Ownership and control

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

It proved that Facebook could build multiple products at the same time

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

The beneifts for vertical integration is that you can produce more content but also gain more profit ansd also reduces costs for lots of production companies.

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

Benefits for horizonltal integration are that there is a wider range of audiences, ansd also you make more money.

4) What is a subsidiary?

A company owned by a parent 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).

Facebook, Walt disney and 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: 

Marvel, Fox entertainment, ESPN inc, Lifetime, ABC, Pixar, Hulu, SKY, Edemol shine.

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

Wider variety of audience but also wider variety of media products, Profit ofcourse, Fox is on every TV and has a lot of channels so lots of people will see Fox news.

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