LO1 - Ownerships

 How conglomerates operate compared to independent companies to discuss the type of products each company produces. 

 

Conglomerates are made up of subsidiary companies for example Disney which has subsidiaries such as Disney World, Disney Channel, Marvel, ESPN to name just a few. 

A subsidiary can also be a conglomerate for example marvel is a subsidiary within Disney as they own it however marvel is still a conglomerate. 

One advantage of being a conglomerate is that you have multiple different revenue stream, another one is that it establishes your brand name and is much easier and cheaper to distribute your products as you have multiple subsidiaries producing and distributing your product for you. It also give you the ability to target a ma horizontal and vertical integration giving the ability to control the production distribution and exchange via their own conglomerate and subsidiaries and distribute it to a wide audience via subsidiaries. Vertical Integration being a conglomerate that has the ability to: produce, distribute, exchange (audience pays to access) via their subsidiaries. Horizontal Integration  is not possible without vertical integration as it takes place during the distribution phase of vertical integration. It is having the ability to distribute a product on multiple platforms that they own. 

 

With an independent company such as Warp, who affectively work alone,  without outside help or intervention, trading is complete opposite to how a conglomerate as they don't have subsidiaries. 

A disadvantage of this being that an independent company is  more expensive to manage,  especially distribution. Most independent companies can only produce by themselves meaning they struggle to distribute, meaning bigger companies (conglomerates) have to help. They also don't have any subsidiaries meaning they have less platforms to distribute from, resulting in less profit and less customer’s scope. Especially as they  don't own different platforms unlike a conglomerate 

 

 

 

Compare type of product each produces 

Disney is most well-known for its production of films, with its most successful to date being the Lion King. The film itself is thought to have made somewhere in the region of 140 billion dollars with a production budget of around 2 million. But the box office sales were just a small percentage of the overall profits, with billions also been made via subsidiary companies, with a franchise “Disney Theatre”, company being formed producing the stage version of the movie which has taken a further 10 billion dollar. In stark contrast to Disney, Warp is best known for producing gritty real life films. Some of the film whilst extremely successful have been relatively low budget and have attracted much lesser known cast members. This means that the geographic of who this films appeal to is much narrower, more niche if you like. Some whilst having a loyal fan base and following as almost unknown to the wider world. This Is England film, whilst highly successful and attracting a number of awards, made a profit of around 8 million pounds with a production cost of 1.5 million. Furthermore whilst still independent Warp also relied on financial support from other companies such as film Four, EM Media and Yorkshire Screen. 

 

 

Ownership 

Conglomerate ownership is where a single company owns several smaller businesses, including media outlets. These conglomerates may have holdings in different domains such as film, television, publishing, and digital media. The structure of this ownership means conglomerates are able to cross-promote products across a number of platforms, reaches broader audiences, and increase sales in the market. As they have more resources and larger budgets for production and marketing distribution is way easier. Whilst an independent company has far less ability to promote itself thus decreasing profits, by being independent and not affiliated with other large organisations, it does allow it to have full control over its products, business decisions and the way in which the business is run, so there are still some advantages. 

Adaptation 

One adaptation produced by Disney, would be the Lion King book for example, which benefits Disney with multiple income streams and revenue, targeting audiences of different ages, interests, and gender to those that might only have previously viewed the movie. Parent for example purchase the books for their children to continue to magic of the film on a day to day basis, within their own homes and not just as a one-off trip to the cinema, they may also be drawn to purchase merchandise, clothing, toys and games all extensions of the original product, therefore yielding greater profits and a broader audience.  Another such example might be the original Marvel Comic which has been adapted over the years into highly successful films and series, reaching a much more contemporary audience, gaining viewers from all age ranges and backgrounds, again increasing market success and profitability.  

 So those adult who perhaps read the stories a children in comic form, who are unlikely to purchase the comic as adults, are now able to enjoy the stories again in the form of films, in adapted and captivating way, appropriate for the masses.  

Adaptations of products across various platforms benefits the audience in that they have a range of products to chose from and can access the form that best meets their own preferences. This type of adaptation of material,  whether it be a comic to a film or a remake of an old fairytale but now with a modern twist, allows the company to not only gain new viewers and a broader target market, but also gives loyal fans from the past, new material based on familiar ground,  familiar yet different enough to recapture old audiences a second time round. Maybe previously as children, but now adults and parents with children which they want to introduce to the wonderful world of Disney, whilst recapturing memories from their own childhoods. 

 

Brands 

Cross media platforms are basically a means of using a number of different platforms in which to promote products.  Using the example of Disney again which has so successfully marketed itself over a number of media platforms, helping to engage audiences at every stage of their entertainment journey.  

For example through the launch of Disney +, its own streaming service, with a large library of content from old classics to new modern remakes. Disney+ now has subscribers near to that of Netflix and Amazon offering exclusive content that cannot be accessed anywhere else as well as a highly successful app that offers customers value for money. 

 

Audience Pleasure 

 

Audience pleasures is achieved by providing all sorts of different content, this means that no matter what age, gender or even just what mood your in there is always some sort of content tailored to your specific needs, this is done so that the audience is reassured and know subconsciously that they can rely on Disney plus to provide content which will ensure pleasure, age ratings and trailers give insight into if the content is suitable for what you want. Disney appeals to a wide range of audience members, for example on Disney plus there are a handful of genres and categories with specific movies and shows which will appeal to each persons interest , further a genre or category such as action may appeal more towards adult males compared to that of the kids section which obviously appeals to children as the content provided is suitable for their age range. Disney profits off of having these targeted at certain demographics by offering a paid subscription for families since there is content which suits everyone. They further appeal specifically by having individual accounts which can have customized profile pictures and kids profiles so that the content they watch is definately suitable, they also allow for passwords to ensure privacy and so that kids don’t access the wrong content, within each profile there is also a ‘recommended for you’ section which further achieves audience pleasures. 

 

Mode of address 

 

Disney addresses its audience through personalized adds whether it be on television or billboards and posters etc. these adverts are suited to specific people through things like style and structure which are made to appeal more towards their audience. For example a kids movie like lion king will have a more simplistic mode of address with a less informal take compared to something like a documentary which will have a formal mode of address in order to appeal to adults. Disney also indirectly addresses their audience by showing new products on apps. Disney use direct mode off address so the audience feels as so they are being targeted and are more likely to view content, This impacts the relationship between story and the audience. 

CONGLOMERATE is made up of different SUBSIDIARIES:

 Disney - Film, Theme Park, TV, Animation, Marvel.

a subsidiary can also be a conglomerate for example marvel is a subsidiary within Disney as they own it however marvel is still a conglomerate.

 

• one advantage of being a conglomerate is that you have multiple different revenue streams.
• another one is that it establishes your brand name.
•  it is much easier and cheaper to distribute your products as you have multiple subsidiaries producing and distributing your product etc.
•  

 

CROSS MEDIA OWNERSHIP is one company owning two different media companies.

 

VERTICAL INTIGRATION is a conglomerate that has the ability to: produce (make), distribute (make available to buy), exchange (audience pays to access) BY THEMSELVES.    (They can do this themselves due to having subsidiaries)

 

ProduceDistributeExchange = VALUE CHAIN - distribution is the most expensive due to the cost of packaging and shipping etc.

 

HORIZONTAL INTIGRATION is not possible without vertical integration as it takes place during the distribution phase of vertical integration. It is having the ability to distribute a product on multiple platforms that they OWN.

Horizontal Integration results in SYNERGY which means cross promotion.

INDEPENDENT - Working on your own without outside help. This is the complete opposite to how a conglomerate as they don't have subsidiaries 

• A disadvantage of being an independent company is that it is more expensive. (Especially distribution)
• another disadvantage is that most independent companies can only PRODUCE by themselves meaning they struggle to distribute. This means bigger companies (conglomerates) must help.
• They don't have any subsidiaries meaning they have less platforms to distribute from resulting in less profit and less customers.
• They don't own different platforms unlike a conglomerate

 

JOINT VENTURE - joining up with a conglomerate (warp films does this with channel 4)

channel 4 also have their own subsidiaries like film 4 which has created its own content.

 

AUDIENCE DIFFERENCES - conglomerate vs independent

• Independent company has a very niche audience (small specific audience)
• A conglomerate has mass audience and targets a wider range of people (large audience)
• A conglomerate has a higher production value meaning their content is usually better than that of an independent company. this is because they have a big budget and can produce big block busters.

 

SOCIAL REALISM - realism about things and problems that happen in society. This is only usually done by smaller independent companies.

 

PUBLIC SERVICE BROADCASTER - is a company which distributes TV and radio to a mass audience (available & targets everyone)

 

REMIT - licence/responsibility

A public service broadcaster has a remit to make sure they inform educate and entertain their audience.

 

• produces and distributes different types of media just like a conglomerate.
• BBC - TV - RADIO - MAGAZINE
• Like a conglomerate the BBC has cross media ownership and vertical/horizontal integration
• making them extremely similar to a conglomerate.

PRODUCTION PROCESS:

• Pre-production - The planning & preparing you do to plan the product as well as you can before beginning the real production

• Production - taking what you planned into action and producing your product to the best of your ability.

• Postproduction - assessing your product and seeing what is good and looking for anything you could improve or change and then eventually distributing. (editing & finalising)