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Vertical & horizontal integration


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Vertical & horizontal integration

  1. 1. Liam Donnelly
  2. 2. Vertical Integration• This is when the production company has the ownership of the means of production, distribution and exhibition of the film by the same company, because of this they receive all of the profit.
  3. 3. Horizontal Integration• This is where a production company expands into other areas of one industry. This means that the company can develop in a particular area of production or they can buy out another company that deals with these areas.
  4. 4. Synergy• Synergy is the promotion and sale of a product within films, examples of this would be soundtracks, phones and laptops etc.• There are many advantages to using synergy in films, it can increase the profit made on the film, it enhances the companies image and it can influence public opinion• However, there are problems with synergy as well, such as the vast amount of jobs that are lost because of it, with over 19.5k losing their jobs at Sony
  5. 5. Sony Synergy - Casino RoyaleProduct Placement:• Sony mobile phones• James Bond theme used on Guitar Hero, which was released on Sony consoles• Sony laptops• Sony cameras
  6. 6. Sony Synergy - Casino RoyaleInstitutional Involvement:• Casino Royale was distributed by MGM and Columbia pictures which are Sony owned• DVD distributed, was also released on Blu-Ray which is a Sony product• Soundtrack also produced by Sony
  7. 7. Casino Royale – Horizontal Integration• Casino Royale is mostly made by Sony owned companies such as Columbia pictures, however other companies were involved in the production such as MGM, which is based in America.• This means that Casino Royale uses horizontal integration because it expands into other companies during the making of the film.