Industries: Ownership and Control

 1) What is a conglomerate in the media industries? 

Major media companies are called conglomerates. 

2) What is a subsidiary?

A subsidiary is smaller companies 

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

It gives  companies the chance to make money at every stage of production and distribution. Complete ownership = more profit and control.

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, Universal music, Facebook

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.

Now read this article about Facebook’s acquisition of Instagram and answer the following questions:


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

Facebook bought Instagram for $1 billion in 2012, during that time Instagram had only 30 million users. Facebook bought Instagram because Facebook saw it as a threat and capable competitor and also that the Facebook founder(Mark Zuckerberg) recognised Instagram's burgeoning user base and its potential to redefine (rather disrupt) the landscape of social media.

Now read this BBC article on Disney buying 21st Century Fox. 


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. 


ABC television network, Disney Channel, ESPN, Freeform, FX, National Geographic, Disney+,ESPN+, Hulu and Hotstar


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

These benefits are particularly discussed towards the end of the article.The agreement between Disney and 20th Century Fox benefits Fox by allowing it to broadcast its content on Disney+ and broaden its movie genres. Moreover, it also increases its global markets and allows 20th Century Fox to gain access to additional funding for larger-scale productions.

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