Explain what vertical and horizontal
integration is in the film industry
- · Vertical integration
This is when the production company has the ownership of the production.
Not only the production but also the distribution and exhibition of the film.
Because of this they receive all the profit.
- · Pros of vertical
The production company can manage all sectors for the film.
The production company will be earning money because they are covering
all sectors.
- · Horizontal integration
This is when the production company expands into more areas of on
industry. This means that the company can develop in a particular area of the
product.
- · Pros of horizontal
Will earn more money because they are spread over the sectors of the
media industry.
Will develop their product more In the media areas.
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