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!
Ownership within the film industry
The big si! include the si large media companies" This includes# $arner %ros& $alt
'isney pictures( )%CUniverse*Universal pictures& Columbia pictures& +,
th
Century -o&
.aramount .ictures" These companies are classed as the big si! as they are the large(
/nown media film businesses"
The $arner %ros" company have released films such as The 'ar/ 0night! 1ravity! and
their most recent films( 2nherent 3ice! and The 4obbit# the battle of the five armies! that
was released in +,15" The first film ever released and produced was March 1,( 1617(
called My four years in 1ermany!"
$alt 'isney released their first film on 'ecember +1( 1689( named Snow $hite and the
seven 'warfs!" They then released well /nown films such as .inocchio!( %ambi!( and
Cinderella!" Their most recent films include( -light of the )avigator! and .ete!s 'ragon!"
)et is a Universal picture" Their first film was in 16+,( named The -laming 'isc!& others
include The 4unchbac/ of )otre 'ame! and 4orror 2sland!" The latest few films produced
are )eighbours! and : million ways to die in the west!"
There are then the Columbia pictures including their first films such as .al o! Mine!( Swan
La/e! and The old dar/ horse!" Their latest films are 1rown ups!( ;obocop!( The Smurfs
+! and The ama<ing Spider=man +!"
-ifth is +1
th
Century -o" They first produced films such as Life!s shop window!( :ce high!
and %lac/ magic! in the 161,!s" Their most recent films are ;io +!( The other woman! and
>=Men# 'ays of future past!"
Last are .aramount pictures" Their first film was called Les :mours de la ;eine ?lisabeth!
that was released in 161+" Their other films include :lice in $onderland!( scrooge! and
The bride comes home"! Their most recent films include Transformers# age of etinction!(
.aranormal :ctivity @! and 4ot tub time machine +!"
The big si own other companies" This increases their income salary by a huge
percentage"
$arner %ros are the largest media conglomerate in the world" They own companies that
include# C))( Cartoon )etwor/( Cinema( 4%O( )%:( T%S( truT3( 4L)( :dult swim( :OL(
$arner %ros" pictures( Turner Classic Movies( MapAuest( Castle ;oc/( Moviefone( 'C
Comics( )ew Line Cinema and then another 1@, maga<ines that include sport( fortune(
time( people( illustrated and Marie Claire" They are also Boint with the C%S" This whole
organisation is worth a large C+@"7 billion"
$alt 'isney is very global& they own theme par/s in many countries such as .aris and
-lorida" The company owns +99 radio stations( production companies such as .iar
:nimation Studios( Marvel ?ntertainment( Touchstone( Lucasfilm and $alt 'isney
.ictures" They also own music and boo/ publishing companies( :%C Television( ?S.)(
:D?( 'isney channel and Lifetime" This whole company is worth a huge C8E"1 billion"
Universal .ictures are net on the list and is Boint with 1eneral ?lectronic from the years
+,11 to +,18& also Boint with Telemundo( -ocus -eatures and )%C" They own +E television
cable stations in the United States( and own cable networ/s including C)%C( US:
)etwor/( Syfy( %ravo( The weather channel( ?sFuire( )%CS)( Cloo( Universal 4'( Chiller(
LO1 Understanding the Creative Media Sector
Comcast Sports)et( ?G and the 1olf channel" This organisation is worth C1@9 billion"
)et is Columbia pictures" This company isn!t half as popular as others as it is worth C18",
billion"
Columbia studios are net on the list" They are an :merican film production" 2t is one of the
smaller big si! companies as they are worth C18", billion" They are a part of the Sony
.ictures ?ntertainment( and a small member of the Hapanese conglomerate Sony" They
own cable networ/s C%S sports networ/( T31) and Showtime" This also includes 8,
television stations( 18, radio stations and the boo/ publisher Simon D Schuster"
Second to last is the +1
th
Century -o" This includes the -o %roadcasting Company" They
own film production companies +,
th
Century -o( -o Searchlight .ictures and %lue S/y
Studios" They own cable networ/s such as -o business networ/( -o news channel(
)ational 1eographic!s( ->( ->>( -> movie channel( -o sports 1 and + and )at 1eo $ild"
They also own print papers such as )ew Ior/ post and $all Street Hournal& with
maga<ines including SmartMoney and %arron!s and then a boo/ publisher called
4arperCollins" This large business is worth a whopping C8,"5 billion"
Last are .aramount pictures and they are Boint with the 2ndian company called 1lobal
%roadcast )ews" This company is another of the smaller as they are worth C18"E billion"
They have a game developer named 4armoni" They own the companies MT3( Comedy
central( :tom entertainments( %?T( 341( )ic/elodeon*)i/e at )ite and .aramount 4ome
?ntertainment"

What is vertical integration?
3ertical integration is where a chain of companies are owned by one company" ?ach
different one of the companies produce different products but all wor/ as one large
company as a whole" 2t is such as when -ord ;iver ;ouge Comple started a company to
produce their own steel rather than buying it off another company" This then saves the
-ord business a lot of money"
?amples from within the film industry could be such as when large companies such as
+,
th
Century -o( $arner %rothers and .aramount pictures have their own theatres that
are ran separately but are owned by them" This increased their sales unli/e the smaller
companies that don!t own their own theatres such as Columbia .ictures"
%enefits to do with vertical integration is where it is all over cheaper& it is more reliable that
you will have a finished final product to the best of your own company" %enefits to the
society are that there are better opportunities for investment growth and that local
companies are better positioned against foreign competition as they could run out of
business"
.roblems to do with vertical integration can be where there are higher costs in starting and
running the business& lower motivation by the wor/ers as they /now that large name is
sure to be a large film at the end and so the wor/ could be a poor Fuality by the end"
What is horizontal integration?
4ori<ontal integration is where one business buys a competitor that sells the same
products such as +,
th
century -o buying %lue S/y Studios" :nother eample is of a large
music production company buying a smaller one" 2t is li/e 'ragons 'en& it is a large
business that buys other business ideas and sets it up to be a bigger( popular name"
%enefits of this are that it enables to benefit from greater economies of scale" Iou will
receive a profit from buying the company when getting a large income from it" The
business will also be more efficient and well earn a bigger name"
: problem would be that if the company doesn!t increase( then it is a large loss for your
business" 2t could also mean your business could go ban/rupt"
LO1 Understanding the Creative Media Sector
What is a conglomerate?
: conglomerate is where a company owns much other business!s to do with the main
subBect" -or eample $alt 'isney owns many companies such as boo/ publishing!s(
maga<ines( many film productions( radios and others"
What is a multinational company?
: Multinational company is a company that operates in more than one country" 2t is where
they have shares and productions going on in different countries" -or eample Sony
.ictures are a multinational company as they are Boint with a Hapanese technology and
media Sony company" They also have Sony!s motion picture( television production and
distributes units in California" :s Sony has companies in Hapan and California and is an
:merican business( it is there for multinational"