LO1 workbook

1. BTEC ExtendedDiplomainCreativeMediaProduction
Unit 7: Understanding the Creative
Media Sector
Learning outcome 1:
Understand the structure and ownership
of the media sector
Name: _ _ _ _ Thomas Williams_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

2. BTEC ExtendedDiplomainCreativeMediaProduction
Understand the structure and ownership of the creative media sector
Use this workbook to help you with this learning outcome. There is some guidance
and further notes which you should read and then remove, replacing it with your own
answers.
Provide a definition of the following different types of ownership and
provide an example of a company which is owned in such a way.
Private ownership is a company that is owned by a person or shareholders who
are private citizens, and is not owned by the government. KHS is an example of
private ownership.
Public service broadcasting is a company who aren’t purely for commercial gain.
An example is the BBC as they don’t have any adverts.
Multinationals are companies that operate in multiple counties. An example would
be Starbucks.
Independents are any form of media such as radio, newspapers, the Internet that
is free of influence by governments of corporate interest. An example of an
independent is Blurb.
Conglomerates are made up of more than 1 company that work in different
businesses but fall under one umbrella company. Virgin is an example of a
conglomerate.
Voluntary or not for profit organisations are companies who have unpaid and very
few paid workers, and any money that is made will be funnelled back into the
business to further their cause. One not for profit organisation is the BBFC.

3. BTEC ExtendedDiplomainCreativeMediaProduction
What are some of the challenges faced by independent media companies?
Some of the challenges faced by independent media company is that they may
not have funds built up already or the funds to make a big budget production.
Another challenge is that they don’t have a lot of in-house departments like
advertising and promotion.
What are some of the challenges faced by multinational media companies?
By being a multinational company they have to adjust their business to comply
with the laws in every country. They also spread themselves thinly and may not
focus as much on one product.
What is cross media ownership?
When an organisation owns more than one type of media company, like radio, tv,
film, print, music and internet.
What is diversification?
It’s very similar to a conglomerates but they use the same name across all the
companies unlike in conglomerates that every company they own could have a
different name.
What is horizontal integration?
Organisation that own multiple companies at the same level.
What is vertical integration?
Organisation that own multiple companies at different levels. For example a film
production company that also owns a distribution company and then they also
own an exhibition company (cinema)

4. BTEC ExtendedDiplomainCreativeMediaProduction
What are some of the advantages of these different ways of structuring a
company?
An advantage to horizontal integration is that they can purpose a product in many
different ways for example batman, there is a film, tv show, comic, merchandise
and a game. An advantage to vertical integration is that they don’t have to pay
another company to distribute their work or show there work so all the money
comes back to them. A disadvantage to horizontal is that you see too many of the
similar products around. A disadvantage to vertical is that they competition won’t
affect them to much because it’s going to get to the people no matter what.
Use the following table to show how the Disney Company is structured.
Production Pixar Walt Disney
Studios
Marvel Studios
Distribution Disney Media
Distribution
Walt Disney
home
entertainment
marvel
television
Screening Hollywood
pictures
Walt Disney
motion
pictures/cinema
marvel
entertainment.
What different ways can ownership be shared out?
What is a merger? Why would companies merge together?
(Use specific examples to help with your explanation.)
What is a takeover? Why do companies take each other over?

5. BTEC ExtendedDiplomainCreativeMediaProduction
(Use specific examples to help with your explanation.)
What is cross media regulation?
Should we have restrictions on the amount of media outlets people can
own?
(Use your understanding from the lecture as well as your own research to help
you build a detailed and structured answer to this question. It is designed to let
you show off your knowledge and to let you create a debate in your answer.)
You should select an organisation to work with to help you answer the following
questions. It can be in any media sector. Researching your company in detail will
help you produce stronger answers.
What income streams does your chosen company have?
(Discuss the different ways in which your company makes income. Depending on
the type of organisation you have chosen, there may be one stream or there may
be many.)
What is product diversity? How diverse is your company’s product range?
(Be specific here. Talk us through what they make.)

6. BTEC ExtendedDiplomainCreativeMediaProduction
What advantages does this give your company in the market place?
Why is the profitability of a product range so important to a company?
(Use examples from your chosen company or others to highlight how some of
their products may be very successful whilst others are not.)
What advantages or disadvantages are there in making big budget,
mainstream products?
(Think about what your company or other companies make.)
What are some of the objectives of your chosen company?
(Use the company’s website to help you here. You can provide a direct quote if
properly referenced but you should also discuss what you find. Simply quoting is
not a high level answer.)
What are the advantages/disadvantages of taking part in a media
franchise?
(Use examples from your chosen company as well as others. Use specific
examples to help support your writing. Facts, figures and detail with help you
comprehensively explain the answers to these questions.)
What, if any, products does your company license?

7. BTEC ExtendedDiplomainCreativeMediaProduction
(Think about merchandise here not made directly by the company. For a higher
level answer, discuss why they might do this. If they don't license anything,
consider why that might be.)
Who is in competition with your company? How successful is your
company in comparison?
(This gives you lots of scope for a detailed answer. When considering
competition, you want to look at companies making the same product for the
same type of audience (age, gender and so on), to get the best comparison. Look
at the range of products, market presence and so on to help you establish who is
leading your market place.)
Who are your customers?
(Customers can be categorised in a range of ways. They could be members of
the public or other businesses. They could be buying a product or a service.
Explain who they are and what they get from you. You could go further and
consider the age, gender and class of your audience, particularly if you are
selling directly to the end user.)
Which global media trends are affecting your company right now?
(Look at the list of trends and see how they could affect your company. It mobile
technology changing the services you have to provide? Is online news cutting
sales of your newspaper? Are downloads (illegal or legal), changing the way you
need to provide video games to your customers. Think about each trend, its
impact and what you company is doing about it.)