Understanding the film and T-V industries

Lorrie Kalambay

Ownership

Monopoly

Corporate Global Companies

Vertical and Horizontal

Private companies

Commercial

Horizontal

Independent companies

Vertical

Public service

Global Companies

Global Companies- these are companies which have businesses worldwide, for example NewsCorp International who have businesses in numerous countries such as Australia and Italy. Another global company is Youtube; this is because Youtube allows people around the world to keep in contact with each other and share videos with other people in the world consisting of channel 4oD and channel 5.

Corporate

Corporate- when a number of different companies are put together to make a meta-company. For example Corporate Media Studies Ltd; they are made out of lots of different little companies to create something big.

Commercial

Commercial- is a company designed to make a profit, for example NewsCorp International the whole purpose of them is to make money. They can also be companies that have started up with a small business on the internet to make money by advertising their product so others can see. An example is E! Entertainment as they specialises in getting informations about celebrities on the latest gossips ans celebrate interviews; the purpose is that they need to make sure that they get a profit from this enterprise.

Monopoly

Monopoly is when a company owns every other business’s supplying or producing there products, it occurs when a company owns 100% of the company's producing a certain thing. An example if a company owns every UK newspaper such as Newscorp and The Sun in 1969.

Vertical and Horizontal

Vertical Integration- owning all companies through a chain of production, meaning you can take one product through from production to being broadcasted on TV. NewsCorp International is an example of this, owning Fox Searchlight, Fox Distribution and Fox TV.

Horizontal Integration- owning numerous companies in one stage of the chain of production, for example NewsCorp who owns Fox TV, ITV and Sky.

Public Service

Public Service- a company designed to improve the lives of the public, and not to make a profit. An example of this is the BBC who doesn't take a profit from money made. They show adverts and shows which inform the public on how to be healthier for example.

Independent Company

Independent Company- a company owned by one person, not under control of anyone else. An example is WARP Films, who produce films but therefore have to go to a different distributor.

Private Companies

Private companies is when individuals own their businesses or property, they make their own decisions for their companies with little or no government regulations. An example of a private company is IKEA as they are an international home products company that design and sell products.

Private

Private- is a company owned by one person, with no shareholders involved. An example is The Economist newspaper as they are owned by someone else.

Funding

Licence fee

Sponsorship

Subscription

Private Capital

Pay-Per-View

Development funds

Advertising

Financial aid

Product placement

Product Placement

.Product Placement- when companies pay film makers to get their actors or actresses to use their products. For example Sony pay the makers of James Bond a lot of money to show their new products.

Advertising

.Advertising- when a well known or famous character (actor/actress) from a film is paid to appear in adverts to make more money. For example having Beyonce model for the L'OREAL foundation will make so many other people attracted to the product as they will feel that by using that product they will look more like that person.

Private Capital

Private Capital- investing in films to make money. For example someone could invest £3 million into a film, then take 0.5% of profits made.

Licence Fee

Licence Fee- the fee every owner of a TV has to pay, and the money made goes the BBC.

Subscription

Subscription- when a customer pays to get certain channels, such as Sky

Pay-per-view

Pay Per View- choosing what you want to watch and paying for it, such as paying £3.00 for a film.

Sponsorship

Sponsorship- when a company pays to sponsor a show, such as Harvey's paying to sponsor Coronation Street.

Financial Aid

Financial Aid- when a private filmmaker applies for money from the government or charities, usually to show something in a positive light.

Development Funds

Development funds is when you ask a local government to pay you to portray

there area in a good way in your movie/film.Development Funds- when the council funds media projects if it shows their town in a positive light. For example the Barking and Dagenham council may fund a project to make Dagenham look good.

Disadvantages

Piracy; due to the high amount of piracy surrounding the film industry and new music talent, small producers get hit harder than big companies, who can afford to lose the money from piracy. The small companies cannot, however, so eventually can't afford to make new films, resulting in the music and film industries becoming bland and boring, as only the same big companies such as Fox can make new films.

Monopoly; creates problems for the audience of a product as one person owns everything in one type of production, meaning the audience gets a biased view. For example is Rupert Murdoch owned all of the UK papers, only his point of view would get published

Advantages

Digital Technology and Startups; now that new technology is available to everyone, anyone could record a film on their phone, use widely available editing software and upload it to youtube, and could make money from it. Before this wouldn't have happened and the same producers would be making films, meaning the film and music industry is more diverse, and everyone can have an

opportunity to become famous.