Industries: Ownership and Control

1) What is a conglomerate in the media industries? 

A media company that owns lots of smaller media companies.

2) What is a subsidiary?

A company that is owned by a larger company or conglomerate.

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

The benefits are lower costs, more control, more profit, etc.

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

Reduced competition, increased market share, greater economies of scale, etc.

5) Give three examples of media companies or brands that have used synergy to maximise their profits.

Disney, theme parks and events linked to the same brand.

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

Convergence is when we can all access all different types of media on one device. An example of a device that has changed the relationship between audiences and producers is a newspaper's as they are now moving into videos or online content instead of on paper.


Article about Facebook's acquisition of Instagram 

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

The reason why Facebook bought Instagram for $1bn is because it was proven hugely popular and says it has 30 million users uploading more than 5 million new pictures every day. 

BBC article on Disney buying 21st Century Fox

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

86-year-old Fox owner Rupert Murdoch

2) List 10 companies that are part of the Disney media empire.

Marvel, Lucasfilm, Pixar, ABC, ESPN, Hulu, 20th Century Studios, National Geographic Partners, FX Networks, and Walt Disney Animation Studios.

3) Why did Disney buy Fox - What are the benefits? 

Disney bought Fox to gain a massive content library, production capabilities, and international assets to better compete in the streaming era. 

The benefits were:

Expansion of it's content library, a better position in the streaming market, and acquiring valuable property. Disney also gained control of Fox's film and television studios.




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