What is an institution?
an institution is an organisation, company or establishment devoted to particular cause of program whether commercial, charitable or educational. institutions usually have a structure and payed employees.
A media institution is an organisation, company that either created media products or is involved that check media products (known as regulatory institution)
Examples of institutions are: schools, Tesco, dominos, Shell and BP
Examples of media institutions are: Walt Disney, dream work, Pegi,
different types of institutions...
PSB (Public service broadcast) - These institutions don't focus on money and they make products that are educational and informative.
An example of a PSB is the BBC and ITV. They are a free to watch channel and they both make educational and informative programs and documentaries. Because of them being a PSB they have a low budget so they aren't able to broadcast the high end programs like game of thrones to the football. The only way they would broadcast the football would be the world cup or a low end game. BBC also provide a radio show which are also a PSB and are free for everyone to listen to. These are also informative and also sometimes educational.
Subscription - a subscription company is where you have to pay a set fee to access and watch their channels and broadcasts.
An example of a subscription company is Sky and BT. These companies have a high budget and would broad cast the high budget programs like the football.
Conglomerates - a company that own a lot of different media companies. This means that the big conglomerates have control over multiple media platforms and can chose what is shown or not shown.
Indies - opposite of conglomerates, aimed at loyal followers. This means that they have a small amount of money and followers so they make little money however they have very loyal follower.
Mainstream - Companies with large budgets that make products aimed at a large audience.
OFCOM - Ofcom is the communications regulator in the UK. They regulate the TV, radio and video-on-demand sectors, fixed-line telecoms, mobiles and postal services, plus the airwaves over which wireless devices operate.
ISPO - The Independent Press Standards Organisation (IPSO) is the independent regulator for the newspaper and magazine industry in the UK. They hold newspapers and magazines to account for their actions, protect individual rights, uphold high standards of journalism and help to maintain freedom of expression for the press.
ASA - The Advertising Standards Authority (ASA) is the self-regulatory organisation (SRO) of the advertising industry in the United Kingdom. The ASA is a non-statutory organisation and so cannot interpret or enforce legislation. However, its code of advertising practice broadly reflects legislation in many instances.
BBFC - The BBFC is the UK's regulator of film and video, providing age ratings such as U, PG and 12A. They are a designated body so have legal powers to rate, and sometimes cut or even reject works. We also age rate some online material.
PEGI - Pan European Game Information (PEGI) is a European video game content rating system established to help European consumers make informed decisions on buying computer games with logos on games' boxes.
Vertical integration - Describes a company that owns each stage of a production cycle. In the past, Hollywood film studio like 20th Century Fox were vertically integrated in the past
Production - They owed production companies that made movie
Distribution - They owned other companies that advertised and marketed the films and distribute copies to the cinemas
Exhibition - Companies like 20th Century Fox own their own chain of cinemas
Vertical integration - BBC
a modern example of V.I would be the BBC, it is a very large media institution that does everything from planning, scheduling, production, post-production, advertisement, marketing and exhibition their own production.
When V.I was outlawed in american the Hollywood studios were hit hard. They had to sell their cinema chain and other companies and lost loads of profit. Also, TV was coming in and audience to cinemas was dropping. But, the studios are very good at adapting to change and had a very clear idea. Instead of competing with TV, they bought the Tv channels, they even showed their films on the channels. This is called Horizontal Integration, when a specialist media company like a film studio start owning other forms of media, like TV, radio, Magazines etc.
V.I vs H.I
There are various pros and cons of being a vertically integrated company or a horizontally integrated company
Advantages of V.I
1. It enables you to invest in greatly specialized assets - This is a great advantage that you could obtain over your competitors. Through this, it is possible for you to invest and develop the products that you are offering. With highly specialized assets, you can now differentiate your business from your competitors, allowing you to gain highly competitive advantage. Through this, you can increase your share within the market, leading to increased business profits.
2. Lower Costs of Transaction. - This actually comes because of the inter transactions that happen between the subsidiary companies that typically have a central management and the central communication system that is inexpensive to use.
3. High certainty when it comes to quality. - Since the subsidiary company has a quality control system, then there is more likelihood for them to produce high standard products.
Disadvantages of H.I
1. Capacity Balancing Problems. - For instance, the business may need to establish excess upstream capacity in order to ensure that the downstream operations will have enough supply under any demand conditions. This might even lead to retaliation from the business’ previous suppliers that can potentially endanger the primary production.
2. Decreased Flexibility. - This is because of the downstream or upstream investments that the business will make.
3. Can Create Some Barriers to Market Entry. - Those manufacturers that actually control access to crucial components or the raw materials that are scarce through vertical integration can always create some barriers to market entry. By limiting the competition, it is possible for them to establish a strong position in the market and protect the customer base of the business. However, an organization may experience anti-trust regulators once the regulators think that the merger alters the market concentration.
Employees may attain greater satisfaction in a horizontal structure due to greater freedom and autonomy. The use of cross-function teams can also lead to high levels of cooperation throughout the organization. The heavy emphasis on innovation can lead to ideas that keep the organization ahead of the competition. The absence of multiple structural layers provides streamlined communication and reporting processes, making the organization more nimble and adaptable to change.
The decentralized structure could lead to a "loose ship," as the team and project leaders have high levels of responsibility for achieving results but little real authority over their team members. A resulting lack of control can lead to finger-pointing when things go awry, which can hinder productivity, according to the Practical Management website. Organizations attempting to convert from a vertical to a horizontal structure can face challenges, as management needs to adjust to a less authoritarian and a more peer-like relationship with subordinates.
BBC - The British Broadcasting Corporation (BBC) is a British public service broadcaster. It is headquartered at Broadcasting House in London, and is the world's oldest national broadcasting organisation and the largest broadcaster in the world by number of employees