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1.
2. VERTICAL INTEGRATION
• VERTICAL INTEGRATION IS WHEN A MEDIA COMPANY OWNS DIFFERENT BUSINESSES IN THE SAME CHAIN
OF PRODUCTION AND DISTRIBUTION. WHEN A COMPANY EXPANDS ITS BUSINESS INTO AREAS THAT ARE
AT DIFFERENT POINTS ON THE SAME PRODUCTION PATH, SUCH AS WHEN A MANUFACTURER OWNS ITS
SUPPLIER AND/OR DISTRIBUTOR.
• ADVANTAGES: THEY DO MOVIES AND TV SHOWS, PRODUCTION AND DISTRIBUTION IS AN UPSTREAM IN
THE INDUSTRY
• DISADVANTAGES: EXHIBITION IS A DOWNSTREAM IN THE INDUSTRY
3. HORIZONTAL INTEGRATION
• HORIZONTAL INTEGRATION IS WHERE AN ORGANISATION DEVELOPS BY BUYING UP COMPETITORS IN THE
SAME SECTION OF THE MARKET E.G. ONE MUSIC PUBLISHER BUYS OUT OTHER SMALLER MUSIC
PUBLISHERS.
