Industries: Ownership and control - blog tasks

 1) What is a conglomerate in the media industries? 

In the media industry, a conglomerate is a large corporation that owns a collection of various media companies.

2) What is a subsidiary?

A subsidiary is a company that is owned or controlled by another company, which is referred to as the parent company or holding company.

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

Cost savings, Increased Control, Revenue generation, Market power, Data Access, Risk management

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

Market share expansion, Economies of scale, Brand Strengthening, Talent and resource acquisition, Market Entry.

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.

The Walt Disney Company:

Disney has leveraged synergy across its vast portfolio of brands. For instance, they integrate characters and stories from their movies into their theme parks, merchandise, and television shows.

Warner Bros. Discovery:

Warner Bros. Discovery uses its extensive media assets to create synergy. The "Harry Potter" franchise is an excellent example. They have not only produced successful films but also developed spin-off movies like "Fantastic Beasts," created theme park attractions, published books, launched a dedicated online store, and even created a stage play. 

Comcast (NBCUniversal):

Comcast’s NBCUniversal has utilized synergy through its various media properties. The "Fast & Furious" franchise is an example. In addition to movies, they've expanded into video games, theme park attractions, merchandise, and even live shows.


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

Convergence in the media industry refers to the blending of different media forms and technologies into a single digital platform. This process allows content to be distributed and consumed across various devices and channels, breaking down traditional barriers between media types. Convergence has led to the integration of various media formats like text, audio, video, and interactive elements, enabling a more immersive and flexible user experience.

Smartphones have significantly changed the relationship between audiences and producers. Here’s how:

  1. Accessibility: Audiences can now access content anytime and anywhere, making it easier for producers to reach a global audience.

  2. Interactivity: Smartphones enable direct interaction between audiences and producers through social media, live streaming, and comment sections. This feedback loop allows producers to tailor content based on audience preferences.

  3. Content Creation: With high-quality cameras and editing apps, smartphones have empowered audiences to become content creators themselves. This user-generated content adds a new dimension to media consumption and production.

  4. Personalization: Producers can use data from smartphones to personalize content, ensuring that users receive recommendations based on their viewing habits and preferences.


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's acquisition of Instagram for $1 billion in 2012 was a strategic move driven by several key factors:

  1. Mobile Growth: At the time, Facebook was primarily a desktop-based platform, while Instagram was rapidly growing as a mobile-first photo-sharing app. Acquiring Instagram allowed Facebook to strengthen its mobile presence and tap into the growing trend of mobile social media usage

  2. Competitive Threat: Instagram was gaining popularity quickly, and there were rumours that Twitter was also interested in acquiring the app. By purchasing Instagram, Facebook eliminated a potential competitor and secured a popular platform with a large and engaged user base

  3. Advertising Potential: Instagram's visually appealing platform offered new advertising opportunities for Facebook. Integrating Instagram into its ecosystem allowed Facebook to expand its advertising capabilities and reach a younger demographic

  4. User Base Expansion: Instagram had around 30 million users at the time of the acquisition. By bringing Instagram into its fold, Facebook significantly expanded its user base and diversified its content offerings

  5. Innovation and Synergy: Facebook aimed to learn from Instagram's success and integrate some of its features into its own platform. This included enhancing photo-sharing capabilities and introducing new features like Instagram Stories, which later became a major success

Overall, the acquisition was seen as a way for Facebook to stay ahead of the competition, enhance its mobile strategy, and capitalize on Instagram's growing popularity and advertising potential



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. 

Walt Disney Pictures
Pixar Animation Studios
Marvel Studios
Lucasfilm
20th Century Studios (formerly 20th Century Fox)
National Geographic Partners (co-owned with National Geographic Society)
ABC Television Network
ESPN
Hulu (majority stake)
Disney Parks, Experiences and Products (including Disneyland and Disney World)

10) Why did Disney buy Fox - what are the benefits? These benefits are particularly discussed towards the end of the article. 

Disney's acquisition of 21st Century Fox in 2019 was a strategic move with several key benefits:

  1. Content Library Expansion: The acquisition added a vast array of popular franchises and content, including X-Men, Avatar, Planet of the Apes, The Simpsons, and National Geographic. This expanded Disney's Library content significantaly. 

  2. Direct-to-Consumer Offerings: Disney gained a controlling stake in Hulu, which bolstered its position in the streaming market. This allowed Disney to offer more premium content and compete with other streaming giants like Netflix and Amazon.

  3. International Reach: The acquisition included Star India and a 39% ownership in Sky, enhancing Disney's international presence, especially in key markets like India and Europe.

  4. Synergy and Cross-Promotion: Integrating Fox's assets allowed Disney to create synergies across its platforms. For example, Fox's Marvel characters could be integrated into the Marvel Cinematic Universe, creating more cohesive and engaging storytelling.

  5. Cost Savings: Disney aimed to cut costs by at least $2 billion through the acquisition, streamlining operations and eliminating redundancies.

  6. Enhanced Streaming Services: The acquisition supported Disney's plans to launch Disney+, a streaming service that offers exclusive content from Disney, Pixar, Marvel, Star Wars, and National Geographic.

Overall, the acquisition allowed Disney to strengthen its position in the media landscape, expand its content offerings, and enhance its direct-to-consumer capabilities

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