Industries: Ownership and Control

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

Facebook bought Instagram for $1bn in 2012 because it had so many users. They also bought it because it had become a competitive social network 

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

The media companies get more profit 

Complete ownership and control

Less risk

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

Less risk

More profit

Allows companies to widen their audience

4) What is a subsidiary?

A smaller company that is owned by a bigger 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).

Marvel - They have a ride based on the avengers in Disneyland.

Amazon - They have amazon prime and their own shop now too.

Apple - They AppleTV

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: 

Hulu                                                                                   

Marvel entertainment       

Pixar

Star wars

ABC Entertainment

DreamWorks

Century fox

Marvel

Marvel studios

ABC News and radio

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

To counter a downturn in pay-tv business and threats from new rivals. Buying 21 century fox also allowed Disney to become a powerful future competitor.