Horizontal and verticle integration

Horizontal integration

is the process of a company increasing production of goods or services at the same part of the supply chain. A company may do this via internal expansion, acquisition or merger. The process can lead to monopoly if a company captures the vast majority of the market for that product or service.

Vertical integration

consists of companies that acquire a company that operates either before or after the acquiring company in the production process.

Types of organisations

Types of media organisations

Public, private, regulators

Public service broadcasters- BBC, They gain their money by TV licence, Owned by the BBC Trust. A unique media organisation because it is funded by the public. There are no advertisements unless it is for their own products. They have a responsibility to: Inform, Educate, Entertain. It also has to;

• Be impartial
• Promote education and literacy
• Promote diverse content
• Serve a diverse range of communities including minority groups
• Promote creativity
• Support technological advances

Channel four is a partial public service broadcaster as it has advertisements but is also funded by the public through culture, Media and sport. It has responsibility to;

• Cover the interests of minority groups
• Promote creativity

Private media organisation are any money-making organisations which exist to make a profit for example; ITV and sky.

Other well-known private media organisations include; the sun, paramount studios, twitter and Nintendo. Some of these are large organisations with a global reach.

Sources of public funding:

• The licence fee
• Lottery funding
• Taxpayer’s money

Sources of private funding:

• Advertising
• Subscription
• Sales
• Competition
• Sponsorship
• Private investment

Size and structure of media organisations:

International: operating in a number of countries (global, conglomerates, access to synergy)

National: UK only

Local: local issues and organisation, closeness to audience

Community: views of a particular community, user generated, training

Conglomerate- A large company that has many sub companies/ subsidiaries.

Horizontal integration: companies that own more than one company across a media sector. For example Facebook bought Instagram. Disney bought Pixar

• Increased profit and market share
• Synergy
• Greater influence
• Oligopoly: very few owners in a given industry e.g. social media.
• Monopoly: When one company has a large market share. 25% Sky TV.

Vertical integration: organisations that own companies throughout the different stages of production. For example, a film studio might buy a separate distribution organisation, which means it becomes easier for them to distribute their films and get them shown in cinemas.

• Control over production, exhibition, and distribution
• Possibly unfair political advantage

Co-operative is an alternative type of structure, where there is shared ownership and decision making, a network, shared resources and profits are redistributed.

There are different types of output or products produced by media organisations:

Mainstream: major distribution, high production values, prominent marketing, global reach, conventional features (Vevo on YouTube)

Independent: limited distribution, experimental, lower production values, word of mouth, viral, limited marketing (YouTubers self-producing music videos e.g. grime / indie)

Niche: small, specific audience group, targeted marketing

Methods of recruitment in the media

Unit 8: Media Industry in Context

C2 Methods of Recruitment in the Media

Here is a table showing the main methods of recruitment in the Media, and the plus and minus points of them.

	Description / summary	Benefits	Drawbacks
National press	National newspapers often produce Media supplements. For example, the Guardian on a Monday	*respected titles *established practice *nationwide coverage *exposure in media sections *covers all media sectors *print and digital format *flexibility on size and cost of advert	*costs *weekly print runs *exposure limited to a week *falling circulations *turnaround time *rigid price structures *lack of prominence
Local press	Local newspapers will have job supplements in every week's issue	*costs *weekly print runs *exposure limited to a week *falling circulations *turnaround time *rigid price structures *lack of prominence	*local coverage *lack of influence *no media-specific sections *falling circulations *limited alternatives to print format *not suitable for all media sectors *limited exposure *turnaround time
Trade press	Specialist media publications such as Media Week	*specialised titles *wide circulation within the industry *print and digital format *established practice in some media sectors	*no even coverage across all sectors *costs *turnaround time *varied exposure *lack of prominence
Interactive media	websites, apps, social networking, online gaming	*specific purpose *digital format *search options *flexible pricing structures *global exposure *free to users *templates or personalised formats *quick turnaround time *audio and visual content *external links *covers all sectors *user engagement *public profiles provide an insight into a candidate’s character *flexibility *greater interaction	*costs *access to relevant technology *competition for attention *embarrassing public profiles
Word of mouth	Otherwise known as networking	*costs *speed *less risk *applies to all sectors *recommendations *rewards	*less transparent process *restricted fields *misinterpretation *less rigour
Personal and professional contacts		*low cost *reputation built over time *match the candidate to the role *rewards talent *flexibility	*time-consuming *restricts applicants *less transparency *nepotism
Internal promotion		*low cost *quick *candidates are familiar with company and role *motivated workforce *awareness of strengths and weaknesses of candidates	*limited number of applicants *reduces new ideas and approaches from outside the company *resentment among other staff *creates another vacancy in the company

Contracts, conditions and Pay in the media

Unit 8: Media Industry in Context

 

 C1 Contracts, Conditions and Pay in the Media

 

Here are the main types of contracts regarding jobs in the media:

 

	Description	Positives	Negatives	Examples of media jobs using this type of contract
Freelance	A specialist in a particular field who works for themselves, finding their own work, and typically working on fairly short-term projects. In the media, creative /technical jobs are often freelance.	*Lots of flexibility in hours *Can be very highly paid *Choose your own jobs and clients, using your specialism *You are your own boss	*Hours may be intensive / unsociable *No sick pay, holiday pay or other benefits *If you do not have work, you have no wage *Pay can be very low as you are building up your reputation.	Camera operators, Editors, Journalists, sound technicians, web designers
Self-employed	Similar to freelancers in that you work for yourself. However you work under a contract as self-employed, often repeatedly for the same companies. Freelancers work on a job-by-job basis.	As above. Also: *established self-employed workers often have repeat jobs for companies that are still more flexible than permanent work.	As above	Technical jobs such as web designers / engineers, apps / games designers, camera operators, editors, sound technicians
Permanent	You have a contract that is indefinite (providing you stick to the terms and conditions). You work for an employer and your hours, pay and conditions will be laid out in the contract. You are paid a regular wage. You are entitled to holidays, sick pay and other benefits.	*Regular hours and a reliable pay gives you security and allows you to plan your time and money. *Your job is protected / secure and if you are sacked, the employer must give evidence for this. *You will get paid for holidays and illness. *You will be eligible for other benefits such as pensions and health insurance.	*Working for a boss!  *Hourly rate is usually a lot lower than that paid for freelance / self employed workers *May not be flexible, for example, doing part time hours	Business jobs in the media such as executive producers, accounts, marketing, public relations.  Some journalists
Fixed term	Like a permanent contract but for a fixed period of time, after which your work finishes.	As above. Also: *You can take on relatively small-term jobs which may be more interesting / varied than permanent work, and allow you to develop your skills in different areas.	*The contract will come to an end, after which time you need to find more work.	*marketing and public relations work for individual project or pilots.

 

 

 

Payment options:

 

There are a range of payment options for different types of work. 

• For permanent or fixed term work, this will usually take the form of a salary, which is paid weekly or monthly on a set, regular date.  This work may also attract a commission, depending on the type of work. This is an agreed extra payment for meeting specific targets, such as sales targets.
• Some fixed term work is paid at a fixed rate, which would be a lump sum which is pre-agreed with the employer.  Similarly, some freelance and self-employed contracts is paid at a fixed rate.
• Other freelance and self employed media work is paid via advances (a percentage of the total up front), or pay on completion (once the job is finished).
• For shorter / smaller freelance work, payment may be hourly or per word (writing / journalism work).
• For people starting out in their media careers, work is often voluntary / unpaid, with the idea that this will impress the employer and lead to paid work. This is a common route for media students, who undertake voluntary work experience during college holidays.  Voluntary work may have travel and / or lunch paid by the employer, but this is not compulsory.

ASA and PCC

About ASA

The Advertising Standards Authority is the UK’s independent regulator of advertising across all media. We apply the Advertising Codes, which are written by the Committees of Advertising Practice. Our work includes acting on complaints and proactively checking the media to take action against misleading, harmful or offensive advertisements.
In this section you can find out how advertising regulation works, who our key people are and information about our performance.

The Press Complaints Commission (PCC) is a voluntary regulatory body for British printed newspapers and magazines, consisting of representatives of the major publishers. 

IPSO – Independent press standards organisation

Working on complaints made by individuals or organisations

1 Accuracy

2 Opportunity to reply
3 Privacy
4 Harassment
5 Intrusion into grief or shock
6 Children
7 Children in sex cases
8 Hospitals
9 Reporting of Crime
10 Clandestine devices
11 Victims of sexual assault
12 Discrimination
13 Financial journalism
14 Confidential sources
15 Witness payments in criminal trials
16 Payment to criminals