Industries: Ownership and control

 1) What is a conglomerate in the media industries?

A big organisation that owns different types of media companies. 

2) What is a subsidiary?

Something fully owned or partially controlled by another company.

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

Greater economies, lower variable production and quality concerns. 

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

Increasing market share, reducing competition and creating economies. 

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.

vertical integration, horizontal integration and convergence.

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

 devices like smartphones has ruined the relationship between audiences and producers. 

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 as its own admission saw Instagram as a threat that could potentially siphon business away from Facebook. 

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. 

• Walt Disney Pictures, Walt Disney Animation Studios, Pixar, Marvel Studios, Lucasfilm, 20th Century Studios, 20th Century Animation, and Searchlight Pictures.

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 its content on Disney+ and broaden its movie genres.