OWNERSHIP WITHIN YOUR CHOSEN SECTOR:

In my chosen media sector the ownership tends to be Warner Bros, Pinewood,

20th Century Fox, DreamWorks, Disney, Big 8, Paramount etc. These film
production companies tend to dominate the screens and take ownership in the
media sector which is the film industry. In the film industry there are five main
ownership is United International Pictures, Warner Bros, Buena Vista, 20th
Century Fox and Sony. Disney owns an assets in the film industry of US$ 84.186
billion. Warner Bros owns an asset of US$68.089 billion. 20th Century Fox owns
an asset of U$$54.793 billion. United International Pictures owns an asset of U$
$219 million. Sony owns an asset of 15.834 trillion. The idea of having five main
ownership's in the film industry to increase the smaller number of companies to
own most of the media outlets.
Also the main ownership's of the film industry have the biggest assets which
allows them to spend more on the production stage of the film also these big
ownership companies dominate the box office because they make good standard
films that gains a lot of box office compared to small production companies. The
ownership of the film industry can cause some problems of only having five main
choices of opinions on any subject that they make their production about also
these five big ownership companies will only show the consumers what they
want us to see not what they need to see also if passive consumer will only know
five similar opinions that these productions make.

VERTICAL AND HORIZONTAL INTEGRATION:

Vertical integration is when a production company starts to take control of more
aspect of the producing and distributing of the film that is released and could try
to increase the companys dominance in the competitive film industry, an
example- a production company will own a DVD company that will make their
films on to DVD's. An example of this is Disney who owns their own
merchandising company within the whole Disney studios, they also own their
own theme parks based in USA and Paris etc., they also own their own
distributing sector for distributing their films on to DVD because they prefer to
take charge on that aspect to try to avoid putting their productions on to
streaming websites like Netflix so they rather to have their production on DVD to
sell to the mass audiences. Another example of vertical integration in the film
industry is DNA Films Company which is founded by Andrew Macdonald and
Duncan Kenworthy. DNA Films merged with Search Fox Light Company in order to
become a single enterprise and it is a vertical integrated company because DNA
Films produces their own productions and Fox Searchlights distributes,
merchandiser and does its marketing for the company. This is a vertical
integration company because there are two companies taking over two different
aspects of the productions and the release in to the public like one company will
produce the film and another will release it and take care of the marketing.
Horizontal integration is when a production company takes control of another
production company in order to maximize its own market share and also it could
mean that two companies could merge in to one company, an example Columbia
Pictures and Tristar merging into Columbia Tristar and Disney merging with Pixar
in order to expand on their companies dominance in the film industry and will

have a bigger base so the audiences will know who they are and will watch their
projects. Disney originally targeted for children and families as their audience for
their films but over time they horizontally integrated into live action films like
Pirates of the Caribbean series in order to reach newer audiences and take more
control of a bigger share in the ownership in the film industry. Another example
of a horizontal integration in the media sector is when Google took over YouTube
in order to obtain a larger and much more loyal consumer base so that the
consumers will trust the company much more if taking over another trusted
company.

CONGLOMERATES:
Conglomerate is a media/ film corporation that is made up with many small
independent companies/ businesses. Conglomerate is a media institution of a
company owning a large amount of companies that specialise in many mass
media such as TV, Radio, Publishing and the Internet. Conglomerate holds the
highest dominance in all of the small independent production companies to hold
all of the film productions globally.
An example of a conglomerate is Time Warner Inc. They suffered a loss in
revenue of nearly $29 billion in 2012, but still come in at no. 3 having earned
over $3.5 billion profit. The company has been downsizing in recent years. Time
Warner Cable spin off into their own distinctly independent companies. Time
Warner will be holding onto its biggest assets such as TBS, TNT, HBO, CNN and
Warner Brothers studios and they also own a $50 million stake in the CW
Network and Marvel DC Comics. Conglomerate companies have a lot of money
put into their film productions and they market the film production through the
small companies in the big corporation. Conglomerate companies make the
company more diverse in the media sector by having not only the film industry it
will take over the social media, TV aspects of the overall media sector.
https://en.wikipedia.org/wiki/List_of_assets_owned_by_Time_Warner
https://en.wikipedia.org/wiki/Time_Warner

MULTINATIONALS:
Multinationals are production companies that operate all over the world and
produce films internationally. Multinationals is a production which connects and
involves several film production companies based in other countries as well as
certain individuals from different cultures and nationalities. Multinational
companies occur when their business or joins together when it involves more
than two countries. Multinational companies are typically larger companies which
tend to much wealthier than the small production companies based in other
countries.
For example Disney will design the animation and create the story and record all
of the voice acting then the animation team will go to a big animation plant
based in India to get the animation drawn for film. Another example is when you
go in to a film and video store anywhere you are most likely to find Bollywood
films and other international made films are displayed and advertised in poster

form all over the store. Another example is the studio bases for Pinewood Studios
Production Company as there are studio bases in the UK, Toronto, Dominican
Republic, Malaysia and Atlanta therefore proving that the film industry is a
multinational industry because having a multinational industry allows the
industry to become much more mixed culture in to the industry. Also having a
multinational industry means that every one of all cultures, nationalities and race
can work together where ever they are on a certain project.

PRIVATE OWNERSHIP:
Private Ownership is when a production company is owned by only one individual
in order to make a profit in the film industry production process and for its
shareholders. Also private ownership means that the company is not publicly
traded on securities exchange way. Majority of the film production companies
that are privately owned are usually owned by one particular individual or a
small group of individuals who can handle different aspects of the company.
Privately owned production companies are extremely difficult to sell and transfer
into a different company if it merges with another. Privately owned companies
are split into shares between different individuals of the production company and
they dont sell their shares of the company publically.
An example of a privately owned company in the media sector is Aardman
Animations Company which is privately owned company limited by shares by
Peter Lord in 1972. The company is spilt in to different divisions such as;
Aardman Features, Aardman Digital, Aardman Commercials, Aardman Broadcast,
Aardman International, Aardman Rights, Aardman Effects and Aardman Nathan
Love. This company is well known for creating Morph, which is a clay model.
Creature Comforts was the first Aardman production to win an Oscar. Then
Aardman Animations created Wallace and Gromit, which is a huge successful and
well known. Aardman Animations is a privately owned company to avoid the
chances of being controlled by another company which could enforce all
dominance over them and could potentially ruin the unique creative projects that
Aardman Animations have produced over the years.

INDEPENDENTS:
Independents production companies are often smaller companies that tend to
operate outside of big film corporations. An independent production company
creates a feature film which is produced outside the major film studios and
distributed by small independent film production companies. As well as the film
is initially produced without any financing from a major film studio like
Paramount etc. independent production companies often create short films and
short film festivals but also they wold sometimes release a full-feature length
film which can be premiered at film festivals such as Sundance Film Festival,
Cannes Film Festival and the Slamdance Film Festivals.
An example of independents companies in the film industry is Elstree Studios
and Scenario Films are independents film production companies that mainly work
independently but Elstree Studio is a company that doesn't produce their own
films only will operate as a hiring type of studio for bigger film production

companies. Another example of an independents company is Bizmedia which

produces from time to time small productions which are release to some mass
media websites like YouTube and Vimeo.

CROSS-MEDIA OWNERSHIP:
Cross-media ownership is when a film studios or independents operate alongside
many other media forms such as Radio, TV and Film. Cross-media ownership is
an ownership of multiple media sector by a private ownership by one person or a
big corporation. An example of a cross-media ownership company in the film
industry is Sony Pictures which also operates their own TV channels,
programmes, radio stations and technology.
The advantages of a company having a cross-media ownership in the film
industry is to reduce costs as the bigger companies like Disney can buy more
power also produce their products at a reduced cost, also have a diverse
products in their product range which can cause an increase in type of audience
demographic that the media sector provides. The disadvantages of having a
cross-media ownerships is the persuasive media power which can be in the
hands of only a few producers also having a massive flow of information coming
from different providers and needs to have control of selection of information an
example of where this problem may occur in a cross-media ownership in the film
industry is Time Warner owning 1,000,000,000 Google shares and Google owning
YouTube. Also another disadvantage is having massive databases which holds
personal information of their customers, employees etc.
http://www.slideshare.net/shubhamnag3/cross-media-ownership

SHARE OF OWNERSHIP:
Share of ownership is when a production company that shares an ownership of a
company meaning that the company is divided into multiple shares between
many different people in the film industry. In the share of ownership there are
many shareholders who pay an extensive amount for their place in the
ownership in return of a profit share that the film production makes from their
films. When shareholders pay their share of the company or a film they in return
will get a slice or certain percentage of the total profits made on the production
or when a film is released in the box office. Publically shared companies are
companies that sells different shares of their company to the public in order to
revenue the company into a public invested company. Some production
companies in the film industry are partly owned by private individuals and also
partly publically owned.
An example of a share of ownership in a company is Film Four, which over the
years had many issues with the funding of the company as at one point the
company was partly owned by the public as well as being privately owned by a
certain individuals.

MERGERS AND TAKEOVERS:

Mergers in the film industry are result of one Production Company buying
another film production company in order to take control of their resources so
they could increase their viewership. Nowadays the successful, well known film
companies usually buy out other production companies to make them more
profitable, powerful and reach a wider range of audience than originally.
Takeovers means that a big company will buy and take over a smaller struggling
company in order to save the smaller company from bankrupt or it will benefit
the bigger company. An example of a merger is Disney Pixar, the reason the
Disney wanted to merge with Pixar because of their films failing the box office
and the merger deal brought the company closer to the Apple and high tech
animation technology, for Pixar the merger deal allowed them only to
concentrate on the production of the film than the merchandise which is mainly
handled by Disney. On 24th January 2006 Disney merged with Pixar with a deal
of $7.4 billion which allowed Pixar to remain as a subsidiary to Disney.
An example of a takeover company is Google taking over YouTube because of
Google wanting more advertising growth and revenue in order to promote Google
more to a wider audience because the younger audience will always use YouTube
and Google can promote their newest technology on there.

SOURCES OF INCOME:
In the film industry there are many sources of income that the company gains
such as when a film is in idea development they speak to many investors that
would invest their money in to the production of the film, releasing the film into
cinemas, releasing a DVD of the film and merchandise these are all ways that the
production companies earn a share of income into their business of film making
and editing. There are so many sources of income to the production company
that is not just from releasing a film into the box office and to DVDs there are
other ways that a company will gain income which is Voluntary donations,
private investment, government investment or be publically funded company.
Examples of sources of income that a production company will earn from a film
they just made, is money from investors will give them in order to budget their
film.
An example of where a company will gain sources of income is Disney, in 2014
the total revenue was $48,813,000,000. They gained the total revenue through
many sections of their company such as Interactive games and entertainment,
which they earned $1,299,000,000 from. They also earned $3,985,000,000 from
merchandise. They also earned $7,278,000,000 from The Walt Disney Studios
itself and also this accounts for all of the films that was released by Walt Disney
Animations, LucasFilms, Touchstone Pictures, DreamWorks, Marvel Studios and
Pixar. They also earned $15,099,000,000 from the Disney Theme Parks. They
also earned $21,152,000,000 form Media Networks meaning that it accounts for
the Disney Channel shows, ABC, ESPN channels on TV.
http://uk.businessinsider.com/heres-where-disney-really-makes-money-2015-1?
r=US&IR=T

LICENSES AND FRANCHISES:

Licenses and franchises are production companies that abide many small
independent companies/ businesses into one big name that could be well known
and popular and conform a small fee to the owner. The advantage that the film
production companies have is that the companies can be instantly memorable
and popular however the companies do need to obey the specific rules and
regulations of the company. Franchises tend to make much more money than
one single film adding to the reason of companies to choose to make a series of
films from an originally intended single on off successful film.
Examples of a licensed franchise that is very popular is Disney and Pixar. These
companies are well known licenced franchise because they conform to the codes
and regulations that they have also the franchise is stationed all around the
world. Some examples of franchises in film industry are The Marvel Cinematic
Universe which took overall from 12 films a total gross of $3.594+ billion, Star
Wars Franchise which took overall from 8 films a total gross of $2.730+ billion,
The Harry Potter Franchise which took overall from 8 films a total gross of
$2.390+ billion, James Bond Franchise which took from 24 films a total gross of
$2.111+ billion and Pixar-Disney Animation Franchise took from 15 films a total
gross of $ 3.990 billion.
http://www.filmsite.org/series-boxoffice.html

COMPETITORS:
The film industry is a very competitive industry as many production companies
rival against each other to gain the mass audience for their films that they
produced and the biggest share of the film industry market so they can lead
people into more of their other produced films. All film production companies are
competitors with each other in trying to get the highest critical acclaim, reviews,
and sales and at the box office. Competitors are rival companies that also
produce the similar products to each other and they both will compete against
each other for the biggest share of the film market. Competition against
companies are good because they can lead to better products and innovation to
their companies if they want to beat the other company for a bigger share of the
overall market. Competition for the bigger share of market in the film sector can
be on a local scale (like two production companies in the same town competing
against each other), on a national scale (like all production companies in the
country competing against each other) and on an international scale (like two
major multinational production companies competing against each other).
An example of the biggest competitors for the biggest share of the market in the
media sector is Sony VS Microsoft, whom for years are competing for better
products for audiences to choose their products for example by copying their
better products in order to make their company much more trusted and valued
company to buy from.

CROSS- MEDIA REGULATION:

Cross-media regulation is a regulation that controls how much certain production
companies have control over the different sectors in the film industry. Cross
media regulation controls the control of the different film production companies
in the country so that the film industry does have a monopoly over the media

and the press/ news will always remain free which is important in democracy
countries.
An example of a cross-media regulation is The Walt Disney Company owning ABC
Television Network, Disney Channel, A&E, Lifetime, Touchstone Marvel
Entertainment, Lucasfim, Walt Disney Pictures, Pixar Animation Studios, All
Disney Theme Parks, Disney Mobile, Disney Consumer Products and Interactive
Media and Hearst Corporation. Disney owns all of these companies media
outlets so therefore increases the concentration of their ownership of the film
industry by 2014 Disney owns $48.8 billion in assets. The advantages for
companies that cross media owned, like The Walt Disney Company, is that it will
reduce the costs of producing their products for their consumers as they have
higher purchasing power to reduce products at a reduced cost than originally.
Also another advantage of this is that the company are able to have a wider
mass distribution meaning that they can distribute their products to a bigger
audience therefore concludes that they will achieve a bigger profit. The reason
that cross-media regulation is been put in place in the film industry is to stop one
production company from being too powerful and enforce one certain point of
view on whatever subject they are making a film about. For example if Disney
was the only major film production company that exists in the film industry it
would only raise certain view of the world to be superficial as it only shows a
fantastical view and representation of women looking a certain way also been
portrayed as weak and the damsel in distress. If this is the only company in the
film industry, there only be one view of the world and may brain wash people in
to believing that is what the world should be like.

ORGANISATIONAL OBJECTIVES:
Organisational objectives are objectives that a production company has to obey
in regards of where they want to be in the future as in the companies dominance
in the film industry, these objects are created by the owner or the CEO of the
production company. The objectives are generally made around the amount of
sales, profit level and the total value of business.
For Time Warner CEO's of the Company are Richard Plepler and John Martin. Time
Warner's objectives is to strengthen their company in order to reach multicultural audiences, increase representation of women and people of colour,
continue to tell untold stories, shine light on important issues, work with USA and
UK governments to take action against illegal distribution of their content.

PRODUCT DIVERSITY:
Diversification is when a company branches out in to other media sectors in
order to give audiences and customers more services and more films similar to
the first film that majority of the population loved. Diversification is when a
company will offer more mass media services to the public/ consumers in order
to bring in a great deal of revenue.
An example of a diversified production company is Time Warner because not only
they create films they create newspapers, TV shows, Radio shows etc. HBO,

Turner Broadcasting System, CNN, SkyStream Networks, Tremor Video. This

means that not only the company is more diverse in what they provide for the
public it broadens their targeted audience for their projects if they own more
mass media sectors. Time Warner is not only a media sector company they also
produce merchandising, attractions such as theme parks. A well-known example
that Time Warner produced is The Harry Potter franchise which contributed to a
product diversity as they produced merchandise and a Theme Park for the
franchise.

PROFITABLITY OF PRODUCT RANGE:

In the film industry there are many different ways that the investors and the
production companies make profit from films when released. The film industry
doesn't just earn money from showing the film in cinemas they can earn it from
merchandise, TV rentals, DVD's, Video games. Production companies tend to sell
products that are popular I order to decrease the risk of making a loss of profit.
Film companies tend to produce the most popular films in the box office in to
merchandise so the film buzz can increase.
For example of a profitable film is the Harry Potter film series, they earned 9% at
the US Box Office, 21% at Global Box Office, 33% in Merchandise, 5% in TV, 19%
at Video Sales and Rentals, 7% at Video Games and 6% other. Harry Potter
franchise had $1,155,000,000 production budget and over 8 films in the
franchise they made a huge profit of total $7,726,174,542 all together through
box office and merchandise.
https://prezi.com/zhetcguu5ujl/undersanding-the-structure-and-ownership-of-themedia-sector/

CUSTOMERS:
Customers/ Audiences are people who purchase tickets from the cinemas or DVD
of a certain production company film. Film productions are always trying to
attract the highest market of audiences to earn profit on the film, by diverse
products, creating new merchandise, advertising campaigns. The film production
companies have a sole duty to satisfy the customer of their targeted
demographic and also to take the customers best interest and complaints
seriously so the customers can be happy and will again buy the products from
the company again in the future.
In 2014 the average people would spend per annual at the cinema was 17.60 in
the UK and also in 2014 157.50 million people went to the cinema in the UK. The
admissions at the cinemas has been decreasing over the years as in 1946
1,635.00 people went to the cinemas in the UK.
http://www.cinemauk.org.uk/the-industry/facts-and-figures/uk-cinemaadmissions-and-box-office/annual-admissions/

NATIONAL AND GLOBAL COMPETITION AND TRENDS:

The film industry is a very competitive industry, the national scale and in a global
scale depending on either the genre or what country or company made this film.
An example of a trend in the film industry is if a sci-fi film is critically acclaimed
and successful more of the other companies will jump into the bandwagon of
creating their own sci-fi films if they seem to be successful. The first sci-fi film, Le
Voyage dans la Lune, created by Georges Mlis in 1902, created the genre itself
and caused sci-fi to become more popular because sci-fi was new and unknown
possibilities explored in film. The recent sci-fi films that have released is Jupiter
Ascending (Village Roadshow Pictures; RatPac-Dune Entertainment; 2015), Star
Wars: The Force Awakens (Lucasfilm; Bad Robot Productions; 2015), Avatar (20 th
Century Fox; Ingenious Media; Lightstorm Entertainment; RatPac-Dune
Entertainment; 2009), and Jurassic World (Universal Studios; Legendary Pictures;
Amblin Entertainment; The Kennedy/Marshall Company; 2015). Star Wars: The
Force Awakens earned at the box office at opening weekend grossing $529
million. Jupiter Ascending earned at the box office grossing $18,372,372 on
opening weekend. Avatar earned at the box office grossing $77,025,481 on
opening weekend. Jurassic World earned at the box office grossing $208,806,270
on opening weekend. All of these sci-fi films all compete against each other for
the highest grossing opening weekend at the box office, to date Star Wars: The
Force Awakens holds the biggest title of being the highest grossing film in the scifi genre to earn the highest gross at the box office on opening weekend. An
example of a trend that was originally a national competition then over time
became a global trend is Bollywood, which was originally for people who lived in
areas of Asia, India etc. but over time people moved to Europe and USA to work
or study so Bollywood migrated in to these countries in order to satisfy the
people that originally watched it. The film that caused the whole trend of
Bollywood to migrate to Europe and USA is a Bollywood film called My Name Is
Khan which earned a total gross of $1,944,027 in opening weekend. Originally
Bollywood was a small industry / company on its own as in the 1920s they made
around 21 films a year the number of films that they made grew as the
Bollywood industry grew as in 2015 they made 204 film in total so therefore
proving that the Bollywood has indeed grew from a small scale to a bigger global
scale as Bollywood gained a popularity over time of it making films.
https://en.wikipedia.org/wiki/List_of_box_office_records_set_by_Star_Wars:_The_F
orce_Awakens
http://www.boxofficemojo.com/movies/?id=jupiterascending.htm
http://www.boxofficemojo.com/genres/chart/?
view=main&id=scifiadventure.htm&p=.htm