21st Century Fox

Definition

21st Century Fox was a global media and entertainment conglomerate formed from the split of News Corporation in 2013, which included various segments such as film, television, and cable networks. The company played a significant role in shaping the media landscape through its ownership of popular franchises and platforms, establishing itself as a major player in the context of vertical integration.

5 Must Know Facts For Your Next Test

1. 21st Century Fox owned several well-known subsidiaries, including 20th Century Fox Film Studio and Fox Broadcasting Company, providing a diverse range of entertainment options.
2. The company was influential in the film industry with blockbuster franchises like 'Avatar' and 'X-Men,' showcasing its strength in content creation.
3. Its cable networks included FX and National Geographic, expanding its reach into various genres beyond traditional broadcasting.
4. The company's structure allowed it to benefit from economies of scale, controlling both content production and distribution channels.
5. In 2019, 21st Century Fox's assets were largely acquired by Disney, leading to a significant shift in the media landscape and the rise of mega-media companies.

Review Questions

• How did 21st Century Fox exemplify vertical integration within the media industry?
  • 21st Century Fox exemplified vertical integration by owning and controlling various aspects of the media production and distribution process. It managed everything from content creation through its film studios to broadcasting through its television networks. This integration allowed the company to maximize its revenue streams by leveraging its properties across multiple platforms, ensuring that its productions reached a wide audience while maintaining control over their distribution.
• Discuss the implications of 21st Century Fox's acquisition by Disney on the media landscape.
  • The acquisition of 21st Century Fox by Disney had significant implications for the media landscape, as it resulted in an even larger concentration of media power under one umbrella. This consolidation allowed Disney to expand its content library and strengthen its streaming services with popular franchises previously owned by Fox. The merger also raised concerns about reduced competition in the industry and increased challenges for smaller players trying to compete with such a massive entity.
• Evaluate the impact of 21st Century Fox's ownership structure on its ability to compete in a rapidly changing media environment.
  • 21st Century Fox's ownership structure enabled it to adapt effectively to a rapidly changing media environment through vertical integration. By controlling various stages of production and distribution, it could respond more swiftly to market trends and consumer preferences. However, despite these advantages, the company faced intense competition from emerging digital platforms and changes in viewing habits, which ultimately influenced its decision to sell major assets to Disney. This situation illustrates how even well-integrated companies must continuously evolve to maintain competitiveness amid transformative industry shifts.

Related terms

Vertical Integration: A business strategy where a company controls multiple stages of production or distribution within the same industry, allowing for greater control over supply chains and market reach.

News Corporation: The former parent company of 21st Century Fox that was split into two distinct entities in 2013, with one focusing on publishing and the other on media and entertainment.

Disney: A major competitor in the media industry that acquired 21st Century Fox's entertainment assets in 2019, further consolidating the vertical integration of media companies.