Monday 22 June 2015

Understand the structure and Ownership of the media sector

In this post i will be talking about the two forms of media based ownership using two different companies and how there ownership capabilities are different from one another one being publicly owned and the other being owned by private sectors and investors at the television company.

Back in the 20th centuries around the 50s television became a new invention for all the family to enjoy though starting out slow with the prices being so high TV quickly evolved into a massive world wide fandom now as we have entered the 21st century we see that 98% of the population in Britain alone own a TV this shows that this is the right market to be in but what companies own the rights to broadcast to our audiences and who runs them to go into detail i will be looking at BBC a public owned TV station and SKY a private based TV station and will be explaining the differences and how there broadcasts are processed to us as an audience.

First we will look at the BBC a publicly owned company which is funded by our very own government we pay for it to air its shows and news as we pay a TV licensee in order to view there vast amount of entertainment programs. As we the public are the main source of income with our TV licensees we are the people to impress in a way we are like investors in the company as they want to impress us enough so we pay to keep there company a float this also counts along side there other two main platforms radio and internet streaming. It also goes by ratings if a show for example gets much less views then other shows those shows will be immediately dismissed as we are the source of funding and they want to keep us entertained so if we don't put money into the BBC because there shows are bad they will lose money which can hurt the company that's way main shows that have stayed on air so long have delivered to us each week so in turn we still pay our money towards the company.Another thing to mention is that in BBC shows there are no add breaks this is because with it being publicly funded they have no backers or third party companies funding them to show there products or services this pleases a lot of audience as they can get to the next show with no hassle this is a good business technique to adopt.

With the audience who views the BBC the audience has there input what i mean is that they can say what they like about this show or what they dont like and with so many people watching they are able to appeal to a massive range of different people which with this data they are able to adapt shows to that of the audiences tastes so this then makes better shows for us an audience as this is strictly programs made for the people and its what the people want and they can help push what they want to the BBC through multiple means. With the shows being made for the people this then makes it grow more of audience appeal as a different range of audiences of age groups and backgrounds can view the shows they want to watch as it is specific targeted at them and suits there needs as consumers.

The BBC then has high reputation in delivering what the people want however if they did not base this on what the people want to see then programs would simply be broadcast to no ones pleasure and it would surely fail as it is not aimed at people who want this rather your telling the people what they want to watch..

However being a public owned company is not always the best option as with other companies that have different TV linces like "Sky" and  "Virgin" these companies have deals with a range of different companies which have there own shows they want to broadcast with to the public and with these broadcasting comapines having the rights to show there programs through there own streaming and television station we as the public are allowed more channels to watch with more content from a massive range of different broadcasting stations. However In the BBC's case we pay for only BBC certified channels so we get only a few channels and wont be able to get contracts with much bigger shows that are broadcasted on other channels.The BBC only has rights to the content that they make as they only own there side of programming anything outside of the BBC will not be broadcasted unless BBC help produce that picture even then it will be broadcasted on BBC channels as soon as it comes available to them they will take rights so show movies on the channel but that is to do with the popular culture and it gives them ability to fill a time slot so they have paid for the rights to show that movie on there channel. With the BBC owning everything themselves this makes them a media conglomerate.

The BBC uses cross media in many different ways of advertising and other methods for example if a an event at the BBC is taken place such as a music festival they will show this ad on TV,newspapers and the internet but this would only be shown in the sectors which they own and they intern can distribute the event them selves as they have the ability to put the message across the formats they own this makes them a vertical integrate company this is because they produce the event, make the event and advertise the event with there own resources allowing them to use there own money and gain all the profit back.

The BBC has a massive diverse range of shows broadcasting from early in the morning to very late at night for example mid day you would be treated so such programs as "Pointless" a small quiz show based around common knowledge where as later in the day when most people are returning home from work spending time with loved once eating dinner they would put a more dramatic shocking tale on such as "Sherlock" this shows a great diversity in the shows that BBC has to offer to its audience it is also all about the timing that these programs are on at the right time for the right consumers.

However with much bigger companies i say bigger to to the amount of contracts they have with television stations and the vast amount of programs they offer it is hard for the BBC to compete with them. "Sky" has the ability to show TV shows owned by multiple broadcast companies some European  a bunch of them which are american and with them offering services such as Catch Up TV people are able to record pause and fast forward the TV shows and movies they want to watch it even offers suggestions on what else you may like.

The oppistie to a public owned company is a private based one my biggest example would be Sky a company funded by the advertisements that it shows while programs are on breaks by doing this the company is more focused on keeping its investors happy as they play there advertisements for the products they either sell or a company that  has a partnership to show that product these comapines are more focused on keeping those who fund them with money through advertisement and not that of the public. Private owned broadcast comapines seem to have much wider range of channels and interest there for allowing the viewers to watch more content and therefore making the companies more profit, Also with the range of shows you find that each private owned comapny has its on specific set of a target audience, For example Kerrang TV is focused more on teenagers who then go into young adults playing a specfic range of rock,metal and punk music where as programs like Discovery Channel would appeal to a much wiser and older generation who have a passion for education and things that are more intellectual. The BBC being public based tries to appease all different kinds of audiences as the shows are made for the public to watch at there disposal and they try to spread the shows out for different audiences so they can please all. 

Sky is a media Conglomerate as one section of sky is owned by 20th Century Fox which is one of the biggest if not the biggest broadcasting companies of all time having over 10 million subscribers to this company alone in the UK this is a company that knows that people want to see. Sky has merged with other companies as the point of doing this is that with them merging and having this partnership all of them get profit therefore they all get a benefit by merging together. News corporation is one of the biggest comapines that owns multiple comapines within its own group what i mean by this that with the multiple merges it has it is able to stretch out its message and broadcasts to pretty much every where and it is all owned by one man known as Rupert Murdoch most if not all profit go towards this man and with its multitude of different channles that branch out from this one company it raises the reputation of that company so much higher as it has so many internal comapines within side one giant company all benefiting from being in this group. Sky often advertises on other channels its not merged with but has contracts with as they have a higher view audience but Sky has much more revenue so they are able to distrubute there product to another company drawing them in to watch there program on one of there channels getting them more views and making thhem more money they often do this with sport as that is one of Skys biggest attractions.

A big advantage to being privately own is that the funds strictly go off the advertising funds that the channels get one programs are on for example if a popular show on Sky one is playing such as "24" the massive amounts of audinces watching that show will give the that specific channel more profit and while this show is on its break the advertisement is playing this gains that channel more profit so the comapny will contiously pay for that slot for that advetisment to be played giving Sky more moeny which can allow Sky to get the rights to new shows or even a new merger and the cycle reaptes itslef again and again allowing the company to grow and expand its varity of shows and partnerships with other comapnies and TV shows.

However the problem with being a privately owned company is that you arent making programs that people want to see or if they do want to watch them its a fifty-fifty chance of being a suceess or a flop where as publcily owned compaines put a lot of time and effort into researching what people want to see and if the show should be funeded other comapines however just find a slot for the show and air a pilot to see how it goes many times in the past it has been a sucessful and a flop but that result of its first episode can have the chance of either loosing profit or gaining it. The whole process is a coin toss in many cases. Sky has a lot of power in its market what i mean by this is that with its overwhleming popularity many partnerships are fighting for the right slots on adverising times and wanting to put forward there best products to put on display for the audience to see which gives Sky much more money to exapnd upon there company as well and with it not being owned by the Goverment they are at there own disposal to show what they want to show on there broadcast making them a horizontally integrated company.

In broadcasting terms we have two different types of comapines horizontal and vertical integrated comapines horizontal has a lot of strategy around the plans that this company has to exapnd into different areas but upon the same similar level that it is placed so if a show its bought or made an example would be to exapand the show through out multiple platforms so maybe taking up a partnership with a streaming company like "Netflix" so it could gain some popularity as this services popularity could help increase the shows profit therefore mutaully beenfit the content creator and the streaming service.

"We have a well-established and comprehensive approach to engaging with our stakeholders. We seek views from our stakeholders to help us shape our individual initiatives as well as our overall approach. This includes customers, our people, policy makers, experts from our industry, the sustainability sector and non-government organisations. We use this feedback to help us meet our stakeholder expectations in evolving our strategy, initiatives and reporting." This is a statement on Sky's website, this implies how the company use Stakeholders to share intellectual knowledge to better their products.



This is an example of cross convergence as we have one company using the paper to adveriste there company in the news papers therefore both companies working together to get a final finished by working together.

A massive company such as Sky really dont have much to fear as if they keep pushing the good TV shows and have the investors pushing there products through Skys advertisements funding they are pretty much able to keep exapnding as there revenue comes from that source, However a public based company like BBC fouses on the audeinces needs so they much threats off sky as they gain revuneue and a higher audeicne through the multiple channels that they own so they dont have much threat as they both have revenue coming in from backers as well as the public where as the BBC depends on the interests that the audiece has to the BBCs content.

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