Industries: Ownership and control

 1) Why did Facebook buy Instagram for $1bn in 2012?

Facebook bought Instagram for $1bn in 2012 because they wanted to build multiple products at the same time and become a multi billionaire company.

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

The benefits for media companies of vertical integration is that they have control over every stage and they get profits from every stage of the production.

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

The benefits for media companies of horizontal integration is that they have more profit and attract a wider audience.

4) What is a subsidiary?

Subsidiary is when smaller companies that are bought e by bigger companies.

5) Give three examples of media companies that have used synergy to maximise the profit from a brand.

Three examples of media companies that have uses synergy to maximise the profits from a brand are: Disney, Warner brothers and 21st century.

6) Read this BBC article on Disney buying 21st Century Fox. List 10 companies that are part of the Disney media empire. 

10 companies that are part of the Disney media empire are Marvel, Fox entertainment, Sky, Walt Disney, Hulu, Endemol Shine group, Marvel Studios, 21st century fox, National Geographic partners, Walt Disney studio and Star TV.

7) Why did Disney buy Fox - what are the benefits?

Disney bought Fox because of the value it adds to streaming service. The benefits of this are that Fox will give Disney access to hit movies and Disney will also get Fox's 30 percent ownership of Hulu, giving Disney a controlling share of 60 percent.