Industries: Ownership and Control

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.

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.

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.

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.

21st Century Fox

Owns Fox digital entertainment, National geographic channels, StarTv, TrueX, Holdings in Hulu

News into entertainment

Animation studios, television studios, film branches, fox news

proposed fox/sky merger

Ice age 'scratch' character appearing in other fox productions

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.

I agree that governments should prevent media conglomerates from becoming too dominant, as not only do these growing conglomerates eliminate any up and coming media services, but it also makes the media increasingly biased, especially within news. Certain conglomerate branches provide media which is moulded to fit the owner’s political and social views (i.e. Fox new/Cnn), putting out biased news and entertainment, providing an altered view on certain topics which should be stopped by governments, allowing active audiences to form their own opinions. However, it may be just as likely that governments preventing this can create the same result, only conforming to different leaders.

3) Briefly describe the production, promotion and distribution process for media companies.

Production - creating a form of media that satisfies audiences

Promotion - marketing a product to attract a target audience and generate interest

Distribution - using varying platforms to market and release the media form, using those typical to their target audience to ensure maximum profit.

4) What are the different funding models for media institutions?

Advertising (Disney media)

Sponsorship (Itv)

License fees (BBC)

Subscription fees (Netflix)

Sales of advertising space (Mail Online)

Sales of branded merchandise (Sony)

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.

BBC

Due to the BBC being funded by license fees, and having a public service remit (to inform, educate and entertain), it is more likely to screen regional based programmes (news broadcasts, regional documentaries). The BBC is reconsidering its funding to structure as on-demand viewing is becoming more popular.

Google

Google has bought many large companies, such as youtube, and has now changed the way the majority of the population accesses music, films, news etc.

Facebook

Facebook has bought other large social media apps, such as instagram and whatsapp, but has now expanded into buying virtual technology, such as the oculus rift, widening the services provided.

6) What examples are provided of the new business models media companies have had to adopt due 

to changes in technology and distribution?

The music industry no longer generates its profits through the sales of the music itself, so they now use sponsorship, advertising and income generated through live shows to create profit. Labels now have new contracts, ensuring they take in a percentage of all artist profits, through merchandise, live shows and any other income generated by the artist.

The BBC is reconsidering its funding to structure as on-demand viewing is becoming more popular.

The movie industry has invested hugely into 3D technology to ensure cinemas maintain audience numbers

Some online newspapers have developed subscription services to access articles, or provide premium content for those paying.

7) Re-read the section on 'The Future'. What examples are discussed of technology companies becoming major media institutions?

Google

Google now owns youtube, and has become the main worldwide website for accessing many different internet platforms, finding information and has revolutionised the way we access music and moving picture entertainment.

Streaming platforms

Amazon, Netflix and Yahoo now create, produce and broadcast their own media, which has become widely successful, such as Amazons 'The grand tour' and Netflix's 'Orange is the new black'.

Facebook

Facebook has invested into VR tech, the oculus rift, allowing viewers to attend and experience events without leaving their own homes.

8) Do you agree with the view that traditional media institutions are struggling to survive?

I agree that traditional media institutions are struggling to survive, as the digital age has made physical newspapers almost obsolete at this point, as all information that would typically be provided can now be found on other platforms for free and more convenient. The new digital age has also begun to wipe out traditional tv channels, as the same content can now be found easily online for free, and streaming services have begun to provide their own content amongst other content bought which can be viewed on demand, in contrast to typical tv broadcasting.

9) How might diversification or vertical integration help companies to survive and thrive in a rapidly changing media landscape?

Diversification or Vertical integration may help companies to survive and thrive in a changing media landscape as it would therefore allow one company to cover all bases required to produce one media product, rather than having to outsource certain aspects required for the production, which would see media companies losing profit, whereas diversification would see media companies making more profit and being able to take more risks with media production.

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?

Personally, I see the relationship between audience and institution reverting back to institution led production in the future. While traditional media sources used to be the only source of information, education or entertainment, the digital age saw a shift as alternative sources appeared and gave audiences some say in the content they wanted to see produced. While I believe this is going to continue to an extent, the new digital age has seen us become overly dependant on technology to the point where new generations wouldn't ‘survive’ without it. Audiences will gain further power over traditional media sources as they become obsolete, but in relation to newer streaming services and such new generations have become so dependant on these outlets that institutions such as Netflix and Amazon are likely to see them gaining power over audiences once again.