Thursday 3 December 2020

Industries: Ownership and control

1) Why did Facebook buy Instagram for $1bn in 2012?
So that there was no competition and so that they could expand their audience

2) What are the benefits for media companies of vertical integration?
They have full ownership of everything that is related to them.

3) What are the benefits for media companies of horizontal integration?
They own companies on the same production level as them so that they can have no competition.
4) What is a subsidiary?
A  company owned by a larger 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).
Aston Martin 
Coco Cola 
Disney

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: 
Marvel Studios
Lucasfilm
Dream Works II
ESPN
Pixar
ABC entertainment 
A&E Radio and News
Starwars.com 
Marvel Press 
The Muppets Studio

7) Why did Disney buy Fox - what are the benefits?
To air news and to reduce competition within the film industry so that the audience of Fox movies would watch disney movies due to promotions of Disney during Ads.

No comments:

Post a Comment

SCRIPT