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Film Industries and Marketing

Conglomerate ownership, integration and diversification

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Overview

Vertical integration in the film industry, vertical integration in the modern film industry and horizontal integration in the film industry.

What you need to know

Answer each one before you reveal it.

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Key term

What is vertical integration in the film industry?

Key term

Give an example of vertical integration in the modern film industry.

Key term

What is horizontal integration in the film industry?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is vertical integration in the film industry?

    Model answer

    Vertical integration is ownership of production, distribution and exhibition by a single company. Profit is retained at every stage.

  2. 2

    Give an example of vertical integration in the modern film industry.

    Model answer

    Disney produces films through its own studios, distributes them itself and streams them on Disney+. Control runs from the script to the subscriber.

  3. 3

    What is horizontal integration in the film industry?

    Model answer

    Horizontal integration is ownership of several companies at the same stage of an industry. A group holding many production studios is horizontally integrated.

  4. 4

    What does diversification mean for a media conglomerate?

    Model answer

    Diversification is expansion into other industries and revenue streams. Theme parks, merchandise and television spread a film company's risk.

  5. 5

    How does synergy work between a film and its parent company's other businesses?

    Model answer

    One property is exploited across films, television, merchandise, games and theme parks. Each use advertises the others.

  6. 6

    Which conglomerate owns Marvel Studios, and when was Marvel acquired?

    Model answer

    Disney owns Marvel Studios. Marvel Entertainment was acquired in 2009 for around four billion dollars.

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