1. Task 1 Part 2 Media
Company Case
Study
The structure of
the creative
media sector
By Rehana Whiteley
2. Private Ownership
Private owner ship is
where a small group, or
individual pay towards
the service or get
founded to, for example
ITV is privately owned so
has to have adverts to
help get founded for
their TV licence. But the
ITV gets to choose what
shows they want, not the
public.
Public Service
Public service is where
the public help pay
towards the service for
example everyone in
the Uk helps pay
towards the BBC
meaning that
everyone has part
ownership in the BBC
and has a say in what
they want to happen
Definitions
3. Definitions
Horizontal Integration
This is where the
production
company expands
into other area’s in
another industry. An
example of this is
Disney merging with
Pixar.
Vertical Integration
When a company
expands its business into
areas that are at
different points on the
same production path.
Vertical integration can
help companies reduce
costs and improve
efficiency. Apple is an
example of vertical
integration because
even though it has many
different product it is still
all manufactured by
Apple.
4. Definitions
Cross Media Divergence
Means where
different types of
media comes
together for
example an iPhone
which has an
camera on it, the
internet on it etc.
Synergy
Means media
working together
and cooperating
so that the
combined effect is
greater than the
sum of the efforts
of the parts.
5. Apple
what media sector it belongs to?
Apple was previously in the Computer/Technology
sector, now it is more in the Consumer Electronics
sector.
What products it produces (cross-media?)
It produces products that are mainly consumer
electronics, computer software, online services, and
personal computers. Its best-known hardware
products are the mac computer, iphones and ipads. Its
online services include iCloud, iTunes Store, and App
Store. Which are all including cross media.
6. How it is organised, i.e. is it vertically or horizontally
integrated?
Apple is an example of a vertically integrated
company. Because apple has expanded off in to so
many different products for example iPhone and
iPad. But has other contract manufacturers such as
Foxconn or Pegatron who build Apple's branded
products.
Why is it organized this way what are the
benefits and disadvantages
In apple which has high fixed costs, horizontal
integration enables it to benefit from greater
economies of scale. However Horizontal integration
could lead to an increase in market share.
7. Who own the company is it public or private
Apple is a private company
what does this mean for the company
This means that apple gets to make their own
descions however they do0 have a few
shareholders.
Who are its competitors?
When it comes to smartphones, perhaps Samsung,
Apple may not have any close competitors in the
tablet market, but Amazon.
8. Who are the customers?
Apple target’s on middle aged peole who love to
have fun with technology and are willing o pay
500 or more for a computer.
Quotes on how many it has.
Apple had sold about 120 million iOS devices,
60 million iPhones, 45 million iPhones and 5
million iPads
What are the demographics?, eg male female,
age, socio economic group
Over 41% of Mac owners were 34 years old
or younger, more than 70% who use apple
are male.
