1) Why did Facebook buy Instagram for $1bn in 2012?
Zuckerberg believed that he could make the company into a global, multi-million maybe billion company and aspired to make changes to accomplish this in the future.
2) What are the benefits for media companies of vertical integration?
The media company can make money in each stage of production rather than in just one aspect of the production.
3) What are the benefits for media companies of horizontal integration?
They would eliminate the risk of losing everything because if you own multiple companies in different areas of media, if one shuts down you would still be making money on other accounts.
4) What is a subsidiary?
Smaller companies
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, Star Wars, X-Men (Disney). Warner Bros and Peppa Pig.
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:
Disney now owns stocks over Fox so on Disney+ they can add on iconic shows such as The Simpsons which would introduce a wider audience who would want to watch these shows. Disney now also own stocks to the National Geographic and can introduce that into Disney+. Rather then having just Disney shows and movies, the streaming site has a wider variety of shows and movies therefore introducing an increase of users meaning more Money. Disney would probably also get money from anything Fox's shows are streamed on channel TV.
No comments:
Post a Comment