Ownership and Control
1) What is a conglomerate in the media industries? A conglomerate is a media company that owns lots of smaller media companies. These smaller companies are called subsidiaries . Most of the global media industry is now dominated by a small number of massive conglomerates. 2) What is a subsidiary ? A company within a conglomerate that has many smaller companies working underneath them. 3) What are the benefits for media companies of vertical integration ? • greater economies of scale • lower variable production costs • decreased logistics costs • quality concerns • increased profitability. • What are the benefits for media companies of horizontal integration ? Allows companies to gain market share and market power, eliminate their competition, acquire new products and services, a larger customer base, and increase their revenue. 5) Give three examples of media companies or brands that have u...