LO1 Understanding the Creative Media Sector

Understanding the ownership and structure of the media sector

Discuss ownership within the film industry. (Warner Bros.; Paramount Pictures; Walt
Disney; Columbia Pictures; Universal Studios; 20
th
Century Fo!
Company Films Companies Owned Market
Share
Warner Brothers "arry Potter and the
Philoso#her$s Stone%
&cean$s 'leven%
Charlie and the
Chocolate Factory%
"a##y Feet% P.S ( )ove
*ou
Warner Bro$s (nteractive%
Warner Bro$s +elevision% +he
CW +elevision ,et-or.%
Warner Bro$s /nimation
01.02
Columia
!ictures
Daddy Day Care% Bad
Boys 2%3ro-n U#s%
+he Social ,et-or.%
Bad +eacher% +he
/ma4in5 S#iderman 2
Sony Pictures 'ntertainment%
Coca6Cola
07.82
!aramount
!ictures
+rans9ormers% :ission
(m#ossible% 3.( ;oe%
Paranormal /ctivity%
Star +re.% ;ac.ass%
Shre.% (ndiana ;ones
CBS Paramount +elevision%
Paramount <anat5e%
Paramount "ome
'ntertainment% Paramount
Par.s% Paramount
Communications% Paramount
Comedy% Paramount
=esources
1.>2
"#
th
Century Fo$ Dr. Dolittle 2% (ce /5e%
+he 3irl ,et Door%
=obots% )i9e o9 Pi% =io%
+a.en 2% /lvin and the
Chi#mun.s
&-ns nothin5% o-ned by
,e-s Cor#oration
0?.02
Walt Disney +oy Story% Pinocchio%
:ary Po##ins% +he
)ion @in5% Bambi%
Sno- White% 000
Dalmatians% Cinderella%
+he ;un5le Boo.
Disney ,ature% )ucas9ilm%
Disney :usic 3rou#% Disney
+heatrical 3rou#% Disney
Studio Services
0A.72
Uni%ersal Studios @ic. /ss% =obin "ood%
Des#icable :e% Paul%
;ohnny 'n5lish
=eborn%
United (nternational Pictures 07.02
LO1 Understanding the Creative Media Sector
In this table you can see that I have given a brief overview of the worlds six biggest
ownership companies. You will notice that they all have quite a big market share, and
these companies are recognised all around the world. Smaller companies wont have a big
market share, because their films wont have been as successful. igger companies dont
waste money on a film that might be a risk, the input their money into a film that they know
will succeed. !owever, smaller companies have to take this risk for their movies to be a
hit. "hey have to invest, take the risk of debt, but this could potentially all be forgotten
about with a successful film.
"he mini companies challenging the #ig $ are ones such as %reamworks, &'& and
(ionsgate. "hese three companies have made some of the most successful films about,
some even more successful than ones that )alt %isney, *niversal Studios and +aramount
have made. %reamworks have made Shrek and &adagascar, whilst &'& were the
creators of the ,ames ond series. Its not that these companies dont have the money,
because all three are hugely successful, its where they invest it.
What is vertical integration?
-ertical integration is where the supply chain is owned by that company.
-ertical integration is the process by which a media institution owns several
companies at different stages of production or the supply chain. .or instance/
)arner rothers is owned by "ime )arner.
What is horizontal integration?
!ori0ontal integration is a strategy where a company creates or acquires
productions units for outputs which are similar. !ori0ontal integration is the
opposite of vertical integration, where companies integrate multiple stages of
production of a small number of production units. !ori0ontal integration is the
merger of companies at the same stage of production in the same or different
industries. )hen the products are both similar, it is a merger of competitors.
)hen all producers of a good or service in a market merge, it is the creation
of a monopoly. If only a few competitors remain, it is termed an oligopoly.
What is a conglomerate?
1 media conglomerate is a company that owns a large number of companies
in various mass media such as television, radio, publishing, movies and the
internet. In 2345, it was reported that )alt %isney is 1mericas largest media
conglomerate in terms of revenue.
What is a multinational company&
A multinational company is an organisation that owns the service facilities in one or more
countries other than their home country. "he enterprise tends to be managed in the
home country, but their services are still managed abroad. "here are four
LO1 Understanding the Creative Media Sector
categories in multinational companies/ a multinational decentrali0ed
corporation, a global centrali0ed corporation, a corporation that builds on the
parent corporation6s technology and a corporation that combines all these
three attributes.