Industries: Ownership and Control

1) What is a conglomerate in the media industries? 
A media company that owns lots of smaller media companies

2) What is a subsidiary?
The smaller companies that are owned by a conglomerate are the subsidiary companies

3) What are the benefits for media companies of vertical integration?
The company is able to have complete ownership meaning that they have more profit and full control.

4) What are the benefits for media companies of horizontal integration?
Horizontal integration allows companies to widen their audience 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, Facebook, Amazon.

6) What is convergence and what device has changed the relationship between audiences and producers? Technological convergence refers to the fact we can now access all different types of media on one device. Smartphone have significantly changed the relationship between audiences and producers.

7) Why did Facebook buy Instagram for $1bn? Answer in as much detail as possible.
Facebook did this in order to remove competitions as Instagram had the potential to make Facebook go unpopular. Facebook also did this to gains more revenue. This way they wouldn't just be making money from Facebook but also Instagram.

8)

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