Music industry overview lesson 2013 Part 2

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Music industry overview lesson 2013 Part 2

  1. 1. More Media Ownership Terminology • Horizontal Integration - Where direct competitors within the same industry merge. This reduces competition and costs (Consider the number of record labels that come under the Sony Music Group now). Sony, Universal and Warner are all horizontally integrated organisations within the music industry.
  2. 2. More Media Ownership Terminology • Lateral Integration – integrated with companies across a range of media and other industries. Sony Corporation is a large media conglomerate who benefits from being laterally integrated across a range of media industries, for example film, music and video games as well as producing media technology and electronics. If you put all of Sony's media companies together then they can be seen to be a dominant institution in global media. Guitar Hero PS3 Guitar Hero Ring Tones on the Sony Ericcson Music Rights Sony International
  3. 3. More Media Ownership Terminology Vertical integration - Where an organisation has a stake in production, distribution and exhibition. •Reduces costs and gives complete access to audiences without need to go elsewhere. i.e. Sony is vertically integrated as has the capability to carryout the whole process from finding/developing talent all the way through to providing live music streaming services to audiences.

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