Industries: Ownership and control - blog tasks

 1) What is a conglomerate in the media industries? 

A very large organisation that owns different types of media company.


2) What is a subsidiary?

A company that belongs to another company, which is usually referred to as the parent company or holding company.


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

Maximise profits and ensure a return on investment by controlling the entire process. 


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

Allows companies to gain market share and market power, eliminate their competition, acquire new products and services, a larger customer base, and increase their revenue.


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, theme parks, merchandise.


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

Newspaper for example are moving into video or online content.


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 paid 629m in cash and stock for the takeover. Facebook's chief executive Mark Zuckerberg has pledged to continue to develop Instagram as a separate brand, allowing it to post to rival networks.



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

The name of the media billionaire who used to own Fox is called Murdoch.
 

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

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

Allowing it to broadcast it's content on Disney+ and broaden it's movie genres. 



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