TASK 1 PART 2 MEDIA COMPANY CASE STUDY

THE STRUCTURE OF THE CREATIVE MEDIA SECTOR

Ashley Faulkner

Media structure & ownership Definitions

You have to pay for everything to do with your business. Public don’t pay anything and you choose what to put on there so there will be adverts on these.

Public pay for the TV licence, so they get a say in what channels should be put on there. The public own a small section of the business.

Private Ownership Public Service

Media structure & ownership Definitions

When a business is made up of a few different companies input. The gains and losses are shared between each of the companies what is joined evenly.

When a business begins on its own and progresses without any other business assisting it. For example, Apple worked own their own and worked their way up now they are one of the biggest businesses in the world

Horizontal Integration Vertical Integration

Media structure & ownership Definitions

This is lots of different types of media put together. For example, Apple has cameras and internet in there products.

This is 2 or more things working together in a specific way. This produces an effect which is greater than the original individual effects.

Cross Media Divergence Synergy

Apple

The media sector Apple belongs to is consumer goods Apple produces several products like the iphone, apple computer,

ipod etc. Apple is vertically integrated. It controls many things in the ecosystem for the iPhone and iPad, like the processor and hardware designs, operating system and application software, and related cloud services. The hardware isn’t manufactured by Apple; instead the contract manufacturers build Apple's branded products to Apple's specifications. Apple's hardware and software are sold directly to consumers mostly through the company's own online retail stores, while cloud services are available through the devices themselves. The advantages of being vertically integrated are more control over the value chain, control costs throughout the distribution process, competitive advantages: Increase advantages over competition and to block competitors from gaining access to scarce resources or important markets, differentiation: It gives companies access to more production inputs, distribution resources and process and retail channels.

The disadvantages are capacity balancing issues, higher costs due to low efficiencies resulting from lack of supplier competition, decreased flexibility due to previous upstream or downstream investments, decreased ability to increase product variety if significant in-house development is required, developing new core competencies may compromise existing competencies, increased bureaucratic costs. Apple is a private company and was originally owned by Steve Jobs but he passed away in 2011 so it is currently owned by several big shareholders these shareholders are Craig Federighi, Robert Mansfield, Al Gore, Tim Cook and Arthur Levinson. Apple’s competitors are Samsung, Google and Microsoft.

This effects their production and distribution because they would have to distribute their products at different times to other similar products so they have the maximum amount of sales so they would have to make the product in time for the deadline. Apple’s customers are mainly young to middle aged people but because they have been around for so long they have some older fans as well. This is a rough estimation of how many customers apple has 2010: 14 million iPhones, 4 million iPads, 9 million iPods 2011: 16 million iPhones, 7 million iPads, 19 million iPods 2011: 19 million iPhones, 5 million iPads, 9 million iPods Q3 2011: 20 million iPhones, 9 million iPads, 7 million iPods.

The demographics are 69 percent of iPod touch users are between 13-24 years of age, while this same age segment represents just 26 percent of iPhone users. 31 percent of iPhone users are 35-49 years old, while only 12 percent of iPod touch users fall in this age segment. In total, 74 percent of iPhone users are over the age of 25, compared to 31 percent of iPod touch users. More than 70 percent of users on both the iPhone and iPod touch are male.