Industries: Ownership and control

 1) What is a conglomerate in the media industries? 

Companies that own lots of subsidiaries.

2) What is a subsidiary?

Small companies.

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

Companies have more of a chance to make money at every stage of production.

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

It allows for companies to widen their audiences and find other ways to make money.

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.

Disney: makes movies but then also has related stage shows, theme parks, merchandise, soundtracks and events all linked to the same brand or characters.

Apple: uses synergy between its hardware, software, and services to drive revenue. For instance, the launch of a new iPhone is often tied to promotions for services like Apple Music, Apple TV+, iCloud storage, and the App Store. 

Warner Bros: uses its vast content library (including DC Comics, Harry Potter, and its TV shows) across multiple platforms to drive profitability. A example is the success of The Batman film, which was promoted not only through theatrical releases but also tied into streaming via HBO Max, video games, comic books, and merchandise. Additionally, HBO Max includes exclusive content tied to Warner Bros.' properties, which attracts subscribers to the service.

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

Convergence is the blending of different media and technologies, and smartphones have changed the relationship between audiences and producers by enabling access to diverse content, empowering user-generated content, and allowing direct interaction between both groups.

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

Facebook bought Instagram for $1 billion in 2012 to tap into its rapid user growth, particularly among younger audiences, and strengthen its mobile presence as Instagram was a mobile-first platform. With a focus on visual content, Instagram aligned with the growing trend of photo and video sharing, which Facebook wanted to capitalize on. The acquisition also eliminated a potential competitor and provided Facebook with new advertising opportunities, which later became a significant revenue stream. Ultimately, Facebook saw Instagram as a strategic asset for long-term growth and innovation in the social media space.


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

Rupert Murdoch 

9) List 10 companies that are part of the Disney media empire. The graphic below will help you. 
  1. Pixar Animation Studios
  2. Marvel Studios
  3. Lucasfilm
  4. 20th Century Studios (formerly 20th Century Fox)
  5. Walt Disney Pictures
  6. ABC Television Network
  7. ESPN
  8. National Geographic (via Disney's acquisition of 21st Century Fox)
  9. Hulu (Disney owns a controlling stake)
  10. Disney Channel
10) Why did Disney buy Fox - what are the benefits? These benefits are particularly discussed towards the end of the article. 

Disney bought Fox in 2019 for $71.3 billion to expand its content, strengthen its streaming services, and increase its global reach. The acquisition added popular franchises like X-Men, Avatar, and The Simpsons to Disney's library, boosting its offerings on Disney+ and Hulu. It also gave Disney a bigger presence in international markets through Fox’s assets like Sky, and helped it compete more effectively in the streaming market. Additionally, the purchase brought valuable superhero franchises like Deadpool and Fantastic Four into Disney's Marvel universe, creating more opportunities for future content and crossover.


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? 

 These benefits are particularly discussed towards the end of the article.
One, which everyone will jump to, is that Fox owned the rights to the last batch of Marvel characters that had yet to appear in the MCU, those being the X-Men and the Fantastic Four. Disney buying Fox allows Disney to use these characters in their movies whereas before they couldn't use these characters.





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