INTERGRATION




Vertical Integration = 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. (e.g. Frozen is made and distributed by Walt Disney Production/distribution Company and their own production team BRUENA VISTA who then create their own DVD, Blu-Ray, Soundtrack, Games.. They also create their own exhibition by The Disney Store, Disney TV Channel, Theme Parks, YouTube...)













Horizontal Integration = When a production company expands into other areas of on industry. The company can develop in a particular area of production (prod, dist, exhib) or can buy out another company that deals with these areas and therefore reduce competitors. (e.g. Disney, Pixr)







Comments

  1. Good definitions!
    In a reflection comment below please answer:
    What is the advantage of a company using horizontal integration?

    Miss C

    ReplyDelete

Post a Comment

Popular Posts