Vertical and horizontal integration
•Vertical
Integration à 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.
Horizontal
Integration à 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


Warner brothers used vertical integration to their advantage by making the film by only using their own resources. Meaning they gained %100 of the profit and did not have to be governed by any other companies and went entirely off a free reign.
'The Lego Movie' used vertical integration by distributing the film through it's own Warner Bros distribution company and then created a video game through its own gaming division.

You have used the class notes well.
ReplyDeleteIn a comment below, please explain one advantage & one disadvantage of horizontal and vertical integration.
Miss C
This is something we will be working on during our next intervention session on Wednesday.
ReplyDeleteMiss C