Discuss the issues raised by media ownership in the production, distribution and exchange of media texts in your chosen media area.

Discuss the issues raised by media ownership in the production, distribution and exchange of media texts in your chosen media area.

Media Ownership is concerned with the types of media companies that produce and distribute products, relative to the company's size and wealth. The film market is oligopolistic in nature, meaning that it is dominated by a few large conglomerate companies, Warner Bros (19.8% market share), Universal (19.4%), 20th Century Fox (14.7%), Buena Vista (10.5%), Paramount (8.5% market share) and Colombia (12% market share), who together own approximately 90% of the industry. The idea that there are powerful corporations dominating the market in this way has many impacts upon independent companies, whilst also being in this position is mostly advantageous for the conglomerates in the film industry.

Firstly, in terms of production, conglomerate companies such as Sony that own subsidiary company Colombia Pictures, are able to budget their films highly and have a higher financial capital, allowing them to achieve films with higher production values by using more renowned actors for example, in turn allowing them to reach a larger audience and therefore receive greater revenues. In contrast, independent companies such as BBC Films may find it difficult to compete with these conglomerate companies as their budget restrictions due to their relatively low retained capital. This often means that their production values may be considerably lower. Ill Manors is an example of a film that had a relatively low production value due to it being produced by an independent production company - BBC Films,and was therefore only budgeted at £100,000. In contrast, films such as Skyfall that were produced by large companies MGM and EON and was partly funded by SONY, could invest much more money in their film, in turn creating a product with a higher production value which then would often generate greater sales and a high return upon the initial investment. A second advantage to large conglomerate production companies is that they are more likely to have an audience for their film product, as often their brand is associated with successful past film releases, creating a sense of trust from the audience. On the other hand, it may be argued that large conglomerate companies are able to take less creative risks when producing a film product. This is because large budget films have to generate a significant amount of revenue by ensuring that their film is a success at the box office in order to make a satisfactory return on their investment, meaning that producers will often use narratives and different visual elements within the product that are considered 'safe' and that the audience is likely to react positively. On the other hand, smaller independent companies are able to take more creative risks, as the initial investment in their product is often smaller, meaning that there is less return needed, although it is important that the company at least breaks even in order to ensure that it can cover the costs of running. It may be considered that Ill Manors was 'risky' due to its very specific target audience, social context and somewhat taboo subject matter, highlighting issues with poverty, drug use, murder and anti-social behaviour. Larger companies such as Columbia may not be able to produce such a film due to it's niche nature making it a financial risk as there may not be a guaranteed audience to consume the product.

Conglomerate distribution companies would also benefit from the large size and established nature of the business. Firstly, they would be able to use more costly marketing techniques in order to reach a larger audience. Again, Skyfall, which was distributed by MGM and Columbia (Sony) used marketing methods such as synergy and tie ins within their film to help raise awareness of the film. For example, they collaborated with Coca Cola to produce a specialised Skyfall-themed vending machine in a popular train station in London and also used the opportunity of 2012 London olympics to perform a Skyfall stunt in the opening ceremony. Many independent companies would not have the opportunity to collaborate with such companies to raise awareness of their product due to their comparatively small reputation and also lack of available finance for marketing. In addition, Skyfall's marketing companies had the funds available to advertise their film product on large billboards and posters in prime areas both within the UK and also internationally such as as in Central New York City. It is very expensive to rent spaces such as these for promotion, and independent companies such as Revolver, who distributed Ill Manors simply wouldn't be able to afford this, and instead have to rely on much cheaper forms of marketing and promotion such as on Social Media and through the use of web 2.0, using websites for example, which was still very successful, with them receiving 30,000 likes on their dedicated Facebook page. Finally, in terms of distribution, conglomerate companies such as Sony would find it easier to sell their film product to exhibitors. This is because exhibitors will often consider showing films from well established companies such as this rather than independent ones, as there would be less risk associated with showing the product, as the company are more likely to bring in a larger audience than what many Independent companies' products might. This is exemplified as MGM's Skyfall was shown in 587 cinemas across the United Kingdom, whilst Revolver's Ill Manors was only shown in 191 across the United Kingdom and Ireland.

As aforementioned, cinemas are more likely to screen films from large Hollywood films in comparison to smaller independent British films. This is because as an exhibitor, there is much less risk associated with these products from reliable producers as they are more likely to generate a larger audience. As a result of this the exhibitor will generate a greater turnover. However, most cinemas only receive approximately 40% of their total revenue from ticket sales, whilst the other 60% is made from concessionary items, such as food and beverages. As a result of the cinema receiving higher attendance rates due to the screening of popular film products (often from renowned film companies), sales of concessions are likely to increase simultaneously, meaning that the cinema can be a more profitable concern. In contrast, exhibitors are less likely to screen smaller films from independent companies such as Ill Manors, as they are less likely to receive high admission figures, and therefore will sell less concessionary products as a result of the smaller footfall within the cinema.