Thursday, 18 October 2012

Media Industry Terms


Gobalisation
Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Examples of this are the Big Six comapnies who have businesses and divisions all over the world.


Merger
This occurs when two comapnies combine into a single entity. An example of this is the BSkyB and News Corporation merger.






Takeover
A takeover occurs when one company acquires control of another comapny. An example of this is when Facebook tookover Instagram for $1 billion in cash.





Vertical Integration 
This happens when a company expands its business into areas that are different points of the same production path. An example of this is Richard Branson's Virgin. Virgin have television companies, trains, planes, formula one cars, and more. All these sectors are very different but are all owned by the same company.



Horizontal Integration
This happens when a comapny expands its business into different products that are similar to current lines. an example of this is Rupert Murdoch's News Corporation. News Corp owns TV stations and newspapers, all similar things within just the media sector.

No comments:

Post a Comment