Ownership And Control👍

 

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

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

 Mark Zuckerberg has continued  to develop Instagram as a separate brand.

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.

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).

• Google and android
• marvel and pixar
• Instagram and facebook

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. ESPN+
3. ESPN
4. Freeform
5. FX
6. National geographic
7. Disney+
8. Star+
9. Disney channel
10. HULU

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

they  bought fox because fox is a big streaming brand so it will help disney alot.