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Media Industries

Horizontal integration, diversification and synergy

  • 3 things to know
  • Components 01 and 02

Overview

Recall questions on horizontal integration, diversification and its risks, synergy and cross-media promotion, brand extensions, owned intellectual property, licensing and merchandising, and how franchises earn across divisions.

What you need to know

Answer each one before you reveal it.

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Key term

What is diversification?

Key term

How does diversification protect a company against risk?

Key term

Define synergy in a media conglomerate.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Define horizontal integration.

    Model answer

    Horizontal integration is a company buying or merging with others at the same stage of the supply chain, such as one studio acquiring another studio.

  2. 2

    What is diversification?

    Model answer

    Diversification is spreading a company's interests across different products, media forms or markets so it does not depend on one source of revenue.

  3. 3

    How does diversification protect a company against risk?

    Model answer

    A downturn in one market, such as cinema admissions, can be offset by earnings from publishing, merchandise, live events or streaming.

  4. 4

    Define synergy in a media conglomerate.

    Model answer

    Synergy is the mutual promotion and exploitation of one property across a company's different divisions, so each release drives sales of the others.

  5. 5

    How can a single franchise generate revenue across several divisions?

    Model answer

    One story world can supply a film, a series, a soundtrack, games, books, toys and attractions, each of which advertises all the others.

  6. 6

    What is cross-media promotion?

    Model answer

    Cross-media promotion is using outlets the company already owns to advertise its own products, so publicity costs the group almost nothing.

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Contexts of Media
Media Language
Media Representations
Media Industries

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The Video Recordings Act .
198419741994

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AAudiences inside the country judge it against lived knowledge.
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The Big Issue was founded in 1991.
TrueFalse

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