P1(a) Ownerships
Meaning of media ownership: Media ownership means where the company is owned by a private company or by a public company, sometimes a company can be owned or merge by different company, therefore in the annual report, it shows the percentage of the ownership of a company. Walt Disney Pictures is owned by The Walt Disney Company.
Purpose: The purpose of this section is to learn more about the TV network, how Walt Disney functions, also the advantage and disadvantage of different ownerships.
(From http://www.theglobalmovement.info/wp/areas-of-focus/global-financial-war/who-controls-the-media)
Walt Disney Pictures is an American film production company and division of Walt Disney Studios, owned by The Walt Disney Company.
Globally, large media conglomerates include Viacom, CBS Corporation, Time Warner, 21st Century Fox The Walt Disney etc.
As of 2012, The Walt Disney Company is the largest media conglomerate in the US, with News Corporation, Time Warner and Viacom ranking second, third and fourth respectively.
Which in this picture, we can see that, Disney owns the biggest TV Network.
The Walt Disney Company is a multinational ownership, which means that the company has either investments or operations in 2 or more countries. It has diversified multinational mass media cooperation headquartered at the Walt Disney Studios in Burbank, California. It is the world's second largest broadcasting and cable company in terms of revenue. Walt Disney company not only focus on media such as Disney Channel, Disney network and Disney Junior, but they also have theme parks, Disney parks and resorts in many countries, for example in Hong Kong, China, Tokyo and in the United States.
( From 2015 The Walt Disney annual report)
The advantage of multinational ownership is that they increase the investment level and also the income and employment in the host country. However the disadvantage is that taxes or tariffs imposed on imports from other countries. As we just mentioned above, we can see that Disney not only expand their business on the media network, but also parks and resorts in their country and all over the world, this is how they increase their investment level and also the income, as there are more investments, this means the employment has to be increased as well.
The disadvantage of a multinational ownership the company will eventually go into a new area of business as the company will be that large meaning that there is a higher risk go the company failing. Every investment of The Walt Disney Company are very high in revenue and cost. If one of their investment falls, it decreases the profits of the company, and therefore hard to maintain the employment of the company, this will lead to bankruptcy.
The Walt Disney Company is a multinational ownership, which means that the company has either investments or operations in 2 or more countries. It has diversified multinational mass media cooperation headquartered at the Walt Disney Studios in Burbank, California. It is the world's second largest broadcasting and cable company in terms of revenue. Walt Disney company not only focus on media such as Disney Channel, Disney network and Disney Junior, but they also have theme parks, Disney parks and resorts in many countries, for example in Hong Kong, China, Tokyo and in the United States.
The advantage of multinational ownership is that they increase the investment level and also the income and employment in the host country. However the disadvantage is that taxes or tariffs imposed on imports from other countries. As we just mentioned above, we can see that Disney not only expand their business on the media network, but also parks and resorts in their country and all over the world, this is how they increase their investment level and also the income, as there are more investments, this means the employment has to be increased as well.
The disadvantage of a multinational ownership the company will eventually go into a new area of business as the company will be that large meaning that there is a higher risk go the company failing. Every investment of The Walt Disney Company are very high in revenue and cost. If one of their investment falls, it decreases the profits of the company, and therefore hard to maintain the employment of the company, this will lead to bankruptcy.
This is the 2014 and 2015 financial data of Walt Disney Company, we can see that the revenue has increased from 2014-2015, it also lists all the statements of income below. This shows that the multinational ownership that The Walt Disney Company is doing, increases their profits and income each year, as the 2 screenshots also show the revenues of 2010-2015.
Subsidiary is a company that is partly or completely owned by another company that is partly interest in the subsidiary company.
Here is a screenshot from the 2015 annual report from the Walt Disney Company. Let's take EPSN and Disney Channel as an example.
Disney Channel is a kids and teen's entertain,went channel in the United Kingdom and Republic of Ireland. From the screenshot above, it showed that Disney Channel is 100% owned by The Walt Disney Company, means that it is a subsidiary too. Therefore, Disney Channel is belonged to The Walt Disney Company, and all their profits belong to it too.
DIFFERENT TYPES OF OWNERSHIPS
Apart from multinational ownership, there are also other kinds of ownership, such as the private ownership and independent ownership.
PRIVATE OWNERSHIP: It means that the company is tun by itself not by members of the public or other companies. One example of private ownership is the technology company Apple.
Advantage: The individual or group decide how to run the business and that the company can keep all the profits itself.
Disadvantage: If the business falls the company can't rely on other businesses to help out this means that if the company takes the loss it will be harder for the company to make the money back meaning they are more likely to go bust.
PUBLIC SERVICE: It means some percentage of the company is owned by the public.
Advantage: The government provides services that would usually come out of business money.
Disadvantage: You are more likely to pay a lot come of the company profits in tax.
INDEPENDENT OWNERSHIP: A company is owned by a small organisation and is usually owned by one individual.
Advantage: The owner of the company is in charge of how the business run without having restrictions from other companies that have invested.
Disadvantage: The company will usually remain small as the company won't have enough money to advertise as far as other types of ownerships could.
Conglomerates: It is made up of other companies that all specialise in a certain field.
Advantage: This is all companies are likely to boost their own profits from the business.
Disadvantage: The company will eventually go into a new area of business as the company will be that large meaning that there is a higher risk go the company failing.
Cross media
Cross-media is a form of cross promotion which the company introduce their product to customers through advertisement like emails, posters or webpages. This form of promotion benefits the the publishers and and advertisers, so both of them gain profits but also promote the product to the public.
This method is used by a lot of companies nowadays.
No comments:
Post a Comment