Industries ownership and control

 1) Why did Facebook buy Instagram for $1bn in 2012?

 Zuckerberg wanted to buy Instagram as it was becoming a threat to Facebook.

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

lower transportation costs, smaller turnaround times, or simpler logistics

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


increasing market share, reducing competition, and creating economies of scale

4) What is a subsidiary?

 a business entity or corporation either fully owned or partially controlled by another company, known as the parent company. 

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).

 business mergers, combining or creating compatible product lines

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: 

ABC broadcast network, Hulu, Disney+, Star+, Freeform, FX, and National Geographic; Disney Junior, Radio Disney.,  ESPN


7) Why did Disney buy Fox - what are the benefits?

The addition of Fox will give Disney access to hit movie franchises such as X-Men, Avatar, and Planet of the Apes. Such strong brands will thereby boost Disney's home entertainment revenue along with its theatrical business.






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