Ownership and control blog task

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

As Facebook wanted to cancel out competition with Instagram and make money from both media products.

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

 Some benefits are that they make all the money as it all goes back to them also they have complete control over every stage of the production process.

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

Benefits are that it prevents companies from getting out of business also it allows them to widen their audience and find other ways to make money.

4) What is a subsidiary?

A subsidiary is a small, independent company that is brought 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

-Lego

-Polaroid 

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

-Star Wars.com                     -Marvel Press

-Marvel Studios                     -The Muppets Studio

-ABC Entertainment              -ESPN Books

-HULU                                   -Vice

-Dreamworks                        -Viceland

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

In order to have more global entertainment businesses and they will widen their audience. It will also protect them from powerful technical companies.