1. Media Company Case
Study
Task 1 Understand the structure
and ownership of the media sector
your name here

2. ∗ 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

3. ∗ 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

4. Types of ownership: independent
∗ Describe it and give an example
Independent 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 ownership
Advantages- 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

5. ∗ 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

6. ∗ Describe it and give an example
Horizontal 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

7. ∗ Describe it and give an example
Vertical 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 Company
Advantages- 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

8. ∗ What is it, who does and what are the advantages
Cross 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

9. ∗ What is it, who does and what are the advantages
In 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

10. 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.

11. ∗ 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

12. ∗ 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

13. ∗ 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

14. ∗ 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

15. ∗ 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

16. ∗ 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

17. ∗ 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

18. ∗ 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