Ownership and Control

 1) Why did Facebook buy Instagram for $1bn in 2012?                                                                                                   To avoid competition with Instagram and making more profit combined.

 2) What are the benefits for media companies of vertical integration?                                                                                               Media companies benefit from complete ownership which means they get more money                                                                           

3) What are the benefits for media companies of horizontal integration?                                                                                           Allows media companies to expand their audience and find more ways to make money.

 4) What is a subsidiary?                                                                                                                                                                       A larger company owning a smaller 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)                                                                                                                                                   Facebook,        Disney and Time Warner

 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:                                                                                                                                                ABC, Pixar, Marvel, Lucas film, Marvel Entertainment, Vice Land, Dream Works, Lifetime, Disneyland Paris and       History.

  7) Why did Disney buy Fox - what are the benefits?                                                                                                                            Disney bough fox because they would earn a lot of profit from Fox. They also bought Fox to allow access to the vast               amount of titles under the Fox label. The addition of Fox will give Disney access to hit movie franchises such as X-men,         Avatar and  Planet of the Apes             






                                                                                              

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