Industries: Ownership and Control

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

One of the reasons Facebook bought Instagram may be to secure Facebook's dominance in social media as well as cancel out any competition and make profit off both companies success.

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

Some of the benefits of vertical integration are more profit and creative control within that conglomerate.

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

Some of the benefits of horizontal integration are making more revenue due to a wider audience, minimising risk for potential flop.

4) What is a subsidiary?

A subsidiary is the daughter company controlled/owned by a parent 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)

- Apple sell products like IPhone, IPad and Macbook but also produce shows/movies on Apple TV.

- Disney makes movies and shows but also have a theme park in Florida and Paris.

- Harry Potter is a franchise of movies and books but also have a studio and sell merchandise.

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: 

• Hulu
• Marvel Entertainment Studios
• Walt Disney Records
• Disney +
• Pixar
• Sky
• ABC
• Vice
• ESPN
• Fox

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

Disney wanted to launch its own streaming service. Disney also made profit off buying Fox. Disney also have a dominant force in US news and are competing with Netflix with Disney +. Disney wanted control over Fox's movie and television studios as well as their sports network and other investments.