Ownership & control

 

1) What is a conglomerate in the media industries? 

 

a Big media company that owns smaller companies

2) What is a subsidiary?

a small media company owned by a bigger company

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

a bigger income and rights to production

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

Gaining a larger income

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.

Disney, Marvel, Sega

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

 

the ability to access multiple types of media on one device like phones computers and tablets

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 decided that in order to cancel out a future rival they could purchase instagram and gain a income slot through it thus effectively cancelling out their rival

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? 

Murdoch

9) List 10 companies that are part of the Disney media empire. The graphic below will help you. 

Marvel, Pixar, Star wars, The muppets, Hulu, Dreamworks, ABC news & radios

10) Why did Disney buy Fox - What are the benefits? These benefits are particularly discussed towards the end of the article. 

They can advertise upcoming projects and gain a bigger income from it