Conglomerate - Disney

  www.youtube.com/watch?v=sLevdkjBb1o

Notes from video:

The Walt Disney Headquarters company is a conglomerate in Burbank California - this means it owns many smaller subsidiaries businesses, Disney falls in to the top five largest media conglomerate.

Some Subsidiaries of Disney - ESPN, ABC, Lifetime, History, A&E, FX, Marvel Studios and Lucasfilm.

Founded 16th October 1923

Disney are able to distribute with ease thanks to their many channels like the Disney Channel and Disney streaming services such as Disney+, they also have their own record label Walt Disney Records. They also have their own DVD distribution Walt Disney Studios Home Entertainment.

Conglomerate - a company structure with one parent company that owns a number of smaller companies (subsidiaries). The subsidiaries work independently, but still strive for the wider goals and objectives of the parent company.

Revenue - money made by the company, before deductions are taken into account. Deductions can include things like production costs and labour costs.

Brand - a wide ranging term for a name, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers.

Intellectual Property - something created using the mind; a story, invention, artistic work, etc.

Franchise - a series of related works within one fictional universe.

Division - a smaller part within a company that focuses on one or a few areas within that company.

Horizontal Integration - a company that utilises assets of its subsidiary companies/divisions to support the marketing process of a major product or brand.

Vertical Integration - a company that has the ability to control production, distribution and, in some cases, the exchange of a product. It is sometimes known as the value chain.

Cross-Media Ownership - When an institution owns two or more companies that specialise in different media sectors (such as owning films and games production companies).

Cross-Media Convergence - when the above allows different companies/subsidiaries/divisions to come together on one project to maximise efficiency and profit.

Synergy - increased efficiency and profit that occurs as a result of vertical and horizontal promotion. Conglomerates are formed to create synergy in order to cross-promote.

Owen Wilson is an example of convergence, because he voices Lightning McQueen in the film as well as the game.