Integration In Media

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. 

Horizontal integration - When a company expands into other areas of an industry. The company can develop in a particular area of production (production, distribution, exhibition) or can buy out another company that deals with these areas and therefore reduce competitors. 

1) PRE-PRODUCTION

- script writing

- storyboarding

- budgets

- visualisation diagrams

2) PRODUCTION

- voice overs

- filming

- animation

- designing on photoshop

3) POST-PRODUCTION

- editing

- special effects

- CGI effects

4) DISTRIBUTION

- DVD

- CD

- via newsagents

- streaming services

- cinemas

5) MARKETING

- social media

- billboards

- magazine adverts

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A company may be producing a film and have everything they need but they know of another company that - for example - is excellent as marketing. This would be horizontal integration and advantagous for the company producing the film as the deal that they would make would benefit them and bring in bigger income as their marketing would be better that it would have been if they marketed individually. This is also amazing for the small company (if it is small) as the big company would be ultimately advertising the small company in the credits - bringing in an audience for them as well.

However a disadvantage of this is the production company would not be getting 100 percent of the product. This is especially bad if the production is a failure - then they would lose even more money.