Industries:Ownership and Control

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 Industries: Ownership and control

1. Why did Facebook buy Instagram for $1bn?

Facebook bought Instagram for $1bn because Instagram is really popular with a lot of users using it.

The app is free there are 30 million users uploading more than 5 million pictures on a daily basis.

2. What are the benefits for media companies of vertical integration?

The benefit for media companies of vertical integration is that the company owns different companies in the same chain of production that they bought to make more profit.

3. What are the benefits for media companies of horizontal integration?

The benefit for media companies of horizontal integration is that the company buys other companies at the same levels of distribution which allows companies to widen their audience and find other ways to make money.

4. What is a subsidiary?

A subsidiary is a small company, it is also meant when a company is owned by a larger organization.

5. Give three examples of media companies that have used synergy to maximize the profit from a brand (there is one above to help you)

1. Disney

2. Facebook, Instagram

3. Coca Cola

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.
  • ESPN Books
  • Maker Studios
  • Marvel
  • StarWars.com
  • The Muppets Studio
  • ABC Entertainment
  • ABC News and Radio
  • A+E cable channel
  • ESPN
  • Hulu
7.  Why did Disney buy Fox - what are the benefits?
     Disney bought Fox because it will make more entertainment content for people to be able to watch. They had also bought Fox to increase their shares in the market and Disney is able to provide excellent high-quality content for them and loads of choices and opinions to keep them entertained to be able to expand and grow their customer demand.
      

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