Unit 7: Understanding the Creative Media Sector

senergy two companies working together

vertical integration eng. sony - does films, ps, phones and wanted become bigger but instead of going to buy a tv company the bought a film companies to make them bigger with verity of different things

horizontal - companies buying a company that does the same things as them so they are getting bigger (orange and t-mobile) with the big things

Sony Ericsson (merged together)
take over - google buys youtube and it becomes part of google.

what people buy source of outcome

product diversity
when a company changes or adds something to itself their products are diverse e.g song

apple will cut it if things aren't being sold or gone out of date profitably and product range

performance against financial concerns ...

music industry or music sector financial concerns was based on people buying music and as technology moved on the music industry turned into streaming music  because ppl aren't buying it and selling their music to others and getting money
also the film industry people stopped going cinema so they created 3D glasses where everything was in 3d to attract people. but didn't work out so they went down the streaming row with selling their. movies to Netflix and youtube.

what is the company about - organisation objectives what are the companies objectives


licenses - stars-wars and a franchisees when you buy a shop you buy a building and that building has a business license that says you can sell food and run the place. film star Lucas sold it to Disney / marvel has spinoffs like iron fists luckcage like little;e franchises of the main series/movie

competitors - games-racing games there are lots of racing games made by different people. competition.

audience and consumption - target audience e.g games- males? females? what is the difference between the games do that play what genre and what attracts them. why is it that type of game? stereotypical?




7.1 assignment


ALIENWARE(Gaming Sector)
Alienware was founded in 1996, on October 24th, but as Saki of Miami, Inc. Alienware was only 490 employees. Alienware’s products are easily recognised by their audience and people by their alien head logo and alien themed designs. Alienware is American and its company can be found in Miami, Florida. Alienware is a Subsidiary of Dell. Alienware was founded by Nelson Gonzalez, Alex Aguila and Frank Azor.  Alienware is a gaming sector because they focus and produce gaming software and equipment. Alienware is also publically traded company


Michael Dell is the founder and CEO of Dell technology and he is with $31.0 billion as of October 2019. Michael dell is the parent of Alienware, he is also the CEO of Alienware and runs it besides Frank Azor, who is the General Manager, Arthur Lewis, who was the previous CEO general manager. Dell thought of buying Alienware (PC gaming) since 2002 but didn’t agree to buy the company until 2006 on the 22nd in March. Dell purchased Alienware in a rare acquisition designed to improve Alienware's supply chain and boost Dell's standing among PC enthusiastic.


Alienware have products such as; Alienware desktops, Alienware Notebooks, Peripherals, Alienware monitors and Alienware accessories. Alienware builds gaming computers (PC) and Laptops. Alienwares most popular gaming computers are very expensive. Going from prices from £300 to £3000 +



SONY PICTURES(Film Sector)
Sony Pictures was founded in 1987, in December on the 21st, but was known was “Columbia Pictures Entertainment, Inc.” but changed in 1991 on the 7th in August. It is a Subsidiary and it is a part of the Entertainment industry.  Sony Pictures is part of Sony Entertainment, Inc. They specialise in motion pictures such as Film, Television and Music, Mobile entertainment and online games. Sony Entertainment was established in 2012 and as from 2019, Sony Entertainment Inc. is one of the six biggest entertainment company, with a net worth of $14.1 Billion. Sony Entertainment is owned by Sony Corporation of America. Sony Entertainment/ pictures is part of the film and television sector because they produce Movies and TV shows globally. Sony is a public limited company. This means that the company is listed on the stock exchange and the share are then distributed among multiple/several partners or individuals under a pre-decided share holding pattern.  

Kaz Hirai is a Japanese businessman. He was the Chairman of Sony corporation, from 2018, April and 2019, June. He was also the CEO and president of Sony Corporation from April, 2012 to April, 2018. He also served as a board member of Sony Interactive Entertainment and chairman and co-CEO of Sony Entertainment.


Sony Entertainment produced at least 54 movies, such as; Spider-Man 1,2 and 3, Goosebumps, The Angry Birds movie and Grown-Ups 2 and many more. Sony owns 4 big other companies such as; Ericsson, Columbia Pictures Entertainment, CBS Record Group and Gaikai. 



INSTAGRAM (Interactive Media)
Instagram was launched in 2010 on the 6th of October. Instagram is a free online photo/video sharing media platform. Instagram was obtained by Facebook in 2012 in order for people who have Facebook and want to be on Instagram, can easily sign up on Instagram with all their data from Facebook being transmitted to their Instagram. Instagram allows people to edit their photos and socialise with people from all around the world. Instagram is also the world’s largest photo sharing online platform. Instagram is part of the media sector “interactive media” this is because people around the world can actively communicate with each other.
Instagram is owned by Facebook, Inc. Facebook purchased Instagram when Instagram only had 30 million users, in April, 9th, of the year 2012. It was purchased for 1 billion dollars. Even though Instagram wasn’t generating money when Facebook purchased it in 2012, it has recently been estimated to be worth $100 billion. Instagram is available in 32 different languages 

Kevin Systrom and Mike Krieger were the co-founders of Instagram. Mike Krieger was also the CTO of Instagram and he expanded Instagram from having a few million users to one billion monthly active users. Kevin Systrom was the CEO of Instagram, with a net worth of 1.4 billion US dollars.












STRUCTURE AND OWNERSHIP OF THE MEDIA SECTOR.

There are five different media sectors; games, interactive media (website), audio (radio), moving images (film, video) and publishing. Also known as GWAMP.
Gamesare made for entertainment, fitness, educational and simulation. E.g. Just Dance on Nintendo Wii, which is a dance game for entertainment, fitness and simulation. Another example would be Tomb raider which is for entertainment.
Social active media (website) - used to create awareness and promoting action or change amongst its intended audience. To also share ideas, thoughts and opinions, it’s also gives the chance for users to interact with other people across the world (anywhere around the world) online. Publishingsuch as; posters, e-magazines, flyers and adverts to inform its target audience about things that interest them such as celebrity gossip, sports or food. Audio (radio), used to report news, current affairs, light entertainment, podcasts and for advertisements. Moving image, such as film, tv to create audience gratification. E.g. in music videos the audience love to see a visual representation of the song and conventions such as dancing, lip syncing and the artist. I will be focusing on the moving image and music sector. 

What is private ownership?
A privately-owned company (LTD) is a small business in which an owner liability is limited to their shares, the firm is limited to having 50 or less shareholders. The shares are prohibited from being publicly traded. A company becomes an independent legal structure when it incorporates. 
What is public owned company?
A public owned company is a corporation whose ownership is distributed amongst general public shareholders via the free trade of shares and stock on exchanges or over the counter markets (according to Caroline Banton,2019)
NETFLIX
Netflix is a public owned production company. It is a public owned company because it is on the stock exchange, which means Netflix is bought or traded shares from other production companies such as the warner brothers. This can also be called float shares. Netflix stock forecast current share price today 292.520 USD, which is down by 0.247% (according to Wallentinestor,2019) Netflix was founded on the 19th, August 1997 in the united states. owned by Reed Hastings and Marc Randolph. The company's primary business is subscription based streaming service, which offers streaming a bunch of films and tv programs online. Including produced in house, meaning films produced without any assistance from outside organizations. As from 2019, Netflix had over 148 million paid subscriptions, which is also including the free trials. Netflix is available worldwide except for mainland China because of local restrictions, North Korea because North Korea isn't allowed any internet connection and Crimea. Netflix is also a member of MPA. Motion pictures association. Netflix is the first tech company to join the Hollywood trade group that includes theatrical motion pictures studios, such as; Disney, Universal, Paramount, Warner Bros, and 20th century fox. confirming that Netflix is an additional to the MPAA.
Netflix is an IPO (Initial Public Offering). From 2002, May, 29th. Selling over 5.5 million shares of common stock of the price of £11.40 per share. Netflix was bought in 2019, September, 16th for 15 million US dollars. Sky Cinema/movies and Netflix are very similar because they both public and they both stream movies and are both subscriptions based. 
Netflix has competition such as CBS and Viacom, who agree to a billion-dollar merger that challenges Netflix’s streaming insurgency and face up to the loss of “cord cutter” viewers. which refers to a pattern of viewers, referred to as cord-cutters, cancelling their subscriptions to multichannel subscription television. 


INSTAGRAM
Instagram is a public owned company, which was bought by Facebook. Facebook buying Instagram is takeover. This Facebook took over Instagram and now Instagram is now a part of Facebook. It is also a horizontal integration Facebook bought another social media networking service, that does the same things as them, posting pictures, videos and interacting with people online. This was done so that Facebook gets more money because of the takeover. Instagram is publicly owned whereas YouTube is privately owned. YouTube is a video sharing company and is also a social media platform. YouTube and Instagram have similarities between them such as how they were both bought by another company. (a takeover) YouTube was bought by Google in 2006, on November 13th for $1.65 billion on 9th, October, 2006, which was completed in November under the deal that YouTube remain independently operated. Which is different from Instagram and Facebook because they merger is expected to take place in early 2020. The Instagram and Facebook takeover differs from YouTube and Google, this is because Google buying/taking over YouTube is a vertical integration. This is because Google is not a social media platform and YouTube is. Google is a company that supplies a number of products and services and is known as a search Engine. Google owning YouTube could also be seen as product diversity because Google added something new to its company. Product diversityis when a company changes or adds something to itself. E.g. Apple. Apple made the iPod which was designed for people to listen to music or download music from online. It was invented in 2001 but as time passed on, people started using YouTube and Spotify to listen/stream music. The iPod was discontinued by Apple in 2014. Apple came out with new ways for its audience to listen to music, by introducing them to Apple Music, which came out in 2015. Which requires a month subscription and began to improve itself by adding Music videos in 2016. This was to give audience gratification and to target people who love watching music videos whilst listening to them. Apple also upgrades their smart phones each year. The first iPhone came out in 2007 (June 29th) The reason why Apple keeps releasing new upgraded phones is because they improve the technology used inside their phones, harder to access/hack and fight off viruses. This is what also attracts their audience, besides from their appearances and camera quality.  People enjoy the dimensions/size of the new iPhones because each year they get bigger and bigger. E.g. iPhone 6/s and 6 plus. This is attracting people. E.g. when watching YouTube or Netflix they can see more clearly. And the weight of their phones also decreases. This attracts their audience because it would be easier to hold and is more portable. The camera quality also changes. In apples first iPhone you could see the pixels in the photographs, whereas the new phones, (iPhone 8/X and 11) you can hardly see the pixels at all. Better technology and better quality. 









PROFITABILITY OF PRODUCT RANGE
According to an online website (Independent) Apple spent an estimate of %150 million developing and improving the iPhone, in its final 3 months of 2014. Apple then sold 74.4 million iPhones, earing $51.1 Billion, apple is now considered the most profitable quarter of any public company to have existed. They made a profit of £12 billion 







PERFORMANCE AGAINST FINANCIAL CONCERNS 

The music industry or music sector financial concerns was based on people buying music. E.g. In the 80s-people used to go to the store and buy music CDs (Compact Disks) and listen to them on CD players, which was available around the world. CDs became more popular than cassettes, (which were used to listen and record music in the 70s) this was because you could skip directly to the song you wanted to listen to. 
As technology moved on, the music industry turned into streaming music, like on Spotify, Apple music/ITunes. This was because people weren’t buying CDs anymore. So, the companies started selling their music to others and getting money. E.g. Sony sells their music to Apple music, where people pay a monthly subscription or buy the music. The money then goes to the artist of the music.
Also, the film industry did the same. When people stopped going to cinema to watch movies, they created 3D glasses, where everything was in 3d. They did this to attract people. but it didn't work out so they went down the streaming row/route. With selling their movies to Netflix, YouTube or Amazon. 

In the film industry, you need permission to screen a film to the public. They need permission from the films copyright owner. Which is usually the U.K. distributor. Permission may be excepted in a form of a film book or a licence.
The three major gateway distributors are the; BFI, Filmbankmedia and MPLC. Filmabankmedia and BFI offer online catalogues, where you can search to see if they have the rights to a film. Filmbankmedia has two popular licensing options. Single Title Screening Licence,this is when a licence is given on a title to title basis. This allows the public to screen films in commercials (paid audience) or non-commercial (free audience), or from the Filmbankmedia’s online catalogue. Public Video Screening Licence. This is an annual licence for permission where films will be shown regularly to an audience (non-paying) for ambient use.


Films that Filmbankmedia licences (distribute):
·      Little Woman
·      Joker
·      Frozen 2
Films that BFI Licence (distribute) that are available on DVD:

·      13 Assassins
·      360
·      An Actors Revenge



FILM FRANCHISE

What is a film franchise?

A film franchise, also known as a film series is a collection of related films that share the same fictional universe. E.g. X-men, James Bond, The Avengers and Harry Potter. In other words, it is an extension of an already existing film/movie. The difference between a film licence and a Franchise is the amount a franchisor holds over a franchisee. When your franchise a film, you hold a lot of power, whereas if you license a film. You sell the rights to the film and trademarks.

more examples of film series:

·      Cinematic Universe Films
·      Starwars
·      DC

THE BIG FIVE MAJOR DISTRIBUTORS 

1.   Warner Bros.
2.   20thCentury Fox
3.   Sony
4.   Buena Vista
5.   United International Pictures

These five major distributors dominate/reign media ownershipof the film industry in the UK.
Sony owns movie companies such as; TriStar Pictures, Screen Gems, Destination Films and more. 


AUDIENCE AND CONSUMPTION
In the film industry, stereotypes are mostly used from comedy purposes. Films Such as Legally Blonde and theBig Bang Theory. Although it can be used as comedy and seen as funny, there is a dark side to it and can be seen as racist or disrespectful. E.g. According to theNew York Times,black characters often swore more and seen as violent. (Thugs) That black men are ‘dangerous’ That all Asians are nerdy, look alike and all know martial arts. 
Case Study 1
Legally Blonde
Legally Blonde is about a girl who isn’t very smart and everyone knows it. This film fits into the stereotype that all blondes are dumb ‘Dumb Blonde’. This film targets a female audience. This is because the main character is a woman who tries to prove everyone wrong, that blonde can be smart. This film could also appeal to feminists. (people who support Feminism) To show that women aren’t dumb, that women are strong and can-do anything men can do. 


The film industry certain genres attract female and males such as; Romantic films are more likely to attract a female audience and an action film attracts more male’s audience. A Psychology research has shown that women are more likely to remember and recall emotional and social stimuli, whereas men are better and more likely to remember violence and recognising artificial objects. E.g. Motorbikes or cars.





Case Study 2
Wonder Woman

The specifier target audience for Wonder Woman are people that are into DC movies or people that read DC comics or people that into comics in general, or women who are independent and people for are feminists. Also, people into action and fantasy films. The target audience was specifically targeted for people into comics or DC movies by taking a character from a famous comic book. E.g. “Wonder Woman”. Which is most guaranteed to attract the audience that read the comic book ‘Wonder Woman’ or read comic books in general. Wonder Woman could also attract feminists and independent women because Wonder Woman is about a woman who saves the world from destruction. Wonder woman is powerful, strong, independent and a Demi-Goddess. The strategies to get these audience were used effectively by adding everything a feminist sees in women, by adding action to attract people into action, by making wonder woman into a Demi-goddess to attract people into fantasy and also by creating a film based off a comic book. The target audience was correctly selected. This is because the people who watched Wonder Woman were people aged from 25-34 which was 25% from 2018. Along with the increase in female audience.


Bibliography and References

WHAT IS A PRIVATELY-OWNED COMPANY?
unknown. (2019). What Is a Private Limited Company? - Definition, Advantages & Disadvantages.Available: https://study.com/academy/lesson/what-is-a-private-limited-company-definition-advantages-disadvantages.html. Last accessed 11th December 2019.  

WHAT IS A PUBLIC COMPANY?
Caroline Banton. (2019). public company.Available: https://www.investopedia.com/terms/p/publiccompany.asp. Last accessed 11th December 2019. 

YOUTUBE AND GOOGLE 
MATT MARSHALL. (2006). They did it! YouTube bought by Google for $1.65B in less than two years.Available: https://venturebeat.com/2006/10/09/they-did-it-youtube-gets-bought-by-gooogle-for-165b-in-less-than-two-years/. Last accessed 11TH DECEMBER 2019. 
            
PERFORMANCE AGAINST FINANCIAL CONCERNS 
unknown. (2014). How listening to music has changed. Available: Performance against financial concerns. Last accessed 29th January 2020.


FILM LICENSE 
Unknown. (2018). Film copyright licensing. Available: https://www.independentcinemaoffice.org.uk/advice-support/what-licences-do-i-need/film-copyright-licensing/ . Last accessed 29th January 2020.

PROFITABILTY OF PRODUCT
Oscar Williams-Grut. (2015). Apple's iPhone: The most profitable product in history. Available: https://www.independent.co.uk/news/business/analysis-and-features/apples-iphone-the-most-profitable-product-in-history-10009741.html. Last accessed 29th January 2020.


AUDIENCE AND CONSUMPTION 
Alex Fradera. (2016). Gender differences at the movies – women remember more of rom-coms, men remember more from action flicks.Available: https://digest.bps.org.uk/2016/08/08/gender-differences-at-the-movies-women-remember-more-of-rom-coms-men-remember-more-from-action-flicks/. Last accessed 29th January 2020.




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