Ownership and control

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

Facebook bought Instagram because it wanted to have less competition because Instagram was doing very well money wise and popularity wise.

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

Benefits for a media company of vertical integration is very reliable and the company will have more control over what is being created.Vertical integration is when the company controls different stages of the supply chain.A company having control over different stages of the supply chain helps the company make more profit at the end of the ownership.This helps the company even more because it means that they will be able to use the money to put back into the business
and will not have to pay for any suppliers,advertising,etc.

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

Benefits for a media company of horizontal integration is that there is reduced competition.Vertical integration means that a company buys other companies at the same level of distribution.This helps a media company because it means they can have less competition because they have eliminated other companies on the same level as them.A second benefit is that there is greater product and service differentiation.This means that most products and services coming out of the business will be different because of the other services the company gives.This is a benefit because it will help the media company gain more customers and be able to gain profit and revenue.

4) What is a subsidiary?

A subsidiary is a company that is more than 50% owned by another 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).

Disney
Facebook
Marvel

6) List 10 companies that are part of the Disney media empire

Pixar
Dreamwork
Hula
Marvel
Disneyland 
Lucasfilm
Starwars
ABC entertainment
Viceland

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

Disney was investing in online streaming platforms.






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