Media Company Case Study

Task 1 Understand the structure

and ownership of the media sector

your name here

Describe it and give an example

Private ownership is all about a company who’s ownership is private, this means it does not need to meet the strict Securities and Exchange Commission filing requirements of public companies. Private companies have shareholders who issue in stock but their shares are not issued in a public offering.

What are the advantages and disadvantages of this type of ownership

One advantage of Private ownership is that if the company goes bust or experience financial distress share holders won’t be at risk of losing their stock.

One disadvantage is that growth of the company could be slow or hard as the maximum amount of shareholders in a private ownership company is only 50 shareholders.

http://www.investopedia.com/terms/p/privatecompany.asp http://www.globalization101.org/ownership/

Types of ownership: private ownership

BBC Describe it and give an example

Public service can be both nationally and locally operated depending on the country and the station it is used from. Public broadcasting is run by a single organization regionally or in different languages.

What are the advantages and disadvantages of this type of ownership

Advantages they cant lose they’re funds because it is owned by the government.

Disadvantages- Political leaders closely monitor editorial output. http://en.wikipedia.org/wiki/Public_broadcasting

Types of ownership: public service

Types of ownership: independent

Describe it and give an exampleIndependent ownership is basically just the same as private ownership the only difference is

that independent is privately owned.

What are the advantages and disadvantages of this type of ownershipAdvantages- you are completely in control on what happens towards the business. Know one

can tell you what to do because you own that business.

Disadvantage- Financial things can be at risk because of being apart of a private ownership. To start it off you maybe have to borrow money which basically meaning you can be in debt unless paid off.

http://www.theguardian.com/media/independent-production-companies

Describe it and give an example

A media conglomerate, media group or media institution is a company that owns large numbers of companies in various mass media such as television, radio, publishing, movies, and the Internet. Media conglomerates strive for policies that facilitate their control of the markets around the world.

21st century fox is a conglomerate company as it is apart or owns multiple companies other than itself.

What are the advantages and disadvantages of this type of ownership

One clear advantage to a conglomerate is an exponential increase in audience reach.Disadvantage- A disadvantage would be selling the company, because it is a

conglomerate ownership to buy it would cost a lot of money.

http://en.wikipedia.org/wiki/Media_conglomerate

Types of ownership: conglomerate

Describe it and give an exampleHorizontal integration basically means a strategy to increase your market share by taking

over a similar company This take over buyout can be done in the same geographic or probably in different countries to increase your reach . Examples of horizontal integration are many and available in plenty. YouTube is another good example of horizontal integration, YouTube was taken over by Google because Google had a stronger and loyal user base.

What are the advantages and disadvantages of this type of Company

Advantages- Allows for greater control of both prices and costs. Disadvantage- Increases possibilities of anti trust prosecution. Poor

track record for maintaining innovation.

Types of Companies:Horizontal Integration

Describe it and give an exampleVertical integration is kind of opposite to horizontal integration, vertical integration basically is

a company or business which owns the company's which the company is relevant to. E.g. warner bros is a film distribution which make films, the films they make would then be published in cinemas which the warner bros would then own.

What are the advantages and disadvantages for this type of CompanyAdvantages- Allows companies to get higher and earn more control in the value chain., they

get more responsibility and higher in the pecking order so therefore they earn more control over things.

Disadvantages- Vertical integration reduces manufacturing flexibility , lengthening design time and ability to introduce new products.

Types of Companies: Vertical Integration

What is it, who does and what are the advantagesCross Media Convergence is really a Business Studies term and refers to companies coming

together vertically or horizontally (or both). The example often cited in exams is of Working Title making use of its parent company(s) to gain access to bigger stars and a better distribution network for their films. (We will learn some of these definitions next term so don't worry about them now)

Advantages- it helps promote the film/ book more giving this the opinion to get a great audience. It’s a win scenario for both industries selling both books and more off box office tickets.

Disadvantage- because this is two completely different industries both companies will have to do their best to impress and meet the standards of the opposite audience.

Cross Media convergence

What is it, who does and what are the advantagesIn general, synergy is the combined working together of two or more parts of a system so that the

combined effect is greater than the sum of the efforts of the parts. In business and technology, the term describes a hoped-for or real effect resulting from different individuals, departments, or companies working together and stimulating new ideas that result in greater productivity. An example for film production synergy is that 2 major company's combine to produce a greater business promoting each company in different ways.

Advantages- A clear advantage of using synergies is that there will be more money outcome using this method

Disadvantage- If a product or franchise wasn’t as popular as expected you would then be losing money due to the synergy you have taken up.

Rsunit7.blogspot.co.uk

Synergy

Describe the Structure and of Ownership of Either The Film, TV, Gaming or Music Industry

Time warner: Vertical integration is the process by which a media institution, a media conglomerate owns several companies at different stages of production or the supply chain. Warner bros is owned by time warner, which is a huge multi national media conglomerate. The current assets of the Time Warner are all of the HBO production including HBO films, HBO sports, HBO documentary and many more. Time Warner owns the turner broadcasting system and from this company they have many branches or networks which vary. For example Cartoon Network and boomerang are networks of this, these are very popular kids programme networks. Moving onto the bigger company's which Time Warner own Warner Bros picture group, Warner Bros Television group and Warner Bros home entertainment group.

Apple Inc. Is an American multi national corporation headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, online services, and personal computers. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer. Its online services include iCloud, iTunes Store, and App Store. Its consumer software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and productivity suites.

When it comes to what media sector it belongs to Apple doesn’t make the content in it in my opinion creates the platform for the other people to finish of the rest. Apple on its own manufactures, Distributes and markets their products and nothing more

Apple is a public company

Apple

As a corporation, the company is owned by its shareholders or people who have invested money into it. Bill Gates owns 51% of the company, Apple doesn’t own any company's however they have a partnership with

Intel.

In 2007 Apple computers incorporation changed their name to just Apple Inc. The name change reflects the company’s newfound emphasis on consumer electronics.

Ownership

Apple is the most vertically integrated company in the IT industry and communications today.

They make / control/ own almost every level of production from the research and development to manufacturing to end- user experience.

Vertically Intergrated

Apple has any competitors in the business world. When it comes to smart phones, one of their biggest competitors is Samsung who produce the popular Samsung galaxy line of smart phones. In the world of laptops pc’s/ MacBook's Apple are competitive with the other brands of Computers e.g. Acer, Toshiba

Competitors

Apple ids marketing to people who have a few characteristics. 1: Middle/ upper income people who are willing to pay abit more for a better user experience. Paying more money for computer if you have a bigger income isn't a big deal.

Audience

This is a company that grew extremely fast in little time, that their management found themselves not being able to keep their operations and finances under control. Apple Inc has been forced to reeva luate and redesign its organizational culture and structure to avoid bankruptcy.

The organizational structure of the company has also transformed to be more competitive in a critical juncture in the company's history.

Change In Structure

The following is an complaint due to Apples Itunes Apple was caught up in controversy regarding the online sales of music in

the European Union where, as a single market, customers are free to purchase goods and services from any member state. iTunes Stores there forced consumers and other music buyers to iTunes-only sites by restricting content purchases to the country from which the customers' payment details originated, which in turn forced users in some countries to pay higher prices. On December 3, 2004, the British Office of Fair Trading referred the iTunes Music Store to the European Commission for violation of EU free-trade legislation. Apple commented that they did not believe they violated EU law, but were restricted by legal limits to the rights granted to them by the music labels and publishers. PC World commented that it appeared that "the Commission's main target is not Apple but the music companies and music rights agencies, which work on a national basis and give Apple very little choice but to offer national stores“.

Criticism and Apple

http://en.wikipedia.org/wiki/Apple_Inc.

http://www.theguardian.com/technology/apple

http://en.wikipedia.org/wiki/Vertical_integration

http://www.nasdaq.com/symbol/aapl/ownership-summary http://quotes.wsj.com/AAPL/ownership

http://investor.apple.com/secfiling.cfm?filingid=1181431-13-45378&cik=320193

Bibliography