Ownership, control and finance
What does this mean?
• Who owns the TV channels and the
Newspapers?
• Who controls what information the give out?
• Where does their money come from?
• How do they make more money?
Ownership, control and finance
Questions from previous exam
papers:
From the media industry you have studied today, identify two
different types of media ownership?
How might the ownership of a media organisation affect its
output?
From your studies of the media industries you will know that
media organisations can vary in size and nature. What is a
Extra
‘media conglomerate’?
thinking: Do
Media organisations need to find money to finance their you know any
operations. Name one way in which an organisation in that of the
answers
industry generates income.
already?
Key words:
•
•
•
•
•
•
•
Concentration of ownership
Bias
Media Imperialism
conglomerates
Integration
convergence of Media Industries
additional content
Bias
only their viewpoint
• Times
• Sun
• Mirror
• Guardian
Conservative (Tory)-right
wing
Labour (left)
Bias-The Daily Mail
What types of media
ownership are there?
Public ownership
Public ownership - an example of a public ownersip would be the BBC.
-The BBC is finances by a license fee (audience)
-The bbc is not owned by shareholders so its profit motive is paramount
Commercial ownership
When industries make their money through commercials and advertisement
- For example the ITV and CHANNEL FOUR are owned by a commercial ownership as
they are financed and make their money through things like advertising and
commercials (merchandise)
Sometimes the channels and the info they give out can be effected by who sponsors
them
How would the ownership effect the output (what
it says or writes about?
Commercial ownership- how does this effect it’s output(what
it shows)
Commercial channels such as ITV can be effected by who has paid to
advertise eg product placement and sponsors
It may also mean that they may only show stories that are to do
with it’s shareholders or sponsors-Therefore it has bias .
This also works with newscorp owned times and the sun…they want
to get the biggest audience possible so they may publish the
popular or commercially paid storiesd to get more readers or
money. (they also may have political bias effecting stories).
BBC has to be unbiased-as the public own it
CONGLOMERATE
“A large international organisation
that owns a lot of companies in
different media industries.”
(these are often American
companies).
Ownership
Media
conglomerate:
A large
international
organisation that
owns a lot of
companies in
different media
industries.
Examples are
Disney, Time
Warner and News
Corp.
Concentration of media
One effect of the concentration of media
ownership is that the media market is
dominated by a small number of companies(these are mostly American).
Is this a positive or negative thing?
Write down a good thing and a bad thing
Bad things about media
conglomerates:
• Small number of companies own
the media companies
• Lack of competition
• Owners have a lot of power to
present their political views to
large audiences
Good things about media
conglomerates
• They could have a positive influence-over
politics.
• Wider target audience and are far reaching
• News is consistent.
• They can work as a powerful force-eg Sarah
Payne.
• Job security-they are so big they are unlikely
to go under
• http://www.thesun.co.uk/sol/homepage/new
s/justice/
Newspapers
Ownership, control and funding.
How do newspapers make money?
Write down the 2 main reasons?
How are newspapers funded?
advertising
Sales
80% of the money is made from advertising
Most of the rest is made from sales
But… If the sales fall then so will the money made from advertising.
Companies want to advertise where people will see their products!
Newspapers
Ownership, control and funding.
How do TV channels
make money?
How does the BBC make
money?
Extra thinking: Is
this different
form channels
like ITV?
£145.50
Public pay
licence fee
GOVERNMENT
Govt collect
the money
£3.65bn
Govt give
BBC a lump
sum
How the BBC Spend
their £3.56bn each year
(2009-2010 data)
All Tv
National and local radio
Online - website, iplayer
Other - collection ,
transmission
66% - All TV
17% - National and local radio
6% - Online e.g. BBC websites, iPlayer
11% - Other e.g. transmission and licence fee
collection costs
How else, other
than the licence
fee, does the BBC
make money?
Financing the TV industry
Funding the television industry
BBC
The BBC is partly funded from the TV licence fee. This is £145.50
per household.
It also makes money from its commercial interests in the same
way as any other TV company.
Commercial television makes money from advertising and
sponsorship.
ITV
Most top ITV shows have sponsors:
Coronation Street is sponsored by compare the market
Other ways television companies make money are:
Merchandising linked to programmes
Selling programmes to other countries/channels
Selling formats for shows such as Big Brother, Pop Idol etc
And also through making audiences pay for additional content
Additional content- financing TV
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•
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Competitions
‘Phone ins’
Extra channels…eg movies, sports
Red button
Merchandise
Now answer these questions in your
book (each worth 2 marks in exam)
1. From the media industry you have studied today, identify
two different types of media ownership?
2. How might the ownership of a media organisation affect
its output?
3. From your studies of the media industries you will know
that media organisations can vary in size and nature.
What is a ‘media conglomerate’?
4. Media organisations need to find money to finance their
operations. Name one way in which an organisation in
that industry generates income.