Ownership and control

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

Facebook brought Instagram in 2012 because It proved that Facebook could build multiple products at the same time, and also sent a message to other entrepreneurs that Facebook was the best place in Silicon Valley to drive massive growth.

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

The benefits for media companies of vertical integration is having control over the supply chain and the ability to offer lower prices while increasing market control.

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

Benefits for media companies of horizontal integration is that they can help companies increase in size, reduce competition and expand into new markets. It can also allow  to boost profit and allow companies access to consumers.

4) What is a subsidiary?

Subsidiary is a smaller company that is owned or controlled by the conglomerates.

5) Give three examples of media companies that have used synergy to maximise the profit from a brand 

Three examples of media companies that have used synergy to maximise the profit from a brand are Disney which makes movies but then also has related stage shows, theme parks, merchandise, soundtracks and events. Frozen has songs, toys, and the film. Lastly for toy story there's toys, the film, theme songs, and merchandise.

6) Read this BBC article on Disney buying 21st Century Fox. List 10 companies that are part of the Disney media empire

10 companies that are part of the Disney media empire is ABC, Touchstone Pictures, Marvel, Lucasfilm, A&E, The History Channel, Lifetime, Pixar, Hollywood Records and Vice Media. 

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

Disney’s acquisition of Fox will enhance its portfolio with popular franchises and branded content.