Max Allfree Understanding the nature and purposes of research in the creative media industry The Structure and Ownership of KM Group and News Corp The KM Media Group was formed over 150 years ago as an independent, family owned business. From just a Newspaper publisher, the KM Group has grown into a multimedia company1. Whereas News Corp is a conglomerate that owns many enterprises since the 1950’s; Rupert Murdoch owns this organisation and has managed it to become one of the five largest media conglomerates in the world. 2 To some extent the KM Group is a cross media company because of its work within radio and small amount the put into TV, however, when compared to other businesses you can see that they are small. Board of directors of News Corp The board of directors within News Corp shows a variation of leading positions owned by a select few. The Executive Chairman, Co-Chairman and Chief Executive Officer are all blood relations, not only are powerful families involved high up within the structure of News Corps, also former leading political figures such as a former Prime Minister of Spain and the 24th U.S. Secretary of Labor. News Corp is a cross media company, meaning they own or integrate with other companies from different sectors. Companies within the magazine industry that News Corp Australian Golf Digest Big League MasterChef Magazine Vogue Australia 3 News Corp also own newspapers within the UK, Australia and the United States, there are also plenty of book publishers owned, including HarperCollins Harlequin Enterprises Zondervan publishing http://www.kentonline.co.uk/km-group/ http://www.fundinguniverse.com/company-histories/news-corporationlimited-history/ 3 http://www.newsspace.com.au/magazines 1 2 Max Allfree The size and structure of any company has an affect on the consumer in various ways, however with these two companies, because of the huge gap in size they differences are extreme. For example, stereotypically, smaller magazines have less reporters and ground to cover but due to the rapport they build with the community, they will normally have more in depth and truthful stories. However the KM is famous for its poor relationship with the local audience, which can be seen through their Facebook page. Due to the small size of the KM they don’t have many fact checkers other than the audience, who can slightly influence the paper but without any authority the KM can get away with lying about certain things. News Corp has much greater production and distribution levels because of their size and structure, this size and structure is so large because they operate on a multinational level, whereas the KM Group only operate at a regional level. However, due to the size of the conglomeration a lot more work has to be put into the logistical side of the business, whereas within the KM group there are only a few members of the team who an be contacted and watched easily. Due to the multinational aspect of News Corp they have much greater access to stories and the audience can be focused on by employee’s to really get to grips with what the audience wants. The negative aspect of this is that because they have such a large audience, they have to use a lot more of their assets to focus on particular sections of said audience. The KM’s small stature means they cannot offer as much choice as News Corp, this I for a multitude of reasons, such as age, gender and socioeconomic status of their audience, but mainly because of budget restrictions when compared to News Corp’s almost unlimited budget. Due to the size of News Corps range of publishing, it is beneficial for them to share the same stories over a multitude of media to a new audience because its recycled work that gather a larger audience.