Changes in technology have had a major effect on the TV industry over the last 50 years. The advancements in technology have allowed television to adapt to the personalised preferences of the viewing audience. The development of television since it’s invention have greatly advanced to the extent that it has now become the ‘hub’ of homes across the world. Rupert Murdoch describes this change speaking in 2008, “I grew up in an age where your family read the same newspaper and you had a big box television set… and had maybe 2 or 3 channels. You are growing up in a digital world, where you send email on your cell phones, where you can listen to a history lecture on your iPod and where you use your laptop to reach people, all across the world. This is what I mean by creative destruction- every day, new technology is tearing down old ways of doing business.”
Television in Britain was originally broadcast via the service of Analogue television- working by broadcasting the image and sound separately via an analogue signal. Although the use of this started over 50 years ago, it still continues to be used and comes as standard in the majority of televisions bought today. However, in the modern world, it only provides a limited amount of channels including BBC1, BBC2, ITV1, Channel 4 and Channel 5.
Most TV sets now come with built-in freeview, however, those which don’t can still access this service via a separate freeview box, both of which provide over 50 free channels and a variety of digital radio stations. This service also provides the interactive ‘red button’ service, which many programs now use for audience polls and games, as well as entering competitions and voting.
Freeview, now has a rival service: Freesat, available in homes across the UK, provided a Freesat box and satellite dish is purchased. This service provides over 140 radio, TV and interactive channels and is quickly becoming a popular option across homes in the UK.
However the service of both Freeview and Freesat will not be available forever, with the ‘digital switch-over’ currently coming into action across the UK and completing in 2012. Analogue services will be disconnected at the end of 2012 completely, but this date varies regionally across Britain. Freeview services are now used on the main TV sets by 41% of all households in Britain, on the subject of this Ofcom says, “With the UK’s digital switchover program under way and due to complete in 2012, by the end of 2009 over nine in 10 households in the UK had a digital television service.”
Television can now be accessed in new ways which make it easier for the viewer to watch at a time convenient for them. Using services such as Sky Plus, Virgin On Demand and Tivo enable the viewer to record programs at their convenience, fitting viewing around their lifestyles instead of around the timetable of the channel itself. Another feature of these is that live programs can be paused, rewound and fast-forwarded, making watching programs using these providers a much more personalised experience than watching regular freeview television. Sky Plus also enables viewers to record an entire series of a program, leaving them ready to watch at the viewer’s convenience.
Virgin also provides it's version of this service, with Virgin On Demand allowing audiences an almost identical experience, with the features of pausing, re-winding and fast forwarding television and recording live TV. Tivo is the American alternative, allowing viewers to record more than one program at a time and is now being made available in the UK, introduced by the company, Virgin Media.
Television is no longer exclusively a viewer-television set relationship. It is becoming a much more interactive experience, with interaction between the viewer and the program becoming much more personal with the creation of the ‘red button.’ Audiences at home can get involved with the program by using interactive services such as this on digital sets, enabling them to interact with the show itself and vote, answer quizzes and partake in competitions. Also available as part of this interactive service are news and sports updates, weather forecasts, games for children and adults and business news. On some music channels, viewers can even used their red button and text into the channel and comment to other members of the viewing audience alongside the music that is playing.
TV is also available to watch on demand on the Internet, with the majority of channels providing an online service, which allows the audience to watch a program which has previously being shown on the TV. The BBC calls it’s website, ‘iPlayer’ with ITV having, ‘ITV Player’ and Channel 4 naming theirs ‘4OD.’ The majority of prime-time programs are posted onto these sites and are available for ‘catch-up’ for free. However, the BBC is the UK’s PBS (public broadcasting service) and so is paid for by the TV license fee of £142.50 per annum by every home in the UK in ownership of any form of interactive media. The BBC iPlayer is included into this service as so is also funded by this payment. However, many people use the iPlayer’s services without a TV license as it is free to access the website. Mr Huggers, a former Microsoft executive, said: '”I do know we are seriously looking at what is the impact on new digital technology on something we currently call the TV licensing.” With the possibility of charging for the use of the ‘iPlayer’ service, a poll on the ‘Daily Mail’ website posted in June 2009 asked it’s online readers if they would pay for a license to watch BBC iPlayer, the response being 5% of readers saying ‘Yes’ and 95% saying ‘No.’ This raises the question of whether internet television is infact harming the media companies, rather than benefiting them as is commonly thought.
The internet is not just used for watching television, as consumers can also now purchase television through the Internet via programs such as ‘iTunes’ on which either an entire series or just one episode can be purchased to play on the users iPod/iPhone and computers. There are also many other forms of using the Internet for viewing and buying television programs. In a speech by Rupert Murdoch in 2008, he explains how the Internet has helped television to advance. Speaking on the subject of the American show ‘24’ he says, “we put it up on a site called hulu.com, there you can watch it for free along with hundreds of other programs. You can even tweak the advertising to gear to your own particular interests…”
In the 1950’s and 60’s a single television program could attract as many as 32.20 million viewers, this example being the 1966 world cup England vs. Germany final, which remains the program with the highest audience figures of all UK TV since records began in 1955. This is a remarkable figure as the ‘Daily Mail Online’ states, “The World Cup winners' rating is all the more remarkable because only 15 million households had a TV set...” A small figure in comparison to today’s 26 million.
One of the largest grossing shows In terms of viewing figures in recent times is the X Factor, with the 2010 live final of the show gaining 19.4 million viewers, (the highest-rated non-sport TV program for 9 years.) According to the Telegraph, “Almost one in three of the UK population - amounting to 60 per cent of the people who were watching television at the time (tuned in.)” Despite the seemingly large viewing figures continuing, in comparison to the 32.2 million people watching in 1966, the figure seems minimal. The reason for this decrease in viewer rating is speculated, but it seems the explosion in TV channels and media available since the 1966 World Cup is partly to blame. From 1964, there were 3 channels available on TV sets, (BBC1, BBC2 and ITV1,) meaning there were only 3 programs to choose from at any one time. Combined with the fact that due to the expense, households often only had one television set each, the majority of families across Britain would all watch the same program, giving each program a much higher viewing figure than today. Replacing the narrowcasting of the past 40 years is the wide range of channels available on Freeview, Sky or Virgin. The broadcasting of channels today means that the number of people watching each program is more fragmented, with forms of media such as the BBC iPlayer and Sky Plus being available for people to ‘watch later’ as apposed to the 1960’s, when each program was only available once. Each household today, often has more than one television set; meaning members of the same family are able to watch their own separate programs- again fragmenting the viewing figures of each television program. TV historian Laurence Marcus, creator of the Television Heaven website, said: "In the Fifties, Sixties and Seventies, sitting down in front of the TV was the family's entertainment for the evening. In 15 or 20 years from now, TV will change because of multi-channel TV and splintered audiences."
The ‘Uses and Gratification theory’ created by Blmer and Katz in 1974 states that people use the media for a specific purpose, specificaly to them as an individual. The 4 main reasons were, diversion, personal relationships, personal identity and surveillance. Despite the more fragmented audiences and advances in technology, I believe that the uses and gratifications theory is still relevant today. Television and film are still widely used to divert from everyday life and build personal relationships between people who have seen them. The 21st century has brought advancements in technology to the stage where everyday the media influences us be it by the radio, magazines or advertisements, henceforth why television programs and films have become such a major part in our lives. This means that people are more aware of the television shows and films around them and it has become almost ‘fashionable’ to know the latest shows being released. This fulfills the function of personal relationships.
More than ever we depend on television and the media to find out the latest information as it can be accessed instantly with news channels, Teletext and internet giving updates 24 hours a day. These forms mean that surveillance is also an increasing part of the uses and gratifications theory.
One form of the theory that may have continued to be used at a steady rate is diversion. Television has continually being used as a way to escape from everyday life, with soaps and dramas being used to divert the audience from their problems and into those of which we see on screen. This continues to occur in modern-day media.
With the increased broad casting of television, there are now more channels available for people to watch. With this comes a wider range of programs, each with it’s own specific purpose and primary target audience, meaning even the narrowest of target demographics now has a show which appeals to their personal interests. This inevitably means that each individual audience member can find a program which interests him or her and which they can relate to more specifically than ever before when there was only a limited number of channels and forms of media available. This therefore means that the uses and gratifications theory of personal identity applies more today than ever before.
With the TV and film industries being so closely linked, it’s inevitable that with advances in one area, they will soon follow in the other. With the digital TV revolution of Sky and Virgin Media taking place with television, the film industry were quick to latch on, bringing watching movies through the television into homes across the United Kingdom. Sky have an add-on package to their pay-monthly bundle which enables the household to view 12 extra channels dedicated to a specific genre of films which run all day and night. They also have the Sky Box Office, in which viewers pay a fee starting at £3.99 to view the latest releases starting every couple of hours in a cinema-style way. Both of these options are also available in HD, making watching films at home a much more cinematic experience.
Using the Virgin Media service, films can also be watched in an almost identical way to that of Sky. Virgin’s ‘On Demand’ film service is powered by ‘FilmFlex,’ which allows the viewer to pay and ‘lease’ the film for 24 hours and watch at their leisure. Virgin Media have also latched onto the fashion of watching films online, creating and add-on to their website enabling customers to purchase a film for rent and watch it online.
Sites such as hulu.com, (only available in America,) enable viewers to watch their favorite TV programs and a range of films online and on certain TVs at their leisure. The service is expanding into other forms of delivering entertainment, bringing it’s service through gaming products such as the Sony Playstation 3 and the Xbox 360. As well as being able to watch films and TV on the Internet, it has an app available in the iTunes store which allows programs to be viewed on Apple ipods, iPhones and now iPads. It is also being developed to work alongside the American product, ‘Roku,’ which is, “a small device that streams movies, TV shows, music, and other entertainment to your TV via the Internet.” This service is also available in HD.
There are many other services which allow films to be watched using the Internet. To mention just a few, iTunes allows films to be watched, even on mobile devices, and LoveFilm.com. However, it’s not just legitimate sites making watching films online easy, there are many websites readily available to download and watch films for free. Although this is an illegal act, piracy is becoming increasing popular as it allows people to view films they would otherwise have to pay for, for free. Sites such as YouTube have films posted to them, however, there are many illegal sites specifically for pirate films.
However, with the increase of films being watched online, a decline in sales in the DVD industry occurred. An article featured in The Media Guardian reports, “The Digital Entertainment Group; and the British Video Association says DVD sales fell 5.6% last year.” According to Paul Dempsey, the director of BBC Worldwide Home Entertainment division, "There'll still be collectors and gifters who want high-quality, beautifully packaged DVDs. What is more challenging for us is those consumers who used to come to DVD in distress because they missed an episode and had to wait for the DVD. Now they are being satisfied by great on-demand services like iPlayer." It is also claimed that with the reduced income from DVD sales, fewer films and ambitious TV project are being given the go-ahead.
But it is not just the online market that is stealing the glory of the DVD, since the introduction of Blu-Ray into the commercial market in 2007, sales of DVD have begun to decrease. The Digital Entertainment Group says, “The DEG estimates that the number of Blu-Ray playback devices in U.S. households soared to 17 million in 2009, up 76 percent compared to year-end 2008.”
Technology in the film industry has advanced at an astounding rate. Rather than just watching a film in black and white, technology now allows films to be viewed in vivid colour, especially now with the enhancement of 3D. This novel, new experience gave the film industry a refreshing new image and brought in huge viewing figures for the films which used this technology.
The technology behind 3D is no longer an experience exclusively for the cinema. DVDs are now available in 3D, allowing viewers to watch films in 3D in their own homes. This has now advanced even more, with the introduction of 3D televisions into the commercial market.
The Internet is another form of technology which has had great affects on the film industry. Social networking sites such as ‘Facebook’ and ‘MySpace’ allow advertising to become much more specific to the target demographic of the film. Twitter is another site which allows the public and filmmakers to become closely connected, therefore is another free format of personalized advertising.
In conclusion, the television industry has changed significantly since it’s first introduction into homes across Britain. Advancements in technology have given us countless more options in choosing what we watch, when we watch it, what advertisements we are shown and the information we are fed. The changing in television and film technologically has shaped the public’s way of viewing films and programs in a way which would not have even being dreamt of when television first began. With the changes in continuing to happen at such a rapid speed, it seems the television and film industry show no means of slowing down their advancements any time soon.
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Task 2: Choose a TV broadcasting organisation, such as, Sky, BBC, ITV, Channel 4, and create a short case study on how your chosen organisation uses technology at the moment and how it is looking to use technology in the future.
HBO is an American based company and owned by Time Warner and was the first cable network to originate as a non-terrestrial broadcast TV network. Famous for it’s world class dramas, the first of which begun in 1997, HBO is one of the major broadcasting companies in the world and is available in over 50 countries outside the US across Latin America, Europe and Asia. It claims to be ‘America’s most successful premium television company’ with 41 million US subscribers, (approximately a third of houses.) The main content of the channel is dramas, but it also features documentaries, comedy, sport and movies. It has created many iconic American dramas such as Sex And The City, True Blood, Six Feet Under and The Wire, which are now world famous dramas which set the standard for others of their genre.
It currently broadcasts as a singular channel in America and the other 50 countries and is also available in HD. HBO On Demand is another part of the channel which allows audiences to watch shows which have previously being aired again. In the future HBO are launching HBO GO, which will make programs available to watch via iPhone, iPad and Andriod for subscribers to HBO. It will also allow users to create a ‘watchlist’- a list of their favourite shows which then makes the series of these easy to access. HBO’s programs are also available on the Internet across America to watch at subscriber’s demand. Although HBO as a singlular channel is not available in the UK, audiences in the UK can still watch some it’s most popular dramas via SKY, which shows some of these on it’s SKY channels. In the future, a new channel SKY Atlantic will bring a combination of American channels together, which includes HBO, for viewers in the UK to enjoy.
It is widely rumored that HBO are moving into the market of 3D television. It is rumored that the HBO 3D movie channel will become introduced to the American market from summer 2011 and then an additional HBO 3D HD channel will be introduced later into the year. However, there are no claims from HBO that this is either true or false, so can only be labeled as speculation.
http://corporate.sky.com/media/press_releases/2010/sky_atlantic.htm
http://www.mediaowners.com/company/hbo.html
http://www.hbo.com/#/about/faqs/international.html
http://www.tvpredictions.com/hbo010411.htm
Task 3: How is the TV industry funded and how does this effect programming? (Include a breakdown of British TV – who are the main players?)
The TV industry in Britain in a very complex business, it primarily has 5 main channels, these are BBC1, BBC2, ITV1, Channel 4 and Five. All channels which broadcast on terrestrial anologue television are all PSB channels (the 5 listed above,) and therefore must provide TV appropriate for all viewers. The BBC is the UK's PSB (public service broadcasters) and is funded by the TV license- a sum of £145.50 paid annually by each household in Britain. The BBC are therefore obliged to provide a service suitable for everyone, therefore programs on both radio and TV must be made with the interests of all target demographics in mind. The PSB service is an important feature to have in the UK as it provides a wide range of television for every audience. It is also important as it is an impartial channel, as it is not privately owned so has no biased view on subjects which arise in news and programs of a serious nature. The PSB is also viewed as an asset to our country, as it brings quality television to the country, bringing people together via it's programs. Stephen Fry, TV presenter, recently said, "Isn't the whole point of the BBC, as a major channel, a real player in TV production across the spectrum of genres and demographics? Isn't the whole point of the BBC, its ability to draw audiences into public broadcasting servicing by virtue of their loyalty and trust in a brand which provides entertainment too." The BBC takes risks with the programs which it creates, however, unlike it's competitors such as ITV, it has a constatnt revenue stream in the form of the TV license fee, which does not fund the other channels. Privately owned channels such as Five and ITV1 produce 'safer' products, as taking risks looses them money, which to these smaller companies is much more damaging. Therefore, the range of shows broadcasted is less risky and has less variety as it 'plays it safe' with more standard programs than the BBC.
The future of PSB is however uncertain, with suggestions of privatization becoming imminent. The TV licensing company have suggested diverting some of the funding from the payment of TV license to other channels such as ITV1 and Channel 4. This would mean that the BBC would loose some of it’s funding which is used to create the wide variety of programs. This would also mean that the BBC would create less niche programs that are specifically made to suit the extreme niche markets. It would also have the effect of allowing the other channels to create more niche programs, therefore becoming much closer competitors to the BBC.
TV companies such as SKY and Virgin encourage their audience’s to subscribe to their format of broadcasting. Audiences can subscribe to the services of SKY and receive their television through SKY’s services and then ‘add-on’ packages to supplement the standard range of channels provided. Using SKY as an example, extra channels such as SKY Box Office and SKY Movies can be added to the subscription and paid for. This enables viewers to watch the movies which they want as on Box Office, films are paid for separately therefore allowing the viewer to chose specifically what they want. Once subscribed SKY often encourage their customers so subscribe to more channels via the ‘add-on’ of packages which provide them with a new range of channels to watch.
In America, the channel HBO (which is becoming increasingly popular in the UK,) is another channel which is available to subscribe to. As well as allowing audiences o watch the programs they desire, it also allows audiences to watch HBO programs on their iPhones, iPads and Android phones. The company DirecTV are another subscription company, however they allow customers to record programs on their televisions via their mobile phones and computers.
Another form of subscription is pay-per-view. SKY Box Office is one form of this as previously discussed. Pay-per-view is available in one form or another by the majority of broadcasting networks and works by customers paying for each program they desire to watch. For example, movies and major sports are popular programs on pay-per-view as they are ‘one-offs’ and so only require a small payment every now and again, rather than paying for a channel which may only provide one program or movie of interest. This format is especially popular in America, with events such as major baseball games and the superbowl being major TV events across the country.
Many companies sponsor either programs, films or strands of programming as a form of advertising. One example of this is ‘We Buy Any Car’ who sponsor the ‘motoring’ on Dave. This allows them to sponsor every program on this channel which is focused on motoring and gives them sponsoring slots for programs which people of a specific target demographic will be watching. Therefore they can select a strand of programs which have a similar target audience to that of their company to allow them to target a specific niche market of customers. Furthermore, the companies will often become an icon associated with the genre or strand of programming they advertise and become anchored to this- adding to their advertising. Brands often sponsor programs which have a similar target demographic as themselves, allowing for maximum viewing potential by their potential customers. They may also advertise programs which are of a similar topic or genre as theirs, or on a program which has a similar ethos or formality to maximize their potential. One example of this is the program Friends which is sponsored by Mars Planets, a chocolate which may appeal to the young target audience which the show has.
Niche audiences are attractive to advertisers as they contain a specific group of people from the same target demographic. This means that advertisers are able to select the group of people they want to aim their advert at very specifically, so are able to target a select group of people without people who are not interested in their product watching the advert.
Companies have taken advantage of the range of ways in which TV is now broadcasted by placing their adverts in a range of formats. One example of this is the placement of adverts on demand services such as BBC iPlayer, where audiences will see the adverts when viewing programs on demand. Adverts can also be placed during the programs on these on demand services and set so that veiwers cannot skip over it. This ensures advertisers have their advert viewed as when placed on the television, it can be paused and skipped over. Another way in which advertisers are using the new format of broadcasting is placing adverts with companies to target a specific group of subscribers, for example, subscriber’s to Sky Sports channel only. These adverts target a niche market, however, will allow advertisers to reach a wide group of people in various ways.
Product placement is commonplace on American TV shows and films, however it is currently illegal in the UK. However, Ofcom have recently announced plans to make product placement legal, as long as it is within a strict set of guidelines. According to Ofcom, “Product placement will be allowed in UK TV programmes for the first time, Ofcom confirmed today. From 28 February 2011, paid-for references for products and services will be permitted in programmes.” The strict set of rules which will govern the product placement on British television include:
• Restrictions on the types of products that can be placed.
• Restrictions on the types of programmes in which products can be placed.
• Limits on the way in which products can be seen and referred to in programs.
In accordance with the guidelines, a new product placement logo must appear on the screen for 3 seconds before the program and then at the end of each ad break.
Product placement cannot be shown on children’s programs, news programs and in UK-produced current affairs, consumer affairs and religious programs. The product placement of tobacco, alcohol, gambling, foods or drinks that are high in fat, salt or sugar, medicines and baby milk is banned by UK legislation.
OfCom have also changed the rules of sponsorship so that, “sponsors will be able to product place in programmes they are sponsoring, and sponsor’s logos will be able to appear as brief sponsorship credits during programmes.”
http://www.tvlicensing.co.uk/
http://www.youtube.com/watch?gl=US&hl=uk&v=nfThhtVB3lc
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http://media.ofcom.org.uk/2010/12/20/rules-for-product-placement/
Task 4: Write a report on the film industry covering the following points….
The difference between mainstream and independent cinema.
What is Bollywood?
The studio system in Hollywood, who are the big players?
The British Film Industry – who are the main players?
What has happened to the British Film Council and how might this effect the British film industry?
Mainstream cinema incorporates all films created in Hollywood in one of the 18 Hollywood motion picture studios. The creators of these films are large production companies who use large-scale advertising to promote their films. As they are created by large multi-million pound companies, they often introduce and use world-famous actors and actresses and can afford to include the best special affects available. An independent film differentiates itself from a mainstream film as less than 50% of it's budget must come from a mainstream cinema company, whereas with mainstream cinema, the entire budget is provided by the company itself. These films are often distinguishable by the style in which they are produced, as it is often heavily influenced by the director's vision rather than that of the mainstream company. Independent cinema is essentially cinema which isn't created in one of the 18 Hollywood Studios, or by any of the 'big 6' cinematic companies.
Bollywood is essentially India's version of Hollywood. Films are made in India with the 'H' from 'Hollywood' being changed for the initial letter of the town in which it started, Bombay, (which is now known as Mumbai.) It produces films in Hindi dialogue and produces more films each year than Hollywood. This figure is estimated at over 1,000 a year. Bollywood films are easily distinguished by the musical element, as the majority are musicals containing elaborate dancing and singing. Films from here are popular across Asia and Arab countries, however, less popular in American and English cinema.
In Hollywood the main players in film-making are the 18 biggest studios. The first studio was built in Hollywood in 1913 and since then, the business of film in Hollywood has boomed, making it the film-capital of the world. The main 18 studios are: M-G-M Studios, Song Pictures, Paramount studios, Warner Bros Studios, Walt Disney Studios, Universal Studios, 20th Century Fox Studios, MGM Plaza, Culver Studios, Charlie Chaplin Studios, Warner Hollywood Studios, Sunset-Gower Studios, Raleigh Studios, Hollywood Center Studios, Ren-Mar Studios, Paramount Ranch, Manhattan Beach Studios and Dreamworks.
The British Film Industry is supported by the UK Government, which back the UK Film Council. This company was founded in 2000 with the brief to "create a self-sustaining UK film industry." Over the past decade, it has given over £160 million of Lottery money to help with the funding of over 900 UK productions. UK film grossed $2 billion at the worldwide box office last year, with the main studios in the UK being: Pinewood Studios, Shepperton Studios, Elstree Film Studios, Ealing Studios, 3 Mills Studios, Twickenham Film Studios, The Paint Hall, Dragon Studios.
The British Film Industry is changing, with the current UK Government axing the UK Film Council. This will mean that the funding which has being previously provided by the UK film council will no longer be available for the production of UK films such as Bend It Like Beckham and Street Dance 3D which have previously used this funding. However, according to the DCMS, the funding will continue but will be distributed through other bodies. This suggests that the British film industry's funding will continue, however, the format of which it is distributed will change.
http://www.seeing-stars.com/Studios/index.shtml
http://en.wikipedia.org/wiki/Film_studio
http://www.associatedcontent.com/article/1972512/indian_film_industry_what_is_bollywood.html?cat=40
http://ezinearticles.com/?About-The-Hollywood-Film-Industry&id=1099434
http://www.guardian.co.uk/film/2010/oct/07/film-season-uk-film-council-xan-brooks
http://www.ukfilmcouncil.org.uk/vitalstats
http://www.ukfilmcouncil.org.uk/studios
http://www.bbc.co.uk/news/entertainment-arts-10761225
Task 5: Ownership and control – Does it matter who owns the media?
Who are the big six media conglomerates and how much of the world’s media do they own?
How have the Big Media conglomerates used horizontal and vertical intergration, in order to become the major players in media industries?
It is a common misconception that the world’s media is owned by a multitude of companies from around the world- each with ownership of one or two companies which provide us with the media we watch. However, this is far from the truth, as 6 media conglomerates, otherwise known as ‘the big six’, own the world’s media.
These companies are: General Electric, Walt Disney, News Corp, Time Warner, Viacom and CBS and between them, they own over 90% of all media. Compared with 1983, when over 50 companies owned the media, they ownership of this has since become much more stricter, with just 6 giants feeding us the TV, radio, internet, magazines and news which we consume. Taking Walt Disney as an example, this company began with creating films and now owns television networks including 229 ABC stations which reach over 99% of American homes, Walt Disney production companies, a variety of cable networks including ESPN, international channels, independent TV programs, 227 American radio stations, a record company, magazines, a range of book publishing companies, Marvel Comics, websites and a broadband company… and the list continues.
As seen with Disney, the companies own a large sector of the media in America, however, the big six have expanded their ownership into different industries, using horizontal integration to move their business forte into new areas. Taking General Electric as an example, ownership no longer remains soley of companies in the media industry. In addition to the multitude of media related companies which General Electric own, they have expanded into new industries such as military production and now own manufacturing companies for fighter jets, planes, helicopters, tanks and more. They also own theme parks, Universal Studios is owned by them, as well as NBC stores, finance companies, Aviation services, healthcare companies, industrial manufacturers and fleet services. Each of the big 6 has used horizontal integration to expand their empire and so now own a variety of companies across many sectors. By creating or buying out other companies they are making the variety of companies they own much larger and are therefore becoming even more dominant players in almost all industries they have a company in. As they own a variety of companies, it allows them to become almost 100% independent, as they no longer rely on other companies, they can use their own when needed- a much more cost effective method for them, however this leaves the industries much more heavily dominated by a few large companies rather than a range of equal competitors.
One of the largest business deals in history was the merger of AOL and Time Warner ,which created a company worth $350 billion. This deal was largely unwanted it would create yet another large company which would therefore have significant control over the media market. This merger of two media companies is an example of vertical integration in the media industry and has since created a very powerful company. However, according to popular opinion in the media market, the larger companies get (and the combined AOL Time Warner would be one of the biggest companies of them all), the more difficult it becomes for them to respond with the agility necessary for success in this most competitive environment. However, the big six seem to be adapting to the change very well, as their profits and ownerships boom. The deal was accepted by the Federal Trades Commission, the chairman, Robert Pitofsky, of which said, "In the broad sense, our concern was that the merger of these two powerful companies would deny to competitors access to this amazing new broadband technology, this order is intended to ensure that this new medium, characterized by openness, diversity and freedom, will not be closed down as a result of this merger."
Our media in the 21st century although technologically advanced, comes from very few sources, leaving a very biased sense of which news and entertainment we absorb from the media. Seemingly our media comes from a variety of sources, with each newspaper or TV channel telling a story in a slightly different way, however, the raw information, which these create their shows/articles from, comes from a very limited amount of sources. Time Warner, one of the big six, dominates a large sector of UK market. In the UK it owns IPC, the biggest magazine publisher reaching over 50% of the population.
http://www.freepress.net/ownership/chart/main
http://news.bbc.co.uk/1/hi/business/597782.stm
http://news.bbc.co.uk/1/hi/business/597169.stm
http://news.bbc.co.uk/1/hi/business/597388.stm
http://www.mustaqim.co.uk/ipb-archive/commonsense/37ownership.htm
