Ownership and control

1) Why did Facebook buy Instagram for $1bn in 2012?
It showed that facebook could build multiple media products at the same time.
 
2) What are the benefits for media companies of vertical integration?
The benefits for media companies of vertical integration is that they will make even more money because they don't have to source other CGI companies or pay distributors to distribute their media product.

3) What are the benefits for media companies of horizontal integration?
The benefits for media companies of horizontal integration is that they can make more money and have a wide target audience.

 4) What is a subsidiary? 
Subsidiary are smaller companies owned by larger companies for example universal music group owns island records and Warner Bros owns DC comics.

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).
One examples of media companies that have used synergy to maximise the profit from a brand is Disney (Lion king) when the movie came out they made toys,theatre play's,new live action movie.
also another media company is Dc comics when they made there batman movie they made toys,games, costumes.
also another company is Sony when they made spider-man they mad toys,games,costumes.

6) Read this BBC article on Disney buying 21st Century Fox. List 10 companies that are part of the Disney media empire.
-Marvel cinimatic universe
-Fox
-Lucasfilm
-ABC
-Touchstone Pictures.
-Pixar
-Core Publishing
-A&E
-ESPN
-Hollywood Records

7) Why did Disney buy Fox - what are the benefits?
Disney bought fox so they can make more money and take out competition and own a lot of movies. 

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