Industries: Ownership and Control

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

Instagram was becoming a threat to Facebook, which is why it was bought for $1bn.

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

This gives more profit to the media companies as they gain money from every stage of production. 

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

If one company fails to make profit you can still rely on the other companies you own to bring you revenue.

4) What is a subsidiary?

A subsidiary is a company that is owned by a conglomerate. 

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,Amazon,Facebook

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: Disney+,Disney Channel,Disney XD,ESPN,National Geographic,Freeform,FX,Hulu,Star+ and ESPN+ 

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

Disney would be able to provide more appealing high quality content and entertainment options to meet and grow consumer demand; increasing it's international footprint and expnad it's direct to consumer offerings.