Issues Raised by Media Ownership.

Media Ownership

Homework

What is Media Ownership

Media ownership is based upon the process in which the increasing number of companies can own media outlets. Issues raised upon media ownership can be based around advantages and disadvantages of large conglomerates and the smaller independent companies.

As an example, Film London Microwave, Film London’s Micro-budget feature film and BBC Films produced Ill Manors, as a independent company. Where else Sony and MGM produced ‘Skyfall’, whilst Sony is known to be a large international conglomerate.

Conglomerate – A large parent company which owns a range of smaller companies.

Conglomerate.

The advantages of a big Conglomerate are:

Production:

Risks can be taken when making films.

Wont need to collaborate to secure funding.

Can be more ambitious with the film, when the film gets bigger stars, has more special effects, yet also can travel to better locations.

Distributions:

Synergy and cross media convergence to promote Via games, music, toys, etc.

The sheer size and power in the industry. – This leads to more money, but also better links to related companies such as Sony Pictures Entertainment (Production company) and Sony Pictures (Distributors) but also Sony Platforms to exhibit film.

Conglomerate.

The disadvantages of production and exhibition in conglomerate are:

Films often have to satisfy a mass market and creatively film makers cannot take as many risks as so many other large companies to satisfy and revenue to achieve.

The film has to really well at the Box Office.

SkyFall

Skyfall was created by the Conglomerate.

The success of Skyfall was ensured when the film achieved critical acclaim, since it had backing of a company that was able to use cross media convergence as it owns companies within a range of industries.

Sony’s Skyfall resulted in a huge amount of ‘word of mouth’ for a big budget film. This helped the film become a blockbuster. This is a benefit of cross media ownership with these institutions.

Media Ownership - Skyfall

They have more power than small independent companies. This leads to being able to use viral marketing in a bigger way. Examples are as follow; Own website including story plots, extended clip, wallpapers, stills from the film and exclusive videos.

Sony and MGM produced Skyfall.

On the distribution side, Sony used their status as a conglomerate. This created a very broad appeal and blanket advertising and publicity was used.

Independent Company

The advantages of Independent Companies are:

Receive all profit.

Less pressure during the production and distribution. – They have a smaller budget and are not as popular as the major six.

There is complete control over what they decide to produce, this allows them too have more choices and chances to become more unique.

Independent Company

The disadvantages of Independent Companies are:

Smaller budget, which means the film will be less ambitious

Often have to secure the extra funding and finance.

The distribution has to be targeted as there is less money to spend on marketing the film.

The film is expected to make less revenue at the Box Office.

Can’t withstand losses with Box Office returns.

Ill Manors

Ill Manors was created by an Independent Company.

It’s budget was a small budget of £100,00. This then followed through, the earning of £453,570 profit at the Box Office.

Because the film was created by an Independent company, the film was able to be produced with more risks in terms of subject matter.

There are difficulties faced by smaller companies with relatively small marketing budgets and few easy opportunities for synergy.

Media Ownership – Ill Manors

Due to this film company being Independent, there is no withstand of losses as the company is conglomerate.

It’s advertising campaign had to be targeted at a specific audience.

This film had to be financed by ‘Film London’, ‘BBC Films’ and was also supported by ‘Skillset’. ‘UK Film Council’ and the Mayor of London.

The challenge was to actually attract a core niche audience, with a low budget, unknown cast and low production values.

How do independent companies compete with

major companies? Viral marketing helped Ill Manors make money, whilst

overcoming the mass American film industry. As an example, the website gave the audience easy access to information about the film, video clips, trailer, pictures and downloads which made the audience feel more involved.

Downloads were also used, to create word of mouth. As an example, a figure could have downloaded a ringtone of wallpaper from the official site before telling or being asked by another figure, what the subject is about.