Industries: Ownership and control

1) What is a conglomerate in the media industries? 

A conglomerate is a media company that owns lots of smaller media companies

2) What is a subsidiary?

A company owned by a larger company

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

Vertical integration is when one conglomerate owns different companies in the same chain of production, and benefits media companies with expansion benefits.

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

Horizontal integration allows companies to widen their audience and find other ways to make money.

5) Give three examples of media companies or brands that have used synergy to maximise their profits. There are examples in the notes above to help you.

Disney, Paramount, Nintendo

6) What is convergence and what device has changed the relationship between audiences and producers? 

Technological convergence refers to the fact we can now access all different types of media on one device. The growth of smartphones has completely changed the relationship between industries and audiences. Traditional industries like newspapers are now moving into video or online content and audiences can now create their own user-generated content.

7) Why did Facebook buy Instagram for $1bn? Answer in as much detail as possible

Because it has proven to be hugely popular. The firm says that it has more than 30 million users uploading more than 5 million new pictures every day. Paul Kedrosky, a tech investor and author of the Infectious Greed blog, told the BBC: "I understand Instagram has 13 employees - so at $77m a head that makes it the most expensive business deal in history that I can think of."

8) What is the name of the media billionaire who used to own Fox? 

Rupert Murdoch

9) List 10 companies that are part of the Disney media empire. The graphic below will help you. 

Pixar Animation Studios, Marvel Entertainment, Lucasfilm, 20th Century Studios, Searchlight Pictures, FX Networks, Hulu (majority-owned), ESPN, National Geographic, and Walt Disney Animation Studios

10) Why did Disney buy Fox - What are the benefits? These benefits are particularly discussed towards the end of the article. 

To expand its content library.

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