Media Lesson Catch-up: Ownership and Control (4/12/17)
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.
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.
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.
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