Industries: Ownership and control blog tasks

Media conglomerate research

Conglomerate Ownership

What brands, companies, or media products is the conglomerate best known for?

The Wall Street Journal (financial news and analysis).

The Times and The Sunday Times (UK-based newspapers).

The New York Post (US-based tabloid).

HarperCollins Publishers (global book publishing).

Dow Jones & Company (financial information and analytics).

REA Group (real estate services, including websites like realestate.com.au in Australia).

Vertical and Horizontal Integration

What examples can you find of vertical or horizontal integration for this conglomerate?

Vertical Integration: News Corp demonstrates vertical integration through its ownership of the content creation (e.g., news articles, books) and distribution platforms (e.g., newspapers, digital media platforms). For example, HarperCollins produces books, which are sold via News Corp’s digital and retail outlets.

Horizontal Integration: News Corp owns various newspapers and media platforms across different countries (e.g., The Times, The Australian, The Wall Street Journal), consolidating its presence in the global media market.

Convergence and Synergy

Find a media product or brand associated with your conglomerate. How has technology changed the way audiences access that product? What examples of synergy can you find in the promotion or distribution of the media product?

Technology’s Impact: Readers can access The Wall Street Journal via its website, mobile app, and subscription services showcasing a shift from print to digital media consumption.

Synergy: News Corp leverages its digital platforms, such as Dow Jones and news websites, to promote its other products (e.g., books from HarperCollins). It also integrates content across its newspapers, websites, and financial analytics services to enhance customer engagement and brand reach.

Diversification

What examples can you find of diversification for your conglomerate?

Book publishing through HarperCollins, which covers a wide range of genres, from children’s books to academic works.

Real estate services, such as REA Group and Move, Inc. (which operates Realtor.com in the US).

Digital services like data analytics and financial information via Dow Jones and Factiva.

Cross-Media Regulation

Can you find any examples of the conglomerate getting into trouble with government regulators due to their business model, attempted takeovers, or complaints from rival companies?

Phone Hacking Scandal: News Corp faced major legal and regulatory scrutiny after the News of the World phone hacking scandal in 2011. The scandal led to significant reputational damage and the closure of the newspaper.

Media Magazine reading and questions

Media Magazine 52 has a good feature on the changing relationship between audiences and institutions in the digital age. Go to our Media Magazine archive, click on MM52 and scroll to page 9 to read the article 'Two Key Concepts: The Relationship Between Audience and Institution'.

1) Briefly describe the production, promotion, and distribution process for media companies.

Production: Media companies create content that aligns with audience demands and desires, ensuring it offers the expected gratifications.

Promotion: Research identifies the target audience, and marketing strategies (advertising, campaigns) are employed to attract and persuade the audience of the media product's value.

Distribution: The product is delivered to the audience using the most effective methods (e.g., platforms, formats, timing) to maximise accessibility.

2) What are the different funding models for media institutions?

BBC: Funded by a mandatory TV license fee from UK households.

Sky One: Primarily funded through subscriptions, pay-per-view services, and advertising.

ITV: Relies on advertising revenue, with an emphasis on attracting a large audience to increase advertiser interest.

The MailOnline: Revenue is generated through advertising and user engagement (e.g., longer time spent on the site).

3) The article gives a lot of examples of major media brands and companies. Choose three examples from the article and summarise what the writer is saying about each of them.

ITV: Dependent on advertising revenue, ITV priorities programs that appeal to a broad audience, as larger audiences are more valuable to advertisers.

BBC: Funded by the license fee, the BBC’s public service remit allows it to focus on content that serves public interest, which sometimes includes less commercial programming.

MailOnline: The site thrives on engagement. Sensational or controversial content, along with multimedia elements (images, videos), keeps readers on the s ite longer, which boosts advertising revenue.

4) What examples are provided of the new business models media companies have had to adopt due to changes in technology and distribution?

Disney and Marvel: These companies have expanded their business models to include digital streaming platforms (e.g., Disney+), creating exclusive content and capitalising on the shift from traditional broadcasting to on-demand streaming.

5) Re-read the section on 'The Future'. What examples are discussed of technology companies becoming major media institutions?

Google: Owns YouTube, significantly changing how we access entertainment and information online.

Amazon, Netflix, and Yahoo: Have moved beyond being content distributors to creating their own TV shows (e.g., Transparent, Orange is the New Black), disrupting traditional TV networks.

Facebook: Acquired Oculus Rift, paving the way for immersive virtual reality experiences that could change how audiences engage with events and content.

6) Do you agree with the view that traditional media institutions are struggling to survive?

Yes: Traditional media institutions face challenges due to the rise of digital platforms, the shift to on-demand content, and declining audiences for traditional broadcasts.

7) How might diversification or vertical integration help companies to survive and thrive in a rapidly changing media landscape?

Diversification/Vertical Integration: By owning multiple stages of production, distribution, and promotion (e.g., owning both content and distribution platforms), companies can adapt to market changes, reduce reliance on one revenue stream, and respond to audience preferences more effectively.

8) How do YOU see the relationship between audience and institution in the future? Will audiences gain increasing power or will the major global media conglomerates maintain their control?

Personal View: While audiences may gain some power through tools like social media or content sharing, major media conglomerates will likely maintain control by shaping what content is available and through monetisation strategies (e.g., paywalls). However, the balance could shift as new technologies (like AI or VR) empower audiences to interact in more personalised ways.