2. Private Ownership such as Sky and MTV own their own channels, this
means that they don’t rely on the public audience or another company to
work with. The advantages to this is that they can put whatever they want
on television and gain all the profits. The disadvantages are that If the
company makes no profits, it will be the one company in debt. This can be
a very large problem when being a private owner.
TYPES OF OWNERSHIP: PRIVATE OWNERSHIP
3. Public service is the opposite to private ownership. Public service such
as, the BBC, work with another company, in this case the public. The
public pay for the BBC to keep going through tax. The advantages are that
there are no adverts and there are many channels that suit different
demographics which means there is something for everyone. The
disadvantages are that the public could stop paying for the BBC to air.
TYPES OF OWNERSHIP: PUBLIC SERVICE
4. Multinational means that a company such as Sky or Virgin, serve more
than one nation. Virgin, for example, are in England and America. This is a
good idea because they can serve a wider audience and this way they can
make more money, also meaning they will be more well known. The down
falls are that if the company struggles, it will be known by more than one
nation. This leaves the company with a bad reputation and little or no
profits.
TYPES OF OWNERSHIP: MULTINATIONAL
5. This is where a company doesn’t work with any other companies. It works
independently and isn't linked to other companies, an example of this is
Apple. An advantage to this is that they get all the profit from their
products, however this is a double edged sword as the company has no
fallback option if they don’t do well.
TYPES OF OWNERSHIP: INDEPENDENT
6. This is where a company owns other companies in different types of
media sectors. Such as, television, radio and publishing. A advantage to
this is that they can make profit from across all media sectors. A
disadvantage to this is that it has the risk of having no control because it
is such a massive company.
TYPES OF OWNERSHIP: CONGLOMERATE
7. Simon Cowell’s production company Syco, works along side ITV. This is an
example of Horizontal Integration.
TYPES OF COMPANIES:
HORIZONTAL INTEGRATION
8. Apple is a vertical company. They are a company that work on their own
and produce more than one kind of product. Someone could have an
IMac, IPod, IPhone and IPad. This is an advantage as the company gets all
the profits without sharing any. They also have control of what they make
and sell. The disadvantage is that if the company stops making money,
they wont be able to share their debt.
TYPES OF COMPANIES:
VERTICAL INTEGRATION
9. This is when there is a range of media platforms integrated into single
piece of technology. Things such as the PS3, it can also be a blue-ray
player. It has two uses. An advantage to this is that their audience will see
that they are getting more than just a game console. This will help
increase sales. However the disadvantage is that if they focus on two
things their focus on the main thing, the game console, may not be as
good as it could be.
CROSS MEDIA DIVERGENCE
10. Synergy is when a company promotes and sales a product. For example,
the Spiderman films have brought out merchandise to help advertise. This
has been found to increase awareness of the films which boosts film
sales.
SYNERGY
