Industries: Ownership and control

 Type up your research notes from the lesson - what did you find out about your allocated media conglomerate? Selection of companies: Alphabet, The Walt Disney Company, National Amusements, Meta, News Corp, Time Warner, Comcast. If you were absent or didn't have time in the lesson to make these notes, research any one of the companies above and find examples of all the terminology outlined in the notes at the start of this blogpost. 

Conglomerate ownership
A conglomerate is a large company composed of a number of smaller companies (subsidiaries).

A media conglomerate, or media group, is a company that owns numerous companies involved in creating mass media products such as print, television, radio, movies or online.

Examples include Comcast, Fox or Disney.

Vertical integration

Vertical integration is when a media company owns a range of businesses in the same chain of production and distribution. 

For example, a company might own the film studio that makes a film, the distributors that sell it to cinemas and then the movie channel that premieres it on TV.

Vertical integration allows companies to reduce costs and increase profits – but it is not always successful if the parent company lacks expertise in certain areas.

Horizontal integration

Horizontal integration is when a media company owns a range of different media companies that are largely unrelated e.g. magazines, radio stations and television.

Horizontal integration helps media institutions reach a wider audience.

Convergence & synergy

Convergence (sometimes called technological convergence) refers to the way we can now consume a range of media on one device.

Similarly, synergy is the process through which a series of media products derived from the same text or institution is promoted in and through each other. 

Look for links or consistent branding across different media platforms and products. E.g. Warner Brothers and Harry Potter – films, merchandise, stage plays, theme parks, videogames etc.

Diversification
Diversification is when a media company branches out into a different area of the industry. For example, many media companies have had to diversify to internet-driven distribution (e.g. streaming) as a result of new and digital media.

In the music industry, major labels such as Warner Music have had to embrace streaming in order to reverse years of declining revenue.

Cross-media regulation
When two companies wish to merge or diversify (e.g. vertical or horizontal integration) it needs to be cleared by a regulatory body to prevent any one company becoming too powerful in a given market.

2) Do you agree that governments should prevent media conglomerates from becoming too dominant? Write an argument that looks at both sides of this debate. 

 I think it does make sense for governments to step in. When only a few giant companies control most of the media—like TV channels, newspapers, social media platforms, and streaming services—they also control what information people see. That can be dangerous, because if one company has a particular political or economic interest, it could influence the stories it publishes or the way news is framed. However, some people say the government shouldn’t get too involved as they start to limit how big media companies can get, it might feel like interference in the free market. Businesses grow because people choose to use their services, so stopping that growth could seem unfair. 

Media Magazine reading and questions

Media Magazine 52 has a good feature on the changing relationship between audiences and institutions in the digital age. Go to our Media Magazine archive, click on MM52 and scroll to page 9 to read the article 'Two Key Concepts: The Relationship Between Audience and Institution'.

1) Briefly describe the production, promotion and distribution process for media companies.

Production: Provides media products to audiences based on what they want

Promotion: The media company researches their audience and advertises accordingly

Distribution: Getting the media product to customers

2) What are the different funding models for media institutions? 

BBC -  License fees

ITV - Sponsorship's 

3) The article gives a lot of examples of major media brands and companies. Choose three examples from the article and summarise what the writer is saying about each of them. 

Disney is built on the concept of family and friendship, which creates brand loyalty from families and children, as they are known for wholesome content.

ITV relies on advertisers for profit, which also creates an appeal for audiences.

4) What examples are provided of the new business models media companies have had to adopt due to changes in technology and distribution? 

Subscription-based streaming services - Companies like Netflix, Disney+, and Spotify moved away from selling individual products and now rely on monthly subscriptions.

5) Re-read the section on 'The Future'. What examples are discussed of technology companies becoming major media institutions? 

Facebook , releasing their own virtual reality headsets, and Netflix and Amazon are producing their own shows.

6) Do you agree with the view that traditional media institutions are struggling to survive? 

yes , because now most people use digital forms of media, as it's easier to access.

7) How might diversification or vertical integration help companies to survive and thrive in a rapidly changing media landscape? 

Diversification reduces risk and allows them to reach new audiences and Vertical integration have more control over costs and can use their platforms to promote their own content first

8) How do YOU see the relationship between audience and institution in the future? Will audiences gain increasing power or will the major global media conglomerates maintain their control?

I think audiences will gain more power due to the increasing use of UGC, as people can now create their own content.