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
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