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Unit 1: Contextual Studies

Unit 1: Contextual Studies. LO 1: Task 2. Media industry NATIONAL case study. Introduction. The following presentation will show research and analysis of the institutional context of creative media production and it ’ s influence on production.

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Unit 1: Contextual Studies

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  1. Unit 1: Contextual Studies LO 1: Task 2

  2. Media industry NATIONAL case study

  3. Introduction • The following presentation will show research and analysis of the institutional context of creative media production and it’s influence on production. • Corporate structures and distribution, sources of income, regulation and legal constraints and the marketing of brand identity will be referenced throughout the presentation of the research carried out.

  4. Sector Industries - Television • British Sky Broadcasting was formed in 1990 by the merger of Rupert Murdoch-owned Sky Television and British Satellite Broadcasting, which were both struggling financially at the time as they competed for viewers. Fast-forward a quarter of a decade and now Sky is competing for viewers with relative newcomer Netflix, alongside more traditional rivals such as BT and Virgin Media (Campaign Live, 2017). • Sky UK Limited is a British telecommunications company, which serves the United Kingdom. Sky provides television, broadband Internet services and fixed line telephone services to consumers and businesses in the United Kingdom. It is the UK’s largest pay-tv broadcaster with 11 million customers as of 2015. It was the UK’s most popular digital TV service until it was overtaken by Free View in April 2007.

  5. Control • Primarily owned by 21st century fox, Sky has seen a lot of CEOS since its founding 25 years ago. • There are currently 13 company directors working for Sky including James Murdoch, chief executive of Fox. • Rupert Murdoch’s Sky bid is being investigated this year, Ofcom have to assess whether the deal would give mogul too much control of UK media and whether his family are “fit and proper” owners (Guardian News, 2017).

  6. Distribution & Marketing • Sky’s corporate head-quarters are based in Isle Worth. Sky’s funding comes from selling its sky bundle, which has taken the world by storm since it came out. It also receives money from advertisements and shareholders. Since sky is one of the largest television services out, companies tend to pay a lot of money to have their advertisements broadcasted on their service. They also sell their products which creates yet another source of income with the extra profits going straight back into the funding of the company.

  7. Distribution & Marketing • The advent of digital satellite has made it possible for Sky to improve its market position. From the launch onwards, the marketing objectives have been to create fresh demand for Sky, to position digital satellite television as the market leader and to make sure that potential customers fully understand the product’s benefits. The marketing strategy has extended to establishing a unique positioning for SkyDigital in the minds of non-subscribers. • The target market for SkyDigital includes everyone, as almost everyone watches television! Therefore, it remains imperative to tailor Sky’s marketing messages to different segments of the population. Although the core audience remains the ‘family unit’, with SkyDigital, different features and benefits have different levels of appeal, so it is necessary to communicate these different options to the various target audiences.

  8. Distribution & Marketing • The ongoing mission for Sky’s marketing and sales is to drive subscription growth (i.e. more buyers), encourage loyalty and retain customers. With SkyDigital, this becomes a two-tiered mission: • To generate new digital customers (i.e. people who are not current Sky subscribers). • To encourage current Sky subscribers to move from analogue to digital. • In order to drive sales, Sky is continuing its partnership with and commitment to a group of major high street retailers including Comet, Currys, Dixons and Granada. In addition, Sky has a well-established direct sales operation publicised through an easy to remember number. (Business Case Studies, 2017)

  9. References • Business Case Studies (2017) Sky and the Digital Revolution [Online] Available from: http://businesscasestudies.co.uk/sky/sky-and-the-digital-revolution/marketing-strategy.html [Accessed on: 06/06/17]. • Campaign Live (2017) Sky [Online] Available from: http://www.campaignlive.co.uk/brand/sky#FdiZsQ3kvGb5PwMS.99 [Accessed on: 06/06/17]. • Guardian News (2017) Rupert Murdoch's Sky bid to be investigated by UK regulator [Online] Available from:https://www.theguardian.com/business/2017/mar/16/rupert-murdoch-sky-bid-uk-ofcom[Accessed on: 08/06/17].

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