The BIG 6The Big 6 is major film studios operated and based in and around Hollywood. Theyown companies such as Warner Bros. Pictures, Paramount Pictures, 20th Century Fox,Walt Disney Pictures/Touchstone Pictures, Columbia Pictures, Universal Picture. Thesemake them corporations and they are fundamentally in control of the worlds filmindustry via Hollywood domination.
The consequences of the big 6 companies being in control of Hollywood is that they could beshut down for various reasons such as releasing films to living rooms just 2 months after releasein the cinema. This can cause fines and fires to the big 6 companies that are involved.
Horizontal Integration is a type of ownership that increases your market share by taking over a similar company. This takeover can be done in other countries to increase your reach.Example of Horizontal Integration, The Walt Disney Company bought out Pixar and with Pixar’s hit features ‘Toy Story 1 and2’, ‘Finding Nemo’ and ‘The Incredibles.’ Disney distributed them. The following Buena Vista Brands have been retired or renamed to a Disney or ABC name, in accordance to the companys branding strategy.
Vertical Integration Vertical Integration is the process in which several steps in the production and/or distribution of a product or service are controlled by a single company, in order to increase that company’s power in the marketplace. There is three types of vertical integration, backwards, forwards and balanced integration. Disney created value mainly through “vertical integration” of its business lines, especially through the concept of forward integration. For example Disney production of movies and the final distribution in cinema’s or on television, especially through its acquisition of ABC in 1995. Through this acquisition, Disney was able to extent its boundaries quickly and gain access to a wider level of distribution for Its products.
OWNDERSHIP IN TV AND FILM INDUSTRIESPublic service broadcasting consists of television programmes supplied by an official orgovernment organization, rather than by a commercial company. Such programmes oftenprovide information or education, as well as entertainment.Commercial is a sponsored or paid for by an advertiser.For example the BBC is a public service, this is a channel which does not allow incorporatecommercials advertised.Channel 5 for example convey a message and their revenue is normally fund privately ownedtelevision networks.
Sponsorship is a financial support given by a sponsor. For example coronation street issponsored by harveys, and x factor is sponsored by talk talk. All these sponsorships are down toproduct placement being the most important nowadays due to the fact that advertising isthreatened and losing revenue due to changes in technology meaning we watch less adverts.
BRITISH FILM INDUSTRYIf the British funding collapses the UK film industry will make a massive increase in producingfilms and have a bigger budget then the had before, and also take over the whole of film.However with so many small companies in the British film industry, Hollywood will also try todominant the smaller companies which will then eventually be one of the Hollywoodsproductions.