Ownership and control: blog task

Ownership and control: blog task

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

To prove that Facebook could build multiple products at the same time.

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

The benefits of vertical integration is that you would be able to make more profit.

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

The benefits of horizontal integration is that each company would be making a roughly same amount which means more revenue.

4) What is a subsidiary?

They are smaller companies that are bought by conglomerates.

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

One example is star wars as they have action figures, a cartoon series and games on console and PC.Second example is Lion King as they have Lion King teddy bears,TV series and theatre shows.Third example is Mickey mouse there is a Mickey mouse teddy,toys and products like clothing.

6) List 10 companies that are part of the Disney media empire.

The ten companies that are apart of Disney are: Marvel,Touchstone pictures,ESPN,A&E,ABC,Lucasfilm,Pixar,Vice media,Lifetime and Core publishing.

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

Disney bought fox as after Disney acquired majority control of the streaming company BAMTech with anticipation to develop its own streaming service.The benefits of this is it would mean Disney have less competition and more revenue to bring in.