Industries: ownership and control.

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

They bought insta because they saw them as competition and didn't want them to become more successful as them.

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

A vertical integration strategy can deliver advantages. including greater economies of scale lower variable production costs decreased logistics costs and quality concerns.

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

the benefits for media companies of horizontal integration are Reduced competition's,increased market share,Expanded customer base and Revenue growth


4) What is a subsidiary?

Synergy is when a company creates a brand that can be used across different media products and platforms.

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).

The Walt Disney Company
Comcast Corporation (NBCUniversal)
Time Warner (now WarnerMedia under AT&T)


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: 

A&E Networks
National Geographic Partners
Disney Interactive
Disney Direct-to-Consumer & International
Disney Theatrical Group
Disney Music Group
Disney Parks, Experiences and Products
Disney Media Networks
Disney Television Studios
Walt Disney Studios

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

Moreover, Fox was a strong competitor for Disney in the film industry originally, and the threat made by Fox will disappear after the acquisition. Also, Disney can expand itself, increase market share and raise market competitiveness at the same time through the horizontal merger with Fox.

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