Tuesday, 26 February 2013

Structure & Ownership of Media Industries

These days there are many different types of media including:


  • TV
  • Film
  • Animation
  • Advertising
  • Internet
  • Games
  • Mobile
  • Publishing
  • Radio
  • New Media
Film

The film industry is a huge sector of the media industry. The major business centres of film making are in the United States, India and Hong Kong. In Europe; France, Italy, Spain, United Kingdom and Germany are the countries that lead movie production.

When we talk about the film industry we are referring to six different parts:
  1. Development
  2. Production
  3. Facilities
  4. Distribution
  5. Exhibition
  6. Export
It is hard to say how many people are employed in the film industry as the nature of the film industry means that production companies are most likely set up for a production and then close down when the production is complete. The majority of people who work in the film industry work 'freelance' so they are always looking for jobs. According to Creative Skillset's research, there are around 400 registered production companies in the film industry, however they state that the figure depends on the number of productions being worked on at any one time.

Some examples of companies who are involved in the film industry are Dreamworks Studios and Film4 Productions. 

These companies are profitable because they have been responsible for very successful films such as Shrek, Kung Fu Panda, Never Let Me Go and Trainspotting.


DreamWorks Studios logo.svg    Logo of Film4 



Television


The television sector is another huge one of the media industry as it is still one of the most popular forms of entertainment and information. According to Creative Skillset, the average British viewer still watches twenty hours or more per week. However, the rapid growth of the internet and interactive media is competing strongly for audiences and revenues.

According to NGRF there is a total workforce of around 76,000 (including broadcast TV, cable and satellite TV, independent production for TV, facilities, animation, distribution and performance) made up of 30,000 staff and 46,000 freelancers including an estimated 13,000 who were not working on Census day.

Television produces television series, one off television programs, documentaries and films. The main companies involved in the television industry in the UK are BBC, ITV, Channel 4, SC4 and five. 

The BBC is owned by the UK state and the government funds the BBC by charging all UK television viewers a license fee (£145.50 per year)Channel 4 is a publicly owned corporation whose board is appointed by OFCOM, in agreement with the Secretary of State for Culture, Media and Sport. However, unlike the BBC, Channel 4 doesn't receive any public funding and is funded by its own commercial activities.
                                                      

Television has been around since 1925, when the Scottish inventor demonstrated the first television to the public. It was used for the very first public broadcasts in 1929 by the BBC in London.


Users are able to interact with television so much now, especially as most of us have Interactive TV installed in our homes. Users can also interact with TV by using the telephone to call in or text and by using social media websites such as Facebook or Twitter.


Television is profitable and in my opinion perhaps one of the most profitable types of media. The statistics for number of viewings for the week 11 to 17 February are shown below. As the graphic shows, BBC is the most popular channel as it is a public service channel which provides news and other useful content. (Statistics taken from BARB)


Radio

I think that most people listen and interact to the radio in their car, as now we have iPods and websites like YouTube that might prefer over listening to the radio. Not so long ago people bought radios to use in their homes and I think this has changed dramatically. Personally, I don't like listening to the radio because I get bored of the presenters talking, the adverts and hearing music that I don't like.

Some of the companies involved in the radio industry include BBC (Radio 1, 2 and so on), Cool FM, U105, Heart, Capital FM and Classical FM. I think that the radio industry is underestimated as it is growing steadily and now employs over 22,000 people in a wide range of occupations. Employers range in size from the BBC and other larger commercial radio groups to non-profit radio stations ran by volunteers. - http://www.creativeskillset.org/radio/industry/article_3542_1.asp 

Analogue is the traditional way of broadcasting radio and includes FM and AM (medium, long and short wave) radio. Digital is the new way of broadcasting radio, a digital signal codes the sounds into 'computerised' data and then has to be turned back into sounds by a decoder. Digital Audio Broadcasting (DAB) is the transmission signal used for digital radio. The industry is working towards a digital switchover for radio in 2015. - http://www.bbc.co.uk/reception/info/jargon.shtml
  Radio screen                         Digital Audio Broadcasting


Cool FM is a commercial radio station owned by Bauer Radio and part of Big City Network. I think that this radio station is profitable as the breakfast show is award winning and is the most listened to commercial radio show in the marketplace. Cool FM is the biggest co promoter of concerts in the Belfast area.













The BBC own 16 radio stations and these are funded by the license fee of £2.11 per month per household.  The BBC use the annual license fee they receive from the public for their television, radio and online services. - http://www.bbc.co.uk/aboutthebbc/insidethebbc/whoweare/licencefee/


New Media

New Media is a very general term used to define all that is related to the internet and interaction between technology, images and sound. New Media evolves and changes continuously and it is hard to predict how the industry will change. The New Media industry is a huge sector in this industry and I think it will forever be growing.

Users interact with New Media using the internet on either their computers or smart-phones. Examples of New Media include social networking sites such as Facebook and Twitter as well as blogs on Blogger and videos on YouTube. 

Another form of New Media would be Smart TV. Smart TV enables the user to access Internet TV such as BBC iPlayer, online interactive media such as movies and photos as well as cable television. Some companies who make Smart TV invlude Sony, Apple and LG.

 < Apple TV; "Apple TV with 1080p HD gives you access to the best content — blockbuster films, TV programmes, sport, your music and photos, and more — on your widescreen TV. You can even play content from your iOS devices on your TV using AirPlay."

Below is an image illustrating Smart TV interaction with external hardware.

File:Smart TV interaction.svg
It is hard to say how many people are employed in this sector as it shares an open association with different sectors such as Film and Television. However, Facebook employs 4,619 people as of December 31, 2012. -  http://newsroom.fb.com/Key-Facts 

Looking at the likes of Facebook and Twitter, who are two of the most popular sites in New Media, you can immediately tell that they are making a lot of money even though they are free to use. For example, Facebook now sells a lot of space of adverts and serves as a host site for a lot of games. In May 2011, Facebook was valued at $100 billion. - http://www.zdnet.com/blog/facebook/how-much-is-facebook-worth/8351

A lot of companies are involved in new media now because it is a good marketing strategy. Companies recognise that everyone is using new media and all have access to social media, so they take the opportunity to interactive with audience or potential clients. To support this even more, statistics show that Facebook had 618 million daily active users on average in December 2012. It is a profitable strategy.

Animation

Despite the recent global economic crises, the animation industry across the world has continued to grow at a rapid pace. This industry gives employment to thousands of prospective 2-D and 3-D animators every year. - http://www.jagranjosh.com/careers/animation-1286366197-1 
Animation companies currently provide employment for around 4,700 people throughout the UK. -  http://www.creativeskillset.org/animation/overview/article_2967_1.asp 

Disney, Dreamworks Studios and Aardman Studios are few of many companies involved in the animation industry. Animation companies can get funding from a number of places; whether it be their own money they have made from previous productions or from other companies who are interested in providing funding. For example, Northern Ireland Screen offers various funding programmes across its economic, cultural and educational activities. - http://northernirelandscreen.co.uk/sections/15/what-we-fund.aspx

Animation is featured on television, films, adverts, title sequences, websites and video/computer games. Animation can be used for so many things and can be made for a wide target audience. Animation also ties in with the Film and Television industries, therefore making it profitable.


Stop motion animation used in the Innocent Smoothie advert. (by Blanc Ionica)
Adventure Time, an animated television series shown on Cartoon Network



Comprehensively Explain Organisational Structures in the Film Industry

Publicly Owned Company...
Film4 Productions is a British film production company owned by Channel 4. The company has been responsible for supporting a lot of films made in the United Kingdom. Some of the productions have made it to the big screen while others have been aired on television for free to the public on Film4. The company is funded by Channel Four Television Corporation which is publicly funded. Channel 4 was created as an alternative to BBC in 1982, it is largely commercially self-funded but ultimately it is publicly owned.  - http://www.channel4sales.com/platforms/Film4 

Film 4 is currently spending £1.5-2 million a year on development finance. Channel 4 have recently increased its commitment to investing in films, raising Film 4's budget to £15million per year for five years from 2011. This overall budget represents funds available each year for investment in both production and development of films for cinema. 
http://www.publications.parliament.uk/pa/cm201012/cmselect/cmcumeds/1175/1175we02.htm

Film 4's team consists of...








Privately Owned Company
Dreamworks is an animation studio based in California, US and their productions are meant for a world wide audience. Dreamworks was founded by Steven Spielberg, Jeffrey Katzenberg and David Geffen. Dreamworks Studios have received funding in the past from private equity companies such as Blackstone and TPG Capital Group among several others. - http://en.wikipedia.org/wiki/DreamWorks 

It is hard to find financial information on Dreamworks Animation Studios as it is a privately owned company. However, I did find information on the budgets and profits for their feature films, the average budget amount being $150,000,000 and average profit being $300,000,000 although the different profits vary a lot.
http://ir.dreamworksanimation.com/financials.cfm
The management team are made up of the following...























http://www.dreamworksanimation.com/company/information/managementteam