Ownership Definitions
Multinationals
a large corporation with operations and subsidiaries in several countries
Independents
refers to any form of media company, such as radio, television, newspapers or the Internet, that is free of influence by government or corporate interests.
Conglomerates
a company that owns large numbers of companies in various mass media such as television, radio, publishing, film and the Internet
Cross-media
A company that operates in different sectors of the media, for example the BBC has radio, television and interactive media interests
Diversification
It seeks to increase profitability through greater sales volume obtained from new products and new markets. For example Virgin Media moved from music production to travel and mobile phones.
Vertical Integration
Is when one organisation owns companies at all stages of the supply chain. In films this means a conglomerate owns:
(a) The company which made the film,
(b) The distributors and
(c) The cinemas in which the film is shown
Horizontal Integration
Where one company owns a range companies that work together on the same project. For example, within a conglomerate, the content used in broadcasting television would be used in broadcasting radio as well, or the content used in hard copy of the newspaper would also be used in online newspaper website.
Mergers and takeovers
A merger happens when two firms agree to go forward as a single new company rather than remain separately owned and operated.
When one company takes over another and clearly establishes itself as the new owner, the purchase is called an acquisition.