Public and Private Ownership

Public Ownership

This is for companies such as the BBC, where they have everything funded for them through the public’s TV license fees. The BBC takes a little amount of what you pay out of your tv license fee. The reason for this is  because then the BBC don’t need to advertise to create a revenue, so if you’re watching a programme on BBC One, you’ll notice than in between a programme they don’t have breaks where they advertise.

Private Ownership

This is for companies such as ITV, where they money that they earn comes from advertisements and sponsorships. If you are watching a programme on ITV, you’ll notice that in between a programme they have a 5 minute ad break, this is so that they can gain a revenue to keep the company up and running as they don’t earn through the public’s TV license fee. Another way that money can be made in private ownership is through the sales of TV subscriptions. Sky is one of the companies that make money through the subscriptions.

Key Terms

Merger
This is where two companies combine together into one larger company. This happens so that the company can bring in more revenue and gain more power. 
For example:

•  Orange and T-Mobile: Orange and T-Mobile were two seperate phone companies before they merged together to combine into one larger company, this gained the company over 30 million customers.
• Disney-Pixar: Walt Disney and Pixar were once two seperate companies but Disney released all of Pixar's movies before, but with their contract about to run out after the release of 'Cars' the two companies decided to merge together into one larger company.

Takeover
This is what happens when one company attains control of another company because the company is expanding, or has fallen bankrupt, and has plans of another company buying into it.
For example:

•  Coca cola took over the Vitamin Water company for £4.1 billion. It hasn't officially been said why Coca Cola took over the company, but its added to Coke's revenue earnings.

Vertical Integration

This is where a company broadens its business into different areas of the same production path. This results in the companies developing into a larger company by buying or adding smaller companies in the same line of business to work for them.

Horizontal Intergration

This is similiar to Vertical Intergration where the companies can buy into others companies that are similiar to their lines of work. Horizontal Integration is also where a company broadens its business into different products that are similiar to their current lines.

Globalization
This is the integration of economies, industries, markets, cultures and policy making around the world. Globalisation describes a process by which national and regional economies, societies and cultures have become integrated through the global network of trade and cultural exchange.

Conglomerate

A media conglomerate is a company that owns a large number of corporations in many media sectors such as television, radio, publishing, movies and the internet.

Media had never been more consolidated, 6 media giants now control the 90% of what we read, watch or listen to. In 1983 there was about 50 companies that controlled that 90%. The big six companies’ control 70% of your cable that you watch through television.

 Time Warner

This is the world’s second largest media and entertainment conglomerate in terms of its revenue. 178 million users read the Time Warner News every month. Time Warner owns DC Comics, Time Magazine and other publications such as Cage & Aviary Birds, The Railway Magazine, and Nuts.

The notable properties of this company are:

-          CNN

-          HBO

-          Time

-          Warner Bros

 News Corporation

News Corporation owns the top newspaper on 3 continents; they also avoided $875m in US taxes.

The notable properties of this company are:

-          Fox

-          Wall Street Journal

-          New York Post

Viacom

The notable properties of this company are:

-          MTV

-          Nick JR

-          Bet

-          CMT

-          Paramount Pictures

-          DreamWorks

General Electric (GE)

The notable properties of this company are:

-          Comcast

-          NBC

-          Universal Pictures

-          Focus Features

CBS

The notable properties of this company are:

-          Showtime

-          Smithsonian Channel

-          NFL.COM

-          Jeopardy

-          60 Minutes

Walt Disney

This is the largest media conglomerate in the world in the terms of its revenue.

The notable properties of this company are:

-          ABC

-          ESPN

-          Pixar

-          Miramax

-          Marvel Studios

-          Walt Disney Pictures

Sources of Income

Downloads:

Many companies create an income from their audience who download their products. Downloads can take place through iTunes where you pay for a download. Industries that would benefit from this:

- Gaming, for whoever downloads their games.

- Film, for whoever downloads films.

- Publishing, for whoever downloads the newspapers, magazines and books.
TV programmes, films and music video/audio can be downloaded from the internet to your mobile phone, computer or any other portable device. You can download them from all sorts of websites ranging from iTunes,i Player, and Netflix etc.

Advertisements:
 

This is a form of marketing that is used to manipulate an audience. Advertising messages are normally paid for by a sponsor. Radio uses advertisements as their way or creating and income to fund for their stations. ITV also gets their funding from the advertisements that are shown on the breaks between each programme. Advertising is also used on:
- Billboards
- Games
- Magazines/Newspapers
- Cinema
-TV

Sponsorship:

Sponsorship's are where you are sponsored financially by a person or a company in support of another person/ company. Sponsorship's can be found on TV programmes, examples of this are:
- The X factor is sponsored by Talk Talk.
- Hollyoaks is sponsored by Impulse.
- Coronation Street is sponsored by Compare the Market.
- How I Met Your Mother is sponsored by Right Guard.
- Deal or No Deal is sponsored by Anadin.
- Come Dine With Me is sponsored by Airwick.

Product Placement:

This is an advertising technique that is found almost any movie, TV sitcom and reality television shows. TV advertising is of course one of the best known forms of advertising. Product placement can add a sense of realism to a movie or television show. Product placement is very successful, for example this can be shown from the 65% increase in Hershey's Reese's Pieces sales after its placement in 'E.T. The Extra Terrestrial' or the 50% increase in Red Stripe sales after its placement in 'The firm'. These figures show that product placement can have a powerful effect on viewers. Product placement helps television programmes and movies bring in more money to help with the making of each show/movie by adding another companies product which boosts the sales of the product showing. This technique is used quite a lot with mobile phones and cars. An example of this would be:
- Happy Gilmore: Adam Sandler who plays the main character is eating a subway sandwich, dressed in a Subway T-shirt, portraying a Subway spokesperson.

Cinema Box Office:

When members of the public go to the cinema to see a screening of a new film that is out, the money that they spend paying for their ticket creates an income for the cinema for showing the movie and also some of the goes back to the company and director that made the movie. A few example of box office sales are:
- Insidious box office sales were  $97,009,150.
- Insidious: Chapter 2 box office sales were $155,417,256.
- Fast and Furious Six box office sales were $788.6 million.

BBC License Fee/ TV License:

If you are 18 or older you have to pay your TV license fee per annual, if you do not pay your license you can get a fine of up to £1000 and also have your television took from you. The license fee payment goes to the BBC which is then shared out to the sectors that the BBC own. TV license costs:

- Colour license: £145.50
- Black and White license: £49
Your TV license becomes free when you are at the age of 75. If you have been registered blind you can get a colour TV license for £72.75 and £24.50 for black and white.Each BBC sectors gets an income of about:

- TV: £7.96 per month per household.

- Radio: £2.11 per month per household.

- Online: £0.66 per month per household.

- Other Costs: £1.40 per month per household.

Between the 1st April 2010 and 31st March 2011 the cost  for a colour TV license was £145.50 which is the equivalent to £12.13 per month or 40p per day.

Franchises, formats:

This is where someone buys the rights to part of a company, this allows them to have something to do with the company and the choices they make. The company that they have bought rights from can supply the franchee with the equipment that they need. An example of this would be:
- Justin Timberlake: He bought the rights to Myspace for $35 million.
Companies that are open to Franchises:
- Subway
- McDonald's
- KFC
- Newlook
- Home Bargains
There are many more companies that are open for Franchises.

CD and DVD Sales:

The money that comes from CDs and DVDs when there sold goes to the shop/place where they have been sold and also to the company and director of the CD/DVD. 

DVD Rentals:

For every DVD that is rented from them they earn an income as you have to pay to rent them. The film industry would benefit from this. DVD rentals can also be accessed online by paying a subscription fee.The money that is made from people renting DVDs is split between the rental store and the company/director of the DVD. In some cases the rental stores may be allowed to buy the rights to certain DVDs this way they store will get all the profits made.

Television subscriptions:

There are different services for TV subscriptions such as: Sky, Virgin Media and Talk Talk.
This is where you pay for a package of TV channels that suits you best. For the bundle of channels you receive you will have to pay so much a month for your subscription, prices vary depending on the company that your with. For example sky's bundle packages are:

- £21.50 a month for the original bundle.

- £32 a month for the family bundle.

- £37.50 a month for the movie bundle.

- £43.50 a month for the sports bundle.

- £67.25 a month for the complete bundle which includes all the above.

Merchandise:

Merchandise is a sale of products from Games and TV to Films and Music to a retail customer. By selling merchandise you are advertising your product to entice a sale by getting people to notice it. For example the publishing industry put free sample merchandise in with their magazines so that it attracts readers to buy the magazine. Merchandise in the film industry is helpful as many films have character toy models that are influenced from their films such as; Shrek, Toy Story and many others. Merchandise can be bought online or in-store.  

 

Licensing Intellectual Property:

This is where you can buy a product so that you own it yourself, this can be done with software programmes. When you buy a product it comes with a license, this license allows you to use the software. If you lost the license you would have to buy another license to be able to continue using the software.

Premium Telephones:

Premium-rate telephones are telephone numbers for phone calls which certain services provide, the price of the calls are much higher than the normal phone calls. Premium telephones are used in Radio this is when people ring in to request a song, enter a competition and to talk to the presenter. This is also used in TV either to enter a competition or to vote for a contestant on a show.

Photo Imaging/ Photography

The Photo Imaging industry is made up of over 44,000 people in the workforce. Just under half of these are based in the South of England. There are almost 14,000 companies in the photo imaging industry; two thirds of this is sole trading freelance photographers.

The remaining companies fit into these categories:

·       Image producers

·       Photo retail

·       Picture libraries and agencies

·       Manufactures

·       Support services

The workforce is highly skilled and well qualified.

Advertising/ Marketing

The Advertising industry is an increasingly large sector. There are 13,000 different companies working in this sector. The Advertising Industry contributes £6.2 billion annually for the UK economy.

Cross platform innovation occurs in this sector as it crosses boundaries between TV, Radio, Print, Billboard and Interactive Media, There is five main departments in this industry:

·         Account services

·         Creative

·         Production

·         Media

·         Other services

Interactive Media

The Interactive media industry is worth several billion pounds. There are around 40,000 people working within the industry alone. The barrier between interactive media and any other form of media is blurred; this is because television broadcasters are looking to try and multi-platform. Mult platforms are where it won't only run in the television sector but it will cross over to the other sectors to. With the industry continuously changing there is risk of it becoming out of date than the other sectors.

Games

The UK Gaming industry plays a major part of a global industry that is gaining in importance and fame. Sales that are coming from the most popular games are breaking record sales of any other type of entertainment merchandises.  The first games in this industry were launched in the early 1960s it wasn’t until the 1970s that the gaming industry became recognized with video arcades and home entertainment consoles.
To develop computer games it takes a large team of people and costs millions of pounds, this is because they have to make sure the game will be of a popular demand with its audience. The process starts off with market research and development in national and international operations.

The gaming industry is now firmly established as a major part of the UKs modern-day media landscape.  It has had a massive growth in its audience and has advanced with the technology that is used to produce the games. There is a wide range of career opportunities within the sector.

The Gaming industry has around 485 businesses, many of them being classed as games developers. There are about 35 companies that are classed as games supports companies- this included outsourcing specialists, middleware developers and retailers.

There are around 10,000 people who work in the gaming industry in the UK.

Publishing

The publishing industry is made up of different groups, these are:

·         Books

·         Directories

·         Mailing Lists

·         Journals

·         Magazines

·         Business Media

·         Newspapers

·         News Agencies

The Publishing industry produces a turnover of £10.1 billion in the region; this is with the gross value added. Publishing is one of the largest earners and exporters in the UK. It consists of a group of small companies, 88% of them have less than ten employees and 3% have more than 200 employees which only half are working on payrolls. The main are of employment for this industry is around the area of London.

There are many companies working in the Publishing industry, some of the best rated ones are:

·         Random House

·         John Wiley

·         Oxford University

·         Press and Penguin

Employees at the best rated publishing companies like working there because of the strong industry brands, good communication skills between layers of leadership and departments.

The Bauer Media Group is a large international media conglomerate. It is a German publishing company based in Hamburg, this company operates in 15 countries worldwide, some of such are:

-          Germany             -   Romania                          -   Portugal

-          USA                       -   Hungary                          -   Slovakia

-          Spain                     -   Czech Republic             -   United Kingdom

-          France                  -   Mexico                            -   Nigeria

-          Austria                  -   China

-          Poland                  -   Russia

                               
There is around 200,000 people that are working within the publishing sector.