Unit 8 - Key Terms
• Small number of sellers which any of their
actions could potentially affect price as well as
having an impact on competitors. These tend
to be a small amount of companies who have
control and dominance in the market.
• Monopoly tend to have a control on the
market supply of a product or service
• Joint corporation which tends to have
different companies for certain areas
• When a company owns a part of another
• A dominant company who has more power
and control over another. Parent Company
owns subsidiary companies
Warner brothers are leading major film studies
company. I know this because Warner
Brothers have several subsidiary such as
Warner Bros studios, Warner Bros interactive
entertainment. These are reasons as to why
Warner Bros are a parent company.
Working Title Films
Working Title Films company is an independent company which is a subsidiary
company to Universal Studios as it owns Working Title Films which makes that a
parent company to Working Title Films. Working Title Films is apart of a
conglomerate as it is owned my Universal Studios. Universal Studios is one of the
major 6 leading film companies. Universal studios have distributions and other
corporate offices are in New York City
An independent company is when a certain corporation has no back up or assist from another
corporation. They differ from major film companies because for starters, they are not parent
companies. A parent company who owns subsidiary companies will aid and assist the specific
company. Another difference between an independent company and a major film company
is, major film companies have more dominance and control. Disadvantages of an
independent company is, less audience share due to footage exposure , less access to
advertise marketing revenue thus you would not be able to bring in A list actors to give you
more a reputation. An advantage of an independent company is it will cost less to produce a
film. Another advantage is that an independent film production can rival a mainstream film
production if it has the necessary funding and distribution. Independent Companies can have
major marketing release and a wide release.
A global company is when a company operates in different countries around the world. For
Each company is globalized as they operate in different countries. Advantages of a film company
that is owned by a global company is, it already receives recognition from the global country
as it is known around the world. Another advantage for this could be, a film company could
attract A list actors for their films due to being owned by a huge company. A disadvantage of
this is all work must be at a high standard for an independent company who is owned by a
global company. Another disadvantage to this is that, it will be harder to attract viewers.
Monopolies vs Oligopolies
Oligopolies tend to be a small amount of companies who have control and dominance in the market.
Monopolies tend to have a control on the market supply of a product or service.
Examples of Monopolies within the film industry:
• MPAA (Motion Picture Association of America)
Examples of Oligopolies within the film industry:
• United States tend to have many media industries in which most are oligopolies
Advantages of monopolies within the film industries are that they can perform films for customers at its
highest level due to having high reputation as well as funds. They attract A-list actors which
enhances films they produce as it will attract more viewers for the film. Disadvantages to this is, the
lack of competition could potentially lead to low quality films produced. Another disadvantage to
this is, consumers may be charged high prices for low quality of goods and services.
Advantages of Oligopolies within the film industries are that due to being owned by a major company
this automatically benefits Oligopolies as they are known for the major companies giving injecting
the smaller companies with reputation. Another advantage to this is, major companies tend to fund
Oligopolies which allows them to produce good work. Disadvantages to this is, if films are produced
poorly, this could tumble the reputation of the major company. Another disadvantage to this is,
Oligopolies must have high standard work as their is competition with in the film industry. If films
produced are not up to standard, this could mean that certain company may loose its viewers to its
competitors instead which also could slowly melts the major companies reputation.
Vertical Integration vs Horizontal
Vertical Integration – This describes the process by which a
film/media company owns companies at each stage of
the production, distribution, exhibition cycle.
Horizontal Integration – When a company owes other
companies within one stage of the production,
distribution, exhibition cycle. This also when a company
owns a number of production companies.
An example of this is the 20th Century Fox. This
corporation owns a range of production,
distribution, and exhibition.
Casino Royale is mostly made by Sony which
received aid from other business’s with the
production such as MGM (Metro Goldwyn Mayer).
As a result Casino Royale uses horizontal
integration as it expands into other companies
during the making of the film.