Industries: Ownership and control

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                                         Industries: Ownership and control 

1) What is a conglomerate in the media industries? 

A company that owns many other companies

2) What is a subsidiary?

A company that belongs to another company

3) What are the benefits for media companies of vertical integration?

They get more money therefore get more profit.

4) What are the benefits for media companies of horizontal integration?

Companies can expand their audience.

5) Give three examples of media companies or brands that have used synergy to maximise their profits. There are examples in the notes above to help you.

Disney universal and Amazon

6) What is convergence and what device has changed the relationship between audiences and producers? 

Technological convergence refers to the fact we can now access all different types of media on one device - phone

Now read this article about Facebook’s acquisition of Instagram and answer the following questions:

7) Why did Facebook buy Instagram for $1bn? Answer in as much detail as possible

Facebook bought Instagram for money because after launching on android it earned 1 million users a day. This became quite clear that it was not a photo app and that it was a competitive social network.

Now read this BBC article on Disney buying 21st Century Fox. 

8) What is the name of the media billionaire who used to own Fox? 

Rupert Murdoch

9) List 10 companies that are part of the Disney media empire. The graphic below will help you. 

Fox, Pixar, Marvel ,Dreamwork,  muppet studio, Sony, Caravan pictures, Walt Disney, Universal, ESPN. 

10) Why did Disney buy Fox - what are the benefits? These benefits are particularly discussed towards the end of the article

Disney bought Fox because  its a way to counter a downturn in its pay-tv business and threats from these new rivals.
benefits- .As part of the deal Fox shareholders will receive Disney stock, representing about 25% of the enlarged company.

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