INDUSTRIES: OWNERSHIP AND CONTROL

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

Facebook bought Instagram for $1bn because they found out that the majority of  people use Instagram rather than Facebook, so they bought it, and they found out that the users of Instagram isn't just a photo sharing app, but it's become a competitive social network. 

2) What are the benefits for media companies of vertical integration?
Vertical integration is when a one conglomerate owns a different business that have the same chain of production and distribution.

3) What are the benefits for media companies of horizontal integration?
The benefits for media companies of horizontal integration is that they let the company that they bought do what they used to do even though they are getting more famous than the company who bought them, because all the money that the company they bought will still be on their hands.

4) What is a subsidiary?
Subsidiary is when the company is being controlled by a bigger company, which means they are known as the daughter company that the parent company is controlling.

5) Give three examples of media companies that have used synergy to maximise the profit from a brand (there is one above to help you).
  • Google's $50 million acquisition  of android in 2005
  • Adobe acquisition of Figma
  • Disney acquisition of Pixar

6) Read this BBC article on Disney buying 21st Century Fox. List 10 companies that are part of the Disney media empire. This graphic may help you: 
  • ESPN Books
  • Maker Studios
  • Marvel Press
  • StarWars.com
  • The Muppets Studio
  • ABC Entertainment
  • ABC News & Radios
  • ESPN
  • Hulu
  • Marvel Entertainment

7) Why did Disney buy Fox - what are the benefits?
Fox had an issue where they had a threat, it will be gone when the acquisition happened. Disney can expand itself, and they can increase their competitiveness, at the same time merging with fox will make their company more successful.

Comments

  1. R Fowler GCSE Media blog28 November 2023 at 04:25

    Make sure you know the difference between Vertical and Horizontal integration (for question 2, vertical integration means they own all stages of production and distribution whereas Horizontal integration is when the company buys up its competitors)

    ReplyDelete

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