Industries: ownership and control

Ownership and control

1) What is a conglomerate in the media industries? 
     A company that owns numerous other companies.

2) What is a subsidiary?
     A company that belongs to another company

3) What are the benefits for media companies of vertical integration?
     This allows companies to make money at every stage of production and distribution.

4) What are the benefits for media companies of horizontal integration?
     Horizontal integration allows companies to widen their audience and find other ways to make money.

5) Give three examples of media companies or brands that have used synergy to maximise their             profits. 
     Disney makes movies but then also has related stage shows, theme parks, merchandise, soundtracks           and events all linked to the same brand or characters.

6) What is convergence and what device has changed the relationship between audiences and                   producers? 
     Convergence refers to the fact we can now access all different types of media on one device.
     The growth of phones has completely changed the relationship between industries and audiences. 

Facebook's acquisition of Instagram.

7) Why did Facebook buy Instagram for $1bn?
     Facebook bought Instagram for 1 billion dollars as it was an important milestone for Facebook because it was the first time they had ever acquired a product and company with so many users. After they had launched Instagram on Android they added one million users more a day, it became obvious that it wasn't just a photo-sharing app but it was a competitive social network and the deal could value the firm as being worth as much as 100 billion dollars.

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
     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?
      Disney already owns a lot of news, film and leisure companies. However, the media landscape is            changing as other companies like Amazon and Netflix attract customers to new ways of viewing.            So Disney is investing heavily in online streaming platforms, as a way to counter a downturn in its          pay-TV business and threats from these new rivals.

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