Vertical and Horizontal integration

Vertical Integration - When a production company has complete ownership of the production, distribution and exhibition of the film by the same company and receive all of the profit.
E.G. -- disney 
1. Walt disney production company
2. Walt Disney Distribution Company (Buena Vista - DVD, Blu ray, Soundtrack, games)
3. Exhibition ( disney store, theme parks, youtube, disney tv channel)





Horizontal Integration - Production company expands into other areas of an industry. Company can develop in a particular area of production (prod, dis, exhibit) or can buy out another company
E.g. Disney (Production, Lucas arts, pixar, Marvel).


Comments

  1. Nicely defined Darcie.
    Ensure that you are confident with these terms as you may be asked to define/discuss them in the exam.
    Miss C

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