Industries: Ownership and control

 1) What is a conglomerate in the media industries? 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? 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? maximise profits and ensure a return on investment by controlling the entire process.

4) What are the benefits for media companies of horizontal integration?  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. The Walt Disney Company, Apple Inc and Sony Entertainment 

6) What is convergence and what device has changed the relationship between audiences and producers? Convergence refers to the merging of different media platforms and technologies, and the smartphone has transformed the relationship between audiences and producers by enabling easy access to content, user-generated media, and direct interaction.

7) Why did Facebook buy Instagram for $1bn? Answer in as much detail as possible.   Facebook bought Instagram for $1 billion in 2012 to expand its user base, enhance its mobile and visual content strategy, boost advertising opportunities, and prevent potential competition, while also acquiring Instagram's talented team.

8) What is the name of the media billionaire who used to own Fox? The media billionaire who used to own Fox is Rupert Murdoch.]

9) List 10 companies that are part of the Disney media empire. The graphic below will help you. 
  • Walt Disney Studios
  • ABC (American Broadcasting Company)
  • ESPN
  • Marvel Entertainment
  • Pixar Animation Studios
  • Lucasfilm
  • 20th Century Studios (formerly 20th Century Fox)
  • Disney Channel
  • National Geographic
  • Hulu   

    • 10) Why did Disney buy Fox - what are the benefits? These benefits are particularly discussed towards the end of the article. 
    Disney bought Fox to expand its content library, strengthen its streaming services (especially Disney+ and Hulu), enhance its global reach, and improve its film and TV production capabilities, positioning itself as a more competitive force in the media and entertainment industry.


    EXTENSION:
    Read this Inverse feature on Disney buying Marvel. Why does the article suggest it may not have been good for the movie industry overall? 
    The article suggests that Disney's purchase of Marvel may have been bad for the movie industry by prioritizing safe, franchise-driven blockbusters over diverse, original storytelling, leading to a lack of variety and creative risk-taking.

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