Industries: Ownership and Control
1) What is vertical integration? What are the benefits of vertical integration for media companies?
Vertical integration is when one conglomerate owns different companies in the same chain of production. The company benefits from reduced costs and advantages over competition.
2) What is horizontal integration? What are the benefits of horizontal integration for media companies?
Horizontal integration is when one company buys other companies in the same level of distribution. It helps them make more profit.
3) What is synergy?
Synergy s when a company creates a brand can be used across different media products.
4) Give an example of a brand that appears across different media products and platforms.
For example, Disney makes toys, clothes and stationary.
5) List 5 companies owned by Disney:
21st Century Fox
National Geographic
FX
Marvel
ESPN
- Extension questions1) Look at the BBC article linked above. Why did Disney buy Fox - what are the benefits?
Disney already owns a vast array of news, film and leisure companies. But the media landscape is changing as technology companies like Amazon and Netflix attract customers to new ways of viewing.
Disney is investing heavily in online streaming platforms, as a way to counter a downturn in its pay-TV business and threats from these new rivals.