20th Century Fox is conglomerate, this means it is a company that is made up of other companies which are know as subsidiaries. The opposite of a conglomerate is an independent company and example of an independent company is "Warp". An independent company works for themselves and operate alone.
Ownership
Rupert Murdoch owns 20th Century Fox, which a subsidiary of 21st Century Fox. Other subsidiaries of the company are: Fox TV who air programmes such as Bones which started in 2005 , Star TV which is a foreign based TV broadcast system which airs programmes overseas, Sky which is a large, mainstream company which supplies television, internet and telephone communication all around the world. Having some of their own channels showing football matches to TV series such as Boardwalk Empire , Talk Radio and Fox Home Entertainment which has made films such as Dr. Dolittle. Murdoch also owns National Geographic and a company called "NewsCorp" which is responsible for the production of newspapers such as "The Sun" and "The Times".
They are a cross media company as their subsidiary companies make different products. For example Fox TV is a subsidiary of 20th Century Fox and they air TV shows along with "Sky". Cross media companies make more than one type of product such as films, TV shows and radio broadcasts. Conglomerate companies own a series of cross media companies so they can save money and cross promote. Cross promotion is when the company advertises their products on the different platforms of their company. Being able to easily cross promote is called synergy.
20th Century Fox have worked with DreamWorks on some of their films such as Mr Peabody and Sherman, this is known as a joint venture.
The main goal of a conglomerate such as 20th Century Fox is often to make money. However, some conglomerates such as the BBC are public service broadcasters. This means their goal is to serve the public by informing, educating and entertaining. They are funded by the public through taxes but also earn some money through advertising.
Operating Model
There are two types of integration, Horizontal and Vertical.
Horizontal integration is when either 2 Subsidiaries of a conglomerate, Parent companies or Affiliates / Joint ventures come together to create a product.
Vertical integration is when a company has the ability to control the production, distribution and exchange of the product it makes 20th Century Fox is able to do this as it is a conglomerate. This is known as the film production cycle.
The film production process comes after the film production cycle. This process includes: pre-production, production and post-production.
The first stage is pre-production which basically means planning. This contains:
Casting and hiring the crew, making a work plan, figuring out needed assets, writing a script, drawing a storyboard, drawing any concept art, sorting out the film schedule, location scouting, budgeting and working out legislation.
Within the making of a film there has to be a large range of different people doing different things, pyrotechnics which will be done on set, these people who control explosions which are real life and not CGI explosions. Once it has been filmed the editors can edit the explosion to make the
Within the post production stage, the previously recorded footage is edited and all the CGI or graphics are added into the footage. Rendering of the movie may take along time.
Products
20th Century Fox have made a large amount of movies, two big names are Cast Away and Titanic,
Fox TV has been around since 1986 and since they have made many TV shows which are each aimed at different audiences:
In 1989 an animated comedy called " The Simpsons " was made and it was aired by FOX TV and it is currently still being made and shown on TV as the audience for the programme does not always stay the same, each episode is different and contain new ideas and some celebrities playing cameos.
In 2009 Fox TV aired a new show called "Glee" which is a Musical comedy-drama series aimed at teens. Fox aren't aiming all their shows at one particular audience, they are expanding out to all different audiences thus making them more money as a company.
Fox TV also aired a series of reality shows such as "Kitchen Nightmares" where it shows you behind the scenes of restaurants, although this is a real life, not set up show there are still plenty of other shows which are reality based which are casted and follow a script.
All 3 shows are shown by Fox TV but they aren't aimed at the same audience, each show has a mass audience, other shows may not be as popular as these but the show is aimed at a smaller niche
audience.
Market Position
The market position is where the company stands on the amount of profit/revenue it has made over time. For example 21st Century Fox is ranked the 3rd largest media company in 3Q15 (the third quarter of the year 2015).
Last year 21st Century Fox made a total revenue of $31.867 billion USD, while the subsidiary made a huge amount of money from some of the films such
as the highest grossing film "Avatar" which brought in $749,766,139.
20th Century Fox have made 590 films bringing in a total revenue all together of $28,893,697,362 which in average is $48,972,368 per film.
In the overall domestic grossing films 20th Century have 3 films in the top 7. "Avatar", "Star Wars & Star Wars: Episode I - The Phantom Menace" where as there is also 4 other companies who are up there. The second top grossing film is titanic which was made by Paramount Pictures. Although it is second in the list, it made $101,835,323 less than Avatar.
20th Century Fox have a list of competitors but none of them compare to the popularity and revenue to what 20th Century Fox have, Universal have altogether made a sum of $1,115.3 billion last year.
Internationally both companies are well known, 20th Century Fox broadcasts all over the world while Universal has its own theme park in America which is known across the globe.
Competitors
Competitors
Disney and Warner are both large media companies which excel in making movies and TV. Both Time Warner and Disney both have subsidiaries, meaning they are all parts of a conglomerate. 20th Century have a lot more different subsidiaries which aim at different audiences so this makes it easier for them to cross promote this is because they are also a subsidiary of the much larger company 21st Century Fox . Some subsidiaries of Time Warner include DC Comics and Warner Brothers. Examples of Disney subsidiaries are Pixar and Disney Channel. 20th century have made some of the most popular TV shows and movies of all time such as "The Simpsons" which is known all across the world.
Thank you for your time and listening. See you next time.
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