1. MEDIA COMPANY CASE STUDY
TASK 1 UNDERSTANDING THE STRUCTURE AND OWNERSHIP OF THE
MEDIA SECTOR
Alex Nesbit

2. TYPES OF OWNERSHIP: PRIVATE OWNERSHIP
Private ownership is both good and bad. They can make all kinds of programmes they
choose whether it be documentary's, game shows and sport shows. They are also don’t have
the strict publicly owned rules such as no advertisements and the major factor they are also
aloud to sell advertising to anyone they want but a publicly owns TV shows cant.
It can result in better quality products and the threat that other Shows and programmes
might come up wit the same idea, they have to put there best ideas forward first. On the
other hand, private ownership leads to the media sometimes placing profit above public
interest and can also lead to the loss of interest with the public. when products they don’t
like are aired such as TV soaps or reality TV shows known as car crash TV.

3. TYPES OF OWNERSHIP: PUBLIC
SERVICE
•The BBC is a British public service broadcasting statutory corporation. Its main
responsibility is to provide impartial public service broadcasting in the United
Kingdom they provide advert free TV stations they gain their money through TV
licences paid for by the British taxpayer. This means they have to create loads of
programmes for loads of different genera's or people.
• http://en.wikipedia.org/wiki/Public_broadcasting

4. TYPES OF OWNERSHIP:
INDEPENDENT
Music companies that are independent can profit from all three of
production, distribution and consumption. They run their own company
and require no help bands such as the Arctic Monkeys are assigned to
independent record labels but some artist’s even run their own
independent music companies so that they alone can promote and discover
new talent and sign them up. This is very good because it gives new people
a bigger chance.
The ways the companies sign and promote their artists are things such as
live gigs, social media, free music tracks and launch parties. This means
more people hear them and they get out more.

5. TYPES OF OWNERSHIP:
CONGLOMERATE
Conglomerate companies are companies that branch
out and own a variety of different subsidiary companies
who all provide different services such as Walt Disney
who do kid’s TV, mainstream American sport,
American news, music and films
There are others such as virgin and sky who now
provide a range of services to customers such as
internet and broadband provider this is so they can
expand the markets that they currently sell themselves
in.

6. TYPES OF COMPANIES:
HORIZONTAL INTEGRATION
Horizontal integration is an absorption into a single firm of several firms involved in the
same level of production and sharing resources Horizontal integration is mostly full of
advantages it means you have expanded your company and also expanded it’s production
line and scouting for new talent. It also gives you increased market power and a larger
percentage of the markets value
On the other hand, it does have its disadvantages. One of them being legal repercussions.
Higher integration can lead to a ‘monopoly’, which is highly discouraged by many
governments due to lack of competition. With a monopoly makes it also harder for new
ideas and products and services to come into he market and compete with larger companies
the government have done what it can by limiting companies to only having a maximum of
40% of the market value
All of these
companies are
examples of
horizontal
integration
through Time
warner

7. TYPES OF COMPANIES:
VERTICAL INTEGRATION
Vertical integration is when a company profits from production, distribution and consumption. It used to be only
large companies such as Time Warner that could actually afford to profit from production, distribution and
consumption. But now, due to the internet via social media and websites such as soundcloud small companies can also
vertically integrate, such as independent record labels.
Advantages such as improved coordination throughout the supply chain. There is also a greater market share and
secured distribution channels. Disadvantages are the higher costs if the company is incapable to manage new
activities efficiently, The ownership of supply and distribution channels can sometimes lead to lower quality products
and reduced efficiency because of the lack of competition, and new competencies may clash with old ones and lead to
competitive disadvantage.

8. CROSS MEDIA
CONVERGENCE
Cross media coverage is where companies from the
media world but completely unrelated collaborate to
produce a service or a product such as a new game will
have a soundtrack so Sony music could sell a track from
the arctic monkeys to be the trailer music for the new
Call of Duty game or they could have a music show on
TV such as the X-factor or voice these use music and
television and turn it into a competition to compete for
a music contract this is an example of two types of
media converging and overlapping

9. SYNERGY
Synergy is selling products to promote an
artist so at a concert you might be able to buy
t-shirts, mugs and posters all related to the
artist the money for merchandise is then split
between the music company for the promotion
of the tour/concert and the artist

10. DESCRIBE THE STRUCTURE AND OF OWNERSHIP OF
EITHER THE FILM, TV, GAMING OR MUSIC INDUSTRY
It works in a pyramid system you start from the top with
the product or service and it filters it’s way down and then
it the reverse for the people who pay for the product or
service it starts off as an idea and then the artist who
creates the music will write the piece and if not already
signed up to a music company will then do then begins the
process of selling and promoting it this can be do through
social media e.g. twitter, Facebook and YouTube then once
it hits it’s release date it will have been prepared to be sold
in shops all across the world

11. WALT DISNEY
The media company I have
chosen is going to be Disney
they are a conglomerate
global company who now run
a series of TV subsidiaries
they run TV stations that do
sport, kids, news and
documentary channels they
also provide a music section
where they have made artists
such as Miley Cyrus, Selena
Gomez and Ariana Grande

12. OWNERSHIP
The Walt Disney Company, commonly known as Disney, is an American diversified
multinational mass media corporation headquartered at the Walt Disney Studios in Burbank,
California. It is the largest media conglomerate in the world in terms of revenue. Disney
was founded on October 16, 1923, by Walt Disney and Roy O. Disney as the Disney Brothers
Cartoon Studio, and established itself as a leader in the American animation industry before
diversifying into live-action film production, television, and theme parks. The company also
operated under the names Walt Disney Studio and Walt Disney Productions. Taking on its
current name in 1986, it expanded its existing operations and also started divisions focused
upon theatre, radio, music, publishing, and online media.
The company is best known for the products of its film studio, the Walt Disney Studios,
which is today one of the largest and best-known studios in Hollywood. Disney also owns
and operates the ABC broadcast television network; cable television networks such as
Disney Channel, ESPN, A+E Networks, and ABC Family publishing, merchandising, and
theatre divisions; and owns and licenses 14 theme parks around the world. It also has a
successful music division.

13. Disney Media Networks is the headquarters it’s horizontally integrated with a variety of
different TV companies. The Walt Disney Company that contains the company's various
television networks, cable channels, associated production and distribution companies and
owned and operated television stations
Disney–ABC Television Group
ABC Television Network
ABC Family Worldwide
ABC Family
ABC Owned Television Stations Group
A+E Networks (50%)
Disney Channels Worldwide
Radio Disney
Disney Television Animation
Walt Disney

14. COMPETITORS
Walt Disney's main three competitors are 21st
Century FOX, Time Warner
and NBC Universal Media. All of these are global conglomerate companies
these 4 companies control over 65% of the media and TV’s market value
These companies don’t really have an issue with distribution and
production as they all have there own production and distribution lines so
they never are competing against each other.

15. AUDIENCE
With 95 entertainment channels and feeds distributed in 35 languages, Disney
Channels Worldwide reaches more than 300 million homes, serving as a daily
touchstone for the Disney brand for families in 168 countries.
In 2010, the Company launched Disney Channel in Russia, Greece and
Ukraine, and announced a joint venture to launch a local language Disney
Channel in South Korea
In the United States 2010 marked Disney Channel’s most watched year on
record in total day and total viewers, as well among the key audiences of kids
(6-11) and tweens (9-14). Disney Channel also celebrated its eighth
consecutive year as television’s No. 1 network in primetime among kids (6-11)
and its 10th year at No. 1 with tweens (9-14), thanks to a strong slate of
original programming.

16. WALT DISNEY
SCANDALS
Disney was long rumoured to be anti-Semitic during his lifetime, and such
rumours persisted after his death. Animator Art Babbitt claimed to have seen
Disney and his lawyer, Gunther Lessing, attending meetings of the German
American Bund, a pro-Nazi organization.
The most recent scandal is the whole debacle over Miley Cyrus and how she
turned from Disney girl to some sort of outrageous troublesome teen many claim
this is to Disney trying to steal her youth

17. BIBLIOGRAPHY
http://thewaltdisneycompany.com/investors/annual_reports/2010/kb_cable_story.html
http://disney.com/
http://toxicmessiah.hubpages.com/hub/Walt-Disney-Secrets-Mistakes-And-Controversies
http://www.imdb.com/name/nm0000370/
http://www.justdisney.com/walt_disney/