This document defines key terminology related to media industries, including types of business integration. Vertical integration occurs when a company profits from all stages of production, distribution and exhibition. Horizontal integration is when companies in the same industry and production stage merge. Other terms defined include convergence, synergy, alliances, push and pull media, distribution channels, and cross media ownership.

1. AUDIENCE & INSTITUTIONS
TERMINOLOGY REVISION

2. This is when a film company profits from all the different stages of film
production, distribution and exhibition
In Britain, only two companies ever achieved full vertical integration: (the
rank organisation and the Associated picture company)
Sony has never quite full achieved it.
VERTICAL INTEGRATION

3. This is more common that vertical integration and normally occurs when a
company wants to sell a media product in numerous markets
Horizontal integration occurs when a company in the same industry and in the
same stage of production is being taken-over or merged with/by another firm
which is in the same industry and in the same stage of production as of with
the merged firm e.g. a film production company merging with another film
company. Working Title’s link with Universal might be described as a form of
horizontal integration
HORIZONTAL INTEGRATION

4. Convergence - Hardware and software coming together across
media and companies coming together
Synergy - Interconnected marketing and distribution of media products
across a range of platforms and sectors
Alliance - An agreement between two or more parties, made in order to
advance common goals and to secure common interests.
Production - Making a media product
Hardware and software coming together across media and
companies coming together
TERMINOLOGY

5. Push Media – Where producers “push” media at us
Pull Media – Where we select and and search for what we want e.g
Distribution Channels – ways of getting the media to the audience
Distributor – organisation/person sending the media out into the public
domain
Exhibitor – The company/organisation who shows the media to the public
KEY TERMS

6. Cross Media Ownership – companies own media in different forms e.g
radio & newspapers
Conglomerate – A large company which owns many smaller companies
over a variety of media
TERMINOLOGY