3.2 Analysis of Media Industries

• What are media industries involved in the production, distribution, and sale of?

  Media products
• Media companies owning different parts of the production and distribution process are examples of vertical integration.
• What does conglomeration in media industries refer to?

  Owning multiple subsidiaries
• Give an example of the film media industry.

  Movie studios
• Match the media industry with its examples:

  Music ↔️ Record labels, streaming platforms

  News ↔️ Newspapers, broadcasters

  Video Games ↔️ Game developers, digital platforms
• Media companies diversify their revenue streams by expanding into related sectors.
• What is the main purpose of vertical integration in media industries?

  Control more of the value chain
• Why do media companies use these organizational structures?

  To gain control and efficiency
• Traditional production uses physical film, studios, and editing suites.
• Arrange the steps of media distribution in order:

  1️⃣ Physical Distribution

  2️⃣ Digital Distribution
• What are the two primary methods of media production?

  Traditional and digital
• What is the process of making media available to audiences called?

  Distribution
• Physical distribution offers a wider audience reach than digital distribution.

  False
• Consumers pay a recurring fee to access content under the subscription revenue model
• What business strategy involves owning different parts of the supply chain?

  Vertical integration
• Conglomeration allows media companies to achieve economies of scale and cross-promotional opportunities.


  True
• Match the characteristic with its description:

  Vertical Integration ↔️ Media companies owning different parts of the production and distribution process

  Horizontal Integration ↔️ Media companies expanding into different media sectors

  Conglomeration ↔️ Large media companies owning multiple subsidiaries across different media sectors
• Horizontal integration involves media companies expanding into different media sectors.


  True
• Media companies use vertical integration, horizontal integration, and conglomeration to achieve economies of scale.
• What are some examples of the television media industry?

  Broadcast networks, cable channels
• Vertical integration allows media companies to control more of the value chain.


  True
• Arrange the strategies used by media industries in order of complexity:

  1️⃣ Vertical Integration

  2️⃣ Horizontal Integration

  3️⃣ Conglomeration
• Large media companies achieve economies of scale through conglomeration.
• What are the two primary methods of production in media industries?

  Traditional and digital
• What are the advantages of digital production over traditional production?

  Cost-effective and flexible
• Digital distribution is more efficient due to its wide reach and environmentally friendly nature.
• Traditional production uses physical film, studios, and editing suites
• Digital distribution uses online platforms
• How does advertising generate revenue for media companies?

  Selling advertising space
• Transactional revenue involves consumers paying per use or per item.

  True
• Horizontal integration involves expanding into related media sectors
• What do media industries primarily focus on?

  Production, distribution, and sale
• The main types of media industries include film, television, music, news, and video games
• Vertical integration allows media companies to control more of the value chain.

  True
• Digital production is more cost-effective and flexible than traditional production.


  True
• What are the main advantages of digital distribution?

  Cost-effective, wide reach
• Advertising generates revenue by selling advertising space
• What does the transactional revenue model involve?

  Payment per use
• Vertical integration allows greater control and a larger share of profits
• What is the purpose of conglomeration in media industries?

  Cross-promotional opportunities