Ownership and Control

1) Why did Facebook buy Instagram for $1bn in 2012?
to make more revenue and cancel out the competition whilst making money from both, also facebook was getting old and less and less people were using it, but instagram still had more users.  

2) What are the benefits for media companies of vertical integration?
the benefits of vertical integration is that the conglomerates earn more revenue at every stage of production 

3) What are the benefits for media companies of horizontal integration?
media companies beneift by because one company buys other companies at the same level of distribution

4) What is a subsidiary?
the smaller companies who are bought by the conglomerates. 

5) Give three examples of media companies that have used synergy to maximise the profit from a brand
Harry Potter using the Warner Brothers intro and adapting it for their intro. Also Disney make movies but then also have related shows, theme parks and merchandise and soundtracks. Also when Adele sings the song for Skyfall, the producers use a different type of media product to link it to their media product which they can make profit off of. 


6) Read this BBC article on Disney buying 21st Century Fox. List 10 companies that are part of the Disney media empire.
Picsar, Marvel, Lucasfilm, Dreamworks film, Viceland, Hulu, ESPN, Marvel entertainment, Disneyland inc, Disneyland Paris and Disneyworld resorts. 

7) Why did Disney buy Fox - what are the benefits?
Disney will assume $13.7bn in Fox debt as part of the stock deal, taking the total value of the transaction to more than $66bn also they will lessen the competition for themselves. 

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