Industries: Ownership and Control

                                                                                                                                                                            1) Why did Facebook buy Instagram for 1 billion?

to spread the app to many others and not just apple users.


2) What are the benefits for media companies of vertical integration?
lower transportation costs, smaller turn around times, simpler logistics

3) What are the benefits for media companies of horizontal integration?
reduced competition, increased market share, expanded customer base,revenue growth, improved efficiencies, etc.

4) What is a subsidiary?
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).

Disney, coca-cola, Sony

6) List 10 companies that are part of the Disney media empire: marvel,national geographic,21st century fox,ESPN,Pixar,Lucas film,blue sky studios,ABC,lifetime.

7) Why did Disney buy Fox - what are the benefits? to increase Disney's arsenal of general entertainment content.

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