LO1: Task 1 –Ownership of 20th century fox

20th Century Fox script

Introduction

I work for Education Wise and I have been asked by them to investigate a case. I am now looking into 20th Century Fox  and I have a few words to say about it, I would like to start with something about my company and how it has grown and who made this happen. I am speaking on behalf of Education Wise and would like to say that 20th Century Fox are conglomerate; this means that they are a company that is made of many small companies which are called subsidiaries. All the subsidiaries add up to make a big company to make a stronger company. The difference between a conglomerate and an independent company is that an independent company works on its own and does everything itself and isn’t owned by another company and a conglomerate is made up of loads of companies which all do something towards the company to help it grow or make better. 20th Century Fox  has many subsidiaries like (Fox TV, fox home entertainment) this just shows how powerful 20th Century Fox  is and has many companies they have to back them. Some examples of movies they have made are like (X men, Avatar, Fantastic Four, Ice Age, Night In The Museum). News Corp have subsidiaries of the sun newspaper and 21 Century Fox owns many big subsidiaries like (Star TV, SKY)

Ownership

William Fox started the company in 1904 when he amazed many crowds with his talent of making films. Rupert Murdoch is one of the biggest shareholders but runs the company in many different ways.it all started in a small theatre on New York’s lower east side.20th Century Fox is now a worldwide company shown in every cinema around the world. The owner ship of this company is very important and 20^th century has to have the right man for the job so it will be better for them in the future and puts them in a good position when going against competitors. As Rupert Murdoch’s son owns sky which is one of the biggest subsidiaries of 21st Century Fox out of the many it just shows how much power Rupert really has.  As a conglomerate they will have big companies to be their subsidiaries. 20th Century Fox do use cross media to be able to promote there company better and they can cross over to different platforms and the outcome of this move is synergy. They are not independent because they are owned by 21st Century Fox and have subsidiaries. 20th Century Fox and Dream work make a joint venture and Warp and Film 4 is a joint venture because Warp is an independent company and Film 4 is a conglomerate which is connected to Channel 4.

Operating model

I am going to start to talk about how the company works and how it works in different ways.  Firstly I would like to talk to you about Film production process and how it can help the company prepare for a film. You have three sections to look at which are pre-production, production and post-production.  Pre-production is planning for the film so it includes things like saucing actors, casting, Mood board, story board, work plan, concept, assets list, location scouting, props, script writing, budget plans, health and safety, set design and director. The next one to talk about Is production which includes things like creation of the film, filming scenes, protocols, pyrotechnics, dress routine, make up (prosthetics) and Chroma key (green or blue background better for the scene and editing a background for the movie). I will also talk to you about the post production and what it takes to actual finish the movie. You would include the likes of audio (music, dialog), special effects, editing certain scenes from all the footage and picking the best footage for the right moment, CGI (computer generate imagery) and that’s all the three parts of vertical. which makes them strong when against other competitors. 20th Century Fox affiliates which means they worked together, for example like DreamWorks and 20th Century Fox but the only way an independent company can get there film out is to use joint venture which means the likes of Warp needs to be with film 4 to be able to successfully get a film out but 20th Century Fox can use joint venture.  As 20th Century Fox is one is a very big company they would use horizontal as it is linked up to good social media and promotion techniques however 20th Century Fox as they are conglomerate so if they wanted to they could use the vertical option very easily as they have the money to do it but for a independent company like warp they wouldn’t have enough to be able take this approach for the film. Horizontal integration is when the company uses cross promotion synergy to be able to get the movie up and running but will be able to use the other platforms like fox TV,SKY, star, talk radio, fox home entertainment and sun the newspaper so they can promote and help get there film make revenue and promoted. Which means the film will be available on these platforms. The first step of the vertical integration is production which means they will start making the product then the next film is distribution which includes advertising/ marketing, so the product will become available for the customers and the last step would include exchange which would create revenue for the company. This is a really expensive process and takes a lot of time however the product needs to have certain platforms which will be TV, cinema, radio newspaper, social media (YouTube, Facebook, twitter) and magazines which may show a review on the film and who the target audience is. This is all called film production cycle.

Product

20th Century Fox has a mass production which means they focus on getting their content out to the world and everywhere but as Warp is an independent company there target is niche and small only international. 20th Century Fox have many subsidiaries which can make their products and can bring our many different types of content to the screen. Fox broadcasting company are at the same level as 20^th century because 21^st has them as there subsidiaries but 20^th century have many subsidiaries which is Fox home entertainments they make the products for the film and then Fox TV make it for the television. SKY is one of the biggest names 21^st century have as a subsidiary because they produce many types of products like SKY broadband which gives internet for your house so you can enjoy the likes of SKY demand which is another product they make SKY demand brings TV shows whenever you want also they have SKY movies which is another product and it is easy access to up to date movies. Another product sky makes is there hardware to actually use the software which makes it more revenue for the company. A subsidiary of News Corp is Sun newspaper it has a paper which releases every day and spreads gossip and gives up to date news on football, Currency crisis and world news. 20th Century Fox is one of the biggest film makers in the world and they make great entertainment for the cinemas. They make genres like romance, action, adventure, comedy, horror and fiction. 20th Century Fox has many ways of promoting their films into the public they use the social media also they get the cinemas to show their future films as trailers. The product is the film itself they use the promoting techniques to get revenue.

Market Position

20th Century Fox is one of the biggest film companies in the world this has happened by the decision choices the company has made through out their growth and how they make a profit. To make a film like avatar it takes a lot of money to produce a film like that. All the cost of Avatar is at $749,766,139 this is a great amount of money and created the most amount of profit when bringing the film out. It made so much money because it was a new idea and had great potential to grow it made the region of 2.7 billion this was their best profit. Another film they made was Star Wars episode 1- The phantom Menace. This was made by 20th Century Fox and the cost of production is $431,088,139 and this made the profit of $1.7 million. Another film they made was Night in the Museum this cost of production was low at the budget of $250,863,268 this made the profit of $9 million this just shows how powerful 20th Century Fox is and how much they make. They make many films each year this means the more they make the bigger there audience is the more talk gets around and more movies they make are seen. The more they make means more profit for them. The quality of their product need to be better than all their competitors because if it isn’t then it cannot beat them for awards and the customer will watch different film produces. They will lose customers and not make profit. Avatar was an amazing film for the quality of their picture and for their story line. The amount of media they attract is up to the company and how much advertising they go for as they have subsidiaries they can promote their film on other platforms. The more advertising the more the media will be interested and the bigger the company can grow. As soon as something happens in the company if media does get to it then it shows that the company is a big company. As 20th Century Fox is a big company and well-made company and has made many good products they can afford to have shareholders which creates the company revenue because the shareholders see the potential of putting their money into the business. This gives the company good look as big names and other people are making money by their success. The success of their subsidiaries can influence the market position the more subsidiaries the better the options to bring out new product and to promote the company. When there subsidiaries do well for like the example of SKY they can bring good business to 21^th century fox. If you go on the TV and see a company advertising like 20th Century Fox this can show how big the company really is and where it stands in the market position. 20th Century Fox specializes in films and have great success from doing this. 20th Century Fox are famous internationally and have reach over to 3000+ cinemas just with one film called Avatar. 20th Century Fox have been going for 30 years and still counting this just shows how big the company really is. 20th Century Fox  is different to all the other companies because they have a lot of subsidiaries more than the other competitors also they have many good companies to back them 20th Century Fox  has original ideas which haven’t been done before. 20th Century Fox has their brand in nearly every country around the world and have their name and subsidiaries on nearly every platform also they did this by creating amazing films around the world.

Competitors

The main competitors for 20th Century Fox are Walt Disney Studios, Metro-Goldwyn-Mayer Studios Inc., Columbia TriStar Motion Picture Group these three companies all specialize in the same product as 20th Century Fox. They all specialize in the film making business and are big names all around the world they have subsidiaries behind them like 20th Century Fox . Walt Disney own more than just movies they have theme parks and they are positioned in some of the best countries also they have wide target audience for children animation. 20th Century Fox are more well-known for their action movies and the romantic dramas. 20th Century Fox has subsidiaries have done so well they help th company get along. The structure of the company is very strong compared to the competitors. The competitors are aimed at mass target audience and produce the films for all the world. Metro-Goldwyn-Mayer is known for their great success from James Bond and Wizard of Oz this is a great film and has been known for years.

What makes 20th Century Fox better than their competitors?

Their choice of film making made them better than their competitors as they had Star Wars which has made worldwide appearance’s.

Walt Disney

Walt Disney is one of fox main competitors because like fox they have a lot of power in the movie business and have many subsidiaries like fox also they are always competing for the best awards for certain movies. Walt Disney is based in Hollywood one of the biggest and well known states of America this just indicates why they are so big. Walt Disney is seen as a threat because of the way they produce good films and have great connections around the globe. A certain famous mouse may live in the Magic Kingdom, but he works in Hollywood. The Walt Disney Studios, the motion picture arm of The Walt Disney Company, is one of the world's largest movie businesses. It produces and distributes live-action titles through the Walt Disney Pictures and Touchstone banners, including films from its hit Pirates of the Caribbean series (two of which are among the top ten money-makers of all time). Subsidiary Pixar is responsible for animated titles (Toy Story 3), while affiliate Marvel creates superhero flicks (Iron Man 2).  The firm also runs Walt Disney Animation Studios and Walt Disney Studios Home Entertainment. Other divisions are devoted to music and live stage plays

Metro-Goldwyn-Mayer



After all these years, Leo the Lion, made famous as the MGM mascot that appears at the beginning of MGM films, is still purring along. MGM Studios was once known for popular musicals such as Fiddler on the Roof and West Side Story, as well as classic films such as The Wizard of Oz, Gone with the Wind, Ben Hur, and Doctor Zhivago. Newer films in its library of 4,000 titles include the most recent James Bond film, Quantum of Solace, and The Pink Panther 2. Parent company Metro-Goldwyn-Mayer produces, co-produces, and distributes movies through this subsidiary (its commercial film division), as well as through MGM Studios sister firm United Artists. Metro-Goldwyn-Mayer exited Chapter 11 in late 2010.

20th Century Fox has more subsidiaries than MGM this mans it is easier for 20th Century Fox to release their product out to the market.

Columbia TriStar Motion Picture Group

Want to make successful movies, but don't know where to start? Having three stars in your name might help. Columbia TriStar Motion Picture Group releases about 20 pictures each year through its three studios: the big budget Columbia Pictures (The Karate Kid), genre division Screen Gems (Death at a Funeral), and independent producer Sony Pictures Classics (Whatever Works). Its Sony Pictures Releasing International is responsible for the sales, distribution, and marketing of movies in about 140 countries and territories worldwide. Columbia TriStar Motion Picture Group is the movie marketing, licensing, and promotions arm of Sony Pictures Entertainment.