Industries: Ownership and Control
1) What is a conglomerate in the media industries?
a large company that owns a lot of subsidiaries such as Disney
2) What is a subsidiary?
a small company that is owned by a conglomerate such as marvel is owned by Disney
3) What are the benefits for media companies of vertical integration?
more revenue this is because one conglomerate owns different companies in the same chain of production this gives conglomerates to make money on every stage of production
4) What are the benefits for media companies of horizontal integration?
wider audience this is because when one company buys other companies at the same level of distribution this is used to widen the audience
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.
1- merlin entertainments they owner over companies such as Lego land and Thorpe park
2- apple they also released apple tv which is available to consumers
3- Disney they own a lot of different thing such as movies theme parks and merch
6) What is convergence and what device has changed the relationship between audiences and producers?
technological Convergence is that we can access media from any device the device that change media is the phone as it allow audience to watch media anywhere
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
face book bought in Instagram in 2012 for 1 billion USD at the time Instagram had just launched and it was hugely popular. The firm says that it has more than 30 million users uploading more than 5 million new pictures every day.
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?
the name media billionaire is called Rupert Murdoch he is 86 year old and the owner of 21 century fox
9) List 10 companies that are part of the Disney media empire. The graphic below will help you.
Disney owns - sky - Hulu - marvel - Pixar - Lucasfilm - 21 century fox - blip - Disney studio - ESPN - Disneyland
10) Why did Disney buy Fox - what are the benefits? These benefits are particularly discussed towards the end of the article.
Disney bought them as a way of horizontal integration this means there would be less competition for Disney as well as they could expand / widen their audience to more media consumers
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