Structure and Ownership of the Media Sector - REBECCA

Creative Media sector includes wide range of industries, employing large numbers of people in a variety of creative and technical roles, working in more than one industry. These are:

• Film (27,800), 
• Television (55,800), 
• Publishing (200,000), 
• Interactive Media (40,000), 
• Games (10,000), 
• Radio (22,000), 
• Photo-imaging (44,000), 
• Advertising (17,000) and 
• Animation (4,700)

What do these industries have in common? They use, words, sounds, and images to communicate with audieces and require creativity of people with ideas which will appeal to audiences. The creative media industries also employ people who can organise and manage companies which create different productions.

The sector is made up of companies of all sizes. Small companies with two or three staff work successfully in media production along global corporations such as the BBC. 

There are three different models of production, according to size, set up and funding. 

• A client invites companies to tender for the job in response to a brief
• A small number of companies respond and then pitch for the work through a presentation of ideas and costs
• One of the companies is chosen, commissioned, and a contact is drawn up

Once supplier has been chosen and commissioned, the following stages take place:

• Consultation
• Design
• Production
• Delivery
• Payment

Broadcast television and radio have different models of funding. BBC receives its income from license fee while commercial broadcasters are funded by advertising. The production sequence of events is similar to small company productions, BBC commissioning process is constrained by organisational requirements. 

Film, Games and sound recording, the usual production model involves at least one large company used for funding. Hollywood studios would put money into a film and music companies would put money into recording a new album. Projects involve a multi-million pound budget. 

The internet offers ways for film makers, musicians and radio producers to reach audiences which don't involve major companies. Small companies, no longer have to wait until they have the backing of a major broadcaster. MySpace was used by the Arctic Monkeys to promote their band in 2005.

A successful film can not only produce income from box office, television or sales, but through licensing companies to use that name, logos and characters of films in a computer game, spin-offs, or 'book of the films'. Creators of a television game can earn a significant amount of money by allowing television companies in other countries to make their own version of the game.

Private Ownership

Funded by advertising. Example is ITV. Runs on advertising funds and advertising companies want their products to be advertised and are willing to pay millions to get their adverts on TV. The more popular the channel, the more money companies are willing to pay.

Public Service

Funded by government. Example is BBC. Public get to watch a channel that is devoted to them with a wide variety of shows to suit a wider audience. The BBC run on what the public want.  

Independent

Independent Ownerships operate without funding. Record labels don't have funding or backing from major organisations. 'Domino's' is an independent record label. They can control everything, but they don't have as much money 

Conglomerate

Media conglomerates is a company that owns large numbers of companies in different media. Aim for policies that makes it easier to control markets around the world. 

Horizontal Integration

Organisation develops by buying up competitors in section of the market, like one music publishers or other music publishers. Allows for great control of prices and costs, allowing increased presence in foreign markets.

Vertical Integration

Company has the ownership of the means of the production. They receive all profit of the production, distribution and consumption. Improves supply chain coordination. Potentially higher costs.

Cross Media Convergence

Companies coming together. Example is Working Title, making use of its parent company to gain access to bigger stars and bigger distribution. They get more companies and money will increase

Synergy

Selling products to promote an artist or band. Will sell tops, phone cases, mugs, hats, posters etc. Money will get split between artist and company.

Independent company taken over by a conglomerate

• Sky (40% owned by Fox)
• CBS (shares with Time Warner)
• Marvel (taken over by Disney)

Independent companies or artists using internet to reach audiences

• Bastille
• Ed Sheeran
• 50 Cent

Franchise generating income from its creators

• Call Of Duty series
• Grand Theft Auto series
• Fifa gaming series

Global Radio

UK based company that owns top commercial radio stations in the UK. Currently listening figures stand at 18.5 million pounds through a different range of radio stations. 

What is the difference between commercial radio and public radio services such as the BBC?

Public services is funded by the government and is promoted by the broadcaster. Commercial services are for profit, so the agenda of the owners are promoted.

What is a commercial broadcaster's main source of income?

Their sources of income involves advertising.

Look into commercial broadcasters in your local area. How do they ensure a stable listenership.

I live in London. Examples are Absolute Radio, BBC Radio London, Capital FM, Heart FM and LBC 97.3. I listen most to Heart FM which is media.info's 4th most popular radio stations with 8.9 million listeners on a daily basis. Owned by Global Radio, Heart FM help maintain a stable listenership by including adverts that would appeal to an audience aged 16-35. They also maintain a stable listenership by including well-known celebrity faces as presenters including Emma Bunton (most known for being in the Spice Girls), Jason Donovan (Australian actor and singer) and Mark Wright (presenter and for also being in The Only Way Is Essex).