Vertical integration refers to a company owning different parts of the production process within a single industry, like a studio owning a talent agency and distribution company. This allows them to profit at each stage. Horizontal integration means a company owns different types of media businesses at the same level, like a conglomerate owning a movie studio, TV network, and music labels to concentrate ownership across industries. Benefits of horizontal integration include synergies between business units and combating piracy through coordinated strategies across owned properties.

1. Horizontal & Vertical Integration

2. Owning the stages of production and distribution.
Vertical integration: An ownership structure in which one conglomerate owns or
operates all aspects of production and distribution within a single segment of the media
industry; for example, production studio, talent agency, Online distribution company, CD
manufacturing plant rental stores.
What are the benefits of being vertically
integrated?

3. Horizontal Integration
Owning a range of companies at the same
production level.
An ownership structure in which one conglomerate owns or operates
different kinds of media (for example, movie studios, television networks, music labels and
radio stations), concentrating ownership across the different segments of the media industry.
What benefits arise from being horizontally
integrated?

4. Group Activity
In 3 groups create a presentation on one of the big 3 (your
teacher will designate you a label) which answers the following
questions.
You must provide critical depth and analyse your examples.

5. Presentation
Questions
• What subsidary labels does your conglomerate own?
• How does your label use the internet?
• Considering the portfolio of labels and the artists signed to
them, is there any evidence of the long tail?
• How is your label horizontally integrated?
• How do they use this to their benefit? (refer to specific
examples)
• How is your label vertically integrated? ( how do they profit
from the different stages of music production, distribution
and consumption)
• What is synergy? Are there any examples of your
conglomerate using it?
• What are your conglomerate’s current strategies to combat
piracy?