industries : ownership and control

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

To help secure facebook dominance in social media . Also to further improve instagram .

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


  • Eliminates dependency on external suppliers. Vertical integration gives a business independence from external suppliers.it Saves time and Reduces costs whilst also
  • bettering products .


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

  • Undergoing horizontal integration can benefit companies and typically takes place when they are competing in the same industry. The advantages include increasing market share, reducing competition, and creating economies of scale.


4) What is a subsidiary?

a smaller 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).

1. disney as they have theme parks etc



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: 

abc entertainment
abc news and radio
a+e  cable channel
espn
hulu
marvel entertainment
vice
viceland

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

With 21st Century Fox's iconic collection of businesses and franchises, Disney will be able to provide more appealing high-quality content and entertainment options to meet growing consumer demand; increase its international footprint; and expand its direct-to-consumer offerings.


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