Ownership and structure of Television

Ownership within television

There are many big television companies in the UK available on digital terrestrial, satellite
and cable systems. In the UK TV is dominated by a few main public service broadcasters
such as BBC, ITV, Channel 4, and Channel 5. Multichannel broadcasters, Sky, UKTV,
Viacom, and Discovery networks, Disney, Sony pictures television. Cross media ownership
can be used to enhance the profile and profits of different businesses. It can be regulated by
carefully deciding what extra appeals to use. Working across multiple sectors helps product
diversity because
Source: http://portal.unesco.org/ci/en/ev.phpURL_ID=1525&URL_DO=DO_TOPIC&URL_SECTION=201.html
http://www.sociology.org.uk/Media_ownership1.pdf

Vertical Integration
Vertical Integration is the expansion of a company as it starts more and more aspects of
producing and distributing a programme.
ITV have expanded their company by producing many other IVT programmes, such as IVT2,
ITV3, ITV4, ITVBe, and CITV.
Warner Brothers Entertainment is part of a bigger conglomerate called Time Warner which is
a huge media conglomerate institution which uses horizontal integration to consolidate its
power and profits.
Source: http://bizdharma.com/blog/what-is-vertical-and-horizontal-integration/

Horizontal Integration
Horizontal integration is a strategy where a company acquires, merges or takes over another
company in the same industry value chain in order to increase that companys market share.
In 2003 News Corporation purchased DirectTV. DirectTV is a satellite TV company, and its
purchase enables News Corporation to use it as a medium to distribute more of its news,
movies and television shows by managing the process itself.
Warner Brothers Entertainment is a fully integrated company which owns film studios and
the means to distribute the films as well as some of the cinemas in which they are shown.
Source: http://bizdharma.com/blog/what-is-vertical-and-horizontal-integration/

Integration is both good and bad for the television sector. Increase or decrease competition?

Conglomerate
A Conglomerate is a combination of two or more corporations engaged in entirely different
businesses together into one corporate structure, usually involving a parent company and
several branches. Sky is one if the biggest television conglomerates in the world. Sky is 40%
owned by 21st Century Fox and generates 10 billion in revenue and 1.9 billion in profit. Sky
shows many of the U.S.s most popular shows on its flagship channel, Sky 1, such as The
Simpsons and 24, and also offers internet broadband service.
Source: http://www.investopedia.com/terms/c/conglomerate.asp
http://elitedaily.com/money/the-worlds-10-largest-media-conglomerates/

Multinational
Multinational corporations are companies that include or involve several countries or
individuals of several nationalities. An example of a multinational television company is FOX,
which is available everywhere in the world and owns channels like National Geographic
channel, FX and Baby TV which is produced worldwide. Nickelodeon is a television
company that is based in the United States but is also shown around the world.
Source: http://www.investopedia.com/terms/m/multinationalcorporation.asp

Television
TV has become one of the most influential forms of popular media with a number of 98% of
households in the UK having a TV and then half of them will have two TVs. TV is split into
two ownerships, public and private.
Private ownership is funded simply by advertising. Therefore private ownerships is more
able satisfying the companys shareholders rather than the publics interest. Private
ownership defiantly had more varied channel choices. You find with private that certain
channels are only aimed at an audience between the ages of 16-24 therefor the
advertisements on these channels would be different from the adverts on a discovery
channel. BBC however viewed on this channel will be more varied and have different target
audiences for every show.
Multinational organisations is a company which has its headquarters in one country but has
assembly or production facilities in other countries. Multinational companies are very large
and wealthy. News Corporation is one of the biggest multinational corporations in television.
Independent media companies are those which produce media and are free from the
constraints or influence of corporations and governments. They are often small companies
who work outside of corporations to fulfil the same purpose. An example of an independent
company is Bizmedia who will work for other companies on a contractual basis or on a fee
per work basis. An independent such as Bizmedia are separate from larger multinational
companies and therefore operate on their own terms.
Television conglomerates are multi-industry companies and large and multinational. They
often own many different TV channels. News Corporation is one of the biggest media

conglomerate corporation, owned by Rupert Murdoch. Conglomerate companies dont just

own different companies in the media section, they mainly own different unrelated
companies, for example virgin. Virgin is one of the biggest conglomerate companies, they
started off as a record company and now own an airline, train line and a broadband
business.
Conglomerates are companies or institutes who own large numbers of smaller companies
which operate their own individual media outlets. The larger company which is known as the
conglomerate will hold the majority share in each company they own, this allows them to
control many outflows of media from newspaper to TV. An example of conglomerate is News
Corp who own the majority share in multiple media companies around the world. This gives
them the controlling interest in these smaller companies allowing them to control what goes
out from each of the small companies.
Cross-media marketing is a form of cross-promotion in which promotional companies
commit to surpassing traditional advertisement techniques and decide to include extra
appeals to the products they offer.
Disney can profit from every aspect of making movies by using only Disney owned
companies, produce them, market them, distribute them around the world and produce the
merchandise for them, this is vertical integration. Viacom is also a vertically integrated
company. Viacom owns companies that produce content as well as other companies that
distribute entertainment. For example Paramount owns MTV films that produce movies and
also own television channels that could air their films. Viacom is also a horizontal integration
company, for example in the television industry they own hundreds of channels through a
number of companies.
A merger is a combination of two companies into one. In October 1990, an enterprising
manufacturer came up with a dual satellite dish that could be used to receive both Sky BSB
services. The merger became effectively obsolete by the following month.
Cross-media ownership is when a company produces multiple forms of media or owns
different companies which produce different forms of media. They are much like
conglomerates as they are a larger company whom through the use of smaller companies
gain control of a larger section of the media industry. An example of this is News Corp who
own multiple different TV and Newspaper companies in different countries. This gives them a
controlling share in what the public perceives through these media companies. British culture
secretary Jeremy Hunt is out to establish whether it would be practical or advisable to set
absolute limits on news market share by measuring media ownership in terms of common
currency.
Cross media regulation is the regulation and control of how much control companies have
over the different sectors of the media in a country so that they do not have the monopoly
over the media, and so that the press remains free which is important in a democracy. In the
UK media ownership is capped at 20% of total circulation, such as Rupert Murdochs news
corporation, they cannot own more than 20% of ITV. The regulations of cross media are to
remove the local radio service ownership rules and the local and national radio multiplex
ownership rules. Removal would reduce regulation on an industry facing difficult market
conditions and may allow stations opportunities to be more viable. Research also shows a
majority of consumers are not concerned about single ownership within local commercial
radio. To liberalise the local cross media ownership rules so that the only restriction is on
ownership of all three of local newspapers, a local radio station and a regional channel 3
licence. The liberalisation will increase the flexibility of local media to respond to market
pressures. This liberalisation will increase the flexibility of local media to respond to market

pressures. Consumers still rely on television, radio and press for news, so going further to
complete removal of the rules could reduce protections for plurality. As there is little evidence
of change that affects the operation of the remaining rules, subject to consultation, Ofcom do
not propose to recommend any further changes to the national cross media ownership rules
which restrict cross ownership pf channel 3 and national newspapers, as they both remain
significant sources of news. Ownership restriction which apply to television and radio
broadcasting licences to guard against undue influence, as these remain media with
potential influence society. Also the appointed news provider rule which helps ensure
national and international news through channel 3 is independent of the BBC and
adequately funded, as channel 3 remains the most watched alternative source of broadcast
news after the BBC.
Some of the key ways to earn income in TV broadcasting systems is to sell content, earn
advertising income, or generate income from direct sales. There are two key ways TV
broadcasters earn revenue from content; subscription fees and pay per view fees. In
general, content costs from networks have been going up. What is more challenging is that
viewers can get content through many new media channels reducing the value of your TV
networks. To keep and grow their viewership, TV broadcasters must get content that is more
valuable to their viewers. Television commerce is revenue that is generated from direct sales
which are processed through the TV broadcasters system. T-Commerce can shift revenue
from internet systems which has already exceeded $1,000 per year in the United Kingdom in
2007. Unfortunately, in 2010, many TV broadcast systems use proprietary systems that do
not support T-Commerce and the costs and barriers to implement T-Commerce can be
substantial delaying its use in TV systems for several years.
The process of expanding business opportunities through additional market potential of an
existing product. Diversification may be achieved by entering into additional markets and/or
pricing strategies. It is a strategy development beyond current products and markets, but
with the capabilities or value network of the organisation. Unrelated diversification is the
development of products or services beyond the current capabilities or value network. It is
often referred as a conglomerate strategy and involves diversifying into business with no
strategic fit, no meaningful value chain relationships and no unifying strategic theme.
Diversification can be problematic because poor understanding of how diversification
activities will fit or be coordinated with existing businesses. Most problems because launch
of new business require considerable time and investment. It is difficult to assess the risks
associated with new investment opportunity.

Profitability of product range is a set of variations of the same product platform that appeal to
different market segments.

The overall goals, purpose and mission of a business that has been established by its
management and communicated to its employees. The organisational objectives of a
company typically focus on its long range intensions for operating and its overall business
philosophy that can provide useful guidance for employees seeking to please their
managers.
A franchise is a type of license that a party acquires to allow them to have access to a
businesss proprietary knowledge, process and trademarks in order to allow the party to sell
a product or provide a service under the businesss name. DCP (Disney customer products)
build merchandise programs for some of the largest and most beloved franchises in the
world, including Mickey Mouse and Friends, Winnie the Pooh, Disney Princess and Cars.
DCP is also supported by the exciting content imagined by Disneys animation, live action
and television studios, and creates original franchises, such as Disney Fairies, that help
grow their sister Disney divisions, from films to theme parks. They go beyond character
licensing to drive Disney as a lifestyle brand, appealing to millions around the world with
lifestyle products ranging from wedding dresses to fine pens to furniture to tableware.

The Disney/ABC Television group oversees The Walt Disney Companys TV, broadcasting,
production, and distribution operations, as well as its radio stations and book publishing
company, Hyperion. TV holdings include ABC, ABC Studios, ABC Cable Networks, ABC
Family Worldwide, Disney-ABC Domestic Television, Disney Channels Worldwide, and the
companys 42% interest in A&E Television Networks. Radio Disney is available in 40
markets, and on satellite radio, mobile apps, and the web. Disney/ABC Television group
distributes its programmes for On Demand viewing through agreements with cable and
satellite companies, and free of charge on the web. Top competitors for Disney/ABC
television group are CBS Corporation, Twenty-First Century Fox Inc. and NBCUNIVERSAL
media LLC.
Customers in television are vital. Virgin media lost over 10,000 television subscribers in the
UK in the third quarter. In the last three years it has lost over 50,000 television customers.
Despite this, it reported its best third quarter customer growth since the formation of Virgin
Media in 2007. Yet the cable company has still only signed up 30% of the homes it passes to
its television offer. Virgin Media has hovered around 3.7million television customers for the
last five years and has lost customers throughout 2015. Kids represent an important
demographic to marketers because in addition to their own power they influence their
parents decisions and are the adult customers of the future.
National and global competitors refers to the increasing competition from other companies
which operate from much further away than local companies, this has come about through
advancements in internet speeds and digital television. These advancements have allowed
for small companies to complete with larger companies that are on the other side of the
world. This means that it is harder for companies to establish themselves or keep their
customer base as more popular companies can complete from miles away.

Trends are patterns and predictions regarding the media industry, in order to make
predictions about future changes. Media companies can use this to tailor their plans towards
the future and allow them to compete with other companies which may be larger and able to
change their organisational aims at short notice.
Mergers and acquisitions have been a constant theme in the television business since its
commercial beginnings. The vast majority of the dominant companies have been built by
taking over other enterprises. All four of the original television networks, for example,
developed as products of mergers.

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http://informitv.com/2015/11/05/virgin-media-losing-television-subscribers/