1.4.2
Ownership
Ownership: Vertically or Horizontally Integrated
Ownership: Vertically or Horizontally Integrated
Ownership patterns and structures influence the production, distribution and circulation strategies of the industry.
![Illustrative background for Ownership patterns](https://image-v2.cdn.app.senecalearning.com/courseImages/physics/4.3.5 - Digital Circuits/binary-min,h_400,q_80,w_640.jpg)
![Illustrative background for Ownership patterns ?? "content](https://image-v2.cdn.app.senecalearning.com/courseImages/physics/4.3.5 - Digital Circuits/binary-min,h_400,q_80,w_640.jpg)
Ownership patterns
Ownership patterns
- Ownership patterns and structures influence the production, distribution and circulation strategies of the industry.
- Traditionally an institution would be any of the following structures:
- Independent, vertically integrated or horizontally integrated.
![Illustrative background for Vertically integrated](https://image-v2.cdn.app.senecalearning.com/2018-05/44e52701-665d-40f4-94d0-78c4d0d7fea8/jekyllHyde1,h_400,q_80,w_640.jpg)
![Illustrative background for Vertically integrated ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-05/44e52701-665d-40f4-94d0-78c4d0d7fea8/jekyllHyde1,h_400,q_80,w_640.jpg)
Vertically integrated
Vertically integrated
- A vertically integrated business owns all of the stages of production.
- E.g. production, distribution and circulation.
- Because of this, it means all work can be completed in house, meaning the overall production is cheaper.
- As well as this, all profit is maintained by the institution.
![Illustrative background for Horizontally integrated](https://image-v2.cdn.app.senecalearning.com/2018-08/0fd37cd4-2af5-4a38-9dbe-0ba8cbdcdb09/office-1209640_1920,h_400,q_80,w_640.jpg)
![Illustrative background for Horizontally integrated ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-08/0fd37cd4-2af5-4a38-9dbe-0ba8cbdcdb09/office-1209640_1920,h_400,q_80,w_640.jpg)
Horizontally integrated
Horizontally integrated
- A horizontally integrated business means it owns multiple businesses at the same stage of production.
- Because of this, they may become specialists in their field and will be able to sell their expertise to other companies at different stages of the production chain.
- This means the institution will need to work in synergy with others to pass a product through all stages of production and to make profit.
![Illustrative background for Working in synergy](https://image-v2.cdn.app.senecalearning.com/2018-07/638d1ff1-9b03-44c5-a629-ed34fee4893a/Computers-Office-People-Workers-Network-,h_400,q_80,w_640.jpg)
![Illustrative background for Working in synergy ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-07/638d1ff1-9b03-44c5-a629-ed34fee4893a/Computers-Office-People-Workers-Network-,h_400,q_80,w_640.jpg)
Working in synergy
Working in synergy
- When two companies work together to mutually benefit each other it is referred to as working in synergy.
- Working in synergy has benefits as it allows institutions to work with specialists, gain funding from other sources or to share resources.
- Working in synergy does not mean either company owns the other.
- When a company is taken over by another company, this is referred to as a merger.
Ownership: Diagonal and Independent Integration
Ownership: Diagonal and Independent Integration
Diagonal integration means having cross-ownership of a range of mediums and stages of production. In contrast, independent institutions often only owns one stage of production.
![Illustrative background for Diagonal integration](https://image-v2.cdn.app.senecalearning.com/2018-04/32b61cb6-d756-4f31-ae11-649c646892b8/shutterstock_788799448,h_400,q_80,w_640.jpg)
![Illustrative background for Diagonal integration ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-04/32b61cb6-d756-4f31-ae11-649c646892b8/shutterstock_788799448,h_400,q_80,w_640.jpg)
Diagonal integration
Diagonal integration
- Due to institutions expanding even further, being diagonally integrated is very common for the largest institutions.
- This means they have cross-ownership of a range of mediums and stages of production.
![Illustrative background for Diversification](https://image-v2.cdn.app.senecalearning.com/2018-03/dcafbd7d-6749-46fa-b63e-b1ebebffafe3/shutterstock_234083230,h_400,q_80,w_640.jpg)
![Illustrative background for Diversification ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/dcafbd7d-6749-46fa-b63e-b1ebebffafe3/shutterstock_234083230,h_400,q_80,w_640.jpg)
Diversification
Diversification
- Diversification is the process of an institution operating vertically in multiple industries which leads to them becoming diagonally integrated.
- As industries become dominated by large institutions, it can lead to less choice in products for audiences, as well as making it harder for independent companies to compete and survive.
![Illustrative background for Sony and Disney](https://image-v2.cdn.app.senecalearning.com/2018-05/2505f031-f3fa-42b7-ab5b-7d982c453641/shutterstock_692808937,h_400,q_80,w_640.jpg)
![Illustrative background for Sony and Disney ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-05/2505f031-f3fa-42b7-ab5b-7d982c453641/shutterstock_692808937,h_400,q_80,w_640.jpg)
Sony and Disney
Sony and Disney
- Sony and Disney are good examples of cross-ownership.
- They own multiple different companies across a range of industries.
- E.g. TV, Film etc.
- They own multiple different companies across a range of industries.
![Illustrative background for Independent institutions](https://image-v2.cdn.app.senecalearning.com/2018-09/c8040921-3e2d-40bb-9542-c17d1dc6cd66/shaking-hands,h_400,q_80,w_640.jpg)
![Illustrative background for Independent institutions ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-09/c8040921-3e2d-40bb-9542-c17d1dc6cd66/shaking-hands,h_400,q_80,w_640.jpg)
Independent institutions
Independent institutions
- An independent institution means that the stage of production is solely owned by a private company and no one else, including the government.
- Often the independent institution only owns one stage of production e.g. production - creation of the product only.
- In order to distribute the product the institution will need to work with another company to do this.
1Overview
1.1Media Language
1.3Representation
2Component 1: Section A
2.1Magazines
2.3Advertising & Marketing
2.4Print Advertisements
2.5Film Posters (Marketing)
2.6Newspapers
2.8The Guardian
3Component 1: Section B
3.1Video Games
3.3Radio
3.4No Time To Die
4Component 2: Section A
4.1Television
4.2Sitcom
5Component 2: Section B
5.1Music Video
5.2Michael Jackson
5.3Taylor Swift
Jump to other topics
1Overview
1.1Media Language
1.3Representation
2Component 1: Section A
2.1Magazines
2.3Advertising & Marketing
2.4Print Advertisements
2.5Film Posters (Marketing)
2.6Newspapers
2.8The Guardian
3Component 1: Section B
3.1Video Games
3.3Radio
3.4No Time To Die
4Component 2: Section A
4.1Television
4.2Sitcom
5Component 2: Section B
5.1Music Video
5.2Michael Jackson
5.3Taylor Swift
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