Public Services
Pubic service is when it is essentially owned publicly and is government funded. There is a TV license fee which is £144.50 which goes towards the public broadcaster. An example of a public broadcaster would be the BBC as they are funded by the government. Every household which has a TV needs to pay a TV license fee and if they do not they can be fined up to £1000. This means that even if the house hold has one TV they have to pay the TV license fee. Even if a household has more than one TV they just pay the same amount.
An advantage to BBC being funded by the public and government is that they do not need to bend to advertisers for finance, this will mean that they are not profit driven. A disadvantage for BBC is that they have to justify spending to the government. This may be a downside to BBC because they will not have that much control compared to other commercial institutions like ITV. An advantage to the audience would be that they do not need to watch any annoying adverts because public service broadcasters do not have any advertises, also BBC only shows trailers of their own programs in between the shows. A disadvantage to the audience is that they will need to pay the TV licence fee every year and it does not matter how many televisions you have, you have to pay one fee of £144.50. This is a downside to households that only have one television as they pay the same amount as someone who has more than one.
Commercial
Commercial broadcasters are owned privately by investors and shareholders. Funding for these Commercial companies comes from adverts as they usually have four advert breaks in between a one hour program. An example of a commercial broadcaster would be the ITV because they have advertisements in between the programs.
An advantage to the ITV would be that they are a profitable business whereas PSB like BBC are not, so this means that ITV works for profit. The more advertisements they have, the higher the profit margin. Also they are free from government interference, this gives ITV more independence, allows ITV to create different shows and experiment more. A disadvantage to a commercial company businesses like ITV have to bow to advertisers as they would not be able to fund any shows yet alone make a profit, Sometimes advertisers have an impact on the shows as they may ask to change specific programs if they sponsor the show or program. An advantage to the audience would be that often commercial companies make biased shows that are popular and shows which they know that entertain the audience and make them continue watching, this is an advantage as the audience like these programs. A disadvantage to the audience would be that the advertisement cuts the program short by 15 mins this means that the audience watching
Private And Corporate
Private ownership is a company that is not owned by the state. Mostly all the institutions, besides the PSB, are privately owned by bigger companies which are called corporate companies. An example of a private company would be MTV because they are not owned by the state. An example of a corporate company would be News Corp because they own other media outlets. Both ownership can make any decisions because they are privately owned whereas public service broadcasters are controlled by the government and do not work for profit.
Advantage for the MTV being private would be that they have full control and can make any decision. This will give them more independence; independence allows them to be more creative than their competitors and by being a corporate company it protects owner's liability. If the business is not successful this will reduce stress as the personal goods will be safe as they can only take the business goods. A disadvantage for the MTV would be that they need funding so they are going to look for private investors or advertisements to put in between their programs to raise finance. This may mean that the investors and advertisers can change programs. An advantage to the audience is that they will have a range of programs as MTV can experiment because they are in full control. A disadvantage for the audience would be that private companies are usually funded by investors and advertisers, this may impact on the programs as advertisers often want it to relate back to them or may ask to change the program.
Independent companies
Independent companies are small companies that usually specialise in one medium, they produce for a small group or audience. An example of an independent company would be Endemol or DNA films these two are small independent companies as they specialise in specific mediums for example like TV and films. An issue with owning an independent company is that they are not as well known as other film makers - this can lead to them making less revenue.
An advantage for independent companies like endemol would be that they are very creative with their ideas and also if they bring new talent they can be very successful. For example Endemol were very successful when they created a program called 'Big Brother' because it was something unique and something that was not done before which meant taking a big risk as you do not if it would be successful. A disadvantage is that endemol is that they only cater for a niche audience, this means that it is not aimed at everyone so they won't be aiming for mainstream audience, possibly making them less money. An advantage for the audience would be that independent companies are more free to experiment and create different programmes so this is a positive for audience as they can watch new content. A disadvantage is that the niche audience may like the program they have created but independent companies may not financially be able to continue to produce more episodes.
Global companies
Global companies are media conglomerates, this means that they own different companies worldwide which are in different industries. An example would be Sony because they own other media companies; they have their own publishing companies like Columbia Pictures. Being a global company means that they have the upper hand because they are more well known and can takeover smaller businesses as they have more finance.
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An advantage for columbia being a global companies is that they make more films and are very profitable because they are known worldwide and own different industries. Columbia can keep all the revenue which is made because they would not have pay other companies to distribute the content to, lessening costs for the company. A disadvantage for global companies would be that they would have less competition as global companies like Colombia are often very well known and they do not have that much competition. These companies are very high in the development stage so would be very difficult to compete against. Big companies like Sony have more money, having less competition means that they would not try progress as having competition makes you determined to provide a better service and be the best you can be.
Vertical and horizontal integration
Vertical integration means that business owns there own distributes and exhibition, horizontal means that the business owns production companies that are same stages. An example would be Disney because they have the production companies that in the same stages like Lucas Arts. The issue is that smaller business cannot compete with companies like Disney because they would not have as much money as the big companies.
An advantage is that being horizontal and vertical integrated like Disnep is that it allows them to keep more profit as they do not have to pay any external businesses because they have in house service, this is a positive as they make greater profit. A disadvantage for them would be that they would be oligopoly because they would not have as much competition in there as they are big companies and it is very rare that new competitors would join the industry as they financially would not be capable.
Monoploy
Monoploy is an industry that dominate by one company who provides a service or product. An example of an institution that is currently is dominating is SKY because the offer unique service like fitting a satellite dish, other companies would not be able to do this in the UK this is why they have the upper hand. The issue with dominating the industries means that its very difficult for other small companies to join the industry.
An advantage is that if they are dominating it will lead to them having greater share of profit for sky and they will be less competitors because SKY is known for there service and are the company that is run through satellite dish and companies like virgin are digital and they are no where close to where sky is, as sky has over billions of customers. An disadvantage is that the subscription can cost a lot because sky have fixed prices starting from £25 -75 this is one reason why they may lose customers because other subscription company offer better deals at better prices. Another disadvantage is that sky is leading industry so they are not going to have any new small businesses competing with them. This impacts the audience because they may have bias opinion that sky is the best, however other companies can provide same service but maybe not same quality this is the only reason why consumers like SKY.
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