Industries: Ownership and Control. (unfinished)

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1) Why did Facebook buy Instagram for $1bn in 2012? 

Facebook may had bought Instagram to decrease the chances of Instagram overtaking Facebook's popularity in the media at that time and to dominate the industry by owning more of the content produced therefore making more money and allowing Facebook to keep their high status in the media.

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

The use of vertical integration in media companies allows conglomerate to have the chance to make more money at every stage of production as they own different companies in the same chain.


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

Horizontal integration is when one company buys other companies at the same level of distribution. Therefore, it has many benefits such as it allows companies to widen their audience and cancels out their competition allowing companies to increase their profit. 

4) What is a subsidiary?

A subsidiary is a smaller company owned by a larger company known as a conglomerate for example Disney buying Marvel.


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).


1. Disney has used synergy to maximise the profit by making movies but then also having related stage shows, theme parks, merchandise, soundtracks and events.


2.warner brothers   




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