2. • I WILL BE UTILIZING VARIOUS CASE STUDIES TO ANALYSE AND INVESTIGATE OWNERSHIP AND FUNDING IN THE MEDIA
INDUSTRY AS IT WILL HELP ME COMPREHEND WHAT THE TV AND FILM INDUSTRY IS, THE MEANS BY WHICH IT WORKS
AND HOW OWNERSHIP AND FUNDING IDENTIFY WITH THE INDUSTRY. I WILL BE LOOKING INTO A FEW COMPANIES SUCH
'NEWS CORP', "DISNEY“, “CNN”, “BBC” AND “ITV”.
• THE TV AND FILM INDUSTRY IS MADE UP OF A LIST OF VARIOUS COMPANIES THAT WORK DISTINCTIVELY AND ARE
FUNDED DIFFERENTLY. OWNERSHIP AND FUNDING ARE TWO OF THE MOST SIGNIFICANT VIEWPOINTS IN THE MEDIA
INDUSTRY. OWNERSHIP IS KEY AS IT INDICATES WHO OWNS WHICH COMPANIES OR GROUPS OF COMPANIES, AND IS
COMPRISED OF CONGLOMERATES, SUBSIDIARIES, INDEPENDENT COMPANIES, PRIVATELY OWNED COMPANIES AND
OTHERS, SUCH AS, COMMERCIAL COMPANIES, OR COMPANIES WHICH ARE VERTICALLY AND HORIZONTALLY
3. DEFINITIONS AND EXAMPLE
Media conglomerates: It is a media group or media institution that owns large numbers of companies in various mass
media, for instance, television, radio, publishing, movies, and the internet. E.g. Disney, time warner, news corporation.
Synergy: is when the interaction of two or more forces working together creates a greater effect than the sum of their
Media synergy: is when elements of a media conglomerate work together to promote linked products across different
EXAMPLE: DISNEY MOVIE HIT ‘HIGHT SCHOOL MUSICAL’ PROMOTES THE DVD WHICH PROMOTES THE Soundtrack which promotes
the advent calendar which promotes the doll which promotes the sequel which promotes the Disney store which promotes
Integration: Some companies buy similar companies (often indies) to form larger groups (horizontal integration) e.g. Zodiak
Media (within the UK) which owns several smaller production companies across different genres.
Many institutions merge with companies in other media areas (vertical integration) forming conglomerates e.g. News Corp
(owned by Rupert Murdoch) has companies across media platforms although recently they have split into 2 companies due
to concerns about monopolising the industry. Vertical integration can often help a company promote its products on
multiple platforms (cross-platform marketing) and in other areas (synergy).
• THERE ARE A WIDE RANGE OF MEDIA CONGLOMERATES AROUND THE GLOBE AND THEY OWN NUMEROUS SMALLER COMPANIES OR
CORPORATIONS CALLED SUBSIDIARIES. CONGLOMERATES ARE HUGE CORPORATIONS WITH NUMEROUS MEDIA INTERESTS. “MEDIA
CONGLOMERATES STRIVE FOR POLICIES THAT FACILITATE THEIR CONTROL OF THE MARKETS ACROSSTHE GLOBE "- (WIKIPEDIA), AND THEY
MERGE WITH DIFFERENT COMPANIES TO FORM SOME SORT OF SYNERGY BETWEEN THEM. FOR INSTANCE, DISNEY OWNS ESPN AND ABC; THEY
ARE NOT SIMPLY KEEN ON ONE PART OF TV AND FILM. THERE ARE ADDITIONALLY DIFFERENT CONGLOMERATES LIKE SONY, UNIVERSAL, VIACOM
UNIVERSAL, AND THE ITV.
• MEDIA SUBSIDIARIES - ARE COMPANIES THAT ARE TOTALLY “PARTLY OWNED AND PARTLY OR WHOLLY CONTROLLED BY ANOTHER COMPANY
THAT OWNS MORE THAN HALF OF THE SUBSIDIARY'S STOCK. THE SUBSIDIARY CAN BE A COMPANY, CORPORATION, OR LIMITED LIABILITY
COMPANY”-(GOOGLE). A CASE OF THIS IS SKY TV WHICH IS OWNED BY NEWSCORP A CONGLOMERATE WHICH HAS NUMEROUS DIFFERENT
SUBSIDIARIES LIKE 20TH CENTURY FOX FURTHERMORE ITV POSSESSES BOTH CHANNEL 4 AND 5.
5. SYNERGY & CROSS MEDIA CONVERGENCE
Vivendi universal make a film in Universal studios.
It releases the film’s soundtrack on Polygram, one of its record labels.
The tracks can be bought only at mp3.com, one of its internet companies.
The film can be downloadedon vivendi telecomphones.
The film is then shown in its Odeon cinema chain.
Owning all of these assets makes it cheaper for the producerto make, distribute, market, and exhibit the film, thus maximising profit, enabling the studio to
keep making big budget films.
Therefore,it is a win-win scenario for Hollywood studios.
2 different media platforms (i.e. gaming and film) work togetherto use an idea that can be promotedbut that benefits both of them. Both products are
released at the same time. (SYNERGY CONVERGENCE)
It is when 2 or more companies work together to produce, distribute or exhibit a film. It could also be used to help market the film with the combination of
the music industry and film industry for a soundtrack. It involves producing media products. (CROSS MEDIA CONVERGENCE).
The difference is: Cross Media Convergence involves producing media products. Synergy can involve non-media products such as merchandise.
6. GUARDIAN: BREXIT COULD IMPACT THE (POSITIVE) FINANCIAL STATUS IN FILM (CASE STUDY)
Hours after the referendum result, UK film industry leaders predicteddisaster with Michael Ryan, the
chairman of the IndependentFilm and Television Alliance, saying the vote had “just blown up our
foundation”. “We no longer know how our relationships with co-producers,financiers and distributors
will work,” he said. “This is likely to be devastating for us.”
A lot less money available: The EU pays a goliath wad of money straight to British film-makers. As
indicated by figures laid out by 20 influential producers, the EU's Media programinjected €130m
(£105m) in the industry somewhere around 2007 and 2015. Regardless of whether you take the
Telegraph's line about "luvvies", the evacuation of the fund will straightforwardly influence the
business operations of several companies and agencies.
Co-productions are in huge trouble: The obstacles beforeBritish film-makers searching for
European partners to make their movies will be that much higher. The same is true for Europeans
searching for British input. Additionally, producers who have concluded their finances with any euro
– or, dollar – elements will find themselves fundamentally short of funds, because of the sudden
reduction in sterling's worth.
European films could disappearfrom British cinemas: British distributors purchase rights to
European movies in euros – and now they have turned out to be substantially more costly. Couple of
European films are serious commercial propositions in the UK, and the organisations that discharge
them work on thin margins, if by any stretch of the imagination. On the off chance that barrier or
tariffs intervene, or cultural subsidies from the EU vanish, the supply could dry up quickly.
7. British films could disappear from European cinemas: Brexit will block British producers’ capacity to offer their
products in a monster trading zone. As a group of big-cheese called attention to before the vote “our feature films, our
television programmes and our games can travel far more easily across borders because they are not subject to quotas
or taxes of any kind in Europe”. Over the past decade, around 40% of the UK's film exports have been to the EU; jobs,
organisations and livelihoods rely on upon it. What's more, pretty much as UK cinemas can get to the Europa Cinemas
system to get subsidies to show European films, EU cinemas get the same funding to project British movies. The free-
trade zone isn't generally lovely, be that as it may: recently reported plan to make a digital single market has roused
extensive protest, in the midst of fears it could close down the same outfits it cases to bolster.
We could witness a 70s-style British film meltdown: If Brexit goes ahead and funds become scarce, things will without a
doubt get complicated. One producer portrayed is as "a critical blow", another as " terrible news ... making the UK even
more of a pariah". The inquiry is: will the slowdown be temporary, or are we in for a two-decade fallow period
comparable to the Hollywood pull-out of the early 70s? In those days, the number of UK production begins smashed
under the weight of falling audiences, rivalry from TV and the vanishing of Hollywood funding as studios ended their
routine of subcontracting production abroad for conserving in California. In spite of incidental mini-renaissances –
usually around individual companies, for example, Goldcrest – it took two decades for a concerted recovery to happen. It
could happen once more.
8. FILM AND NEW TECHNOLOGY
Advances in new media technology have made it possible for anyone to make films and showcase them on the internet on
sites like YouTube. We can now also watch films on phones, games consoles, digital TV on demand. We can also see the
state of the art SFX on giant screens 3D.
(90% cheaper to distribute digitally, than a ream of film). How apps like Instagram can make people take photos that
look professional. Instagram has evolved considerably in the last few years. The platform's user community is large,
diverse, and highly active. There’s little debate now that it can be a great creative and professional avenue for
photographers and also competition as people can just take photos that look professional without the help of a
Cross Media Convergence: It is when 2 or more companies work together to produce, distribute or exhibit
a film. It could also be used to help market the film with the combination of the music industry and film
industry for a soundtrack. It involves producing media products.
Technological Convergence: It is the tendency for various technological systems to evolve towards
performing similar tasks. It is when new technologies are created that take over from past technologies
and execute the same role but in a more advanced manner.
9. For instance, individuals ‘used’ to listen to music utilizing the radio but now technological convergence has advanced
and most of us now use phones. And another great example is the INTERNET!
Advantages for Institutions: Warner Brothers is a major institution that have a lot of money, and can utilize new
technologies to their advantage, there for they will have more advertisement e.g. Billboards, restaurants, background
scene of a website etc. Using it to their advantage they can promote their film by games based on the release of their
new movie. The goal is to gain more profit utilizing this as their advantage.
Disadvantages’ for Institutions:
- It is much more expensive
- Lose profit if the movie turns out to be a loss.
- They cannot guarantee that audiences would pay more just for the better quality.
- Cheaper alternative available for individuals to make their own media work e.g. Music video.
10. Private Companies - are companies that are either bought by non-governmental associations or by a moderately small
number of shareholders or company members which does not offer or exchange its company stock (shares) to the general
public on the stock market exchanges, but instead the company’s stock is offered, owned and exchanged privately-
(Google). Private companies are fundamentally the same to independent companies; the main genuine contrast is that
private companies can pick their shareholders. Private companies don't have to meet the strict trade commission
requirements that public companies have to, such as giving a specific rate of their wage to the government.
Independent companies- are companies which work on their own; they can settle on choice all alone and are free of
influence by government or corporate interests. Independent companies are diverse to subsidiaries as Independent
companies are not owned by any conglomerate. An advantage of an independent company is that all the cash the company
makes is its own profit instead of being distributed to different companies. An advantage of an independent media
company is that they regularly find it hard to get by against rivalry from greater companies that are owned by
conglomerates as they have a bigger name, which diminishes their source of salary resulting in bankruptcy.
In spite of the fact that if an independent media company is fruitful they are owned by bigger conglomerates for a gigantic
measure of benefit, for instance 'SO Television' was purchased by ITV.
11. FIRST GENERAL DIRECTOR BBC: THE LORD REITH
“John Charles Walsham Reith, 1st Baron Reith (20 July 1889 – 16 June 1971) he was a British broadcasting executive who established the
tradition of independent public service broadcasting in the United Kingdom. In 1922 he was employed by the BBC (British Broadcasting
Company Ltd.) as its general manager; in 1923 he became its managing director and in 1927 he was employed as the Director-General of the
British Broadcasting Corporation created under a Royal Charter. His concept of broadcasting as a way of educating the masses marked for
a long time the BBC and similar organisations around the world.”
The British Broadcasting Company was part-share owned by a committee of members from the wireless industry, plus British Thomson-
Houston, General Electric, Marconi and Metropolitan-Vickers. Be that as it may, Reith had been in favour to the company being taken into
public ownership, as he felt that even though the boards under which he had served, permitting him a high level of latitude on all matters,
not every single future members may do as such. Albeit opposed by a few, including individuals from the Government, the BBC turned into a
corporation in 1927. Reith was knighted that year.
Reith's autocratic attitude turned into the stuff of BBC legend. His favoured approach was one of generous dictator, however with built-in
checks to his power. Through the duration of his life, Reith stayed persuaded that that approach was the most ideal approach to run an
organisation. Later Director-General Greg Dyke, profiling Reith in 2007, noticed that the term Reithian has entered the dictionary to signify a
style of management, especially with connection to broadcasting. Reith summarised the BBC's motivation in three words: inform, educate,
entertain; this remains as it is to this day. It has additionally been adopted by broadcasters all through the world, especially the Public
Broadcasting Service (PBS) in the United States.
12. DO YOU THINK THE LICENSE FEE (A GUARANTEED INCOME) GIVES THE BBC AN UNFAIR ADVANTAGE?
• Personally, I find it unfair as the BBC has long advertised with phrases such as "thanks to the unique way the BBC is funded" however
should that unique way been seen as a positive, because licence fee forces people to pay for self-funded services, such as ITV, channel
• The licence fee represents a much higher proportion of income for poor households. According to a National Audit Office report from
2002: "Areas with high evasion rates are most likely to have a higher than average proportion of younger people, low income
households, and students and single parent families, and a high level of County Court judgments 50 per cent above the national
average". By stopping all TV programs the non-licence payers won’t have the privilege to enjoy a hobby that is virtually free or it
The licence fee gives an unfair advantage to one broadcaster:
- ITV has a total external revenue of £2,590 million
- Channel 4's total revenue is £908 million a year.
- UKTV (owning Dave, yesterday, etc.) had £265 million in revenue.
- In comparison, the BBC has a total income of £5,066 million of which £3,726 million comes from licence fees.
• It is an outdated system as the BBC has been funded by the licence fee since 1923 and the current TV licence fee only began 1946. It is
not relevant now as most channels offer quality programs funded by advertising.
• It is bias as it is being manipulated by the government in power with the threat of restraining funds if information damaging to that
government was made public. Papers have hinted that "thousands of Top Gear fans who signed a petition demanding Jeremy Clarkson
be reinstated are now threatening not to pay their TV licence fee in protest. "I believe it's especially relevant to address this now as this
issue should be debated by the government before 2017, however all the more so in view of the "Fracas", which brings the BBC's
obligation towards the general public to the front line.
13. Public service broadcasting - a few media companies are bought by national, regional or local government and their essential objective is
public service. Public broadcasters get funding from different sources including license charges, individual contributions, public
financing. A vital case of public service broadcasting is the conglomerate, the BBC (British Broadcasting Corporation). The motivation
behind why it is called public service is fundamentally on the grounds that it is funded by the public through the licence expense and it is
there to serve people’s interest. Their primary job is to inform, educate and entertain which is for the advantage of the audience.
• Bringing arts to the working class.
• Teaching the population in school.
• Informing and diverting unpaid female labour in the home.
• Covering nation-building events such as sport and news.
• Addressing religious differences.
Commercial Companies - are funded by advertisements and they take after ordinary accepted business practices and work with a specific
end goal to make a benefit. “They are not financial institutions and their requirements are: capital, labour and material resources.”-
This division manages how media companies get their money. Funding in the television industry originate from various
sources like the BBC license fee is paid by all UK households that get TV, subscription is a sort of funding that is paid
monthly through satellite or cable subscription clients, for instance Sky and Virgin. Pay per view is a kind of funding
whereby some big sporting or music occasions are accessible for a one off fee paid by the client of a satellite broadcaster
or for an online webcast. Sponsorship is a kind of funding gave to conglomerates by companies which utilize their logo or
brand previously, then after commercial TV programs (not the BBC). Sponsorship is normally clear on commercial
15. Licence Fee Funding: When the BBC was introduced back in the black and white days, it was a public service and was paid
for by the public. This is still taking place today, but now there are lots of other companies that broadcast on the TV, but
none of them get any public money. It is paid by all UK households that receive television; “the annual cost of a colour TV
licence is £145.50 (as from 1 April 2010). A black and white TV licence is £49”. (BBC) Thus as stated previously, for the BBC
the main source of funding is the licence fee which is paid by all households.
Another kind of funding is advertising this applies to television and it is when branded items are paid by television. E.g.
Virgin advert paid to be set up amid X Factor program breaks. Media conglomerate, for example, the channel 4 and
commercial companies are supported by promoting/advertising and sponsorships. Most advertising companies pay
media conglomerates to have their branded product put onto various channels to gain publicity and more customers for
their products. Advert expenses will rely on upon which channel you utilize (ch4, ch5, ITV); however the other type of funding
that bigger conglomerates go for instead of advertising is Sponsorship. Companies pay for advertising slots based on
programme ratings (the more potential viewers the higher the advertising slot (£250,000 for 30 seconds during Britain’s
Got Talent). Sometimes ideology can conflict e.g. Children TV experienced a decline due to lack of advertising revenue
when regulators decided to ban junk food ads during the programmes.
16. Sponsorship is when companies pay for their logos/brands to be put on before and after commercial TV program, e.g. X-Factor is
supported by '’Talk Talk' the mobile network service company. Another case of sponsorship funding is that “virgin media has signed a £ 20
million deal to promote their services using the Olympic as theme and they intend to use the sponsorship package to promote t he range of
services it offers.” (Google)
Subscription, (It is often confided to satellite/cable) e.g. BT Vision, Sky Sports/ Movies. Subscription alludes to subscription-based TV
services or approving to make an advance payment to get or take an interest in a TV project is called subscription funding. Subscription
funding is paid on a yearly, weekly or monthly basis by satellite or cable viewers e.g. Sky (BSKYB) or Virgin media. Subscription television
comprises of Pay television, premium television, or premium channels. These subscriptions are utilized to get additional cash out of the
audiences yet subscriptions do accompany advantage.
Pay per view offers a service by which a television audience can buy events to see by means of private telecast. The broadcaster
demonstrates the event in the meantime to everybody requesting it (rather than video-on-demand systems, which permit viewers to see
recorded broadcasters whenever). For instance Sky sports utilize this for crucial sporting occasions. This offers a service where a TV
crowd can buy events to see by means of private telecast which is not shown for nothing.
This procedure is utilized so that audiences can pay for private broadcast to be seen that wouldn't regularly been show on normal TV. This
is finished by utilizing on screens guides (e.g. pressing the red button on SKY) or ringing the service supplier. This is typically utilized for
programmes, for example, sporting occasions like huge boxing matches. Another case for where pay per view is utilized is on ‘blink box' an
online TV where you can buy movie or your most loved TV series.
17. Product Placement- Since 2011 this is permitted on British TV (not during news or children) subject to Ofcom regulations
(certain products are banned e.g. cigarettes). Companies pay to have their products shown in programmes and films in the
hope that audiences will want to be like the people represented e.g. Bond drinking Heineken in Skyfall). This more overt
than just having props in the background.
Product Placement- is a type of ad, where brands goods or services are put in a context generally without ads, for example,
motion pictures, music videos, the story line of television shows, or news programs. Generally the product placement is not
disclosed at the time that the great or service is featured. It is a key feature in of funding in the TV and film industry as it's a
type of self-advertising. Product placement is utilized to get brands seen by the audience, however putting specific brand
into movies/TV programs it significantly builds the targeted audience awareness for the item. For instance, a fashion
company may pay a well-known celebrity to wear its products, clothes amid a program, this is utilized for commercial
interests. The item gets more exposure and draw diverse commercial interests in different sectors. It additionally benefits
the media company as they gain additional funding for permitting a product to be appeared on the Program/Movie.
In the film industries film making is costly; A UK film costing £3 million to produce is viewed as a low budget. Funding
normally originates from – distributors who purchase the rights to movies before they begin producing or Private investors
wanting to have an offer in any profits the film may make. Another type of funding for the Film industries is through the
Development funds, for instance, the UK film council which is a non-departmental public body set up in 2000 by the Labour
Government to create and advance the film industry in the UK. On the off chance that a film is made by a noteworthy studio,
as with Twentieth Century Fox for instance the film Avatar (2009), then the studio will support the film themselves.
18. LATER DEVELOPMENTS
•THE 2003 COMMUNICATIONS ACT REQUIRED PUBLIC SERVICE BROADCASTERS TO OBTAIN AT
LEAST 25% OF ITS CONTENT FROM INDEPENDENT PRODUCTION COMPANIES (CURRENTLY 39%
OF THE BBCS TEXTS ARE PRODUCED OUTSIDE OF THE INSTITUTION BY “INDIES”).
•THE ACT ALSO ALLOWED FOREIGN OWNERSHIP OF UK NETWORKS AND CONGLOMERATION
(LARGE NETWORKS INTEGRATING OR JOINING FORCES E.G. ONE LARGE ITV REGION INSTEAD OF
•THE NUMBER OF CHANNELS HAS INCREASED DRASTICALLY.
•MANY INSTITUTIONS NOW HAVE A “FAMILY OF CHANNELS” .
•MORE CONTENT IS NOW PRODUCED USING FEWER RESOURCES E.G. A JOURNALIST MAY
PHOTOGRAPH, SHOOT, WRITE, EDIT AND DISTRIBUTE HIS OWN MATERIAL THANKS TO
ADVANCES IN TECHNOLOGY.
19. • VICTORIAN CORPORATIONS OFTEN HAD MONOPOLIES OVER THEIR PARTICULAR SECTOR. BASED ON THIS MODEL, THE BBC INITIALLY HAD A
MONOPOLY OVER BROADCASTING IN THE UK. IT AIMED TO:
• “RAISE THE STANDARDS OF THE ENTIRE NATIONAL AUDIENCE IN TERMS OF SOPHISTICATION OF TASTE, INTELLECTUAL APPETITE AND LEVELS OF
KNOWLEDGE” (JONATHAN BIGNELL)
• LORD REITH – FIRST DIRECTOR GENERAL OF THE BBC (1927-38) SAID:
• “TV SHOULD NOT GIVE PEOPLE WHAT THEY WANT BUT WHAT THEY OUGHT TO HAVE”
• “A UNIFYING FORCE IN BRITISH LIFE, SOMETHING THAT BINDS PEOPLE TOGETHER TO BE ENTERTAINED AND INFORMED” (PHIL WICKHAM)
• BY THE 1950S MANY FELT THE “BBC REPRESENTED A HIGH-CULTURE SNOBBERY THAT MANY LEFTIST ASSOCIATED WITH AN OPPRESSIVE CLASS
STRUCTURE.” THERE WAS A “DESIRE FOR A PLAYFUL, COMMERCIAL, ANTI-CITIZEN ADDRESS AS A COUNTER.”
• THIS CAME ALONG IN 1955 IN THE SHAPE OF ITV.
20. WATER COOLER TELEVISION
It is an American term that describes an immediate audience response to a programme where it is talked about around the water cooler
the next day. The Watercooler Effect is a profoundly revealing look at why we spread bits of gossip, why we trust them, how they transform,
and how they can be overseen.
Amid the consequence of Hurricane Katrina, rumours were flying about stranded residents shooting rescue workers. In New York City, the
Brooklyn Bottling Company's business was crushed by false gossip that its sod contained sterilizers.
"Producers watch Twitter as their shows are going out with some trepidation," says Simon Nelson, a former controller of
BBC Vision and now an adviser to various media companies.
Not that long ago TV producers and movie producers were excited if their
projects had the "water cooler effect" – that is to say the show, the
programme or the film turned into a point of discussion or gab among
individuals in workplaces, bars or the home. These days the discussions,
conversations with the most clout are progressively occurring among
network communities gathering online to take the "water cooler effect"
into the twittersphere and on to the numerous pages of Facebook. A
programme that is the talk on Twitter is progressively a currency of
success or failure. Have you got enough "like" about your show on
Facebook? All things considered, if not, then why not? What's more, will
your project be a recommended "must watch" on the developing number
of social networking-style online TV guides, for example, the one offered
21. THE DUOPOLY
The era of two (a duopoly) competing broadcasters, ITV and the BBC, is refereed to by many as a “Golden Age” of
broadcasting in the UK. The two institutions had full control over the programmes as they produced them in-house.
• Full control of all aspects from creation to
• Producer/institution as auteur (has a
personal creative vision which can be
followed right through without external
• Competition between the organisations led
them both to strive for better content.
• Allowed in-house talent and content to be
developedover time and build a loyal
• Production becamemore of a business, talent
was developedand processes improved.
• Hard for voices outside of the
institution to be heard (the
concept of the “old boys network”).
• Ideas subject to the ideologies of
those in control/political
• Some argued in competing with
ITV the BBC “dumbed-down” some
of its content.
• SOME PRODUCERS WORK OUTSIDE OF THE MAJOR STUDIES. OFTEN BRITISH PRODUCTIONS ARE MADE BY SMALLER
OUTFITS LIKE WARP FILMS, WORKING WITH FILM 4 OR THE BBC TO TRY TO SECURE EXTRA FUNDING AND HELP WITH
DISTRIBUTION. OFTEN FILMS MADE THIS WAY STRUGGLE TO GET MORE THAN £1 OR £2 MILLION BUDGETS AND
CONSIDER A SUCCESS TO BREAK EVEN, WITH DVD AFTER-SALES INCLUDED.
• US INDEPENDENT FILM MAKER ORIN PELI MADE ‘PARANORMAL ACTIVITY’ FOR JUST $15,000. BUT HE NEEDED
PARAMOUNT, A US MAJOR STUDIO TO DISTRIBUTE HIS FILM. IN DOING SO HE MADE OVER $190 MILLION. THIS SHOWS
THERE ARE EXCEPTIONS TO THE RULE THAT BIG BUDGET FILM ALWAYS DO BEST…
24. HORIZONTAL INTEGRATION (MEDIA TERMS)
This occurs when one company buys a similar company- e.g. a TV station buys another TV station. This commonly takes
place through merges and buyouts.
Media critics, for example, Robert McChesney, have noticed that the present pattern inside the entertainment industry has
been toward the increased concentration of media ownership under the control of a smaller quantity of transmedia and
transnational conglomerates. Media is seen to accumulate in focus where wealthy people can buy such ventures (e.g.
Horizontal integration, that is the consolidation of holdings over various industries, has uprooted the old vertical
integration of the Hollywood studios. Owning numerous media outlets, which run practically the same content, is thought to
be exceptionally gainful, since it requires just minor alterations of format and data to utilize in different media forms. For
instance, within a conglomerate, the content utilized as a part of broadcasting television would be utilized as a part of
broadcasting radio too, or the content utilized in hard copy of the newspaper would likewise be utilized in online newspaper
website. ‘What emerged are new strategies of content development and distribution designed to increase the “synergy’
between the different divisions of the same company. Studios seek content that can move fluidly across media channels.’
Studios seek content that can move fluidly across media channels.
25. HORIZONTAL INTEGRATION
•COSTS CAN BE SHARED-
•PRODUCTION CAN BE DONE
•PROFITS ARE GREATER.
• ONE COMPANY MAY SWALLOW
ANOTHER ONE, WITH LOSS OF
• COMPANIES OPERATE THE SAME
WAY, ACCORDING TO THE SAME
RULES, SO SCOPE FOR
INDIVIDUALITY IS GONE (THIS IS
SIGNIFICANT ESPECIALLY FOR
26. ODEON & UCL IS PRESENTLY OWNED BY A PRIVATE EQUITY FILM TERRA FIRMA, IT
CONTAINS 242 THEATRES WITH 2,236 SCREENS. DALIAN WANDA IS THE WORLD’S
BIGGEST MOVIE THEATRE OPERATOR THAT IS LED BY CHINA’S RICHEST MAN WANG
JIANLIN. IT WILL REMAIN TO BE BASED IN LONDON AND WILL OPERATE AS A SUBSIDIARY
OF AMC. AMC’S CHIEF EXECUTIVE AND PRESIDENT ADAM ARON HAS STATES: "THIS IS A
ONCE-IN-A-GENERATION OPPORTUNITY TO ACQUIRE EUROPE'S LEADING CINEMA CHAIN
AND CREATE THE WORLD'S BIGGEST AND BEST THEATRE OPERATOR." HE ALSO STATES
THAT EVEN THOUGH THERE WERE UNCERTAINTIES FORMED BY BREXIT, HE ADDITIONALLY
ADDS "WE ARE ENCOURAGED THAT CURRENT CURRENCY RATES ARE HIGHLY FAVOURABLE
TO AMC WITH THE POUND FALLING TO A THREE DECADE LOW VERSUS THE DOLLAR".
HEAD OF FILM AND CINEMA DAVID HANCOCK, AT HIS TECHNOLOGY HAS STATED: "AMC IS
PART OF THE WANDA GROUP, WHICH INCLUDES SCREENS IN CHINA, AMC IN THE US,
HOYTS IN AUSTRALIA AND NOW ODEON UCI IN EUROPE”: NEARLY ALL MAIN EXHIBITORS IN
THEIR PART OF THE WORKING AND MAKING WANDA THE LARGEST GLOBAL CINEMA
"IN ADDITION, WANDA HAS BUILT THE WORLD'S LARGEST FILM PRODUCTION STUDIO IN
CHINA AND ACQUIRED LEGENDARY ENTERTAINMENT, A US PRODUCER OF BLOCKBUSTER
FEATURES, AS WELL AS ASSETS IN BIG DATA, ENTERTAINMENT MARKETING AND GAMING
27. VERTICAL INTEGRATION (MEDIA INDUSTRY)
This involves a company taking over a company which provides various stages on the production procedure. Thus, a record company might
purchase a chain of CD retail stores or a movie studio might buy cinemas.
Within the film industries the funding of the film industry can be through Vertical and horizontal integration. Vertical integration is a
business strategy in which a company expands its operations to provide similar goods and services at the same point on the supply chain.
The subject of vertical integration (otherwise called common ownership) has been a fundamental focus of policy makers in view of the
likelihood of anti-competitive behaviours partnered with market influence. For instance, in United States v. Paramount Pictures, Inc., the
Supreme Court requested the five vertically integrated studios to sell their theatre chains and all exchange practices were forbidden
(United States v. Paramount Pictures, Inc., 1948). Networks started organising content started by commonly owned studios and stipulated a
segment of the syndication revenue all together for a show to gain a spot on the schedule on the off chance that it was produced by a
studio without common ownership. Accordingly, the studios essentially altered the way they made movies worked together.
Another case of a vertically integrated company is Disney, they can benefit from each part of making movies by utilizing just Disney who
own companies who might producer them, distribute and advertise them around the world and produce mechanise for them. “Another
example is the Disney-Pixar relationship between 1991 and 2006 illustrates the move from outsourcing to vertical integration. Disney
outsourced the production of 3D animated films to Pixar in 1991 because there was a lot of uncertainty around the potential of 3D
animation. At the time it was not clear whether 3D animated films would be successful or at least as successful as 2D animated films. In
addition, 2D animation capabilities were far more likely than 3D animation capabilities to generate a competitive advantage.” (Lexicon) “By
2006, vertical integration had become necessary for Disney because Pixar was taking advantage of Disney’s dependence to constantly
renegotiate the contract.” (Lexicon) For instance, after the success of Toy Story (1995), “Steve Jobs, who was chief executive of Pixar at the
time, threatened to end the relationship with Disney unless the contract terms were adjusted in Pixar’s favour. Michael Eisner, chairman
and chief executive of Disney, eventually agreed to renegotiate the contract in favour of Pixar in exchange for an extended duration.”
28. VERTICAL INTEGRATION
OF ALL ACTIVITIES.
•PROFIT MARGINS ARE CUT,
SO CHEAPER SUPPLIES.
•SOURCES CAN BE
SPECIALISED & EXCLUSIVE.
•BETTER ACCESS TO DIRECT
DISTRIBUTION, WITH NO
FEAR OF COMPETITION.
• DECREASED FLEXIBILITY-
STUCK WITH ONE SUPPLIER
AND ONE DISTRIBUTOR.
• LOWER EFFICIENCY AS
COMPETITION STIMULUS IS
CNN operates worldwide through a network of bureaus and affiliates. This is what enables it to be 'First for Breaking News'
(CNN's slogan). Below is a map indicating CNN's presence around the world:
30. The Cable News Network (CNN) is an American basic cable and satellite TV station
that is owned by the Turner Broadcasting System division of Time Warner. It was
originated in 1980 by American media proprietor Ted Turner as a 24-hour cable news
channel; but, by April 2016, a CNN official publicly stated the channel as "no longer a
TV news network" and rather as "a 24-hour global multiplatform network."
While the news channel has various associates, CNN mainly broadcasts from the
Time Warner Center in New York City, and studios in Washington, D.C. and Los Angeles.
As of February 2015, CNN is accessible to around 96,289,000 cable, satellite, and telco
television households (82.7% of families acquiring at least one television set) in the
United States. They recently accomplished a multi-year from tape-based, analogue
operation to 100% digital, non-linear and high-deﬁnition production, which involved
an installation of Primestream’s FORK Production Suite.
In October 2012, CNN formed a film division called CNN Films to distribute and produce
made-for-TV and highlight documentaries. “Its first acquisition was a documentary
entitled Girl Rising, a documentary narrated by Meryl Streep that focused on the
struggles of girls' education.”
In July 2014, Cumulus Media reported that it would end its association with ABC News
Radio, and go into a new partnership with CNN to syndicate national and worldwide
news content for its stations through Westwood One starting in 2015, as well as
access to a wire service, and digital content for its station sites. This service is
unbranded, permitting individual stations to integrate the content with their own
While CNN consumers adore the news, they have an extensive variety of different interests too. Whether those interests are
golf, tennis, the Olympic Games, society or nature, CNN's feature programs go to the edges of the earth to bring viewers new
thoughts and ideas, points of view and bits of knowledge into the things they love and are very passionate about.
CNN's Eye on series takes the viewer to various countries around the globe, uncovering insights across local business,
society and personalities, and exploring different perspectives. Eye On is one of a kind, relevant and intellectual, with
forward-looking content from a variety of citizens, specialists and notables. Through interviews and in-depth scope,
consumers get a very close look at the country put in an international context. Eye on has taken viewers to Georgia,
Mongolia, Macedonia, India, Poland and various other countries.
Consumers, businesses and governments around the globe are progressively more worried with environmental issues.
CNN has been focused on providing details regarding the developments and solutions around there for a long time. Making
strides toward Going Green is CNN's quarterly in-depth look at alternative energy, clean innovation/technology,
environmental change, green businesses and eco-pioneers. With TV and digital components, CNN is the home to turn for an
inside and out scope for all things green.
32. Warren Arenstein- VP of Business Development- Primestream. “When I ﬁrst
arrived at CNN Washington in 2004, they were almost a completely tape-
based production center,” recalls Arenstein. CNN then converted all the
daily production news edit rooms to non-linear systems with shared
storage. Going for Apple’s Final Cut Pro for editing was an ideal choice for
them, however, that left a gap in the workflow for automatically ingesting
all the incoming feeds. That is when CNN was introduced to FORK.
It was cost effective, it saved them much more storage, editing capabilities
and functionality were possible.
33. BBC CASE STUDY
'The United Kingdom has a strong tradition of public service broadcasting. In addition to the BBC, established in 1922, there
is also Channel 4, a commercial public service broadcaster, and S4C, a Welsh-language broadcaster in Wales. Furthermore,
the two commercial analogue broadcasters ITV and Channel 5 also have significant public service obligations imposed as
part of their licence to broadcast.'
By the 1920s the end of amateur radio aficionados came, and the start
of a professional broadcast organisation. It was an energising time
where experimentation reigned, amongst the pioneering engineers, as
well as amongst innovative staff where program formats were being
designed by the day.
This was the decade that changed everything, and the BBC knew that it may need to work
in a drastically distinctive manner should war come.
This didn't hold the BBC back from contributing and creating, and it was first
broadcaster to start a routinely planned TV service, in 1936. Radio went from strength to
strength with the fresh Broadcasting House opening in 1932. Developments, for
example, live commentary on location got to be conceivable in light of the need to cover
the war. A delicacy of presentation transformed the "feel" of radio everlastingly, as it
needed to discover methods for keeping the listening public’s morale up when war
34. The BBC at war saw principal alterations in programme making
practice and was an essential source of propaganda news to the free
Post war a TV news service was introduced, the first post-war Olympic
Games was broadcasted, and Children's Television started. The BBC
was additionally a major specialised trend-setter as of now. In the
spirit of re-building Britain, BBC engineers designed the main method
for recording live TV, and expanded the corporations’ international
The 50s was the decade of TV, with the broadcasting of the
Coronation the main force behind a gigantic increment in offers of
Radio was still imperative, and ahead of schedule in the decade of
the world's longest running radio soap opera was conceived - The
Archers. BBC TV's second big debut of the decade came in 1958,
in the image of a children programme; Blue Peter - as yet running
to this present time.
35. 10 years of colour, drama, and worldwide joint effort stamp the
1960s as a time of extraordinary broadcasting advancement and
Colour TV finished a long period of technological disconnection
for Britain, the BBC drama department delivered world beating
TV series with Doctor Who and The Forsyte Saga the two
primary triumphs. The first satellite broadcasts additionally
turned into a reality.
In spite of hyper-inflation in much of the world, the BBC
recorded major hits in its light entertainment programmes.
“The award winning Fawlty Towers, Are You Being Served, and
The Good Life, not to mention the ratings topping Morecambe
and Wise Show and The Two Ronnies were the big hits of the
1970s. The BBC also developed CEEFAX for TV, and
quadraphonic sound for radio.”
36. A decade of significant universal clash and the BBC got itself
torn between casing struggle in a few areas.
Clashes in the Falkland Islands, Northern Ireland,
Tiananmen Square, the Soviet Union and Eastern Europe,
extended assets gigantically. In Africa reporter Michael
Buerk alarmed the world through BBC News to a starvation
of biblical proportions in Ethiopia, resulting Bob Geldof's
worldwide Live Aid marvel in 1985 masterminded by the
TV highlight of the 90s came right amidst the decade - the
Panorama interview with Princess Diana (1995).
Viewed by 15 million people and routinely voted a standout
amongst the most memorable interviews ever, Diana spoke
honestly about her marriage to Prince Charles. Later in the
decade, nineteen million people would watch the memorial
service of Diana, at the time, the biggest outside broadcast
ever mounted by the BBC.
37. The digital revolution that began in the late 90s, neared part finish with the analogue TV switch off in 2012.
Since the beginning of 21st century, digital BBC TV channels, and radio services have expanded, and HDTV has turned
into the standard for some. What have gotten to be essentials, for example, Red Button, Connected Red Button, the BBC
iplayer, and 3D TV (launched at Wimbledon), continuously making a colossal effect on content users and traditional
38. BBC’S 6 PUBLIC PURPOSES
1. Sustaining Citizenship and Civil Society.
2. Promoting Education and Learning.
4. Stimulating Creativity and Cultural Excellence.
5. Representing the UK, its Nations, Regions and Communities.
3. Bringing the UK to the World and the World to the UK.
6. Delivering to the Public the Benefit of Emerging
Communications Technologies and Services.
39. THE LICENCE FEE
Category- TV: The annual cost of a colour TV licence is £145.50 (as from 1 April 2010). A black and white TV licence is £49.
How the Licence Fee was Spent in 2013/14: Between 1 April 2013 and 31 March 2014 the cost was
£145.50 – the equivalent of £12.13 per month or just under 40p per day. The BBC utilized its earnings from the
licence fee to pay for its TV, radio and online services, as well as other costs.
£8.00 per month per household.
Total spend £2,276m (66%).
£2.30 per month per household.
Total spend £650m (19%).
£0.61 per month per household.
Total spend £174m (5%).
£1.82 per month per household.
Total spend £357m (10%).
40. Every single individual in the UK who watches or records TV programs at the same as they are shown on TV should be
secured by a TV licence. This incorporates TVs, PCs, mobile phones, game consoles, digital boxes and DVD/VHS
The Government are permitted to set the level of the licence fee. In January 2007 the licence charge was settled for a
six-year time span with the sum being endorsed every year by Parliament. More recently the Government chose to
solidify the licence fee at its 2010 level of £145.50 until 31st March 2017.
Date from Colour licence Black and
1 April 2007 £135.50 £45.50
1 April 2008 £139.50 £47
1 April 2009 £142.50 £48
1 April 2010 £145.50 £49
1 April 2011 £145.50 £49
1 April 2012 £145.50 £49
1 April 2013 £145.50 £49
41. AROUND THE GLOBE
BBC World Service
BBC World Service is a worldwide multimedia broadcaster, distributing an
extensive variety of language and regional services on radio, TV, online and by
means of wireless handheld gadgets.
It utilizes various stages to contact its week audience of 166 million globally,
counting shortwave, AM, FM, digital satellite and cable channels.
Its news sites incorporate audio and video substance and offer opportunities to
participate the global debate.
BBC World News:
BBC World News is the BBC's commercially supported international news and
information TV channel, broadcasting in English 24 hours a day in numerous
nations over the world. BBC World News is accessible in more than 200 nations
and regions around the world, around 300 million households and 1.8 million
The channel offers hourly bulletins with news, business, sport and weather
forecast, furthermore communicates the best of the BBC's current affairs,
documentary and lifestyle programming.
42. BBC Worldwide
The purpose of BBC Worldwide is to bolster the BBC public service mission and
to augment profits on its behalf. It does this through putting resources into,
commercialising and showcasing content from the BBC around the globe, in a
way that it goes along with BBC standards and values. The business additionally
constructs the reach and reputation of the BBC brand abroad and champions'
British creativity. In 2013/14, BBC Worldwide produced profits of £157.4m and
offers of £1,042.3m, returning £173.8m to the BBC.
BBC World runs various channels broadcasting outside of the UK.
BBC Monitoring offers news, information and comment
collected from mass media around the world.
43. BBC Worldwide is the commercial arm and a completely owned subsidiary of the BBC.
The company exists to capitalise on the value of the BBC's content for the advantage of licence fee payers by making, securing, contributing, developing and
exploiting media content and brands around the globe. BBC Worldwide likewise makes value from non-BBC content and showcases British talent both in the
UK and around the globe.
Profits are then returned to the BBC with a specific end goal to preserve the licence fee as low as could be expected under the circumstances.
BBC Advertising offers advertising and sponsorship arrangements on behalf of BBC Worldwide's commercial portfolio across TV, online and mobile platforms
BBC Studios and Post Production
BBC Studios and Post Production is the biggest TV studios and post facilities provider in the UK, offering world-class
innovative and specialised production answers to the media industry. Working in partnership with a wide scope of media
companies, it makes content over all genres for an assortment of broadcasters.
BBC International Unit
The BBC International Unit provides TV facilities to overseas broadcasters transmitting from the UK.
BBC Academy gives face to face courses and online training programmes in TV, radio, journalism, new media, health and safety and
broadcast innovation skills for staff and for the more extensive media industry.
The BBC Academy is comprised of the Colleges of Journalism, Production and Leadership and the Centre of Technology. Quite a bit of the
online learning is accessible outer to the BBC (free in the UK, by paid subscription abroad).
BBC Shop is a multi-channel retailer selling tons of great books, DVDs, audiobooks and toys for fans. BBC Shop offers items online, by
telephone and post.
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