Industries: ownership and control

Media conglomerate research

Name of media conglomerate: Walt Disney 

Conglomerate ownership:
Known for its film studio division - Walt Disney Studios which includes Walt Disney Pictures, Walt Disney, Walt Disney Animation Studios, Pixar, Marvel Studios, 20th Century Studios, just to name a few.
Divisions in television include Disney Channel, ABC Network, National Geographic
Streaming services - Disney+, Hulu
Merchandising - shopdisney online and the actual shop
Books - Disney publish worldwide
Music recording - Disney Music Group, which produces albums and records music videos
Theatre - Disney Theatrical Productions Limited
Theme Parks - all over the world e.g: Florida, Paris, Hong Kong, Tokyo etc. Around these theme parks they also own resort hotels.
Cruise Line - Disney Cruise Line

Example of horizontal integration:

ABC Network and everything else Disney. ABC Network is very different to the fun or even childish nature of Disney as it covers things like news and sport.

Example of vertical integration:

Disney are able to create the films with their many film studios and stream it on their streaming services. This means that Disney does not need to involve any third party producers as they own subsidiaries to do this.

Example of synergy:

While Disney may be involved in almost every division, they are all interrelated with Disney's characters/theme and is close to the core business. 

Diversification:

Disney stayed relevant due to continuously producing films for the time, e.g: in the 40s and 50s they produced war-era films. They just started off with animations and now use the latest technology to create high quality films for todays audience. In later years, they began to open theme parks to further expand their business. 

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 believe that the government should not prevent media conglomerates form becoming too dominant. This is because a business' success isn't something the government needs to be concerned about. The conglomerate's aim is to expand and gain more revenue, therefore by the government involving themselves they are preventing the business from progressing. It is a free market and conglomerates are doing nothing wrong.

To challenge this ideology, others may believe that the government should get involved as it should be a fair free market in which new businesses are able to enter. By preventing media conglomerates from becoming too dominant it also prevents the market from becoming an oligopoly or monopoly. This allows for for more businesses to have more opportunities and have easier competition. 

Media magazine reading & questions

1) Briefly describe the production, promotion and distribution process for media companies.
Provides the audience with the media products they want. Researches and identifies the target audience and uses strategies to inform them on the value of the media product. Uses the most appropriate methods of getting the product to the audience.

2) What are the different funding models for media institutions?
Production, promotion and distribution of of media products, unless they are government funded or have a charitable status.

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 - built its reputation from animation in the 20th century. Has created a universe of merchandising and branded products. Through this they have multiple logos which are recognisable and can be correlated to the Disney brand.
TheMailOnline - Receives more income the longer you stay on the site. They contain many controversial headlines which makes the readers want to 'click through.'
ITV - Relies on income generated from advertisers. They are able to appeal to large audiences. 

4) What examples are provided of the new business models media companies have had to adopt due to changes in technology and distribution?
Music companies can no longer make money by selling the music itself so they have to find other ways to make revenue, e.g: sponsorship, merchandising, live shows. Movie companies have invested in 3D technology. On demand is becoming more popular, so the BBC are reconsidering its funding structure. Online newspapers asking people for a subscription for content/premium content. 

5) Re-read the section on 'The Future'. What examples are discussed of technology companies becoming major media institutions?
Google owns YouTube, which has the way we access music and moving-image entertainment/information. Facebook has bought the virtual reality technology 'Oculus Rift.' 

6) Do you agree with the view that traditional media institutions are struggling to survive?
Yes, as due to the digital age and new technology there are increasingly less people who take an interest in these traditional media institutions.

7) How might diversification or vertical integration help companies to survive and thrive in a rapidly changing media landscape? 
It would allow for them to adapt and cater to the digital age while still staying true to the core business.

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 the audiences will gain increasing power as we are able to control want we want to see in media conglomerates, which in turn gains more revenue for them which is their aim.

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