The document discusses Apple as a case study of a vertically integrated media company. It notes that Apple controls many aspects of its products like the iPhone ecosystem, including hardware design, software, and cloud services. Though Apple contracts manufacturers to build its branded products. Being vertically integrated gives Apple more control but also has disadvantages like less flexibility. Apple is a private company owned by shareholders including Tim Cook and was originally founded by Steve Jobs.

1. TASK 1 PART 2 MEDIA
COMPANY CASE STUDY
THE STRUCTURE OF
THE CREATIVE MEDIA
SECTOR
Ashley Faulkner

2. 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

3. 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
Horizontal Integration Vertical Integration

4. 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

5. 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.

6.  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.

7.  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.

8.  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.