Industries: Ownership and control
1) What is a conglomerate in the media industries?
The media companies that are in control and dominant to the smaller companies (subsidiary)
2) What is a subsidiary?
Smaller companies that are beneath the conglomerate
3) What are the benefits for media companies of vertical integration?
The companies that have complete ownership and own different companies whilst maintaining in the same group.
4) What are the benefits for media companies of horizontal integration?
Competition will be cancelled out by making money from both companies.
They can spot different ways gain more revenue from hopping to different major platforms and purchasing them such as Disney purchasing fox.
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, Instagram and Coca cola
6) What is convergence and what device has changed the relationship between audiences and producers?
Access to all different types of media on one device. The growth of smartphones has completely changed the relationship between audiences and industries. This is because traditional industries like newspapers are now moving towards online content and now users can create their own user generated content.
Now read this article about Facebookâs acquisition of Instagram and answer the following questions:
7) Why did Facebook buy Instagram for $1bn? Answer in as much detail as possible
Facebook bought Instagram because Mark Zuckerberg developed Instagram as there separate brand allowing it to post their rival networks. This is because Instagram had 30 million users at that time meaning Facebook used there advantage to purchase Instagram to maintain there relevance.
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?
Rupert Murdoch
9) List 10 companies that are part of the Disney media empire. The graphic below will help you.
-Hulu
-ABC news and radio
-ABC entertainment
-Vice
-Vice land
-Marvel
-Espn
-Pixar
-Disney inc
-Disney resort
10) Why did Disney buy Fox - what are the benefits? These benefits are particularly discussed towards the end of the article.
Disney puts different genres of movies and tv shows in Disney plus like modern family which isn't owned by Disney. However Disney does this to overcome there rivals like Netflix to have less competition.
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