Ownership (WJEC Eduqas GCSE Media Studies): Revision Note

Conglomerate ownership

• Ownership is important because the companies that own media organisations have control over content, funding, and distribution

• Some types of ownership can have more power and influence than others

• The production processes, personnel and technologies employed by the ownership have an impact on the success of the final products

• Ownership patterns and structures influence the strategies of the industry

What is conglomerate ownership?

• A conglomerate is a huge company that owns lots of different types of media and brands, Examples include

  • Comcast

  • Newscorp

  • Disney

• Conglomerate organisations have huge financial resources and a lot of power 

• This type of ownership means they can control the messages communicated in many areas of the media

Diversification

• Diversification is when a company produces different types of media products

• The company often starts off making one form of media and develops to produce more

  • Example: a TV company moves on to also do film production

Vertical integration

• Vertical Integration is when a company controls more than one stage of a product (production, distribution, and marketing)

• This gives them more control

• Vertical integration means that more aspects of the full production process are managed by the same ownership

• This can make production cheaper and lead to higher profits

Horizontal integration

• Horizontal Integration is when a company owns multiple businesses who work in the same stage of production

• This gives the company specialised knowledge and expertise within that stage

• It may allow them to spend more money on highly skilled personnel and enhanced technology to result in better quality outcomes

• Horizontally integrated companies often work in synergy with other organisations to complete all stages of production

Synergy

• Synergy is when two companies work together in a way that benefits both of them

• Working in synergy allows media institutions to share resources, access specialist skills, and gain funding from different sources

• When companies work in synergy, they remain independent, and neither company owns the other

• A merger happens when one company takes over another, or when two companies join to form a single organisation

Independence

• Independent media is produced by companies or individuals who are privately owned

• They are not owned by large conglomerates

• Independent producers usually have smaller budgets

• However, they often have more creative freedom

• It is common for independent companies to only produce one stage and collaborate in synergy or convergence with other companies to complete and maximise the entire process

Convergence

• Convergence is making a product available across multiple platforms

• The purpose of this to reach as many different audiences as possible

• Media industries are becoming increasingly convergent

• The impact of this means companies are able to: 

  • Promote their products more widely

  • Reinforce a strong brand identity

  • Maximise audience reach