million, so if they lose a lot of money dueto piracy, instead of profit they will have loss, so youngproducers wont get the chance as people wont give themthe opportunity due to the fear of losing to piracy.


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http://newmillenniumresearch.org/archive/Final_Compaine_Paper_05020

http://www.plunkettresearch.com/entertainment-media-publishing-market

http://en.wikipedia.org/wiki/Pay-per-view

http://en.wikipedia.org/wiki/Sky_Box_Office_(UK)

http://thetvroom.com/misc/links-01-70.html

http://www.mladiinfo.com/2010/08/10/financial-support-for-movies-on-h

http://en.wikipedia.org/wiki/Sport_Newspapers
http://newmillenniumresearch.org/archive/Final_Compaine_Paper_050205.pdfhttp://www.plunkettresearch.com/entertainment-media-publishing-market-research/companieshttp://en.wikipedia.org/wiki/Pay-per-viewhttp://en.wikipedia.org/wiki/Sky_Box_Office_(UK)http://thetvroom.com/misc/links-01-70.htmlhttp://thetvroom.com/misc/links-01-70.htmlhttp://thetvroom.com/misc/links-01-70.htmlhttp://thetvroom.com/misc/links-01-70.htmlhttp://thetvroom.com/misc/links-01-70.htmlhttp://thetvroom.com/misc/links-01-70.htmlhttp://thetvroom.com/misc/links-01-70.htmlhttp://en.wikipedia.org/wiki/Sky_Box_Office_(UK)http://en.wikipedia.org/wiki/Pay-per-viewhttp://www.plunkettresearch.com/entertainment-media-publishing-market-research/companieshttp://newmillenniumresearch.org/archive/Final_Compaine_Paper_050205.pdf

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