Facebook bought Instagram for $1bn in 2012 because they wanted to become a larger conglomerate and had the knowledge of the tech industry in order to run another social media network, furthermore, Facebook could exhibit horizontal integration to secure the company further.
2) What are the benefits for media companies of vertical integration?
The benefits of vertical integration are that the company can make money at every stage of development.For example, if a film company owns a CGI company and a distributor,they can make more profit than just the film itself's revenue.
3) What are the benefits for media companies of horizontal integration?
The benefits of horizontal integration are that if one subsidiary company fails, the conglomerate will not go out of business as they are not linked.
4) What is a subsidiary?
A subsidiary is a smaller organisation that is owned by a large 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).
1) The Harry Potter franchise has books, movies, merchandise,a play and a 'Harry Potter' world in Watford.
2)The teenage mutant ninja turtle franchise has a TV show,many movies and sequels,costumes,and even a musical tour in the 90's.
3) The "Doctor Who" franchise has a movie,a series and books. 6)What are 10 companies owned by Disney? ESPN,Marvel,Lucasfilm,21st Century Fox,Pixar,Hulu(30%),ABC,Dreamworks II,The Muppets and Hollywood Records 7)Why did Disney buy fox - what are the benefits? 21 Century Fox has 39% shares in the broadcasting giant Sky, Disney will profit immensely from this and spread their gigantic influence even further.
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