Industries: Ownership and Control

1) What is a conglomerate in the media industries? 

A major media company with a lot of influence

2) What is a subsidiary?

A smaller company that is owned by a conglomerate 

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

Vertical integration gives conglomerates the chance to make money at every stage of production

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

They can gain a wider audience and find other ways to make money

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 and Star Wars

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

Being able to access all different types of media on one device, smartphones

Now read this article about Facebook’s acquisition of Instagram and answer the following questions:

7) Why did Facebook buy Instagram for $1bn?

Because Instagram has more than 30 million users making it hugely popular and successful, due to this, Facebook saw an opportunity to make more money

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. 

Marvel Entertainment, Marvel Studios, Fox Entertainment Group, Disney Music Group, National Geographic, Endemol Shine Group, Sky PLC, Disney Theatrical Group, Disney Corporate, ESPN Inc.

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

Disney wanted to invest in Fox as a way to counter a downturn in its pay-TV business and threats from these new rivals