You'll need to study the following topics for a full introduction to this concept:
- The companies or organisations behind the media – owners, publishers, developers, channels, distributors, film studios etc.
- How new and digital technology has changed media industries.
- The regulation and control of media in the UK.
- The role of public service broadcasting and not-for-profit media.
- Who has the power in the media: audiences or institutions?
Industries: Ownership and control notes
In our first lesson on media industries, we learned the following terminology:
Conglomerate ownership
A conglomerate is a large company composed of a number of smaller companies (subsidiaries).
A media conglomerate, or media group, is a company that owns numerous companies involved in creating mass media products such as print, television, radio, movies or online.
Examples include Comcast, 21st Century Fox or Disney.
Vertical integration
Vertical integration is when a media company owns a range of businesses in the same chain of production and distribution.
For example, a company might own the film studio that makes a film, the distributors that sell it to cinemas and then the movie channel that premieres it on TV.
Vertical integration allows companies to reduce costs and increase profits – but it is not always successful if the parent company lacks expertise in certain areas.
Horizontal integration
Horizontal integration is when a media company owns a range of different media companies that are largely unrelated e.g. magazines, radio stations and television.
Horizontal integration helps media institutions reach a wider audience.
Integration & synergy
Synergy is the process through which a series of media products derived from the same text or institution is promoted in and through each other.
Look for links or consistent branding across different media platforms and products. E.g. Harry Potter – films, merchandise, stage plays, theme parks, videogames etc.
Diversification
Diversification is when a media company branches out into a different area of the industry. For example, many media companies have had to diversify to internet-driven distribution (e.g. streaming) as a result of new and digital media.
In the music industry, major labels such as Warner Music have had to embrace streaming in order to reverse years of declining revenue.
Cross-media regulation
When two companies wish to merge or diversify (e.g. vertical or horizontal integration) it needs to be cleared by a regulatory body to prevent any one company becoming too powerful in a given market.
In the UK, this is decided by the Competition and Markets Authority (CMA). Currently, the CMA is deciding whether to allow Rupert Murdoch to complete an £11.7bn takeover of Sky by 21st Century Fox.
Diversification is when a media company branches out into a different area of the industry. For example, many media companies have had to diversify to internet-driven distribution (e.g. streaming) as a result of new and digital media.
In the music industry, major labels such as Warner Music have had to embrace streaming in order to reverse years of declining revenue.
Cross-media regulation
When two companies wish to merge or diversify (e.g. vertical or horizontal integration) it needs to be cleared by a regulatory body to prevent any one company becoming too powerful in a given market.
In the UK, this is decided by the Competition and Markets Authority (CMA). Currently, the CMA is deciding whether to allow Rupert Murdoch to complete an £11.7bn takeover of Sky by 21st Century Fox.
Industries: Ownership and control blog task
Create a new blogpost called 'Ownership and control' and complete the following tasks:
1) Type up your research notes from the lesson - what did you find out about your allocated media conglomerate? Selection of companies: Alphabet, The Walt Disney Company, Comcast, 21st Century Fox, Facebook, Viacom, News Corp, Time Warner. If you were absent or don't have the notes, research any of the companies above and find examples of all the terminology outlined in the notes at the start of this blogpost.
2) Do you agree that governments should prevent media conglomerates from becoming too dominant? Write an argument that looks at both sides of this debate.
Media Magazine 52 has a good feature on the changing relationship between audiences and institutions in the digital age. Go to our Media Magazine archive, click on MM52 and scroll to page 9 to read the article 'Two Key Concepts: The Relationship Between Audience and Institution'.
3) Briefly describe the production, promotion and distribution process for media companies.
4) What the different funding models for media institutions?
5) The article gives a lot of examples of major media brands and companies. Choose three examples from the article and summarise what the writer is saying about each of them.
6) What examples are provided of the new business models media companies have had to adopt due to changes in technology and distribution?
7) Re-read the section on 'The Future'. What examples are discussed of technology companies becoming major media institutions?
8) Do you agree with the view that traditional media institutions are struggling to survive?
9) How might diversification or vertical integration help companies to survive and thrive in a rapidly changing media landscape?
10) How do YOU see the relationship between audience and institution in the future? Will audiences gain increasing power or will the major global media conglomerates maintain their control?
Complete these blog tasks for homework: due next Monday.
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