Industry - Ownership and Control

1) Why did Facebook buy Instagram for $1bn in 2012?

so that they could cancel out the competition by making money from both also it allows companies to widen their audience and find other ways to make money.

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

a benefit is that the conglomerate companies make more profit at every stage of production. 

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

media companies benefit because one company buys other companies at the same level of distribution

4) What is a subsidiary?

the smaller companies who are bought by the conglomerates. 

5) Give three examples of media companies that have used synergy to maximise the profit from a brand. 

 Disney make movies but then also have related shows, theme parks and merchandise and soundtracks. Also when Adele sings the song for Skyfall, the producers use a different type of media product to link it to their media product which they can make profit off of and in the intro of Harry Potter the Warner Brothers adapted their intro into the movies.

6) Read this BBC article on Disney buying 21st Century Fox. List 10 companies that are part of the Disney media empire.

Picsar, Marvel, Lucasfilm, Dreamworks film, Viceland, Hulu, ESPN, Marvel entertainment, Disneyland inc, Disneyland Paris and DisneyWorld resorts. 

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

it will lessen the competition for themselves and they will make a lot more revenue.