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!
There are at the moment six big companies which are Warner Bros, Paramont Pictres,
Wa!t "isne#, Co!mbia Pictres, Universa! Stdios, and $%th Centr# &ox' The most heard
o( is $%
th
Centr# &ox which prodced a!! the )ome *!one (i!ms which was a massive hit in
(i!m indstr# in $%
th
centr#' Wa!t "isne# prodced a ver# new (i!m ca!!ed (ro+en which
broght a massive income into the compan#'
Universa! stdios own sma!!er other companies sch as motion pictres and "reamWor,s'
Sma!!er prodction teams do cha!!enge the big six (or examp!e Tochstone Pictres
presents their own (i!ms and invests their own mone# in' *nother examp!e is &i!m - the#
ma,e their mone# (rom there channe! however the# do not create as mch income as the
big six ma,e' $%
th
centr#

What is vertical integration?
.ertica! integration is a compan# who owns a nmber o( other companies that /oin in a
chain (or examp!e #o have the big six then ma/or prodction companies then medim
ones then sma!!er ones'
What is horizontal integration?
)ori+onta! integration is when a compan#0s b#s or creates an a!i,e program or prodction
to match a competitor and tr# to beat them' This cases (riction between the companies
and is most common with the big six'
What is a conglomerate?
Media Cong!omerate is a compan# or grop that owns a !arge amont o( prodction teams
and companies' These grops can be radio companies to (i!m companies' *n examp!e o(
cong!omerate is a compan# ca!!ed Warner Brothers who own a nmber o( &i!m
prodctions'
LO1 Understanding the Creative Media Sector
What is a multinational company?
* m!tinationa! compan# is a !arge compan# that wor,s wor!dwide and not /st in a certain
contr# (or examp!e "isne# who prodce (i!ms in *merica, &rance, U1, and *stra!ia
which is a!! arond the wor!d' This is norma!!# to generate as mch mone# as possib!e (or
their program or prodct' *!! o( the big six prodction companies are M!tinationa! becase
i( the# went the# wo!dn0t be the big six'