MAIN ACTIVITIES:
News Corporation is a major telecommunications company that operates primarily in filmed entertainment, television stations, and television broadcast network. The company generates 57% of its revenue from television and film. Currently, News Corporation owns 35 full-power stations (SEC). However, it also productive in its original field, publishing (newspapers, magazines, and books). The company owns more than 175 Newspapers and publishes more than 40 million newspapers a week (News Corporation).
CONGLOMERATIZATION:
As mentioned in Main Activities, News Corporation began as a publications company. However, in the 1980's Rupert Murdoch began investing in the telecommunications field, investing in movie studios, television broadcasting, cable, and satellites. Yet, it does have very many unique investments such as the Los Angeles Dodgers, TV Guide, and the history channel in England. Although most of the companies they own are an example of media synergy, because they can aid the companies' other investments.
GLOBALIZATION:
News Corporation epitomizes the globalization of the marketplace. In fact, the company began as two newspapers in Australia and then expanded to Great Britain in the 1960's. In the 1970's News Corporation began buying publications in the United States. In the 1980's the company began dealing in telecommunications, broadcasting to the world. In the late 1980's News Corporation began buying companies in the Asian marketplace. The future of capitalism lies in globalization.
Movies are a great a product in the global marketplace. American motion pictures make approximately 44% of the global box office revenues (Infoshop.com). Also, for better or worse, movies shaped our perception of the world. People often develop stereotypes from the silver screen. My 7th grade social studies teacher once told me that while in Russia people kept thinking he was a cowboy like John Wayne. Pure irony.
Sometimes movies can be more profitable overseas than they can be in the domestic market. For instance, Titanic, which 20th Century Fox co-produced made $600 million in the domestic marketplace, but made 1.2 billion overseas (Infoshop.com). 20th Century Fox was in control of foreign distribution while Paramount handled the American part. The following companies are examples of globalization:
VERTICAL INTEGRATION:
News Corporation mostly purchases companies that are in similar fields. News Corporation places great emphasis on vertical integration. By vertically integrating, they have greater capability to dominate a specific field such as the entertainment industry. Although News Corporation is certainly not a monopoly, it does have incredible power in the telecommunications industry around the world. The media is owned by a few select companies who mostly vertically integrate. Although media companies' eggs may be in mostly one basket, the media is definitely a safe basket to be in.
As mentioned previously, News Corporation deals primarily in telecommunications. News Corporation both produces and distributes its products. However, sometimes they have been able to distribute without producing. For instance, News Corporation has purchased the rights to television shows like M*A*S*H and the Mary Tyler Moore Show, Batman, and the Wonder Years. These shows were originally made by different networks. However, since News Corporation owns the rights they can now distribute these shows as they please. Nickelodeon, which is affiliated with CBS, has to pay News Corporation to play The Wonder Years or the Mary Tyler Moore Show.
In the past, it was illegal for a company to own television stations and the shows at the same time. However, that is no longer a rule. Fox, News Corporation's television and film company, owns the rights to shows which they air on their stations such as The Simpsons, The X Files, Malcolm in the Middle, The Shield. News Corporation stands to profit significantly on syndication.
Fox also produces motion pictures and then distributes them. Then, 20th Century Fox Home Entertainment releases the films on video. News Corporation has made a point to profit every step of the way.
*Company's holdings were found on the SEC Report.
MEDIA SYNERGY:
News Corporation mostly owns businesses that are inter-related. One company can usually benefit another. For instance, a company's television stations can play a movie that their film studio produced. In 1999 Twentieth Century Fox produced Star Wars: Episode I- The Phantom Menace. The following year, the Fox Broadcasting Company aired the film on network television. Typically, HBO, Showtime, or Cinemax get first rights to air movies on television.
The publishing companies and the newspapers can advertise their employees, movies, or television shows. Since News Corporation owns TV Guide, it makes it easier for the company to promote its own films and television programs. Although this may not be ethical, it is still an example of media synergy.
Ironically, in the information age, the media concentrates more on entertainment. Therefore, there is more emphasis on a popular television show or a movie opening. It is easy for News Corporation to promote itself. A critic employed by News Corporation could be less than fair in his analysis, giving outstanding reviews to Fox affiliated entertainment and giving scathing ones to Fox's competitors. In the era of big corporate ownership, it is difficult to know how much media synergy is affecting the truth. The media sure won't report it.
However, sometimes media synergy can backfire. Especially when it is as big as News Corporation and nearly impossible to govern as a whole. For instance, The New York Post , which is owned by News Corporation recently had an article which suggested that Hall of Fame Dodger Pitcher Sandy Koufax was gay. For this reason, Sandy Koufax has cut all ties with the Los Angeles Dodgers, who are also owned by News Corporation. The article seems like a conflict of interests. However, when so much is owned by so few, erroneous activity such as this is not uncommon.
News Corporation is a major telecommunications company that operates primarily in filmed entertainment, television stations, and television broadcast network. The company generates 57% of its revenue from television and film. Currently, News Corporation owns 35 full-power stations (SEC). However, it also productive in its original field, publishing (newspapers, magazines, and books). The company owns more than 175 Newspapers and publishes more than 40 million newspapers a week (News Corporation).
CONGLOMERATIZATION:
As mentioned in Main Activities, News Corporation began as a publications company. However, in the 1980's Rupert Murdoch began investing in the telecommunications field, investing in movie studios, television broadcasting, cable, and satellites. Yet, it does have very many unique investments such as the Los Angeles Dodgers, TV Guide, and the history channel in England. Although most of the companies they own are an example of media synergy, because they can aid the companies' other investments.
GLOBALIZATION:
News Corporation epitomizes the globalization of the marketplace. In fact, the company began as two newspapers in Australia and then expanded to Great Britain in the 1960's. In the 1970's News Corporation began buying publications in the United States. In the 1980's the company began dealing in telecommunications, broadcasting to the world. In the late 1980's News Corporation began buying companies in the Asian marketplace. The future of capitalism lies in globalization.
Movies are a great a product in the global marketplace. American motion pictures make approximately 44% of the global box office revenues (Infoshop.com). Also, for better or worse, movies shaped our perception of the world. People often develop stereotypes from the silver screen. My 7th grade social studies teacher once told me that while in Russia people kept thinking he was a cowboy like John Wayne. Pure irony.
Sometimes movies can be more profitable overseas than they can be in the domestic market. For instance, Titanic, which 20th Century Fox co-produced made $600 million in the domestic marketplace, but made 1.2 billion overseas (Infoshop.com). 20th Century Fox was in control of foreign distribution while Paramount handled the American part. The following companies are examples of globalization:
VERTICAL INTEGRATION:
News Corporation mostly purchases companies that are in similar fields. News Corporation places great emphasis on vertical integration. By vertically integrating, they have greater capability to dominate a specific field such as the entertainment industry. Although News Corporation is certainly not a monopoly, it does have incredible power in the telecommunications industry around the world. The media is owned by a few select companies who mostly vertically integrate. Although media companies' eggs may be in mostly one basket, the media is definitely a safe basket to be in.
As mentioned previously, News Corporation deals primarily in telecommunications. News Corporation both produces and distributes its products. However, sometimes they have been able to distribute without producing. For instance, News Corporation has purchased the rights to television shows like M*A*S*H and the Mary Tyler Moore Show, Batman, and the Wonder Years. These shows were originally made by different networks. However, since News Corporation owns the rights they can now distribute these shows as they please. Nickelodeon, which is affiliated with CBS, has to pay News Corporation to play The Wonder Years or the Mary Tyler Moore Show.
In the past, it was illegal for a company to own television stations and the shows at the same time. However, that is no longer a rule. Fox, News Corporation's television and film company, owns the rights to shows which they air on their stations such as The Simpsons, The X Files, Malcolm in the Middle, The Shield. News Corporation stands to profit significantly on syndication.
Fox also produces motion pictures and then distributes them. Then, 20th Century Fox Home Entertainment releases the films on video. News Corporation has made a point to profit every step of the way.
*Company's holdings were found on the SEC Report.
MEDIA SYNERGY:
News Corporation mostly owns businesses that are inter-related. One company can usually benefit another. For instance, a company's television stations can play a movie that their film studio produced. In 1999 Twentieth Century Fox produced Star Wars: Episode I- The Phantom Menace. The following year, the Fox Broadcasting Company aired the film on network television. Typically, HBO, Showtime, or Cinemax get first rights to air movies on television.
The publishing companies and the newspapers can advertise their employees, movies, or television shows. Since News Corporation owns TV Guide, it makes it easier for the company to promote its own films and television programs. Although this may not be ethical, it is still an example of media synergy.
Ironically, in the information age, the media concentrates more on entertainment. Therefore, there is more emphasis on a popular television show or a movie opening. It is easy for News Corporation to promote itself. A critic employed by News Corporation could be less than fair in his analysis, giving outstanding reviews to Fox affiliated entertainment and giving scathing ones to Fox's competitors. In the era of big corporate ownership, it is difficult to know how much media synergy is affecting the truth. The media sure won't report it.
However, sometimes media synergy can backfire. Especially when it is as big as News Corporation and nearly impossible to govern as a whole. For instance, The New York Post , which is owned by News Corporation recently had an article which suggested that Hall of Fame Dodger Pitcher Sandy Koufax was gay. For this reason, Sandy Koufax has cut all ties with the Los Angeles Dodgers, who are also owned by News Corporation. The article seems like a conflict of interests. However, when so much is owned by so few, erroneous activity such as this is not uncommon.
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