Industries Ownership and Control

 Industries Ownership and Control:

Conglomerate Ownership:

- 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.

 Subsidiary:

- A Company that is owned or controlled by another company, known as the parent or holding company. The parent company can exert control through various means, such as owning a majority of the subsidiary's voting rights or having the power to appoint the majority of its directors.

Benefits of Vertical integration:

- Vertical integration benefits media companies by allowing them to control the entire supply chain, from content creation to distribution, which reduces costs and risks, enhances efficiency, and allows for coordinated marketing. By owning multiple stages of production and distribution, companies can maximize profits, create synergies between different platforms, and build higher barriers to entry for competitors

Benefits of Horizontal integration:

- Horizontal integration offers media companies several key benefits, primarily revolving around market dominance, increased efficiency, and the ability to offer a wider range of content and services. By merging with or acquiring competitors at the same stage of the supply chain, companies can consolidate their power and reach. 

Media companies that have used Synergy:

• - Disney: By cross-promoting its various media properties—movies, theme parks, merchandise, and streaming services—to amplify their individual success and create a comprehensive, immersive brand experience

•  Warner Brothers: By leveraging it's diverse holdings to promote and monetize its intellectual property across multiple platforms. This includes internal collaboration between divisions, like a movie and its companion video game or TV series, as well as external partnerships with other companies for merchandise, sponsorships, and cross-promotions.

• - Sony: By leveraging its diverse portfolio of interconnected businesses—including film, music, gaming, and electronics—to cross-promote products, maximize the value of its intellectual property (IP), and create a cohesive entertainment ecosystem. This allows different divisions to work together to boost profits and reach wider audiences. 

Convergence:

- The merging of distinct technologies and media into a single device or system, while the smartphone is a prime example of a device that has fundamentally changed the relationship between audiences and producers. 

- It has shifted media from a one-way broadcast to a participatory culture, empowering audiences with the ability to create, share, and interact with content on a multitude of platforms from a single device. 

Fakebook's acquisition of Instagram Article:

- Facebook acquired Instagram for approximately $1 billion in cash and stock in 2012 primarily for strategic reasons, including neutralizing a potential competitor, acquiring a leading mobile-first platform, and attracting a younger demographic.

- The $1 billion valuation was considered extraordinary at the time for a company with only 13 employees and no revenue, but it has proven to be a masterstroke of business strategy. 

BBC article on Disney buying 21st Century Fox:

- The media billionaire who used to own Fox is Rupert Murdoch

Companies that are part of the Disney media empire:

• Marvel Entertainment Acquired in 2009, this includes Marvel Studios, which produces the blockbuster Marvel Cinematic Universe franchise.
• ESPN Disney holds an 80% ownership stake in the leading multinational sports entertainment company, which includes the ESPN, ESPN2, and ESPN+ platforms.
• Pixar Animation Studios Acquired in 2006, Pixar is the world-renowned computer animation studio responsible for hits like Toy Story, Finding Nemo, and Inside Out.
• National Geographic: This brand, which specializes in science, adventure, and exploration content across television channels and magazines, came to Disney through the Fox acquisition.
• Hulu: Disney now has full ownership of the premium streaming service, which is integrated with the Disney+ ecosystem for more adult-oriented content.
• 20th Century Studios: Acquired as part of the 21st Century Fox deal in 2019, this film studio is known for franchises like Avatar, Alien, and many others.
• ABC: Disney acquired the American Broadcasting Company (ABC) in a major deal in 1996, bringing a major broadcast network and its news division under the Disney umbrella.
• The Muppets Studio: Disney acquired the rights to the popular children's entertainment collection in 2004.
• Lucasfilm: Acquired in 2012, this company is known for the Star Wars and Indiana Jones franchises, along with special effects and sound companies Industrial Light & Magic and Skywalker Sound.
• Disney Cruise Line: Part of the Disney Experiences segment, this company operates a fleet of cruise ships, providing themed family vacations.

Why did Disney buy Fox:

- Disney bought Fox primarily to fuel its direct-to-consumer (DTC) strategy and the growth of Disney+ by acquiring a vast library of content and valuable intellectual property (IP) like Avatar, The Simpsons, and X-Men.

Extension:

 Inverse feature on Disney buying Marvel:

 

- The article suggest that Disney buying Marvel may have not been good for the movie industry because "The MCU pumps out new movies and TV shows so relentlessly at this point that even diehard fans are starting to feel the fatigue. Marvel dominance (along with a few other unrelated factors) has terraformed the movie landscape." The article is trying to suggest that the monopolization of the movie industry has caused permanent damage and how it is ruining cinema/film culture. "Comedy and mid-budget action no longer have a place in most theatres, and the VFX industry is ripping at the seams trying to keep up with the superhero studio’s unreasonable demands." The article then goes on the talk about how Disney saved Marvel in the long run "Back in 2009, the studio’s plans likely didn’t extend much further than 2012’s The Avengers. 13 years later, the MCU is finishing out its fourth victory lap." but whilst celebrating Disney's triumphs and acknowledging the achievement that Disney and Marvel have made together they also go on to acknowledge the negative impacts that potential monopolies pose to the film industry. Whilst Disney on has 26%of shares in the domestic box offices as of 2022 Disney faces ongoing scrutiny and lawsuits regarding its business practices and although not breaking any official anti-trust laws, they own 200 companies, 7 Cruise Ships and 12 Amusement parks. In Conclusion, the article mostly suggest that Disney's gigantic involvement in the film industry has affected it negatively.