Different Types of Ownership

Globalisation

The process by which the world is becoming increasingly interconnected a result of massively increased trace and cultural exchange. Examples of globalisation are Facebook and MTV 

 

Merge

This occurs when two companies combine into a single entity. An example of merge is BSkyB. Formed in 1990 by the equal merger of Sky Television and British Satellite Broadcasting, BSkyB is the largest pay-TV broadcaster in the United Kingdom and Ireland with over 11 million subscribers.

 

Takeover

this is when one company acquires control of another company. Resently Facebook has just taken over a popular photo-sharing website, Instagram; buying it for $1billion .

 

Vertical Integration

When a company expands its business into areas that at different points of the same production path. Richard Branson is a successful man, and at the age of 16he had his own magazine and  he set up an audio-record mail-order business. Now he is the owner of Virgin Media, and it that he has Virgin Mobile, Virgin Phone, Virgin TV, Virgin Channels, and Virgin Music before he sold it.

 

Horizontal Integration

When a company expands its business into different products that are similar to current lines. News Corperation is a big company that does a lot of horizontal integration. Rupert Murdoch, the owner of New s Corp, and he owns lots of media companies; radio, newspapers; magazines; tv and other aspects to media too.

The Big 6

GE

General Electric  (GE) is a huge media giant, being one of the 'Big 6' it controls a severe amount the media across the world.

GE owns 80% of NBC Universal. NBC is one of the world leading entertainment companies, which markets and produces TV shows and advertisements seen across the world.

NBC is a marketing machine, owning most of the worlds highest viewed TV shows and advertisements, such as the tonight show with Jay Lenno, it also owns popular TV sitcoms such as Will & Grace and Frasier, this is the perfect marketing point for NBC as it has a lot of products to offer, which can be sold and advertised on their various outlets like huge corporation TV and News Stations.

 Notable Properties:

Comcast
NBC
Universal Pictures
Focus Features

News-Corporation

The news corporation own cable network programming the majority of this is in America, they also own FOX, SKY Deutschland and SKY Italia and English SKY. He also owns the daily telegraph, News Corporation also own a bunch of publishing companies thought the world such as Harper Collins in Australia to Zealand he also owns a variety of TV shows such as American idol and IGN entertainment. 

Keith RUPERT Murdoch is an Australian American Media Mogul, He became the managing director of Australia’s news limited, which he inherited from his father. He owns large sum of the industry, He is the founder, Chairman and CEO of global media holding company News Corporation, the world’s second-largest media conglomerate. 

He acquired various newspapers in Australia and New Zealand, before expanding into the United Kingdom in 1969, taking over the News of the World followed closely by The Sun. He moved to New York in 1974 to expand into the US market and became a naturalized US citizen in 1985. In 1981, he bought The Times, his first British broadsheet.

Notable Properties:

Fox

Wall Street Journal

New York Post

Disney

The Walt Disney Company is a global company, and  together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media.

For more than 85 years, The Walt Disney Studios has been the foundation on which The Walt Disney Company was built.      

   Today, the Studio brings quality movies, music and stage 

plays to consumers throughout the world. Feature films are released under the following banners: Disney, including Walt Disney Animation Studios and Pixar Animation Studios; Disneynature; Marvel Studios; and Touchstone Pictures, the banner under which live-action films from DreamWorks Studios are distributed. The Disney Music Group encompasses the Walt Disney Records and Hollywood Records labels, as well as Disney Music Publishing.

  

Disney Consumer Products is the business segment of The Walt Disney Company and its affiliates that extends the Disney brand to merchandise ranging from apparel, toys, home décor and books and magazines to foods and beverages, stationery, electronics and fine art. This is accomplished through a franchise-based licensing organization focused on strategic brand priorities, including: Disney Classic Characters & Disney Baby; Disney Live Action Film; Disney Media Networks & Games, Disney & Pixar Animation Studios; Disney Princess & Disney Fairies; and Marvel. Other businesses involved in Disney's consumer products sales are Disney Publishing Worldwide, the world's largest publisher of children's books and magazines.

Notable Properties:

ABC

ESPN

Pixar

Maramax

Marvel Studios

Viacom 

Viacom is short for Video & Audio Communication, is a another big part of the Big 6. The main sectors that Viacom work in are Television, radio, publishing, movies, and interactive media. Viacom is the forth biggest part of the Big 

6 and does reach all over the world, but mainly America and Europe.

Notable Properties:

MTV

Nick JR

BET

CMT

Patamount Pictures

Time Warner 

Time Warner operate in television, film and publishing, they produce programmes for both children and adults it is also the world’s second largest conglomerate, second to Disney. In 2000 AOL purchased the Time Warner Company $164 billion AOL own a capitalisation of 55% this means the Time Warner shareholders now own a stake hold of 45%.

The NFL Network (a subsidiary of Time Warner) is airing 13 primetime regular season games this year, which is up from eight games in previous years.

The long-awaited announcement comes as Time Warner Cable is set to debut its first regional sports channels in the Los Angeles area. It spent about $2 billion to outbid Fox Sports for the local rights to air Los Angeles Lakers basketball games and will launch an English-language network and a Spanish-language network on Oct 1.

Time Warner have an estimated net worth of $41-$46 billion

Notable Properties:

CNN 

HBO

Time

Warner Brothers

CBS

CBS stands for Columbia broadcasting system.

The Chairman of CBS is Sumner M. Redstone.

CBS are a large company in one of the 6 big companies in media.

CBS is stationed in the US. It is the second largest in TV broadcast, behind the BBC.

CBS own companies such as, Columbia Records, Publishing companies, Musical instrument division, Film Production, Home Video (MGM/CBS), Gabriel Toys(video game market), Viacom(broadcasting), CBS radio.

CBS is broadcasted to internationally via CBS studios international formally CBS Paramount international television.

CBS bought paramount for $37 billion.

CBS broadcasts in, USA, Europe, Africa, middle east, UK, Ireland,  Australia, New Zealand and Italy. 

Notable Properties:

Showtime

Smithsonian Channel

NFL.com

Jeopardy

60 Minutes

Media Ownerships

    The Media Industry has never been more consolidated  There are only 6 major media giants that control a staggering 90% of what the world reads, watches, or listens too. 

    In 1983, 90% of American Media was owned by 50 different companies. Now that same 90% is controlled by only 6 Companies. These 6 companies are known as the Big 6.

These 6 companies are;
GE
News-Corp
Disney
Viacom
Time Warner
CBS

The problem with The Big 6, is that because there are only 6 major companies, then they are very influential. This is because there  are in charge of so many different sectors in the media industry, that means that they have lots of ways to share there own opinions and views on things. 

For example, Disney. Disney not only owns movie studios, but a music label also. So then Disney will then take on the their signed artists, record a song, and then put it in their films. This is free advertising, along with cost efficiency, because they do not have to spend lots of money on getting an artist to record some songs, but because they already have signed artists to their music label, it does not cost them a lot, if anything. 

The same for News-Corp. It is ran by one man, and is a global company, which means what News-Corp has to say, a lot of people are listening. This is also because there is not much competitions as there are only 6 companies to complete with.

Methods of Income

In the Media industry, there are lots of different ways which each sector gets income. Some of the most common ones are;

Downloads

• Such as buying songs, films, apps and games from iTunes, which then gives a percentage to the creators. Before downloads were abou tpeople used to buy full albums from a shop, but now downloads have increase the sales of lots of things, including music, massivily. This is because people dont have to buy the whole album but the songs that they like. Also because they are sold for very cheep, more people are buying.

Advertisers

• Such as putting branded things in places where they are likely to be notices; like on a television show or on the radio, or even in films.  Films such as the Twiligh saga, because when twilight was first release, the producors thought it was not going to be very popular and was only a low budget movie, they did not think that tbey would were going to get 5 movies nad a huge fan-base! They got that because of the amount of advertising that happened after the releases and the buzz that it caused. Advertisers also used everyday items and put the faces of Twilight with them, and thats another way that they made it so big.

Sponsorship

• A company or business that gives money to something else, in exchange to advertise there products or business.
• Talk Talk sponsors X-factor, and before and after each advert, there is a talk talk advert, which makes views of the X-factor more aware of Talk Talk, which will attract more costumers. 

Product placement

• Such as putting branded things in places where they are likely to be notices; like on a television show.
•  eg. On Coronation Street, there is a Nation Wide cash machine in the shop, and to let please know that the show is advertising, a small 'P' is shown at the start of the show.

BBC Licence fee

• Everyone pays TV licence and this then plays for the BBC, as it is ran by the public and not one person or one company. This means that there are no adverts in between shows, or on the radio.
• A colour TV Licence costs £145.50 and a black and white TV Licence costs £49.00.

Cinema box office

• People go to the cinema, and pay for tickets to go and see a newly released movies, then all of the that people have spent paying for tickets gets added together, and a large amount of it then goes back to the producers and film owners.

Franchises, formats

• Company owners expand there business to different areas, so may be regional, some may be national, or even global. Franchises such as the Twilight Saga and Harry Potter

CD and DVD sales

• People by music and films, and the money that they pay for with, a large amount goes back to either the artist, the productions, or the actors.

DVD rental

• Some places such as netflix lets customers rent films for a certain period of time, before it has to be returned or is not longer able to be watched. Then it is rented on to someone else, and so on. So because it gets reused by lots of people, and they have to pay for the rental, then the money soon adds up.

Television subscriptions

• Some companies such as Sky are Virgin Media, have a lot more channels and things on offer and these are usually not available anywhere. This makes people subscribe to them, so that they are able to view more, with a monthly fee. These money is then distributed through-out the company.

Merchandise

• Companies such a movie producers create merchandise to see to fans and audiences. Not only does this bring in an income, but it is also a way of advertising, whatever is on the merchandise.
• Merchandise is to do with a certain artist, actor, movie, television show and things like that.

Licensing; ‘intellectual property’

• This is to prevent copyright, so than if someone is wanting to use a brand or anything like that, then people will have to pay for the rights to use, whatever it is that they are wanting to.