Ownership and Structure in the Creative Media Sector
Currently the media sector ownership can be described as an Oligopoly, which is where the sector/market is owned by a small number of large companies, called conglomerates. The supermarket sector is an oligopoly, it is owned by four different chains: Tesco, Asda, Sainsburys and Morrisons. Oligopolies can be positive for the sector as there is competition between the companies, where they will bring down their prices so that the audience choices them instead of the other companies. The negatives is that small independent business are being brought out by these large companies, and losing control and independence. We also are getting a more restricted choice as there is only a few companies we can buy from. If the sector was a monopoly then it would be owned mainly by one large company, like Microsoft, Bill Gates owned such a large amount he had to share out his company with his family as it is illegal for a sector to be a monopoly.
There are six huge conglomerates that own the current media sector, we call them the 'Big Six'. They are:
GE (General Electric)
GE is noted as the 14th most profitable company, it owns many different companies such as Comcast, NBC, Universal Pictures and Focus Features. It was founded by four Americans in 1892 in New York and has many companies in electric and energy, but also in entertainment. It is worth $13.96 billion.
News-Corp
News-Corp is noted as the second biggest media company worth $33.4 billion. It owns companies in media print and TV, companies such as Fox, Wall Street Journal and New York Post. It was founded by Rupert Murdock in 1979 in Australia, Rupert Murdock is still chairman of the company.
Disney
Disney is noted as the largest media conglomerate in the world with companies in movies, radio and theme parks. It has many subsidiaries some being ABC, ESPN, Pixar and Marvel Studios. It was founded by Walt Disney and Roy Disney in 1923 in LA, America, and is worth $40.1 billion.
Viacom
Viacom is noted as the fourth largest media conglomerate with companies in publishing, Internet and radio. It was founded in 2006, but was a different company before 2006 it split into Viacom and Gulf+Western due to rivalry heads within the company. It has companies in TV, radio and publishing, companies such as MTV, Nick Jr and Paramount Pictures. It is worth $14.9 billion.
Time Warner
Time Warner is noted as the third largest media conglomerate, it is a convergence of two companies. It owns companies in movies, publishing and Internet, subsidiaries such as CNN, HBO and Warner Brothers. It is worth $29 billion.
CBS Corporation
CBS Corporation noted as one of the largest media conglomerate, it has companies in Internet, publishing and movies. It has subsidiaries such as Showtime, Jeopardy, 60 minutes and NFL.com. It was founded in 2006, but was part of Viacom before that. It is worth $14.2 billion
There are six huge conglomerates that own the current media sector, we call them the 'Big Six'. They are:
GE (General Electric)
GE is noted as the 14th most profitable company, it owns many different companies such as Comcast, NBC, Universal Pictures and Focus Features. It was founded by four Americans in 1892 in New York and has many companies in electric and energy, but also in entertainment. It is worth $13.96 billion.
News-Corp
News-Corp is noted as the second biggest media company worth $33.4 billion. It owns companies in media print and TV, companies such as Fox, Wall Street Journal and New York Post. It was founded by Rupert Murdock in 1979 in Australia, Rupert Murdock is still chairman of the company.
Disney
Disney is noted as the largest media conglomerate in the world with companies in movies, radio and theme parks. It has many subsidiaries some being ABC, ESPN, Pixar and Marvel Studios. It was founded by Walt Disney and Roy Disney in 1923 in LA, America, and is worth $40.1 billion.
Viacom
Viacom is noted as the fourth largest media conglomerate with companies in publishing, Internet and radio. It was founded in 2006, but was a different company before 2006 it split into Viacom and Gulf+Western due to rivalry heads within the company. It has companies in TV, radio and publishing, companies such as MTV, Nick Jr and Paramount Pictures. It is worth $14.9 billion.
Time Warner
Time Warner is noted as the third largest media conglomerate, it is a convergence of two companies. It owns companies in movies, publishing and Internet, subsidiaries such as CNN, HBO and Warner Brothers. It is worth $29 billion.
CBS Corporation
CBS Corporation noted as one of the largest media conglomerate, it has companies in Internet, publishing and movies. It has subsidiaries such as Showtime, Jeopardy, 60 minutes and NFL.com. It was founded in 2006, but was part of Viacom before that. It is worth $14.2 billion
Conglomerates are massive international companies that owned billions, they buy out smaller companies, these smaller companies then become subsidiaries. An example of a conglomerate is Time Warner, they brought out CNN and HBO which are now subsidiaries. Time Warner is also a convergence of Time and Warner Brothers, which means they have joined together to make one company. There are benefits of being part of a major media conglomerate, one being you get support from the company which allows you to have a steady work flow without the worry of getting into to much money trouble. Another is you getting funding to expand or help out, this is helpful to the business as they don't have to go through the process of finding a sponsor.
The Ownership of the media is shared by a select few, this is going to effect the industry and the audience in four different areas.
- Competition
Smaller companies have to compete with the 'big six' which is difficult as they have so much power. They find it difficult to get their products known, it's very fierce competition for them.
- Employment
Employment would be affected by the ownership of media being shared by a select few because with the competition intensifying, employment would be harder to come by because these employers will be looking for the best of best and would probably require their employees to be multi skilled in different areas of the media sector compared to just being a specialist in one. For example, nowadays a journalist may have to write their story as well as editing and adding the photos themselves.
- Independent media companies
Independent companies will find it very hard to compete against the 'big six'. They won't have the support or funding from big conglomerates that other subsidiaries have. They also don't have the same advertising opportunities, as they can't advertise through other companies like subsidiaries can. Even though it is harder for independent companies they are still independent and don't have to answer to a big boss.
- The Audience/Products
The audience doesn't get much of a choice seeing as a small number of media executives choice what a huge audience watched. Frugal Dad says that 'One Media Executive choices what 850,000 subscribers watch'. That is alot of power, and it will be on of the 'big six' that they work for.
