Unit 7

Describe the Structure and Ownership of the Media Sector

 Private Ownership
• This is mainly funded by advertising, an example of this is ITV.
• Advantages: The company only runs on advertisement funds as there
are a lot of companies looking to advertise their products on TV. The
more popular a channel, the higher the price for advertising.
• Disadvantages: Companies such as BBC are public owners and they
tend to do a lot of research on what the audience are looking for
before they fund a show.
 Public Ownership
• This is funded by the government, which is payed for with a TV
licence. These type of ownerships take the publics interests on board.
E.G. if a show doesn’t get enough views then the show will be
cancelled.
• Example: BBC
• Advantages: public watch shows that are designed for them.
• Disadvantages: More people tend to want to sign up for shows such
as Sky etc to pay them money instead of a TV licence which only
funds one channel.
Independent Ownership
• This operates without funding, e.g. Dominos independent record
label.
• Advantages: They control their own everything.
• Disadvantages: They don’t have as much money as the public or
private ownerships.
Conglomerate Ownership
• This is a company that owns large numbers of companies within
different mass medias. Tv, radio, publishing, movies etc.
• Advantages: when a movie and TV industry combine, they put out a
TV show and then they can make a film out of the TV show.
• Disadvantages: This type of ownership can sometimes mean that
extra layers of management can increase costs.
 Structure and ownership of the
media sector

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Structure and ownership of the
media sector
• The structure of the media industry starts at the top with the owners,
this would be the share holder, investors & financiers. It the filters
down to the exhibitors which determines which films/TV shows were
profitable and popular through Box Office receipts. Then it moves
over to the distributers this provides a marketable deal to exhibitors,
then it goes to the chief executive officer who make the big decisions
about production schedules, budgets for the studio. Usually the CEO
is a shareholder or a founder of the company. Then the head of
production would made day to day decisions for the studio,
determines individual film budgets and appoints producers to
individual films.