Industries: Ownership and control blog task
Conglomerate ownership
A conglomerate is a large company composed of a number of smaller companies (subsidiaries).
A media conglomerate, or media group, is a company that owns numerous companies involved in creating mass media products such as print, television, radio, movies or online.
Examples include Comcast, 21st Century Fox or Disney.
The music industry had to change because people could easily buy artists music on the internet for free so now they rely on sponsorship and merchandising. The movie industry is also mentioned on how they are planning to add more technology into their cinemas because people can see movies online for free.
Google now owns YouTube which is a major media networking site, amazon, Netflix and yahoo now produce their own TV shows and movies, Facebook is now buying VR companies, these technology companies are becoming major media institutions by introducing TV shows and etc.
A conglomerate is a large company composed of a number of smaller companies (subsidiaries).
A media conglomerate, or media group, is a company that owns numerous companies involved in creating mass media products such as print, television, radio, movies or online.
Examples include Comcast, 21st Century Fox or Disney.
Vertical integration
Vertical integration is when a media company owns a range of businesses in the same chain of production and distribution.
For example, a company might own the film studio that makes a film, the distributors that sell it to cinemas and then the movie channel that premieres it on TV.
Vertical integration allows companies to reduce costs and increase profits – but it is not always successful if the parent company lacks expertise in certain areas.
Horizontal integration
Horizontal integration is when a media company owns a range of different media companies that are largely unrelated e.g. magazines, radio stations and television.
Horizontal integration helps media institutions reach a wider audience.
Integration & synergy
Synergy is the process through which a series of media products derived from the same text or institution is promoted in and through each other.
Look for links or consistent branding across different media platforms and products. E.g. Harry Potter – films, merchandise, stage plays, theme parks, videogames etc.
Diversification
Diversification is when a media company branches out into a different area of the industry. For example, many media companies have had to diversify to internet-driven distribution (e.g. streaming) as a result of new and digital media.
In the music industry, major labels such as Warner Music have had to embrace streaming in order to reverse years of declining revenue.
Cross-media regulation
When two companies wish to merge or diversify (e.g. vertical or horizontal integration) it needs to be cleared by a regulatory body to prevent any one company becoming too powerful in a given market.
In the UK, this is decided by the Competition and Markets Authority (CMA). Currently, the CMA is deciding whether to allow Rupert Murdoch to complete an £11.7bn takeover of Sky by 21st Century Fox.
Diversification is when a media company branches out into a different area of the industry. For example, many media companies have had to diversify to internet-driven distribution (e.g. streaming) as a result of new and digital media.
In the music industry, major labels such as Warner Music have had to embrace streaming in order to reverse years of declining revenue.
Cross-media regulation
When two companies wish to merge or diversify (e.g. vertical or horizontal integration) it needs to be cleared by a regulatory body to prevent any one company becoming too powerful in a given market.
In the UK, this is decided by the Competition and Markets Authority (CMA). Currently, the CMA is deciding whether to allow Rupert Murdoch to complete an £11.7bn takeover of Sky by 21st Century Fox.
1) Type up your research notes from the lesson - what did you find out about your allocated media conglomerate? Selection of companies: Alphabet, The Walt Disney Company, Comcast, 21st Century Fox, Facebook, Viacom, News Corp, Time Warner. If you were absent or don't have the notes, research any of the companies above and find examples of all the terminology outlined in the notes at the start of this blogpost.
Viacom, they own lots of companies. including nickelodeon, MTV, channel 5, etc.
Viacom, they own lots of companies. including nickelodeon, MTV, channel 5, etc.
2) Do you agree that governments should prevent media conglomerates from becoming too dominant? Write an argument that looks at both sides of this debate
Governments should prevent media conglomerates from becoming too dominant because it suppresses the feeling of freedom and also allows the audience to see work that is creative and new.
Governments should prevent media conglomerates from becoming too dominant because it suppresses the feeling of freedom and also allows the audience to see work that is creative and new.
Media Magazine 52 has a good feature on the changing relationship between audiences and institutions in the digital age. Go to our Media Magazine archive, click on MM52 and scroll to page 9 to read the article 'Two Key Concepts: The Relationship Between Audience and Institution'.
3) Briefly describe the production, promotion and distribution process for media companies.
The production process provides the audience with what they need. It needs to consider the audience's desires. The promotion process finds and targets the target audience with the product. The distribution process uses the most appropriate process for getting the product to the audience.
The production process provides the audience with what they need. It needs to consider the audience's desires. The promotion process finds and targets the target audience with the product. The distribution process uses the most appropriate process for getting the product to the audience.
4) What the different funding models for media institutions?
Some media institutions rely on ad income, some rely on income from subscription, some rely on how long the reader stays on their website and some rely on license fees.
Some media institutions rely on ad income, some rely on income from subscription, some rely on how long the reader stays on their website and some rely on license fees.
5) The article gives a lot of examples of major media brands and companies. Choose three examples from the article and summarise what the writer is saying about each of them.
The BBC is summed up to be the safe haven for unbiased opinions, ITV is more focused on being generalized and being well known throughout the UK population, Sky One is a company that wants subscription and makes the customers pay for more content instead of a one time payment.
The BBC is summed up to be the safe haven for unbiased opinions, ITV is more focused on being generalized and being well known throughout the UK population, Sky One is a company that wants subscription and makes the customers pay for more content instead of a one time payment.
6) What examples are provided of the new business models media companies have had to adopt due to changes in technology and distribution?
7) Re-read the section on 'The Future'. What examples are discussed of technology companies becoming major media institutions?
Google now owns YouTube which is a major media networking site, amazon, Netflix and yahoo now produce their own TV shows and movies, Facebook is now buying VR companies, these technology companies are becoming major media institutions by introducing TV shows and etc.
8) Do you agree with the view that traditional media institutions are struggling to survive?
Yes, I think that traditional media institutions are struggling to survive because they are becoming less modern and the new media institutions introduce media that is more relevant to the population.
Yes, I think that traditional media institutions are struggling to survive because they are becoming less modern and the new media institutions introduce media that is more relevant to the population.
9) How might diversification or vertical integration help companies to survive and thrive in a rapidly changing media landscape?
Vertical integration and diversification means that companies can now receive help from big media conglomerates and if they are not connected with big media conglomerates, they can be distinguishable from all other media institutions because they are more of a media institutions that has a lot of freedom
Vertical integration and diversification means that companies can now receive help from big media conglomerates and if they are not connected with big media conglomerates, they can be distinguishable from all other media institutions because they are more of a media institutions that has a lot of freedom
10) How do YOU see the relationship between audience and institution in the future? Will audiences gain increasing power or will the major global media conglomerates maintain their control?
I think that major global media conglomerations will maintain their control and still be in power. This is because, it would be very hard to stop a very big multi billionaire company from losing its power.
I think that major global media conglomerations will maintain their control and still be in power. This is because, it would be very hard to stop a very big multi billionaire company from losing its power.
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