02/02 Newspapers

3a. What is a multi-media conglomerate?

A multi-media conglomerate is a big company that owns various media-related entities such as TV channels, movie studios, music labels, and websites. It allows them to produce TV shows, movies, music, and provide online content. Being a multi-media conglomerate gives them more power and influence in the media industry, enabling them to make decisions on production, release, and promotion. However, concerns arise about their control over what we consume, as they may limit the types of shows, movies, and music promoted. Therefore, having diverse media companies is crucial to ensure different perspectives and choices.

3b. Explain the term oligopoly and give an example

Oligopoly is a market structure with a few big firms controlling the industry. They have power to affect prices and output. They engage in strategic behaviour like price-fixing or collusion.

e.g. the global smartphone market, with companies like Apple, Samsung, and Huawei, is an example of an oligopoly

Firstly, they rely on advertising revenue as a significant source of income. The Times newspaper, for instance, includes advertisements from various businesses and organizations, generating revenue through paid placements. These advertisements cater to a wide range of industries. Additionally, newspapers often offer different advertising forms, including print and online options, to attract advertisers and maximize revenue potential.

Another approach is by subscription models. The Times newspaper offers both print and digital subscriptions to its readers, reaching a wider market (e.g. younger and older) By charging a fee for access to their content, newspapers can generate a steady stream of income. Furthermore, newspapers may offer different subscription tiers, providing additional benefits to higher-paying subscribers, thereby increasing revenue. This may consist of exclusive information

The Sun

The Sun is a British tabloid newspaper, published by the News Group Newspapers division of News UK, itself a wholly owned subsidiary of Lachlan Murdoch's News Corp.

The Sun's revenues, however, grew marginally from £318.6m to £320.5m as digital growth outpaces the decline of print.

The Sun newspaper primarily generates revenue through advertising and newspaper sales. It sells advertising space to businesses and organizations, and also earns income from subscriptions and single-copy sales. Additionally, it may generate revenue through online advertising and digital subscriptions.

The Sun is described as having political allegiance to the Conservative party and does not support the EU.

Metro

Metro is owned by Daily Mail and General Trust plc (DMGT), part of the same media group as the Daily Mail and The Mail on Sunday, but in some areas Metro operates as a franchise with a local newspaper publisher, rather than as a wholly owned concern.

The Metro newspaper generates revenue through a combination of advertising and circulation. In the online format, they earn money through digital advertising, sponsored content, and partnerships. For the print format, they rely on advertising revenue from businesses and organizations that place ads in the newspaper. Additionally, they generate income from sales of physical copies through subscriptions and newsstand purchases.

Revenue/profit for 22/23