• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Audience and Institution Research Assignment.

Extracts from this document...

Introduction

Media Studies 12C/MD1 Audience and Institution Research Assignment Hannah Partridge 12E2 "Granada was one of the original ITV franchises, and Carlton gained a licence only in 1991, snatching the weekday London rights from "Thames." When Carlton and Granada decided to merge, it was for the central reason of increasing their ITV1 programme budget, which increased by 7%. The merger itself, cost �4.5bn. The companies identified opportunities for making �55m in efficiencies from the deal. The eventual budget is �849m for the current financial year from October 1st to September 30th 2004. This paves the way for a fully consolidated ITV. The merger brings together two of Britain's leading distributors of television programmes and films. The main reason behind a merger is that the companies will benefit from what is known as economies of scale, this means the company can operate at lower average costs, e.g. it becomes cheaper for them to produce their product or service. The main efficiencies are likely to be made in support services e.g. finance, human resource and estates divisions. Economic analysts said that the two largest ITV broadcasters who supply 93% of the budget could not have afforded the increase if the merger had been blocked. The outcome would have been managing a business in decline said Kingsley Wilson an investigative Securities analyst. ...read more.

Middle

* Shareholders are also likely to benefit from significant synergies together with the increased scale and cash flow of the merged groups; which enables exploitation of future growth opportunities. The growth opportunities far outweigh those that would be available to Granada and Carlton separately. Carlton shareholders will receive 32 per cent of the normal share capital of the merged group upon completion of the merger; which could potentially increase to 34 per cent. Granada shareholders will receive 68 per cent of the regular share capital of the merged group and �200 million of cash upon completion of the merger. * The merger between Carlton and Granada will offer viewers several benefits such as increased programme quality as money and ideas are shared, enhanced programming investment designed further to improve quality and choice, with more premieres, more event entertainment, more dramas and strong regional identity. * The benefits for advertisers will be to be able to maximise the value of its programming, thus improving the audience share and commercial impacts, particularly to the key demographic groups. Advertisers have the opportunity to increase the size and efficiency of their reach for the products they are trying to sell. The main losers from the merger will be some of the employees of Carlton and Granada who are likely to lose their jobs as a result of savings made through economies of scale. ...read more.

Conclusion

Just as many people didn't know about the merger of Carlton and Granada, as the amount of people that did . To this question four people answered yes, and 16 people answered no. This shows that the public are conscious of the merger and what could happen for the better or for the worse. In my opinion, both Carlton and Granada are big commercial broadcasting companies that wished to merge together to unite ITV, the most popular commercial channel in the UK. This would create the largest commercial television production company in Britain according to research. I believe that certain mergers can be beneficial as it may create more quality viewing for the audience. However, in instances where a duopoly or monopoly could occur then it may be bad for the audience in terms of choice. They may not get as many products to choose from and advertisers may be charged ridiculous amounts because of the lack of competition. It is hard to say whether the merger will be successful, because there are no known outcomes. ITV will always have viewers but whether Granada and Carlton can actually work together efficiently is something very different. I believe the merger will affect competition, as companies will not have to compete with one another for the ITV slots anymore and may settle for less quality programmes as a result. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. For my portfolio, I was asked to do an assignment on two businesses. I ...

    Task 6 Tesco Vectone Gnanam Telecom Ownership Public limited company Private limited company Industrial sectors Tesco belong to both tertiary and secondary sectors because they used to provide retail services and manufacture their own breads and bags Vectone Gnanam Telecom belongs to both tertiary and secondary sectors because they used to provide communication services and manufacture their own telephone cards.

  2. Introduction to Business Assignment

    Furthermore, Sainsbury's Supermarkets serves well over 11 million customers a week and as from May 2003, had 535 stores open throughout the UK. Nearly 60% of their stores are located upon town centres and others built on the edge of centre locations - in the greenbelt areas where land is cheaper and have better connections.

  1. Linear Programming

    This refers to two types of problems: infeasibility and unbounded ness. Infeasibility occurs when there is no solution to the linear programming problem that satisfies all the constraints. This problem can arise due to management's high expectations or due to too many limitations that have been placed on the problem.

  2. Free essay

    Market Research

    a known product from an established brand with a proven operating system already in place. 1.2 My Skills -e-tutor what could I write for this section-any ideas please add here: 1.3 Projects Aims & Objectives Aims are the long-term intentions of a business while the objectives are needed to fulfil these overall aims of a business.

  1. Should Britain join the Eurozone

    This is an example of the way this trading within a perfect market ripples; these ripples continue outwards and can effect education and technology. E.g. more transparency and competitiveness leads to more trading meaning more trained workers meaning people will have the incentive to go to college and become trained because there is a demand for training.

  2. An introduction to linear programming

    opportunities facing an organization regarding the optimum use of its long-term resources to change from one time period to another. To make the best decision, it is important choose the best profit to run the organization. Chapter 2 Applications - Case study Case study A clothing manufacturer makes football jerseys and soccer shirts for youth teams.

  1. Why do firms engage in mergers? Describe a recent merger between two firms and ...

    stages of production join together to expand and compete against larger firms, such as Wal-Mart's acquisition of Asda to compete against larger domestic firms such as J Sainsbury's and Tesco. * The final "style" of merger is Horizontal Integration, where two companies merge in the same industry and at the same stage of production.

  2. Applied Business. Investigating a business Preston Manor High School

    if they need any help or guidance with any problem they have and they also have interviews with parents so the parents are informed on their child overall performance so they can also support them to achieve the results they need.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work