Friday, 10 October 2014

LO1 Task 1 - Ownership of 20th Century Fox



Conglomerate - made up of companies these are called subsidiaries

Independent - not owned by another company, operates and makes products by itself
warp is an indie company
  
Warp is an Indy company

Departments - Production Team, Effects Crew, Sound Engineer, Actors,
Scripting Team.


Pre Production
Production
Post Production


Cross Media Ownership - When a company makes more than one type of media product by owning companies that make different media



Commercial - Makes a profit (most companies exist to make money)

Public Service Broadcaster - Funded by public money (BBC and TV licence fee, channel 4 also has some PSB remit)

Joint Venture - Works with another company (Warp and Film Four)

                             Vertical Integration in bold      Horizontal Integration going across
                                production
TV, Radio, Internet, distribution , Posters, Magazines, Newspapers
                               consumption






Hello my name is James, I'm working for FD. Today I will be talking about 2Oth Century Fox. To start off with I will be talking about the ownership of 20th century fox. 21st Century Fox owns 20th Century Fox. But before I start there are a few key terms you need to know. Conglomerate this means 21st century Fox, owns several other companies that are made up of many different companies these are called subsidiaries. 20th century fox is a subsidiary to 21st century fox, but 20th century fox also owns several other subsidiaries itself including Blue Sky Studios and TSG Entertainment just to name a few. 20th Century Fox was made by a merger of two companies 20th Century Pictures and the Fox Film Corporation as well as FNM films. This means they both combined together to make one whole company. Another example of this would be Sirius satellite radio and XM radio they both merged together to make SiriusXM. The reason as to why a lot of company's merge together can be for several different reasons it might be to dominate a certain market or for financial stability, or to help a company specialise in more than one place encase of financial crisis but it all leads to money in the end. 20th Century Fox isn't an independent company, an example of  a company that would be Warp Films, Warp is an independent company because they are not owned by another company and aren't part of a conglomerate and therefore make all their products by themselves with little to no help there are several disadvantages of this including no cross-promotion and therefore less exposure for a product and therefore a limited profit can be made most independent films appeal to quite a niche audience. 20th Century Fox on the other hand  are the polar opposite to an independent company they are a conglomerate which I have already gone over these try and appeal to a mass audience which usually results in a much higher profit and these generally specialise in many more types of films also a conglomerate is a much more easier platform to promote on using audio and visual promos.




      Now onto the operating model this is how different parts of the company work together to make a successful product this involves the production and promotion of a product. 20th Century Fox has vertical integration. This means they control the production, distribution and consumption of a product so it is pretty much everything from conception to birth they have full control of. On the other hand independent companies usually have some form of Horizontal Integration this means they have some way of distributing a product it can usually be means of a website which most companies have including warp but it is harder for them to distribute to a mass audience as they don't have vertical intergeneration which means they don't own the products to promote so it will probably cost them more money. Even though fox on the other hand have a whole range of formats they can promote on to gain more exposure for example a film made by 20th century fox can be promoted on sky as they are all a part of the same conglomerate but they also have a radio station which would cost them little to no money to reach a mass audience to hype up a film. Being part of vertical integration for a company is very good for exposure and consumption which in the end leads to a profit. The operating model is also split into 3 stages of production pre-production this is everything that is needed before the making of a film so this is the stage that a script writing team would be needed, location scouting would be done, and story boarding would be done as well as hiring cast. This is a crucial part that has to be done before you move onto the next step, which is production this is the making of the film itself this includes filming and directing a film the editing would also be done at this stage as well as make-up and costume correct lighting is also crucial for this stage. This leads me to the final stage of the process which is post-production this as you can probably guess is everything that is done after the film has been produced so this involves adding CGI, video editing as well as any SFX which is something you are more lightly to find in a 20th century fox film as they like to go into many different genres on the other hand warp are into more realistic, raw type of film which is going to be cheaper to make than a film with a lot of CGI in it. Now on to the products that 20th century fox make. they create and design products that are marketed towards a global audience. Fox do not specialize in one specific media product as they have several different media forms they are involved in they own sky which is a company that broadcasts television via a pay service as well as this they also own a radio station and have things on it such as Fox news radio or Fox sports radio just to name a few. But they mainly specialize and are most well-known for creating films. A few examples of said films include First Daughter which was released on September 24, 2004 this film cost 20 million dollars and ended up grossing 10.4 million dollars which is a massive profit especially compared to an independent company, this type of profit can be generated by means of cross promotion by using every outlet they have available for promotion. One of the main reasons as to why fox have generated so much money and have become so mainstream is because they cater towards many different audiences with the range of content they produce films that are PG such as Garfield the movie to films that are aimed towards a more mature audience such as alien vs predator which is rated as a 15. 20th century fox specifically specialize in films and television programs. An example of a successful television program they own includes the Simpsons. 20th century fox are a really successful company this is realised as to how long they have been around and how successful they have been for so long. Also the fact they can specialise in two really major forms of media and have maintained such a high profit with the entire company having a net worth of five billion dollars. Other companies that offer the same type of product include pixar, but a huge difference between the two is that pixar only specialise in animation which obviously makes a huge difference in profit as you can make only so much in one form of media. They are also really successful internationally as fox are successful in many different companies distributing films globally. Main competitors against fox are Warner Bros as they too specialise in making films directed to a global audience they are competitors because they are two different companies aiming towards the same audience with the same type of product so in turn they are both fighting to make the best films to grab the audience and make sure they are the company with the best films coming out. Warner bros have an operating income of 1.3 billion dollars which does put them behind fox but regardless makes them a really successful company.
  



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