Industries and Ownership

 1) What is a conglomerate in the media industries? 

A corporation owning smaller companies, some unrelated.

2) What is a subsidiary?

Another company owned by a much larger company.


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

  • This system helps media conglomerates to maximise profits and ensure a return on investment by controlling the entire process.

4) What are the benefits for media companies of horizontal integration?
allows companies to gain market share and market power, eliminate their competition, acquire new products and services, a larger customer base, and increase their revenue. 
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.

Pixar and Disney
Instagram and Facebook.
Exxon and Mobil

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

When two things become one. and this normally happens on computers.

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


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. 
Walt Disney
Disney Institute
Disney Comics 
Marvel Entertainment
Disney International
National Geographic
Disney Theatrical Productions
Radio Disney Group
Lucasfilm
Disney Junior





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

So they could allow Marvel Studios a greater degree of creative freedom and control the Marvel Universe on films and TV

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