In Company, they have adverts in between their

In this report, I will be covering many different subjects to
do with the media industry. This will help anybody interested in careers for a
media sector. This report will contain information about different types of
media ownerships, as well as ethical issues involved in these. This is to fully
give you knowledge of what is contained within the media industry.

 

PRIVATE OWNERSHIP

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A privately-owned company is funded primarily through advertisement.
For example, ITV is a private ownership and unlike BBC which is public service
Company, they have adverts in between their broadcasts allowing them to make
revenue to continue funding more shows. Another private owned company is
YouTube, which is a video broadcasting website which allows content creators to
upload and share their own videos to generate views, and eventually when having
enough of a following, money. The way that the content creators and YouTube
make their money is through ad-revenue, which they will gain when they have
earned a certain amount of ‘subscribers’ and views. The way this is done is
through a system called ‘Monetisation’. When a video on YouTube is ‘Monetised’,
Adverts will be shown throughout the video allowing both the creator and
YouTube to make money, so much money in fact that a lot of ‘YouTubers’ have
been able to use it as a full-time job. Having a privately-owned company can
have a lot of advantages, as some companies who want their products advertised
are willing to pay a lot of money to get it done. A disadvantage of private
ownership is that what is produced might not be exactly what the audience want,
whereas for companies such as the BBC, they research what the audience want
before producing a show, possible taking more of the audience’s interest.
Commercial broadcasting, also known as private broadcasting once again uses
advertisement to fund their broadcasts. These can often be the case with
Podcasts as it allows the public to create their own broadcasts and earn
revenue from doing so. However, this would only be the case for large podcasts
which would gain the interest of companies who would want to invest, smaller
podcasts would be independently owned meaning the fund themselves without the
help of advertising or the government.

 

PUBLIC SERVICE MEDIA

A public service company is purely funded through the government,
which everyone who uses a TV pays for with a ‘TV License’. A public service
company must listen to what the audience want. If the public complain, then
they will have to make changes to give the consumers what they want, and if a
show doesn’t get many views, then it will be cancelled. One of the biggest
examples of a public ownership is the BBC. The BBC is funded by the government
purely to inform, educate and to entertain, giving the audience exactly what
they want rather than what they want to create. This is an advantage for the
audience as the BBC do a lot of research into what the audience wants for all
ages, genders, sexualities and religions. A disadvantage of this is that a lot
of people don’t want to have to pay for a TV license, and would much rather
watch purely on demand, or sign up to other services such as Sky which doesn’t
only fund one channel. As well as TV, the BBC are also very well known for
their radio stations which is very interactive with the audience and like on
the TV, they are always making sure that they are playing what the audience
want to hear.

 

MULTINATIONALS

A
multinational company is a business which is distributed in multiple countries
around the world. An example of multinational TV Company is Comcast, which is
the largest broadcasting and cable TV company in the world by revenue, and
broadcasts to millions of homes all around the globe. Most film companies are
also multinational, this is to allow the creators of the film to gain the very
most out of the movie and as well as that there is no reason for it not to be
shared. This is especially the case as Hollywood, where most of the biggest
films are created is only in one country. A reason for a movie not to be shared
among a country is when the countries believe the movie will cause offence or
is too explicit for their population. For example, if a movie was to contain a
Nazi symbol along with relative content, the movie would most likely be banned
from being broadcasted in Germany. All this information is the same for Animations and Video games. They too are shared among all
countries, as there is no reason not to be unless the country doesn’t want it
being distributed there. An example of a video game being banned in another
country is the game ‘Wolfenstein’ a franchise about the protagonist who you
play fighting the Nazi powers and is set in a world in which the Nazis won the
First World War. This was banned in Germany for Nazi references.

 

CONGLOMERATE

A media conglomerate is a large
company who own several other smaller companies who distribute certain forms of
media to consumers. Viacom is an example of a conglomerate company, they own
multiple different television channels such as MTV, Nickelodeon, Global
Entertainment Group, CMT, Comedy Central, BET Networks, Logo TV and many more.

 

DIVERCIFICATION

Diversification in the media is
when a company decides to branch out into different media sectors, for example
a company does television broadcasting branching out in to radio broadcasting
or internet streaming, this is diversification as the company is diversifying
what they do, creating a more diverse company. An example of a company which
has diversified is most newspaper companies such as the Guardian Media Group
which originally developed newspapers but has since started producing online
new content and created radio stations on which they can share some of the
stories and events covered in their newspaper but in a much faster time frame.
Film companies can also be multinational, however on a slightly smaller scale,
for example they can create lots of completely different types of movies, and
the same goes for animation businesses.

 

 

 

VERTICAL INTEGRATION

Vertical integration is when a
media company owns several companies at different stages of production. Warner
Bros is owned by Time Warner, which is a huge multinational media conglomerate.
Harry Potter, a huge movie franchise, is a good example of how Warner Bros has
used vertical integration to increase the potential earnings from productions.
Harry Potter and the Deathly Hallows: Part Two was created by Warner Bros
pictures, in association with Heyday Films. It was then distributed by Warner
Bros Distribution.

 

HORIZONTAL INTEGRATION

Horizontal integration
describes the merging of two or more companies at the same point in the
production process in the same or different business. If the products offered
by the companies are the same or similar, it is a merger of competitors. One of the clearest examples of
horizontal integration is Facebook’s acquisition of Instagram in 2012 for a
reported 1 billion dollars. Both Facebook and Instagram operated in the same
industry and were in similar production stages regarding their photo-sharing
services. Facebook, looking to strengthen its position in the social media and
social sharing space, saw the acquisition of Instagram as an opportunity to
grow its market share, increase its product line, and reduce competition and
access potential new markets.

 

MEDIA
MERGER

A merger is an agreement that brings two existing companies
into one new company. There are several types of mergers such as the ones
talked about above. Mergers are commonly done to expand a company’s reach,
expand into new segments, or gain market share. An example of a media merger is
Time Warner and AOL. Time Warner had been looking for a way to embrace the
digital revolution, while AOL wanted to convert its stock price into proper assets,
because of this they banded together.

 

MEDIA
TAKEOVER

A takeover is when a company makes bids to take control of
another company to expand their business into other sectors. This is usually
made to be beneficial for both sides of the deal, such as a large sum of money.
An example of a takeover is with the video game Minecraft. Back in 2014 the
huge business Microsoft decided to invest into buying Minecraft after seeing
its huge success. They paid the original creator and owner of Minecraft around
2.5 million dollars for the game.

 

ETHICAL
ISSUES

In the
media industry, for all sectors, there is always forms of ethical issues that
must be worked around. These include offensive content, racism, sexism etc.
Ethical issues aren’t bad in a legal way, it is not illegal to distribute a
piece of work whether it be a film or game or a book that contains potentially
offensive content. However, it can affect the creator of this product or the
popularity of the work. One example is with YouTube, when it had first become
popular years ago, any ethical issues were expectable, but now, content
creators are being affected as if their content does contain stuff that is not
appropriate to some audiences, then it will be what is called ‘demonetised’.
When a video is demonetised, the creator cannot gain any money from the video,
and no advertisements will be contained within it.

 Television is similar. If a program contains
graphic or offensive content that may cause offence, other companies may not
want their products being advertised or not want to sponsor the program.
Another issue often involved in TV shows such as documentaries or news reports
are privacy. Often, a show will show something or tell something that may be
private or personal information about someone, something they may not have
wanted the world to know. If this does happen, the subject of the leaked
information can sue as they did not give permission for it to be broadcasted
and this can often bring down a shows reputation.

 For radio and news companies, there is often
many ethical issues. The main ethical issue with these is once again, privacy.
When it comes to news reports or talk shows, they tend to not consider the
respect of other people’s privacy and personal information. This can result in
people charging the companies as they had never given permission for their
information to be leaked.

 It is believed that kids watching violent
action movies can be brainwashed by them into committing crime themselves and
hurting or bullying others. This can often be a big issue as it is sometimes
the parents first thought when their child acts in a violent way a large
percentage of children watch extremely violent films. These movies tend to
leave psychological scars on a child. Child-based movies and cartoons do influence
the thinking and behaviours of millions of 21st century children.

 For video games, the impact it is thought to
have on children is also a very large problem, parents and other adults believe
that the mass amount of violence in video games is affecting children and
causing more bullying and other forms of violence. Another ethical issue in
video games is when a game has too much explicit or offensive content, this can
cause people to dislike the game or possibly have a biased opinion on any other
games by that company.

 When it comes to advertising, this is often the worst
for ethical issues. There have been countless adverts in the past that has
caused many complaints to ASA (Advertising Standards Authority) to get them
removed. A lot of adverts cause offence to certain viewers by expressing their
product in an unintentionally absurd and offensive way. One example of a
company doing this is the toiletries company ‘Dove’. In their advert they
presented a black woman and showed her removing her top where underneath she
had a white top and the woman was replaced with a different, and now white
woman. The advert was advertising soap and it is believed the point that was
supposed to be put across is that it is very good at making you clean, however,
the advert was viewed and reported as racist because it is considered to be
calling black people unclean.

 

LEGAL ISSUES

Copyright
is a form of protection for a creator, it allows the creator to have rights to
control the ways in which their material may be used. This is used to prevent
others from stealing your idea and making money from it. However, copyright
only protects your actual projects rather than the idea of it. For example, if
somebody created a shooter game, somebody else can create a very similar game
so long as it uses different graphical designs. You can copyright an
object/asset, but not the idea of it. Often, the creator will also have the
right to be identified as the author and to object to distortions of his work.
Copyright is an automatic right and arises whenever an individual or company
creates a product. To claim copyright, the work should be regarded as original,
and exhibit a certain amount of judgement or skill. Titles, names, short
phrases and colours are not typically viewed as unique/original or substantial
enough to be covered, however, something that combines these together, such as
a logo, might be. The offences that can be claimed as copyright
without consent of the owner are copying the work, renting or selling copies of
the work to the public, showing or broadcasting the work in public and adapting
the work. The creator of the work may also have moral rights to be identified
as the creator, or the right to derogatory treatment (deletion or addition and
changes to the work).

 The Broadcasting act 1990 is a law that was
passed by UK parliament to create a legal framework on the electronic
communication. The act contains
a provision on the regulation of independent television, sound programme and
other services provided by TV and radio frequencies.

 The Official Secrets Act 1989 replaced a section from the
Official Secrets Act 1911, under which it was a criminal offence to disclose
any official information without lawful authority. The 1989 Act creates
offences connected with the unauthorised disclosure of information in six
specified categories by Government employees. The categories are security and
intelligence, defence, International Relations, Information which might lead to
the commission of crime, foreign confidences and the special investigation
powers under the Interception of Communications Act 1985 and the Security
Services Act 1989.

The Obscene Publications Act 1959 applies to television
and covers material which is obscene, whether it is in a person’s possession or
it is published or broadcast. A TV broadcast is deemed to be obscene if its
effect or the effect of any one of its items is, if taken as a whole, has
tendencies to deprave and corrupt anyone who are likely, having regard to all
relevant circumstances.

The human
rights act was a law passed in 1998 allowing all British citizens to have their
own rights and freedom. Human rights are the basic rights and freedoms that
belong to every person in the world. They are the fundamental things that human
beings need in order to thrive and participate fully in society. The rights
that were given with this law are the right to life, freedom from torture,
freedom from slavery or forced labour, rights to liberty and security, right to
a fair trial, no punishment without law, respect for your private and family
life, freedom of thought, belief and religion, freedom of expression, freedom
of assembly and association, Right to marry and start a family, Protection from
discrimination, right to peaceful enjoyment of your property, right to
education, right to participate in free elections, and finally, removal of the
death penalty.

 The Human Rights Act 1998 has a real effect on
our everyday lives in the UK. It has been used to protect older people who are
being abused in care homes, to ensure that disabled children are provided with
transport to get to school, and to protect women from domestic violence.

The
international community has agreed several key specifications of human rights:
Human rights are universal, they belong to everybody in the world, Human rights
are inalienable, they cannot be taken away from people and human rights are
indivisible and interdependent, all the different human   rights are important for human beings to
participate in society.

 

REGULATORY BODIES

The Advertising
Standards Authority is the self-regulatory organisation of the advertising
industry in the United Kingdom. The ASA is a non-statutory organisation and so
cannot interpret or enforce legislation. This organisation reviews complaints
by the community for television advertisements. When they get a complaint they
review the advert to check if what the complaint says is true and whether it is
enough to have the advert removed.

The Office
of Communications, commonly known as Ofcom, is the government-approved
regulatory and competition authority for the broadcasting, Telecommunications
and postal industries of the United Kingdom. This company reviews television
shows and similar to ASA they investigate complaints. For example complaints
where made about a Big Brother live show as one of the cast swore before the
watershed when children could have been watching.

The British
Board of Film Classification, previously the British Board of Film Censors, is
a non-governmental organization, founded by the film industry in 1912 and
responsible for the national classification and censorship of films exhibited
at cinemas and video works. This organisation is who sets the age ratings of
all the movies released in the UK. The age ratings the use are U (Suitable for all),
PG (Parental Guidance), 12A (Cinema release suitable for 12 years and over), 12
(Video release suitable for 12 years and over), 15 (Suitable only for 15 years
and over), 18 (Suitable only for adults), R18 (Adult works for licensed
premises only).

The Press
Complaints Commission (PCC) was a voluntary regulatory body for British printed
newspapers and magazines, consisting of representatives of the major
publishers. The PCC closed on Monday 8 September 2014, and was replaced by the
Independent Press Standards Organisation. This organisation investigated
complaints from news reports and papers.