Industries: Ownership and control

 1) What is a conglomerate in the media industry? 

A conglomerate is a media company that owns lots of smaller media companies.

2) What is a subsidiary?

These smaller companies are called subsidiaries.

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

Vertical integration is when one conglomerate owns different companies in the same chain of production. The benefits are that there will be more profit and more profit. 

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

Horizontal integration is when one company buys other companies at the same level of distribution.
Horizontal integration allows companies to widen their 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 that can help you.



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.

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

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


8) What is the name of the media billionaire who used to own Fox? 

His name is Rupert Murdoch. 

9) List 10 companies that are part of the Disney media empire. The graphic below will help you. 

Capital Cities/ABC

 ESPN

Winnie the Pooh

The Muppets

Pixar

 Marvel 

Lucasfilm 

BAMTech 

Fox Entertainment Assets 

Hulu


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












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