Industries: Ownership and control - blog tasks

 1) What is a conglomerate in the media industries? 

a very large organisation that owns different types of media company


2) What is a subsidiary?

a company controlled by a holding company.

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


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

 maximise profits and ensure a return on investment by controlling the entire process.

5) Give three examples of media companies or brands that have used synergy to maximise their profits. There are examples in the notes above to help you.

- the relationship between gaming franchises like Call of Duty or FIFA and the music industry, where popular songs are featured in the games and thus gain exposure to a broad audience.
-Disney makes movies but then also has related stage shows, theme parks, merchandise, soundtracks and events all linked to the same brand or characters.
-Procter & Gamble (P&G) and Gillette. The P&G-Gillette deal is an example of a very successful revenue synergy. The two companies were very successful individually in their operations and were the industry leaders of the time.

6) What is convergence and what device has changed the relationship between audiences and producers? 

Technological convergence refers to the fact we can now access all different types of media on one device.

The growth of smartphones has completely changed the relationship between industries and audiences. 



Now read this article about Facebook’s acquisition of Instagram and answer the following questions:

7) Why did Facebook buy Instagram for $1bn? Answer in as much detail as possible

Instagram was increasingly becoming popular, Facebook wanted a larger profit as it was used by an older generation and Instagram was used by a younger generation.



8) What is the name of the media billionaire who used to own Fox? 

 Keith Rupert Murdoch

9) List 10 companies that are part of the Disney media empire. The graphic below will help you. 

  • Pixar Animation Studios.
  • Marvel Entertainment Inc.
  • The Muppets Studio LLC.
  • Caravan Pictures in Hollywood.
  • Core Publishing.
  • Walt Disney Studios.
  • Vice Media (10% stake)
  • Lucasfilm Ltd.
  • 20th Century Animation

10) Why did Disney buy Fox - what are the benefits? These benefits are particularly discussed towards the end of the article. 

To stream their movies to a larger audience to come head to head to head with Netflix and other companies. Disney was not big enough and did not have the necessary assets that it needed from Fox so they plan to merge it to come head to head with other companies.

Grade 8/9 extension tasks

Read this Inverse feature on Disney buying Marvel. Why does the article suggest it may not have been good for the movie industry overall? 

Although Disney saw potential in buying Marvel which did have a great success from all the movies, they kept pumping out too many movies which fans got tired of. Comedy and mid-budget action no longer have a place in most theatres, and the VFX industry is ripping at the seams trying to keep up with the superhero studio’s unreasonable demands. However, overall, it has been a success as Marvel was kept alive, Disney got rich, but the only downside was that the movies were not the best.



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