LEARNING AIM:UNDERSTAND THE KEY CHARACTERICS OF

MEDIA ORGANISATIONAL STRUCTURES

Structure of Media Organisations

ORGANISATIONS THAT OWN MORE THAN ONE COMPANY ACROSS A MEDIA SECTOR

Horizontal Integration

WARNER BROS ENTERTAINMENT CALLS ITSELF “A FULLY INTEGRATED BROAD BASED ENTERTAINMENT COMPANY”

WHICH OWNS FILM STUDIOS AND THE MEANS TO DISTRIBUTE THE FILMS AS

WELL AS SOME OF THE CINEMAS IN WHICH THEY ARE SHOWN.

WARNER BROS IN ITSELF IS PART OF AN EVEN BIGGER CONGLOMERATE CALLED

TIME WARNER WHICH IS A HUGE MEDIA CONGLOMERATE INSTITUTION WHICH USES HORIZONTAL INTEGRATION TO

CONSOLIDATE ITS POWER AND PROFITS.

Examples

Benefits and Drawbacks

Increased profit margins and market share

Greater influenceAgenda settingRationalised

operationsInstitutional

Synergies

Reduced choice and competition

Possible creation of monopolies and oligopolies

Reduce media plurality

Possible bias over balance

Control of information

Reduced workforce

ORGANISATIONS THAT OWN COMPANIES THROUGHOUT THE DIFFERENT STAGES OF

THE PRODUCTION PROCESS

Vertical Integration

Benefits and Drawbacks

Control over production

Distribution and Exhibition

Greater synergiesIncreased profits

Unfair economic and political influence

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Examples

SHARED OWNERSHIPS,COLLABORATION BETWEEN MEMBERS

DEMOCRATIC DECISION MAKINGSUPPORT NETWORKSHARED RESOURCES

PROFIT RETURNED TO MEMBERS

Co-Operatives

HORIZONTAL AND VERTICAL LADDER DRAWING

Activity