LO1 Media ownership

Media Ownership 

subsidiary company - conglomerate 

21st century fox - conglomerate      subsidiaries of 21st century fox : TV, Film, newspaper 

A conglomerate is a company that controls/ owns other companies. 

Cross media ownership: owns/ can control more than one media type.

Advantages of being a conglomerate

• more options in terms of how they advertise 
• monopoly over the content that audiences aces
• external company's are not needed to hire (they can produce the product themselves)
• they can make more money by appealing to different audiences 
• audience becomes mass/ wide

Vertical integration/ value chain : 

• produced - pre production - production (filming) - post production (editing)
• distribution - getting it out to platforms - streaming services - advertising and marketing
• exchange/ exhibition - audiences view / access the product 

Horizontal integration (an effect of having vertical integration)

horizontal integration - the ability to be able to distribute products on different platforms.

• different place the product is distributed: film, Disney+, Fox TV, newspaper
• synergy = cross promotion i.e. advertising in more than one place
• synergy is the effect of horizontal integration 

Cross media ownership

Synergy/ cross promotion

Independent company 

• smaller
• not owned by a conglomerate
• they work for themselves 
• smaller budget because they have 0 subsidiaries to fund the project  
• they can successfully produce products however they struggle at distribution to a large audience 
• joint ventures are usually used to distribute the independent company's product