Unit 7

LO1

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 Fox)
Who are the 'big six'?
Examples of films each company has released
What other companies do the 'big six own?

How are the mini majors challenging the 'big six'?
(CBS Films; DreamWorks; Lionsgate/Summit; MGM; Relativity Media; The Weinstein
Company

The Big Six Are:

1. Warner Bros. Pictures

2. Walt Disney Pictures


3. Universal Pictures

4. Columbia Pictures


5. 20th Century Fox

6. Paramount Pictures



Film examples for Warner Bros.
April 2, 2010 Clash of the Titans
April 30, 2010 A Nightmare on Elm Street
July 16, 2010 Inception
November 19, 2010 Harry Potter and the Deathly Hallows Part 1
December 13, 2013 The Hobbit: The Desolation of Smaug

Film Examples for Walt Disney.
1 Snow White and the Seven Dwarfs December 21, 1937
13 Alice in Wonderland July 26, 1951
14 Peter Pan February 5, 1953
27 Oliver & Company November 18, 1988
32 The Lion King June 24, 1994





Film examples for Universal Pictures.
June 11, 1993 Jurassic Park
November 10, 1993 Carlito's Way
February 10, 1995 Billy Madison
February 16, 1996 Happy Gilmore
July 9, 1999 American Pie

Film Examples for Columbia Pictures.
40 Batman and Robin 1949
21 Batman 1943
37 Superman 1948
57 Blazing the Overland Trail 1956
52 The Great Adventures of Captain Kidd 1953







Film Examples for 20th Century Fox
March 15, 2002 Ice Age
June 10, 2005 Mr. & Mrs. Smith
May 1, 2009 X-Men Origins: Wolverine
December 18, 2009 Avatar
November 21, 2012 Life of Pi

Film Examples for Paramount Pictures.
October 16, 2009 Paranormal Activity
February 13, 2009 Friday the 13th
June 6, 2008 Kung Fu Panda
May 2, 2008 Iron Man
July 2, 2007 Transformers

The Big six have smaller companies incorporated in them which are known as sub
companies which edit and make sure that the films are ready for release this helps them
because they dont have to lift a finger or pay for other companies to do it.

What is vertical integration?
Vertical integration is used when a company expands its business into specific areas that are
on different points using the same production path as the other classic example is when a
manufacturer owns a supplier or a distributor.
Using Vertical integration can help reduce the costs for companies but also improve
efficiency by decreasing transportation cost and reducing the turnaround time, however it
can be more effective tor a company to rely on its own expertise rather than be vertically
integrated.
Positives:
It can capture upstream or downstream profit margins.
Improve supply chain coordination.
Reduce transportation costs if common ownership results in geographic proximity.

Negatives:
Potentially higher costs due to low efficiencies resulting from lack of supplier
competition.
Increased bureaucratic costs.
Decreased flexibility due to previous up stream or downstream investments.


What is horizontal integration?

Horizontal integration is the merger of companies at the same stage of production. When
the products of both companies are similar it is the merger of competitors.
When all producers of a good or service in a market merge, it creates something called a
monopoly.
Horizontal integration is different to vertical integration which happens when firms are at
different stages of production merge. A good example would be The Sun merging a firm
producing paper.

What is conglomerate?

Conglomerate is a corporation made up of different businesses. In a conglomerate, one
company owns a controlling stake in a number of smaller companies.

Positives:
A conglomerate creates an internal capital market if the external one is not
developed enough. Through the internal market, different parts of conglomerate
allocate capital more effectively.
A conglomerate can show earnings growth, by acquiring companies whose shares
are more discounted than its own.


Negatives:
The extra layers of management increase costs.
Lack of focus, and inability to manage unrelated businesses equally well.

What is a multinational company?
A Multinational company is a corporation that has facilities and other assets on different
countries other than its home country. Companies like this have offices and factories in
different countries and a head office where they can co-ordinate globally.
Nearly all big things are American; Japanese, or Western European, big companies like Nike,
Coca Cola, Toshiba and Honda are all big multinational companies, say that they create jobs
and wealth and improve technology in countries that are in need of development. Although
most people would say Multinational companies are positive it is said that they can undue
political influences over governments as well as job loss in their own home countries.