Structure and size
Structure and size in the creative media sector companies is: how many people they employ in their companies, how much money is brought into the company and how the media companies sell their products to the public and other companies that want their products. There are different varieties of creative media sectors in this country. There is film, TV, radio, publishing, advertising and marketing, animation, interactive media, games and photo imaging.
This blog has been put together to inform prospective students about the structure and ownership within the different Creative Media sectors. It includes an explanation of the structure and ownership of the sectors that make up the creative media sector and explains ownership of the different sectors; the different sources of income generated by the creative media sectors, the advantages and disadvantages of the different types of ownership including private and public, multinationals, diversification, share of ownership etc. The blog has been divided into sections of each creative media sector and gives further explanation of its structure and ownership.
Film
In the UK over 70,000 people are employed within the UK film industry. Over 65% of the workers work in production, 10% work in distribution and 25% work in the exhibition of films. The film industry is one of the largest and the most profitable sectors in the media industry. In the UK there are six different specific components to the film industry: development, production, facilities,distribution,exhibition, and export. The film industry is dominated by many major companies for example Paramount, Universal, 21st century fox, Disney. These multi million pound companies tend to produce the big blockbusters films, as they have bigger budgets to produce and market the films. They have the greatest share of the film market however independent figures published by the BFI earlier this year show that the UK film (independent film companies)production sector is thriving. Last year saw a massive rise with film production in the UK generating a total spend of £1.475 billion, a 35% increase on last year’s £1.093 billion and the highest figure ever. Examples of smaller film companies are Aardman, Big Talk Pictures, Cloud Eight, DNA, Ealing Studios, Ecosse Films, Heyday, Hammer, Number 9, Recorded Picture Company, Revolution, Ruby Films, Seesaw and Vertigo. Films produced by smaller studios tend to be small, cult films. However, these films can sometimes become successful, popular films - eg Suffragette, Shaun the Sheep etc.
Large multinational film companies have a great deal of confidence in the creativity and expertise of British film crews combined with the UK film tax relief as well as the service provided by the British Film Commission, have all played their part in creating an income of £1.233 billion last year. Major international films such as Avengers: Age of Ultron, Pan, Spectreand Star Wars: The Force Awakens are helping generate growth in the UK film industry by bringing investment, creating jobs, and helping film professionals develop new skills which can then benefit independent productions.
TV
In the TV industry there were over 1.9 million jobs available in 2014. There was an increase of 6.4 per cent which is three times the average of the job growth rate across the economy, so the total amount of jobs that were available in 2014 were 2.8 million jobs A total of 8.8 per cent of all the UK jobs now falls within the creative economy, and one in six of all UK graduate jobs are also within creative economy positions. Television is one of the biggest sectors within the media industry with a lot of competition that employs over 50,000 British people. Television broadcasts many different types of programmes and films. In the UK television is dominated by a few main broadcasters, however in more recent years there are many more smaller broadcasters. The main broadcasters are:
The BBC (British Broadcasting Corporation) - This a public company, funded by the TV license.
ITV- A private company, 60% owned by ITV PLC, also owned by the STV group PLC (Scotland) and UTV (Nothern Ireland). Funding is generated, in part by advertising. The ITV Network is not owned or operated by one company, but rather by a series of licensees that provide a regional service while also broadcasting programmes across the network. Since 2011 the fifteen licences are held by three companies, with the majority held by ITV Broadcasting Limited, part of ITV plc.
Channel 4- is a British public-service television broadcaster that began transmission on 2 November 1982. Although largely commercially self-funded, it is ultimately publicly owned; originally a subsidiary of the Independent Broadcasting Authority (IBA), the station is now owned and operated by Channel Four Television Corporation, a public body established in 1990.
Channel 5- Private company- Owned by Viacom International Media Networks. This company was launched in 2002, the fifth and final terrestial TV channel.
Sky plc is a pan-European satellite broadcasting, on-demand Internet streaming media, broadband and telephone services company with headquarters in London. Sky is Europe's biggest and leading media company and largest pay-TV broadcaster, with 21 million subscribers and 30,000 employees as of 2015.
Radio
The radio industry has been growing steadily in recent years and now employs over 120,000 people in the UK. Employers range in size from the BBC to larger commercial radio groups to not to radio stations that are run by mainly volunteers.
The BBC is probably the biggest employer within the Radio broadcasting industry but private companies - such as Smooth, Capital etc are also establishing themselves as significant commercial radio companies within the UK. Smooth is owned and operated by Global Radio and is run as a franchise. Radio is one of the oldest forms of mass media. Radio transmits sound-based media to the likes of car radios and TV. Radio broadcasts can now be listened to on television sets and online thanks to it becoming 'digital'. Also most people listen to radio in their cars. There are three main areas of the radio industry. They are:
Publicly funded radio- Taxpayer funded (EG BBC radio 1)
Commercial radio- Advert funded (EG metro radio)
Community and voluntary radio-hospital radio stations etc (EG hospital radio Hillingdon {1970-2012}- National funded, 24 hour broadcasting).
Publishing
There are over 7,200 companies employing over 209,000 people in the publishing sector. Most companies are small with 85 per cent having 24 employees or fewer. Newspaper publishing has the largest number of employees with 30% of the working population.
There is a strong regional press in the West Midlands and over a third of the industry work in newspapers with employers including metro Midlands, the Birmingham post and the Midland news association. The publishing editors are employed by book publishers, magazines, newspapers, online publications and trade publications. Most magazines and books publishing opportunities are found in the south of England, particularly in and around London. The newspapers industry is based across the country in every region. Competition for editing jobs is fierce. The publishing sector focuses on producing and distributing, usually text-based, media. This can include media such as:
Press (Newspapers and magazines)
Online journals
Books
Photos
Posters (adverts-marketing)
Mailing lists
Some British publishing companies include: Co and bear productions, Hesperus house, and Plexus Productions.
Advertising
Advertising is a form of communication intended to persuade and to advise. Most of the time, advertisements are promoting a product or service, but there can also be public service adverts which tells us useful information about health etc.
Advertising comes in many forms:
Newspapers
Magazines
Online advertisement
Television commercials
Outdoor advertisement (billboards, posters,etc)
There are five different advertising departments:
Account services
Creative
Production
Media
Other services
The United Kingdom ranks fifth among the world’s largest advertising markets, and second among markets in Europe. UK advertising expenditure amounted to 18.55 billion British pounds in 2014. By far the most powerful form of advertising is on the tv networks and commands the greatest amount of money spent. In 2014 nearly 4 billion pounds was spent on TV advertising.
Marketing
The marketing sector of the media industry involves communicating the value of a product or service to customers. This is done through extensive marketing campaigns that tie in closely with the advertising sector.
There are four P's of marketing:
Product;What is being sold?
Promotion:Why should people buy it?
Price:How much does it cost?
Place:Where can you buy it?
One of the biggest Advertising and Marketing companies operating within the UK today is Mediacom which employs nearly 6,000 people across the world and was established in 1986.
Animation
The animation sector is a vital to many other sectors within the media industry. TV, film, video, games, interactive media, adverts,and marketing all rely on animation. TV, adverts, and film use animation as a technique for producing shows, adverts and films, and also use of animation special effects. Video games are based on animation that create a world within which the player is immersed. The main animation companies are:
Dreamworks (owned by paramount)
Pixar (Owned by Disney)
There are also smaller animation companies that are also have much success, such as Aardman animation of the UK.
Interactive media
The interactive media sector is the definition of the discipline of creating interactive websites that as users create the content of. For example:Facebook, Twitter, YouTube, Google and Tumblr.
The interactive media sector is worth several billion pounds, and employs over 34,000 people. Interactive media is increasingly becoming a part of everyday life. People are more communicating through twitter and Facebook, and using YouTube to find music and TV shows. Interactive media is also now popular on smartphones and so is used even more.
Games
In the game industry the UK has a long history of making world class video games. With the global games market growing- expected to reach up to $113 billion by 2018, an 8% annual compound growth rate from 2014's $83.6bn from around the world. The UK is an estimated to be the 6th largest video game market in 2015 terms of consumer revenues, after China was ranked the 1st video games industry. The other other countries that are ranked in the top 5 for the best video games industry. The countries are USA, Japan, South Korea and Germany. The UK is the forecast to retain it's 6th place by 2018. The UK game industry was worth over £3.9bn in the consumer spend in 2014, up to +10% from 2013. The computer games sectors forms a major part of the global media industry. Computer games are quickly gaining in importance and prominence. Traditionally, gaming was seen as a small activity that a small proportion of people took part in and took seriously. In recent years, gaming has become really popular, giving way to a more casual gamers. The sector is now more profitable than the DVD industry.The top five biggest video game companies are:
Activision
Electronic arts
Nintendo
Sony
Capcom
Photo imaging
There are nearly 14,000 companies- almost half of which are sole trading or freelance photographers. The total workforce is over 44,000 people and half are based in the south of England. 93% of the companies are employed of five people or fewer. In the west Midlands there are a large number of laborations and retail outlets, and with nearly 2,700 people employed, in this job area, it is the second largest regioanl concentration.The photo imaging sector is a commercial fine art surrounding the manipulation and editing of images. Adobe systems is the biggest company in the sector and owns many photo imaging products such as photoshop.
Further categories within this sector are:
Image producers
Photo retail
Picture libraries
Manufacturers
Support Services
Ownership
Private ownership
Private ownership is when a company is owned privately by an individual or individuals. Privately owned media companies such as virgin media are run to make a profit. Virgin media is a publicy traded company and therefore it sets out to make a profit for it's shareholders, which includes the creator of the virgin brand; Sir Richard Branson. It makes a profit by offering a payed subscription for the service and is also through advertisements.
Advantages: The advantages for having a private ownership company is that you don't have companies running your own company and you don't have that many employers to pay for their jobs.
Disadvantages: The disadvantages for having a private ownership is that you won't be making as much money as big business. You wont have many employers working in the business. Also you won't be working with other companies that could help the business to be a very big business.
Public service media
Public service media are media companies that are made by, run by, payed by, and operate for the public taxpayers. The public broadcasters are always there to inform , to entertain and to educate and free from commercial practices but are also free from state control. As such they can act as an unbiased platform for different views and so help boost democracy. For example the service broadcasters is the BBC. The BBC is payed for by the license and is not run for profit. The BBC is not politically biased and tries to give all points of view a fair airtime.
Advantages: The advantages for having a private ownership company is that you will be making a profit from your product. You will have enough employers working in the business. Your business might be a big company by becoming an national company
Disadvantages: The disadvantages for having a public ownership business is that it would cost too much money to pay the employers. Too many people will work in the business, and the business will get to big that it will cost to much money to run the business's around the global world.
Multinationals
Multinational corporations are companies that operate in at least more than one country globally. Multinational companies are large companies that can sometimes be more wealthy than some small countries. News corporations, chaired by Rupert Murdoch, is a large multinational media company that holds many news channels and news papers worldwide, such as Fox for example they are a channel news company from the USA and there is the sun which is from the UK.
Independents
Independent media companies are often very small companies that operate outside of corporations. For example Bizmedia is an independent company.
Conglomerates
A conglomerate is a corporation that is made up of a lot different business's. The conglomerate holds the majority stake in all of it's business's that operate separately. Media conglomerate is also a news corporation, which holds many different newspapers and news channels globally.
Voluntary
Voluntary company , otherwise known as not for profit companies, which are companies that are not run for a profit. Companies such as volunteers to run the company to make enough money and to keep the business going. For example A small, not for profit cinema that focuses on playing modern, underground films.
Cross media ownership
A cross media ownership is a one or individual company that owns and operates many different media formats such as radio, TV, and newspapers. For example the news corporation owns many and different newspapers and news channels.
Diversification
A diversification is when a company branches out into new ventures in order to offer more services and bring in a greater deal of revenue. For example the guardian news paper media group started out as evening newspaper and since branched out into an online news website that covers a wide variety of interests and it has also branched out into a radio through GMG radio.
Vertical and Horizontal integration
A vertical integration is where a company starts to take over more and starts producing and distributing of the end product that sells in order to increase the company's dominance in the market place. For example if the company wanted to start producing the DVD's that a film made it to be in stored on, this is an example of a vertical integration.
A horizontal integration is when a company takes over another company in order to increase it's own market share. This can be done through a buyout, whereas the second company is outright bought by the owner of the first or the merger whereby the two companies are merging together into one company. For example Google's take over of YouTube, which was took over in order to obtain in a larger and a more loyal user base.
Share of ownership
Share of ownership is when the ownership of a company or corporations is divided into shares that are owned by different people that are called shared holders. Share holders pay for their share, and in return to get a slice of the profits the company makes depending on how much of the share they are holding. Privately held companies are split into shares between the different owners of the business but they do not sell their shares publicy.
Profitability of product range
A profitability of a product range is how much of the profit of the company will from the products that are being sold. If the product is unprofitable, it is very unlikely that a company would continue to sell it. Therefore the companies tend to sell the products that are popular to decrease the risk of a lost. The media companies intend to follow what is in order to maximise the profitability of their products. Film companies tend to produce the most popular kinds of film, TV companies that produce the most popular kinds of TV shows, video game companies produce the most popular kinds of video games. They all and try to make as much profit as possible. This why smaller companies films for example indie films are created.
Organisational objectives
A organisational objective is where the company has regards to where it wants to be in the future. They are set by the owner or the CEO of the business. These objectives are generally surround amount of sales, rates of growth, profit levels and the value of the business.
Licenses and Franchises
A licenses and franchise is where a company that have people that can set up a business under a common name. To do this however how much they are paid an initial or ongoing fee to the owner of the franchise. The advantages of this is that your business can instantly be well known and popular. However you have to conform your codes, regulations and rules of the franchise. For example Mcdonald's is a multinational fast food franchise.
Competitors
A competitor is where the world business are rival companies that produce similar product to each other to compete for the biggest share of the market. Competition in a business is good as this can lead to better products and more innovations in order to get the edge over their rivals. This competition can be on a local scale, a national scale or an international scale. For example two big business's competitors in the media industry is Sony VS Microsoft in the video games sector. The sony playstation and the microsoft xbox have been competing against each other for years, creating new ideas for their consoles and copying the best ones from their rival.
Customers
Customers are people who pay for products or service that a business sells. Business's are always trying to attract the highest number of customers as possible in order to get the most money as possible, through diversifying, creating new products, advertising campaigns and taking over other companies have a duty to satisfy the customer and must take all customers and must take all the customers complaints.
Product diversity
A product diversity also known as diversification which is a corporate strategy to enter into a new market or an industry which the business's is not currently in, whilst also creating a new product for the new market.
Performance against financial concerns
Financial concerns refers to periods of financial downfall in the general economy, for example times of low demand in a particular industry or a nationwide recession. These examples above can result in less business for the company and therefore make it hard for that particular company to generate enough income to stay out of bankruptcy.
National and global competition and trends
A national and global competition and trends refers to the increasing competition from other companies which operate from much further away than local companies, this has come about through advancements in internet speeds and digital television. These advancements have allowed for small companies to compete with larger companies that are on the other side of the world.
Mergers and takeovers
A merger and takeovers are where a general sense are very similar corporate actions-they combine teo previously separate films into a single legal entity.
This blog has been put together to inform prospective students about the structure and ownership within the different Creative Media sectors. It includes an explanation of the structure and ownership of the sectors that make up the creative media sector and explains ownership of the different sectors; the different sources of income generated by the creative media sectors, the advantages and disadvantages of the different types of ownership including private and public, multinationals, diversification, share of ownership etc. The blog has been divided into sections of each creative media sector and gives further explanation of its structure and ownership.
Film
In the UK over 70,000 people are employed within the UK film industry. Over 65% of the workers work in production, 10% work in distribution and 25% work in the exhibition of films. The film industry is one of the largest and the most profitable sectors in the media industry. In the UK there are six different specific components to the film industry: development, production, facilities,distribution,exhibition, and export. The film industry is dominated by many major companies for example Paramount, Universal, 21st century fox, Disney. These multi million pound companies tend to produce the big blockbusters films, as they have bigger budgets to produce and market the films. They have the greatest share of the film market however independent figures published by the BFI earlier this year show that the UK film (independent film companies)production sector is thriving. Last year saw a massive rise with film production in the UK generating a total spend of £1.475 billion, a 35% increase on last year’s £1.093 billion and the highest figure ever. Examples of smaller film companies are Aardman, Big Talk Pictures, Cloud Eight, DNA, Ealing Studios, Ecosse Films, Heyday, Hammer, Number 9, Recorded Picture Company, Revolution, Ruby Films, Seesaw and Vertigo. Films produced by smaller studios tend to be small, cult films. However, these films can sometimes become successful, popular films - eg Suffragette, Shaun the Sheep etc.
Large multinational film companies have a great deal of confidence in the creativity and expertise of British film crews combined with the UK film tax relief as well as the service provided by the British Film Commission, have all played their part in creating an income of £1.233 billion last year. Major international films such as Avengers: Age of Ultron, Pan, Spectreand Star Wars: The Force Awakens are helping generate growth in the UK film industry by bringing investment, creating jobs, and helping film professionals develop new skills which can then benefit independent productions.
TV
In the TV industry there were over 1.9 million jobs available in 2014. There was an increase of 6.4 per cent which is three times the average of the job growth rate across the economy, so the total amount of jobs that were available in 2014 were 2.8 million jobs A total of 8.8 per cent of all the UK jobs now falls within the creative economy, and one in six of all UK graduate jobs are also within creative economy positions. Television is one of the biggest sectors within the media industry with a lot of competition that employs over 50,000 British people. Television broadcasts many different types of programmes and films. In the UK television is dominated by a few main broadcasters, however in more recent years there are many more smaller broadcasters. The main broadcasters are:
The BBC (British Broadcasting Corporation) - This a public company, funded by the TV license.
ITV- A private company, 60% owned by ITV PLC, also owned by the STV group PLC (Scotland) and UTV (Nothern Ireland). Funding is generated, in part by advertising. The ITV Network is not owned or operated by one company, but rather by a series of licensees that provide a regional service while also broadcasting programmes across the network. Since 2011 the fifteen licences are held by three companies, with the majority held by ITV Broadcasting Limited, part of ITV plc.
Channel 4- is a British public-service television broadcaster that began transmission on 2 November 1982. Although largely commercially self-funded, it is ultimately publicly owned; originally a subsidiary of the Independent Broadcasting Authority (IBA), the station is now owned and operated by Channel Four Television Corporation, a public body established in 1990.
Channel 5- Private company- Owned by Viacom International Media Networks. This company was launched in 2002, the fifth and final terrestial TV channel.
Sky plc is a pan-European satellite broadcasting, on-demand Internet streaming media, broadband and telephone services company with headquarters in London. Sky is Europe's biggest and leading media company and largest pay-TV broadcaster, with 21 million subscribers and 30,000 employees as of 2015.
Radio
The radio industry has been growing steadily in recent years and now employs over 120,000 people in the UK. Employers range in size from the BBC to larger commercial radio groups to not to radio stations that are run by mainly volunteers.
Radio broadcasting companies can be split into 2 main types - Public service broadcasters are funded in whole or in part through public money. This may be through money received directly from the government, or, as in the UK, through a license fee. The license fee is typically protected by law and set by the government, and is required for any household which contains equipment which can be used to receive a TV signal.
Commercial broadcasters (also called Independent Local Radio in the UK) are largely funded through the sales of advertising on their radio station. Commercial stations are often quite local, and may have some public service commitments.
In the UK, the radio industry regulator Ofcom are looking to establish a third tier of radio, called community radio. These radio stations will be fairly small and run by community groups.The BBC is probably the biggest employer within the Radio broadcasting industry but private companies - such as Smooth, Capital etc are also establishing themselves as significant commercial radio companies within the UK. Smooth is owned and operated by Global Radio and is run as a franchise. Radio is one of the oldest forms of mass media. Radio transmits sound-based media to the likes of car radios and TV. Radio broadcasts can now be listened to on television sets and online thanks to it becoming 'digital'. Also most people listen to radio in their cars. There are three main areas of the radio industry. They are:
Publicly funded radio- Taxpayer funded (EG BBC radio 1)
Commercial radio- Advert funded (EG metro radio)
Community and voluntary radio-hospital radio stations etc (EG hospital radio Hillingdon {1970-2012}- National funded, 24 hour broadcasting).
Publishing
There are over 7,200 companies employing over 209,000 people in the publishing sector. Most companies are small with 85 per cent having 24 employees or fewer. Newspaper publishing has the largest number of employees with 30% of the working population.
There is a strong regional press in the West Midlands and over a third of the industry work in newspapers with employers including metro Midlands, the Birmingham post and the Midland news association. The publishing editors are employed by book publishers, magazines, newspapers, online publications and trade publications. Most magazines and books publishing opportunities are found in the south of England, particularly in and around London. The newspapers industry is based across the country in every region. Competition for editing jobs is fierce. The publishing sector focuses on producing and distributing, usually text-based, media. This can include media such as:
Press (Newspapers and magazines)
Online journals
Books
Photos
Posters (adverts-marketing)
Mailing lists
Some British publishing companies include: Co and bear productions, Hesperus house, and Plexus Productions.
Advertising
Advertising is a form of communication intended to persuade and to advise. Most of the time, advertisements are promoting a product or service, but there can also be public service adverts which tells us useful information about health etc.
Advertising comes in many forms:
Newspapers
Magazines
Online advertisement
Television commercials
Outdoor advertisement (billboards, posters,etc)
There are five different advertising departments:
Account services
Creative
Production
Media
Other services
The United Kingdom ranks fifth among the world’s largest advertising markets, and second among markets in Europe. UK advertising expenditure amounted to 18.55 billion British pounds in 2014. By far the most powerful form of advertising is on the tv networks and commands the greatest amount of money spent. In 2014 nearly 4 billion pounds was spent on TV advertising.
Marketing
The marketing sector of the media industry involves communicating the value of a product or service to customers. This is done through extensive marketing campaigns that tie in closely with the advertising sector.
There are four P's of marketing:
Product;What is being sold?
Promotion:Why should people buy it?
Price:How much does it cost?
Place:Where can you buy it?
One of the biggest Advertising and Marketing companies operating within the UK today is Mediacom which employs nearly 6,000 people across the world and was established in 1986.
Animation
The animation sector is a vital to many other sectors within the media industry. TV, film, video, games, interactive media, adverts,and marketing all rely on animation. TV, adverts, and film use animation as a technique for producing shows, adverts and films, and also use of animation special effects. Video games are based on animation that create a world within which the player is immersed. The main animation companies are:
Dreamworks (owned by paramount)
Pixar (Owned by Disney)
There are also smaller animation companies that are also have much success, such as Aardman animation of the UK.
Interactive media
The interactive media sector is the definition of the discipline of creating interactive websites that as users create the content of. For example:Facebook, Twitter, YouTube, Google and Tumblr.
The interactive media sector is worth several billion pounds, and employs over 34,000 people. Interactive media is increasingly becoming a part of everyday life. People are more communicating through twitter and Facebook, and using YouTube to find music and TV shows. Interactive media is also now popular on smartphones and so is used even more.
Games
In the game industry the UK has a long history of making world class video games. With the global games market growing- expected to reach up to $113 billion by 2018, an 8% annual compound growth rate from 2014's $83.6bn from around the world. The UK is an estimated to be the 6th largest video game market in 2015 terms of consumer revenues, after China was ranked the 1st video games industry. The other other countries that are ranked in the top 5 for the best video games industry. The countries are USA, Japan, South Korea and Germany. The UK is the forecast to retain it's 6th place by 2018. The UK game industry was worth over £3.9bn in the consumer spend in 2014, up to +10% from 2013. The computer games sectors forms a major part of the global media industry. Computer games are quickly gaining in importance and prominence. Traditionally, gaming was seen as a small activity that a small proportion of people took part in and took seriously. In recent years, gaming has become really popular, giving way to a more casual gamers. The sector is now more profitable than the DVD industry.The top five biggest video game companies are:
Activision
Electronic arts
Nintendo
Sony
Capcom
Photo imaging
There are nearly 14,000 companies- almost half of which are sole trading or freelance photographers. The total workforce is over 44,000 people and half are based in the south of England. 93% of the companies are employed of five people or fewer. In the west Midlands there are a large number of laborations and retail outlets, and with nearly 2,700 people employed, in this job area, it is the second largest regioanl concentration.The photo imaging sector is a commercial fine art surrounding the manipulation and editing of images. Adobe systems is the biggest company in the sector and owns many photo imaging products such as photoshop.
Further categories within this sector are:
Image producers
Photo retail
Picture libraries
Manufacturers
Support Services
Ownership
Private ownership
Private ownership is when a company is owned privately by an individual or individuals. Privately owned media companies such as virgin media are run to make a profit. Virgin media is a publicy traded company and therefore it sets out to make a profit for it's shareholders, which includes the creator of the virgin brand; Sir Richard Branson. It makes a profit by offering a payed subscription for the service and is also through advertisements.
Advantages: The advantages for having a private ownership company is that you don't have companies running your own company and you don't have that many employers to pay for their jobs.
Disadvantages: The disadvantages for having a private ownership is that you won't be making as much money as big business. You wont have many employers working in the business. Also you won't be working with other companies that could help the business to be a very big business.
Public service media
Public service media are media companies that are made by, run by, payed by, and operate for the public taxpayers. The public broadcasters are always there to inform , to entertain and to educate and free from commercial practices but are also free from state control. As such they can act as an unbiased platform for different views and so help boost democracy. For example the service broadcasters is the BBC. The BBC is payed for by the license and is not run for profit. The BBC is not politically biased and tries to give all points of view a fair airtime.
Advantages: The advantages for having a private ownership company is that you will be making a profit from your product. You will have enough employers working in the business. Your business might be a big company by becoming an national company
Disadvantages: The disadvantages for having a public ownership business is that it would cost too much money to pay the employers. Too many people will work in the business, and the business will get to big that it will cost to much money to run the business's around the global world.
Multinationals
Multinational corporations are companies that operate in at least more than one country globally. Multinational companies are large companies that can sometimes be more wealthy than some small countries. News corporations, chaired by Rupert Murdoch, is a large multinational media company that holds many news channels and news papers worldwide, such as Fox for example they are a channel news company from the USA and there is the sun which is from the UK.
Independents
Independent media companies are often very small companies that operate outside of corporations. For example Bizmedia is an independent company.
Conglomerates
A conglomerate is a corporation that is made up of a lot different business's. The conglomerate holds the majority stake in all of it's business's that operate separately. Media conglomerate is also a news corporation, which holds many different newspapers and news channels globally.
Voluntary
Voluntary company , otherwise known as not for profit companies, which are companies that are not run for a profit. Companies such as volunteers to run the company to make enough money and to keep the business going. For example A small, not for profit cinema that focuses on playing modern, underground films.
Cross media ownership
A cross media ownership is a one or individual company that owns and operates many different media formats such as radio, TV, and newspapers. For example the news corporation owns many and different newspapers and news channels.
Diversification
A diversification is when a company branches out into new ventures in order to offer more services and bring in a greater deal of revenue. For example the guardian news paper media group started out as evening newspaper and since branched out into an online news website that covers a wide variety of interests and it has also branched out into a radio through GMG radio.
Vertical and Horizontal integration
A vertical integration is where a company starts to take over more and starts producing and distributing of the end product that sells in order to increase the company's dominance in the market place. For example if the company wanted to start producing the DVD's that a film made it to be in stored on, this is an example of a vertical integration.
A horizontal integration is when a company takes over another company in order to increase it's own market share. This can be done through a buyout, whereas the second company is outright bought by the owner of the first or the merger whereby the two companies are merging together into one company. For example Google's take over of YouTube, which was took over in order to obtain in a larger and a more loyal user base.
Share of ownership
Share of ownership is when the ownership of a company or corporations is divided into shares that are owned by different people that are called shared holders. Share holders pay for their share, and in return to get a slice of the profits the company makes depending on how much of the share they are holding. Privately held companies are split into shares between the different owners of the business but they do not sell their shares publicy.
Profitability of product range
A profitability of a product range is how much of the profit of the company will from the products that are being sold. If the product is unprofitable, it is very unlikely that a company would continue to sell it. Therefore the companies tend to sell the products that are popular to decrease the risk of a lost. The media companies intend to follow what is in order to maximise the profitability of their products. Film companies tend to produce the most popular kinds of film, TV companies that produce the most popular kinds of TV shows, video game companies produce the most popular kinds of video games. They all and try to make as much profit as possible. This why smaller companies films for example indie films are created.
Organisational objectives
A organisational objective is where the company has regards to where it wants to be in the future. They are set by the owner or the CEO of the business. These objectives are generally surround amount of sales, rates of growth, profit levels and the value of the business.
Licenses and Franchises
A licenses and franchise is where a company that have people that can set up a business under a common name. To do this however how much they are paid an initial or ongoing fee to the owner of the franchise. The advantages of this is that your business can instantly be well known and popular. However you have to conform your codes, regulations and rules of the franchise. For example Mcdonald's is a multinational fast food franchise.
Competitors
A competitor is where the world business are rival companies that produce similar product to each other to compete for the biggest share of the market. Competition in a business is good as this can lead to better products and more innovations in order to get the edge over their rivals. This competition can be on a local scale, a national scale or an international scale. For example two big business's competitors in the media industry is Sony VS Microsoft in the video games sector. The sony playstation and the microsoft xbox have been competing against each other for years, creating new ideas for their consoles and copying the best ones from their rival.
Customers
Customers are people who pay for products or service that a business sells. Business's are always trying to attract the highest number of customers as possible in order to get the most money as possible, through diversifying, creating new products, advertising campaigns and taking over other companies have a duty to satisfy the customer and must take all customers and must take all the customers complaints.
Product diversity
A product diversity also known as diversification which is a corporate strategy to enter into a new market or an industry which the business's is not currently in, whilst also creating a new product for the new market.
Performance against financial concerns
Financial concerns refers to periods of financial downfall in the general economy, for example times of low demand in a particular industry or a nationwide recession. These examples above can result in less business for the company and therefore make it hard for that particular company to generate enough income to stay out of bankruptcy.
National and global competition and trends
A national and global competition and trends refers to the increasing competition from other companies which operate from much further away than local companies, this has come about through advancements in internet speeds and digital television. These advancements have allowed for small companies to compete with larger companies that are on the other side of the world.
Mergers and takeovers
A merger and takeovers are where a general sense are very similar corporate actions-they combine teo previously separate films into a single legal entity.
