Ownership and control

 Ownership and control


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

Facebook bought Instagram to help spread this app and brand to even more people.

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

Industries have a strong interest in who their Target Audience is so that they can best appeal to them. So there are greater economies of scale, lower variable production costs, decreased logistics costs and quality concerns

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

  • The benefits of media companies are  Reduced competition,Increased market share,Expanded customer base,Revenue growth and Improved efficiencies.

4) What is a subsidiary?

less important than but related or supplementary to something.

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).

The three examples of media companies are Disney,Facebook and walkers.

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: 

Pixar, ESPN, Marval, Fox, Hulu, ABC, lucasfilms , 21st century FOX, A and E network,  Disney General Entertainm

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

So Disney can expand itself, increase market share and raise market competitiveness at the same time through the horizontal merger with Fox.










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