Ownership And Control

 Read this article about Facebook’s acquisition of Instagram and complete the tasks below:

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

Facebook's chief executive Mark Zuckerberg has pledged to continue to develop Instagram as a separate brand, allowing it to post to rival networks.

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
  • Saves time 
  • Reduces costs
  • Better products 
  • Increased expertise 
  • Improves marketability 
  • Increased market control/share
  • Creates economies of scale

3) What are the benefits for media companies of horizontal integration?
  • increasing market share
  • reducing competition
  • creating economies of scale

4) What is a subsidiary?
A subsidiary is a company that belongs to another company, which is usually referred to as the parent company or the holding 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).
  • Disney owns marvel and pixar
  • Google and android
  • Facebook and Instagram

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 broadcast
  2. Disney channel
  3. ESPN
  4. Freeform
  5. FX
  6. National geographic
  7. Disney+
  8. Star+
  9. HULU
  10. ESPN+
7) Why did Disney buy Fox - what are the benefits?
They bought Fox as it strengthens Disney's portfolio and gives it even more leverage to compete against other big streaming services. 


Comments