Media ownership

Media ownership has a huge impact on the availability of the products that are able to be made. Huge conglomerates such as Disney horizontally integrate, meaning that when they synergise across other sectors such as TV, publishing and games, they work with companies and institutions that they already own or have created. They earn the name ‘conglomerate’ by having these subsidiary companies within themselves. This means that all profit made across the sectors, stays within the conglomerate, being Disney. The domination of a conglomerate has a huge effect on smaller media institutions. Smaller media institutions have little media ownership. Little media ownership may cause losses in their overall profit. This is due to the fact that for them to synergise to other sectors, they must work with other, separate companies and institutions, that specialize in that particular area. Doing this causes the company to share out its profit to any companies that have helped.

The ease to which a conglomerate can offer new products is great. The parent company can decide what products they want, and can use their subsidiary companies to create it. An example of this would be Disney wanting a TV show to be broadcast on The Disney Channel. Whatever this new show is, Disney will have full influence on its outcome. Smaller companies will have greater difficulty doing this as the reality of converging with another company is not guaranteed. Even if successful, part of the control of the product goes to this external company, influencing the final outcome. Media conglomerates will have full control of their products and how it turns out. The subsidiary companies are under control of their parent company.