1010 - MEDIA OWNERSHIP CASE STUDY ACTIVITY Team #: Team 7 Names of Group Members Present: Ansley Barry, Elizabeth Bright, Sarah Vela-Juarez MODULE OUTCOMES ADDRESSED: ● Identify forms of integration within a real-world media company. ● Define conglomeritization and discuss its meaning with a real-world case study of a media merger. ● Reflect on media ownership and what this merger will mean to consumers. PREPARATION : For this activity, you will want to refer back to concepts in Ch. 3, as well as your reading guide and the attached articles. PROMPT : For this assignment, we will utilize a current case study in the Disney/Fox merger.In March 2019, Disney purchased the film and TV assets held by 21st Century Fox for $71.3 billion, marking one of the largest media mergers ever. For this activity, you will read about and discuss the following articles, and you may need to do a little further research regarding Disney/Fox online. You may want to split up and discuss what you find, as the articles are long: https://www.vox.com/culture/2019/3/20/18273477/disney-fox-merger-deal-details-marvel-x-men https://www.vox.com/culture/2019/3/15/18225269/streaming-future-cable-netflix-hulu-disney https://www.theverge.com/2019/8/6/20757626/disney-plus-espn-hulu-bundle-price-date-streami ng-service 1. In a sentence or two, provide one specific example of how vertical integration exists within Disney. There is an example of vertical integration within Disney and the streaming apps they use/own. Disney owns and has a bundle with Hulu, Disney+, and ESPN. You can stream shows and movies on all three but its all under Disney. 2. In a sentence or two, provide one specific of how Disney has utilized horizontal integration. Disney utilizes horizontal integration with their Disney princess movies and the franchise of disney princesses. Disney has games, dolls, and even books with the classic Disney princesses.
3. Using Ch. 3, define conglomeration in your own words. Then, in a sentence or two, explain how this new acquisition of Fox represents further conglomeritization. Conglomeration is like an umbrella company over several other companies, it converges several companies to create a big corporation. Disney is now the parent company of Fox, so instead of Fox and Disney being their own company Disney now owns and collabs with majority of Fox making it one big franchise and corporation. 4. List at least two film franchises and two TV franchises that will be affected by this merger. Explain how each will be affected. The Gifted was a Fox series and now that Fox is merged with Disney its most likely that the show will remain streaming and get the funding it needs. Another one will be American Horror Story, now that Disney owns Fox AHS could be affected by Disney toning down the legitimate horror. The X-man films could be affected if the X-Men timeline is added with Marvel and if they combine the timeline and characters to be with the Marvel Franchise. Avatar was also affected, after the merger with Disney the Fox film Avatar was rebooted and a new movie was released. 5. In a few sentences, explain one way that the Disney/Fox merger may affect streaming video. Now that Disney owns Fox its most likely become a big competitor to other streaming videos like Netflix, HBO, and Prime Video. The competition of streaming video's will change, and other streaming sites may eventually merge too. 6. List two benefits of this merger for consumers. One benefit of this merger would be you wouldnt have to get a lot of other streaming sites, it would all just be under one(via. disney). Another benefit would be that its makes it easier for families to watch whatever they want, if a kid wants to watch some Disney while an adult wants to watch Fox shows 7. List two drawbacks of this merger for consumers. Because Disney took over Fox, a drawback could be that the subscription price was raised and consumers will have to pay more. Another disadvantage could be that Disney could cut the budget of Fox shows or lay off whole shows entirely. 8. How do you see this merger most affecting you as a consumer It makes me feel like I'll eventually have to get Disney+ if I want to watch other shows from Fox. So eventually I think I'll have to pay for a streaming site I didn't originally want because it now owns everything.
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