ownership and control

 1) What is a conglomerate in the media industries? 

A media conglomerate, media company, media group, or media institution is a company that owns numerous companies involved in mass media enterprises, such as music, television, radio, publishing, motion pictures, video games, amusement park, or the Internet.
2) What is a subsidiary?

In the corporate world, a subsidiary is a company that belongs to another company, which is usually referred to as the parent company or holding company. 

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

Vertical integration helps companies gain greater control over the supply chain and manufacturing process, leading to lower costs, economies of scale, and less reliance on external parties.

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

The advantage of horizontal diversification is that you can leverage your existing resources, skills, and reputation, and attract more customers to your business. It allows companies to gain market share and market power, eliminate their competition, acquire new products and services, a larger customer base, and increase their revenue.

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.

call of duty, FIFA, disney

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

A mobile convergence device is one that, if connected to a keyboard, monitor, and mouse, can run applications as a desktop computer would. Media convergence fundamentally alters audience interaction with broadcast media by enabling viewers to access content through multiple platforms at their convenience.

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

Facebook bought Instagram for $1 billion in 2012, during that time Instagram had only 30 million users. Today, Instagram has 800 million users. To answer your question, Facebook bought Instagram because they saw it as a threat and capable competitor.


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

86-year-old Fox owner Rupert Murdoch

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

 Disney Channel, ESPN, Freeform, FX, and National Geographic; publishing, merchandising, music, and theatre divisions; direct-to-consumer streaming services such as Disney+.

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

allows Marvel Studios a greater degree of creative freedom and control over the Marvel Universe on film and TV. The media company gained access to every property Fox owned. For example, Disney now has the rights to X-Men characters, the Avatar franchise, and numerous popular movies and television shows, from Die Hard to The Simpsons.

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