Category Archives: Blog #1

Cumulus Media: The difference of a State

Cumulus Media Inc.  is one of the largest radio broadcasting owner and operator of AM and FM radio stations, second only to Clear Channel Communications. Cumulus operates 570 radio stations in 110 cities and 34 states. They claim to serve over 65 million listeners. Cumulus, founded in 1997, is based out of Atlanta, Georgia.  In 2011 Cumulus bought Citadel Broadcasting after it filed for bankruptcy.  With this purchase Cumulus gained 225 radio stations.

Unlike its biggest competitor, Clear Channel Communications, Cumulus only owns terrestrial radio stations. Clear Channel has branched out to satellite radio stations on Sirius XM Radio. Many other broadcast corporations own an array of television stations and other forms of media.   Cumulus has chosen to integrate horizontally in the media market by focusing on operating  radio stations. (info & research)

Screen Shot 2014-01-17 at 1.04.02 PM

My map is simply showing the size and reach of Cumulus Media Inc. I was amazed at the amount of cities that Cumulus had radio stations in. All those cities and states are inhabited by a ton of different types of people.  From my perspective,  people who live in Flint, Michigan (Cumulus owns three stations there) have beliefs and values that are not similar to people in Eugene, Oregon (Cumulus owns six stations there).  (all stations owned by Cumulus Media Inc.) I realized this difference while I was in Sri Lanka over winter break. When people would ask me where I was from, I would always respond by saying “Colorado”.  In response to this I would get blank stares or polite (confused) smiles. I soon learned to say “America” (or Canada if I didn’t want to be ripped off!) because Colorado meant nothing to anyone outside of the US. To me “America” didn’t describe me at all! Telling people I’m from Colorado, or my home town of Snowmass Village immediately shows that I am a mountain girl, and that I’m ‘down to earth’ My home town says something about who I am, that “America” doesn’t. 

So how can this huge corporation cover all these different cities across our huge country of America? They must have different needs and wants from their radio stations and other media. Or has media become homogenous reel of information that is fead to everyone?  And is this a bad thing? Maybe with radio stations it doesn’t have that much of an effect. It is possible for a song that is popular in Flint to also be popular in Eugene. While politics change from place to place, entertainment can be universal.

Sony Corp.

Founded on May 7, 1946, Sony Corporation originally started out with a focus on telecommunications and measuring equipment. Today, Sony’s is widely known for their electronics such as the Playstation and audio systems. Their interests have greatly expanded since their founding, and now involve a variety of different types of media. With it’s headquarters in Tokyo, Japan, Sony Corporation owns a vast hub of media companies. Here are some of the companies that they own:

Ownership Map:

Entertainment (film)

    • Columbia Tristar Motion Picture Group
      • Columbia Pictures
      • Sony Pictures Classics
      • TriStar Pictures
      • Columbia Pictures Film Production Asia
      • Columbia Films Producciones Espanolas
      • Columbia Pictures Producciones Mexico
    • Sony Pictures Animation
    • Sony Pictures Imageworks Interactive
    • Sony Pictures Studios
    • Sony Pictures Technologies
    • Sony Pictures Home Entertainment

Music

  • Columbia/Epic Label Group
    • American Recordings
    • Columbia Records
    • Epic Records
    • Roc Nation
  • RCA/JIVE Label Group
    • Arista Records
    • J Records
    • LaFace Records
    • Polo Grounds
    • RCA Records
    • Verity Gospel Music Group
    • Volcano Entertainment
  • Provident Label Group
    • Beach Street Records
    • Flicker Records
  • Sony Music Commercial Music Group
  • Music Choice Video and Mustic Network
  • Sony/ATV Music Publishing

Television

  • Crackle
  • SET Max
  • SET PIX
  • SAB
  • AXN
  • Animax
  • Channel 8
  • Cinemax (Latin America)
  • GSN (US)
  • HBO Family (Latin America)
  • TV1

 

Other

  • Sony Card Marketing & Services Company
  • Sony Computer Entertainment America (Playstation and Associated Games)
  • Sony Electronics
  • Sony DADC
  • Sony Plaza Public Arcade
  • Sony Wonder Technology Lab (New York)

For more on Sony Corporation’s ownership map click here

Sales and Operating revenue:

2011 – ¥7.2 trillion

2012 – ¥6.5 trillion

2013 – ¥6.8 trillion

For more on past annual reports click here

Sony is a very large conglomeration, consisting of over 50 companies around the world. They have integrated more horizontally, producing a variety of products in the media department as well as tools to record media (cameras and recorders). Sony has also acquired smaller companies that manufacture and engineer their products as well. It surprised me how many companies Sony owns and how great their amount of influence is in society, especially on an international scale.

http://www.sony.net/SonyInfo/CorporateInfo/History/history.html

http://www.sony.net/SonyInfo/CorporateInfo/

Sony Corporation

Sony is a multinational conglomerate based out of Japan.  Sony has four different operating systems:  Electronics, motion pictures, music, and financial services.  But, Sony is most recognized for their electronic products like phones and TVs.  Sony currently holds the status as the third-largest TV manufacturer in the world.

Film holdings:

Columbia pictures

Screen Gems

Tristar pictures

Sony pictures classics

Sony pictures animations

Sony pictures studios

Sony pictures imageworks interactive

Sony pictures home interactive

Music holdings:

Columbia/Epic label group

RCA/JIVE label group

Provident label group

TV holdings:

Crackle

SET

SAB

AXN

Animax

Cinemax (Latin America)

Sony corporation is a conglomerate meaning that it is a corporation consisting of many different companies that run independently, and work in separate businesses.  Since sony is a conglomerate of many different areas of the electronics industry, they have more power because they can compete with other corporations in almost every aspect of electronics.  In addition to this, they own much of the software that is used on their devices, like Music Unlimited.  This is an example of vertical integration, because they are able to make two products in the form of one without having to pay another company to provide services for them.  According to a news article written last year, the electronics segment of Sony is declining, and it’s not as profitable for the corporation as the other segments like music, film, and even life insurance.

I was surprised to find that electronics was Sony’s biggest expense.  It seems like ever since I learned what Sony was, I always thought of them as a camera company that became a big TV manufacturer too.  Then I eventually realized that they owned a lot of other things that I had seen on my phone, laptop, or game system.  Although this article makes it seem like Sony electronics is doomed, I don’t think Sony would ever drop that aspect of the company.  It is too valuable considering its popularity, and how much the other companies they own depend on it.

Sources:

http://www.nytimes.com/2013/05/28/business/global/sonys-bread-and-butter-its-not-electronics.html?pagewanted=1&_r=0

http://www.cjr.org/resources/?c=sony

http://www.sony.net

http://en.wikipedia.org/wiki/Sony

Bertelsmann SE & Co. KGaA

Bertelsmann is a multinational media conglomerate.  Bertelsmann operates in 50 countries, and its headquarters are in Germany.  Its principle divisions include Penguin Random House, RTL Group, Gruner + Jahr, Arvato, Be Printers, and BMG.

Penguin Random House  is the world’s largest general interest trade book publishing company.

RTL Group is Europe’s biggest broadcaster of radio and television, which is also the parent to the FremantleMedia movie and TV production enterprise, the largest of its kind outside Hollywood.

Gruner + Jahr is one of the biggest magazine publishing houses in Europe.

Arvato is an international media and communications service provider.

Be Printers is an international group of companies offering printing solutions and communications services.

BMG is an international music company focused on the management of music publishing and recording rights.  BMG is the fourth-largest music publisher in the world, based on revenue.

Bertelsmann is a media conglomerate that employs Vertical Integration, which is evident considering its holdings primarily deal with the media, including book publishing, broadcasting tv and radio stations, magazine publishing, a media and communications provider, and a printing solutions firm.  BMG could be considered a horizontal integration, because it has to do with music and not the media industry.  Bertelsmann’s strategy is all about creativity and creating an environment that fosters innovation.  According to their CEO, Thomas Rabe, “Creativity is the foundation of all our businesses, the centerpiece of our value creation. We will therefore continue to invest in and expand our creative businesses.” Another part of their strategy is to aspire to be part of the digitization of media outlets, including watching tv on tablets, using e-readers, and reading magazines through their apps.  They way people consume news has drastically evolved over the past decade, making this point a priority for Bertelsmann.  Bertelsmann plans to continue growing and expanding their reach and influence.  Purchasing BMG Rights Management was a step in that direction.  In just four and a half years, BMG is  the world’s fourth-largest music publisher, with the rights to more than a million songs.  Bertelsmann plans to grow into the education industry, the booming e-commerce business, and integrated financial services, as well as the IT and high-tech sector. Bertelsmann also plans to expand geographically, to South America, India and China.

Although Bertelsmann is a multinational company, I haven’t heard of any of the media outlets.  However, Bertelsmann is more of a European company.  They have similar European television shows that are also showed in the US, such as The Price is Right and Idol.  Bertelsmann is in the top 10 for World’s Largest Media Conglomerates, but I had never heard of them before, which is surprising. However, this probably has to due with the fact that it’s a European company.

For more info on the specific tv and radio stations, magazines and newspapers, check out http://www.cjr.org/resources/?c=bertelsmann

http://en.wikipedia.org/wiki/Bertelsmann

http://en.wikipedia.org/wiki/BMG_Rights_Management

http://www.bertelsmann.com/strategy/growth-regions/

News Corp

News Corp Ownership Map

  • Fox News Channel
  • Fox Business Network
  • Fox Movie Channel
  • FX
  • National Geographic Channel United States
  • Twentieth Century Fox
  • Twentieth Century Fox Espanol
  • Twentieth Century Fox Home Entertainment
  • New York Post
  • The Wall Street Journal
  • Fox Music
  • Harper Collins Publishers
  • AmericanIdol.com
  • Star
  • YES Network

For entire ownership map click here.

News Corp was founded in 1979 as a holding company for News Limited by Rupert Murdoch.   News Limited owned several news papers in both Australia and the United States.  News Corps growth was fueled by the acquisition of  many companies in many different markets.  Spanning every outlet of the media market (books, TV, movies, ect…) in many countries News Corp has become a media super power throughout the world.

News Corp has done many things right to become the company that it is today, two of the most important of these are integration and synergy.  Through the acquisition of one, if not many, companies in each of the media markets the company has become horizontally integrated.  News Corp also has a hand full of holdings in technology related fields such as NDS Group, who develops TV related software.  News Outdoor Group ,another subsidiary of New Corp, “was at the largest outdoor advertising company in Eastern Europe” until beginning to sell many of its divisions in recent years. Many of News Corps subsidiaries, like NDS Group and New Outdoor Group, have connections to the media industry.  Through the ownership of these companies News Corp creates vertical integration.

Both the vertical and horizontal integration contribute to News Corp’s “synergy”.  Cross promotion of products through multiple  medias can save money on advertising and help to reach different audiences.  An example of this could be Fox News talking about a new book that Harper Collins Publishers recently published.  The book would get publicity by being talked about on TV.  In turn the publishing company would put a quote from Fox News on the book somewhere.  Having TV companies and software companies under the same conglomeration provides many opportunities for to create efficiency and cut costs.  NDS Group can easily collaborate with each  of News Corp’s TV stations to create software that fits each station’s needs exactly.  Other software companies may make similar software but would not be as inclined to taylor it to an specific stations needs.  Without “synergy” and integration News Corp would have long been eaten up by another company very similar to itself.

When looking at News Corp’s holdings I immediately recognized several of the companies, but I was not surprised  because of the endless list of subsidiaries.  One thing that did surprise me was that a Australian based company has become one of the largest media powers in the United States.  After looking into News Corp I have many more questions than answers.  The power of the media should not be in the hands of so few people.

 

The Walt Disney Company- Alex Rudolph

ALEX RUDOLPH
Watching classic films like Aladdin, The Jungle Book, and The Lion King makes it hard to realize how big Walt Disney really is. Founded in 1923, Disney was at the forefront of the animation, and later live-action film industries for nearly 60 years before they became a mass media conglomerate. Along with several theme parks around the world, and holdings in television, radio, theater, music, publishing, distribution, etc., Disney is one of the largest media conglomerates in the world.

 

Company Holdings MAP

Film and Theater

Disneynature

Disney Theatrical Productions

Touchstone Pictures

Marvel Entertainment

LucasFilm

Walt Disney Pictures

DisneyToon Studios

Walt Disney Animation Studios

Pixar Animation Studios

Walt Disney Studios Motion Pictures International (Distribution)

Walt Disney Studios Home Entertainment

Music

Disney Music Group

Hollywood Records

Walt Disney Records

Television

ABC-Owned Television Stations Group

WLS (Chicago, IL)

KFSN (Fresno, CA)

KTRK (Houston, TX)

KABC (Los Angeles, CA)

WABC (New York, NY)

WPVI (Philadelphia, PA)

WTVD (Raleigh-Durham, NC)

KGO (San Francisco, CA)

Disney ABC Television Group

ABC Television Network (ABC Daytime, ABC Entertainment, and ABC News)

ABC Family

ABC Studios

A&E Television Networks (50%)

The Biography Channel (50%)

Disney ABC Domestic Television

Disney ABC International Television

Disney-ABC-ESPN Television

Disney Channel Worldwide (Disney XD, Playhouse Disney, Jetix, and ABC Kids)

History (formerly The History Channel) (50%)

H2 (50%)

Hungama

Lifetime Entertainment Services (50%)

SOAPnet

Disney Junior (Flanders and the Netherlands)

ESPN, Inc. (80%)

ESPN (and ESPN.com and ESPN360.com)

ESPN2

ESPN 3D

ESPN Classic

ESPN Deportes

ESPNEWS

ESPNU

ESPN Enterprises

ESPN Interactive

ESPN International

ESPN Mobile Properties

ESPN on Demand

ESPN PPV

ESPN Regional Television

Longhorn Network

Radio

WDDY AM (Albany, NY)

WDWD AM (Atlanta, GA)

WMKI AM (Boston, MA)

WGFY AM (Charlotte, NC)

WRDZ AM (Chicago, IL)

WWMK AM (Cleveland, OH)

KMKI AM (Dallas-Fort Worth, TX)

KDDZ AM (Denver, CO)

WFDF AM (Detroit, MI)

KMIC AM (Houston, TX)

WRDZ FM (Indianapolis, IN)

KPHN AM (Kansas City, MO)

KDIS FM (Little Rock, AR)

KDIS AM (Los Angeles, CA)

WMYM AM (Miami, FL)

WKSH AM (Milwaukee, WI)

KDIZ AM (Minneapolis, MN)

WQEW AM (New York, NY)

WDYZ AM (Orlando, FL)

WWJZ AM (Philadelphia, PA)

KMIK AM (Phoenix, AZ)

KDZR AM (Portland, OR)

WDZY AM (Richmond, VA)

KIID AM (Sacramento, CA)

KWDZ AM (Salt Lake City, UT)

KRDY AM (San Antonio, TX)

KMKY AM (San Francisco, CA)

KKDZ AM (Seattle, WA)

WSDZ AM (St. Louis, MO)

WWMI AM (Tampa, FL)

ESPN Radio

WMVP (Chicago, IL)

KESN (Dallas-Fort Worth, TX)

KSPN (Los Angeles, CA)

WEPN (New York, NY)

WDDZ AM (Pittsburgh, PA)

Publishing

Hyperion Books

ABC Daytime Press

Hyperion

Jump At The Sun

Mirimax Books

Voice

Disney Publishing Worldwide

Disney Digital Books

Disney English

Disney Global Book Group

Global Children’s Magazines

U.S. Magazines

ESPN The Magazine (50% with Hearst)

ESPN Books

Parks and Resorts

Adventures by Disney

Disney Cruise Line

Disneyland Resort

Disneyland Resort Paris (51%)

Disney Vacation Club

Hong Kong Disneyland (48%)

Shanghai Disney Resort (43%)

Tokyo Disney Resort (Owned and operated the Oriental Land Company)

Walt Disney Imagineering

Walt Disney World Resort

Other

The Baby Einstein Company

Club Penguin

Disney Consumer Products

The Disney Store

Disney Apparel

Disney Accessories & Footwear

Disney Fashion & Home

Disney Food

Disney Health & Beauty

Disney Stationery

Disney Toys

Disney Interactive Media Group

Disney Interactive Studios

Disney Online (Disney.com)

Disney Online Studios

Disney Mobile

El Capitan Theatre

The Muppets Studio

Playdom

Rocket Pack

UTV Software Communications

 

 

Findings

Today, as Disney leads the world in revenue generation, we must look back on how a company specializing in cartoon animation during the 1920s made their rise to global conglomeration. From 1923 to 1986, Disney created animated and live- action television shows and films broadcasted mostly to children. In 1986, the company began to expand into more mature entertainment fields. They renamed themselves, The Walt Disney Company, and began to reach for new heights, marketing toward more mature audiences. In 1995, Disney purchased Capital Cities/ ABC Inc. for $19 billion creating the largest media conglomerate in the world.  Together, the companies would become a “global powerhouse” generating sales up to $20.7 billion.

Owning the production and distribution companies that create Disney movies, along with the acquisition of ABC allows the company to usevertical integration in order to maintain the profit margin that put the two companies on top. Disney can now broadcast and advertise their products on ABC television as part of the benefits of vertical integration.

After Disney’s acquisition of ABC, they not only bought ABC television, but they also received the benefit of owning ESPN. This is a great example of horizontal integration because the company expanded into a media outlet completely outside of the market they were previously in.  They can now produce revenue in another, more mature field of entertainment and production.

Upon researching this subject, I found it interesting that a company with the historical background like Disney could grow into the media empire that it is today. From creating cartoon animations in the 20s, to now ruling the media market with a considerable amount of concentration of ownership, it creates hope in regards to starting small and hoping for the best as you continue down a path of success.

 

 

Resources-All the websites I used in order to do research for this post

http://www.cjr.org/resources/?c=disney

http://thewaltdisneycompany.com/about-disney/company-overview

http://en.wikipedia.org/wiki/The_Walt_Disney_Company

http://articles.latimes.com/1995-08-01/news/mn-30178_1_walt-disney

 

 

Time Warner Inc.

Time Warner is a large multinational media corporation. The company was founded in 1990 as Time Warner and is now the world’s second largest media and entertainment conglomerate (behind The Walt Disney Company). Time Warner was spawned from a merger of two companies, Warner Communications, Inc. and Time Inc. Since then Time Warner has amassed a huge network of companies all funneling money to this mass media corporation.

Ownership Map

Below is a list of the major divisions of Time Warner. They also show some of the major companies owned by these various divisions. If you are looking for a more detailed map click HERE.

  • Owning’s
    • Time Warner Global Media Group
    • Time Inc.
      • Golf Magazine
      • InStyle
      • Money
      • Sports Illustrated
      • Time
  • Warner Bros. Entertainment
    • DC Entertainment
    • Flixster
    • New Line Cinema
    • Warner Bros. Studio
  • Turner Broadcasting System
    • Adult Swim
    • Cartoon Network (Worldwide)
    • CNN
    • TBS
    • TCM (Worldwide)
  • HBO
    • HBO
    • Cinemax
    • MAX
    • @ Max

Time Warner seems to concentrate a lot of its focus on both the TV and Film side of media as well as magazines. They are actually number one in total magazine circulation with about 32,582,300 magazines in circulation all over the world. They are also number two in cable news viewership with 1,040,00 viewers. Time Warner grows and changes constantly. Actually many groups owned by Time Warner have been able to branch off and become strong independent companies, including AOL and Time Warner Cable to name a few.

In 2012 Time Warner made total revenue of $28.7 billion, which is amazing to say the least. Their expert use of horizontal integration, especially, helped them reach this mass income that year. Time Warner spans many media outlets including TV, Film and magazine and each can and has completed the other through various forms of advertising. There TV and Magazine companies can promote each other through advertising as well as both can promote new films owned by Time Warner.

I feel that no matter what I will always be surprised at the sheer amount of money these corporations make in a year. Of course I definitely helped Time Warner reach that with my love of HBO and most Warner Bros. movies but its just amazing when you think about all the money made by these groups. Time Warner effectively promotes it corporations by using other corporations it owns to do so. Its plain to see why Time Warner is one of the top mass media conglomerates in the world and will probably continue to be one for many years to come.

Sources:

http://www.cjr.org/resources/?c=timewarner

http://stateofthemedia.org/media-ownership/

http://en.wikipedia.org/wiki/Time_Warner