Industries: ownership and control

 1) What is vertical integration? What are the benefits of vertical integration for media companies?                                                                                                                                      Vertical integration is when one conglomerate owns different companies in the same chain of production.They benefit from this by getting double the amount of money they payed for to get the company. 

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

Horizontal integration is when one company buys another company on the same level as them for the purpose of benefiting from it.The way they can benefit from it is they get all the money the company they bought makes and sometimes they gain double the amount of money they used to buy the company

3) What is synergy?

Synergy is when a company creates a brand that can be used across different media products and platforms.For example if a new show goes viral making toys of the characters would make Disney gain even more money from kids buying those toys. 

4) Give an example of a brand that appears across different media products and platforms.
Disney is an example of a brand that appears in media products and platforms.


 5) Research the different companies that are part of the Disney media empire. This BBC article on Disney buying 21st Century Fox might help. First, list 5 companies 
that are owned by Disney. This graphic may help you: 

Companies that are part of Disney:
- Press 

- Pixar 

- star wars,com

- Vic

- Vic-eland

1) Look at the BBC article linked above. Why did Disney buy Fox - what are the benefits?

Disney bought fox because it adds to the amount of money Disney makes.This is because now that Disney owns fox all the money fox makes goes to Disney.Which increase the amount of money Disney makes.

2) Now read this article from Recode about Facebook’s acquisition of Instagram. Why did Facebook buy Instagram for $1bn in 2012?

 Facebook bough Instagram because they knew they would benefit from Instagram fame.The amount they of money Facebook spent to buy Instagram might be high but through out the years they will get back all the money they spend on Instagram due to the huge amount of money Instagram makes.Buying Instagram will also eliminate they computation between Facebook and Instagram.




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