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Terminology (LO1)

Conglomerate - a structure with one parent company that owns several smaller companies (subsidiaries).  Each of a conglomerate’s subsidiaries runs independently but supports the wider goal and objectives of the parent company.

Subsidiary - a smaller company that is owned and ultimately controlled by a larger one. 

Independent - companies that are free from the control of a conglomerate.  Independent companies usually specialize in producing one type of media product or service.

Public service broadcaster - a company that delivers services beneficial to the public interest.  This type of company will offer products to the audience that go beyond the purpose of entertainment and many products are made specifically to inform, educate and widen participation.

Commercial broadcaster - a company that is privately owned and funded usually through advertising.  Unlike a PSB, a retail company has no responsibility outside of entertainment.

Production - making a media product, from pre- to post-production.

Distribution - How a product or brand reaches audiences.

Marketing - How a product is promoted/advertised.

Joint venture - this is when a media company works with another company on a mutually beneficial project for both parties.

Vertical integration - a company that can control production, distribution and, in some cases, the exchange of a product.  It is sometimes known as the value chain.

Horizontal integration - a company that utilizes assets of its subsidiary companies to support the marketing process of a significant product or brand.

Synergy -  increased efficiency and profit that occurs as a result of vertical and horizontal promotion.  Conglomerates are formed to create synergy to cross-promote.

Cross-media convergence - when a conglomerate uses horizontal integration, vertical integration or both to create synergy within the company.




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