Industries: Ownership And Control

 1) What is a conglomerate in the media industries? 

A conglomerate is a large company such as Disney which buys  other smaller companies to gain more revenue (profit) in order to get as higher profit margin.

2) What is a subsidiary?

A subsidiary is a company that belongs to another country such as Disney buying PIXAR to gain control over all the characters PIXAR made.

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

The benefits for media companies of vertical integration is that the company will seen more powerful amongst all the other companies which will lead to more profit

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

The benefits of Horizontal integration are allows companies to widen their audience and find other ways to make money increasing their profit and are widely recognised all over the world.

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 - Has many synergy's such as Stage shows relating to movies.
Amazon - Delivery / Amazon PRIME
ual - Also does music rather than TV production

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

Technological convergence refers to the fact we can now access all different types of media on one device.
The growth of smartphones has completely changed the relationship between industries and audiences. 
Traditional industries like newspapers are now moving into video or online content and audiences can now create their own user-generated content.

7) Why did Facebook buy Instagram for $1bn? Answer in as much detail as possible

They bought it because it was becoming a threat to Facebook because more and more people were diverting themselves towards Instagram. They did this in order to not compete with Instagram and didn't want to fight them so just bought it .

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.

 ABC television network; cable television networks such as Disney Channel, ESPN, Freeform, FX, and National Geographic; publishing, merchandising, music, and theatre divisions; direct-to-consumer streaming services such as Disney+, ESPN+, Hulu, and Holster

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

They bought Fox to acquire Lucas film and Pixar. Due to this they will be able to gain another 50 million European subscriber.

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