Media: Industries (Ownership and Control)

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Industries: Ownership and Control

1) Why did Facebook buy Instagram for $1 billion?

The $1 billion price tag was considered high at that time and especially for a company that was only a few years old. They most likely did this to eliminate their competition since Instagram was gathering tons of attention and had access to a younger user base.

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

Integration can lead to cost savings
Vertical Integration allows media companies to have greater control over the entire content creation and distribution process.

3) What are the benefits for media companies of horizontal integration?
Horizontal integration allows media companies to expand their market share by acquiring competitors. This increased market share can lead to good influence in the industry.

4) What is a subsidiary?
Company controlled by another company which is also known as the parent company

5) Give three examples of media companies that have used synergy to maximise the profit from a brand
Disney, they own and operate a range of media networks, film studios and merchandise.
Comcast with Universal Studios Theme Park, Internet services and TV
ViacomCBS with their ownership of Paramount Pictures, streaming services and cable networks.

6) Read this BBC article on Disney buying 21st Century Fox. List 10 companies that are part of the Disney media empire.

Murdoch's Fox
Walt Disney Television
Disney Media Networks
Lucasfilm
Marvel
Disney Parks
21st Century Fox
Blue Sky Studios
Hulu (30%)
ABC Entertainment / News & Radio
Vice / Viceland
Pixar
ESPN (80%)

7) Why did Disney buy Fox - what are the benefits?
Rights to Marvel Characters (X-MEN & Fantastic Four)
Disney's Theme Park Attractions
Sports Networks
Streaming Service Content Boost (Disney+)
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