Ownership and control: blog task

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

Because facebook could make lots of products at the same time and also everyone said that facebook was the best place in Silicon Valley to drive massive growth.

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

 The benefits are that companies by allowing them to take over the process ,reduce costs and make efficiencies better.Most companies focus on one part of the supply chain. For example, a manufacturer might focus only on producing goods.
3) What are the benefits for media companies of horizontal integration?

The benefits are that they have lower cost and increased differentiation,the combined company can offer more product or service features.Also Increased market power,reduced competition and acces to new markets.

4) What is a subsidiary?

A subsidiary is owned or controlled by another company,which is called the holding company.the subsidiary can be a company,corporation,or in some cases it is government or state-owned enterprise.

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).

-Disney makes movies but then also has related stage shows, theme parks, merchandise, soundtracks and events.
-Dream Works Animated makes movies like kung fu panda and Madagascar it also has merchandise and it has lots of other stuff like TV shows.
-Walt Disney Company makes movies,TV shows,animations and merchandise.

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: 
1)ABC                                 6) A&E 
2)ESPN                              7)The History Channel 
3)Touchstone Pictures       8)Lifetime
4)Marvel                             9)Pixar
5)Lucas film                      10)Hollywood Records

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

Because it helps came after Disney acquire majority control of the streaming company BAMTech with prediction to develop its own streaming service.

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