Industries: Ownership and Control

1) What is a conglomerate in the media industry?

Conglomerates are the big media companies 

2) What is a subsidiary?

Subsidiary are the smaller media companies that are brought

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

The benefits of vertical integration are that the company has full ownership over all the processes for producing the media content. This makes it so that the company makes more profit.

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

The benefits of horizontal integration are that the company makes more money as they have brought the other company so they have two streams of income. It also eliminates the competition between the companies as they both now make income for the same company. In addition, if one company fails they have the other one to still make money.

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, Amazon and Facebook 

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

Convergence is the fact that we can access all types of media on one singular device. Smartphones like apple or Android have changed the relationships between audiences and producers because producers now can not make newspapers or magazines as people won't buy them and they will see it for free on the phone.

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

Facebook bought Instagram For $1bn because Mark Zuckerberg will focus on Instagram separately to rival other networks. Also, Instagram is really popular it has more than 30mil  users uploading over 5mil pictures every day. Them buying Instagram is an example of horizontal integration.

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

Rupert Murdoch used to own Fox

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

Marvel, Pixar, Walt Disney Company, 21 Century Fox, ESPN, Hulu, Sky, Fox, National Geographic and ABC

10) Why did Disney buy Fox - what are the benefits? 

Disney brought Fox because Disney is heavily investing in online streaming platforms. This was a way to counter a downturn in its pay-TV business and threats from new rivals. 

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