Industries: ownership and control

Media conglomerate research

1) Type up your research notes from the lesson - what did you find out about your allocated media conglomerate? 

Time Warner:

Warner Media is an American multinational mass media and entertainment conglomerate owned by AT&T  It was originally formed in 1990 as Time Warner, from the merger of Time inc and Warner communications. Its assets include Warner Media Entertainment (consisting of the entertainment assets of Turner, HBO, Otter Media and Cinemax, as well as HBO Max streaming service), Warner Media News & Sports (consisting of the news and sports assets of Turner, as well as AT&T Sportsnet, and Warner Bros.

Time Warner completed its purchase of Six Flags Theme Park in 1993 after buying half of the company in 1991, saving it from financial trouble. The company was later sold to Oklahoma-based theme park operator Premier Parks under certain terms and conditions on April 1, 1998.

The units that come under Time Warner are :

• WarnerMedia entertainment
• WarnerMedia news and sports
• Warner bros

2) Do you agree that governments should prevent media conglomerates from becoming too dominant? Write an argument that looks at both sides of this debate.

I think that the government should have regulations over media conglomerates to prevent them becoming too dominant and powerful. If a conglomerate becomes too dominant it can grow out of the control of a single country because they will become global.If they become too powerful they could effectively do anything they want despite the message it sends to the audience or the controversy it creates. However, the government cannot have too much control over the media conglomerates as this has a risk of the country becoming communist with the government making all the decisions.

1) Briefly describe the production, promotion and distribution process for media companies.

The production process provides audiences with the media products they want. It needs to consider
the audience’s desires and should provide the gratifications the audience expects.
The promotion process researches and identifies the target audience for the product, and uses advertising
and marketing strategies to inform and persuade them of the value of the media product.The distribution process uses the most appropriate methods for getting the product to the audience and making it as easy as possible for them to access it.

2) What are the different funding models for media institutions?

BBC: Licence fee paid by the public.

Sales of DVDs, magazines, merchandising and

other BBC products.

Sales of programmes and formats to other broadcasters.

ITV :Fees paid by advertisers buying advertising space on the channel.

Programme sponsorship.

Sale of its programmes and formats to

other broadcasters.

Sky One :Income is generated by subscription fees and advertising revenue.

Sony: Sales of hardware such as PS4.

Sales of games and associated merchandising.

Advertising and sales via online community.

Sales of music.

Film sales.

Licensing of music (for advertising, gaming, film

soundtracks etc.).

Profits from online games and standalone

gaming products.

3) The article gives a lot of examples of major media brands and companies. Choose three examples from the article and summarise what the writer is saying about each of them.

Disney is known as a family-friendly brand that focuses on children’s entertainment. It has built on its

original reputation for animation, created early in the 20th century, through the construction of a ‘universe’

of merchandising and branded products, including Disneyland and the Disney Princess franchise.

Marvel is inextricably associated with the superhero genre as the film production studio developed from its

hugely popular original comic book publications. Marvel superhero films may well contain lots of violence; but they will also reinforce mainstream values around duty, sacrifice, personal responsibility and the need for the strong to protect the weak. In the mid 2000s, Spotify offered an online music service in an attempt

to counter free download culture. People could either enjoy free music with ads, for a limited time, or pay a

monthly subscription and get access to music without ads.

4) What examples are provided of the new business models media companies have had to adopt due to changes in technology and distribution?

The music industry can no longer generate most of its profits through the sale of music itself, so other

ways to make money have been sought. Sponsorship, merchandising, and the income generated by live

shows are some of the ways it seeks to recoup its investment.

5) Re-read the section on 'The Future'. What examples are discussed of technology companies becoming major media institutions?

Technology companies such as Amazon, Facebook, Google and Yahoo are, by their very nature, at the

forefront of change; they too have become ‘media institutions’.Google now owns YouTube, and has revolutionised the way we access music and moving-image entertainment and information.

6) Do you agree with the view that traditional media institutions are struggling to survive?

I disagree with the view that media institutions are struggling to survive as in the digital age media institutions have become very popular and media companies are closely connected with technology companies. I think the media industries have found a new way to connect with audiences as companies like blockbusters have failed but new companies like Netflix have proven to be extremely popular. However,media industries like the BBC have been struggling as its funded on license fees and if that price is increased it is likely that people would cancel their licenses especially since people don't watch much TV anymore.

7) How might diversification or vertical integration help companies to survive and thrive in a rapidly changing media landscape? 

I think that diversification can help companies that are struggling as they me be in need of a change and they should expand their market or audience. This way the will attract new audiences which will make a difference as before they were only targeting a particular audience but now they will have a wider reach.

8) How do YOU see the relationship between audience and institution in the future? Will audiences gain increasing power or will the major global media conglomerates maintain their control?

I think that audiences will gain increasing power as they are the source of income for the media conglomerates therefore. their voices must be hard. Additionally, media conglomerates invest the most money in what the audience are interested in in that particular time they don't invest in things that the audience will not enjoy. Therefore, the audience have the power.