Vertical and horizontal integration
Vertical intergration- When a production company has complete ownership of the production, distribution & exhibition of the film by the same company and receive all of the profit.
High School musical was produced under a 'disney umbrella'
- produced by Walt Disney pictures
-Distributed by Walt Disney motion pictures
- Pre-launch marketing- singles released on Disney radio in 2008
Horizontal intergration- When a production company expands into other areas of an industry. The company can develop in a particular area of production (production, distribution, exhibition) o can buy out another company that deals with these areas and therefore reduce competitors.
In a reflection comment below please provide one advantage and one disadvantage of horizontal and vertical integration.
ReplyDeleteMiss C
ADV of Vertical: One company takes all profit, as only their company is used.
ReplyDeleteDISADV of vertical: Same potentially biased ideologies are presented across all products
ADV of horizontal: new ideas are introduced 'Best of both worlds'/ one company can take all of the credit
DISADV of horizontal: Main company does not take 100% of profit, advertisers and distributers all need to be paid