Industries: Ownership and control

 1) What is a conglomerate in the media industries? 

major media company

2) What is a subsidiary?
smaller companies

3) What are the benefits for media companies of vertical integration?
when one conglemerate owns different companies in the same chain of production

4) What are the benefits for media companies of horizontal integration?
when one company buys other companies at  the same level of distribution

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.
mobil 
pixar
disney

6) What is convergence and what device has changed the relationship between audiences and producers? 
it refers to the fact we can now access all  different types of media on one device

7) why did Facebook buy Instagram for $1bn? Answer in as much detail as possible
Facebook bought Instagram for $1 billion in 2012, during that time Instagram had only 30 million users. Today, Instagram has 800 million users. To answer your question, Facebook bought Instagram because: it saw as a threat and capable competitor


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. 
  • Pixar Animation Studios.
  • Marvel Entertainment Inc.
  • The Muppets Studio LLC.
  • Caravan Pictures in Hollywood.
  • Core Publishing.
  • Walt Disney Studios.
  • Vice Media (10% stake)
  • Lucasfilm Ltd.
  • FREEFORM
  • ABC


10) Why did Disney buy Fox - what are the benefits? These benefits are particularly discussed towards the end of the article. 
Moreover, Fox was a strong competitor for Disney in the film industry originally, and the threat made by Fox will disappear after the acquisition. Also, Disney can expand itself, increase market share and raise market competitiveness at the same time through the horizontal merger with Fox.

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