Here is a short paragraph explaining synergy: Synergy refers to the way that different elements of a media company work together to promote related products across multiple platforms. When a film is released, the studio will promote merchandise like soundtracks, video games, theme park experiences, and consumer products to take advantage of synergies between different divisions of the company. Each product is designed to promote the others, so interest in the film franchise drives sales of ancillary items and vice versa. This allows media conglomerates to maximize profits from popular intellectual properties by leveraging their various business units in a coordinated marketing strategy.

1. LO: To be able to explain synergy, using appropriate terminology

3.  The way in which different elements of a
media conglomerate work together to
promote linked products across different
media.

4. The film of Harry Potter promotes the DVD which promotes the book which
promotes the advent calendar which promotes the studio tour which
promotes the film…

5.  Synergy works when different elements
within a media (film) conglomerate create
linked products e.g. film, soundtrack, video
game
 Each distinct element promotes others

6. Can you complete one of
these for the deathly
hallows pt 2?
In 2000 AOL and Time Warner merged. The
promotion of HPATPS by AOL and Time
Warner are good examples of Synergy
Adverts for the film The soundtrack was
were shown on HBO released on Atlantic
and WB, both Records, Part of
American TV Warner Music
channels which are
subsidiaries of Time
Warner
AOL’s Internet
service was offering
Articles about the
merchandise, and
film appeared in
ticket promotions
newspapers and
tied to subscriptions
magazines owned by
for AOLs services
Time Warner.

7.  Soundtrack – Warner Bros and Water Tower Music
 Game – WB Games &EA Games
(Publisher/Developer)
 Wizarding World of Harry Potter –
 Harry Potter Studio Tour - WB
 Merchandise – WB Shop

8.  When and why did Hollywood switch its focus
to megafranchise movies?
 How are megafranchise movies defined?
 How important are sequels in the film
industry?
 What is ancillary revenue? How important is
it?
 How important are video games to the film
industry?

10. Big Studio
MGM, Warner Bros, 20th Century
Fox, Paramount & RKO
Produce the Films
They owed studios to shoot in and
the stars to act in their films
Exhibition
These big studios owned their own
cinemas. The only place to watch
their films
No longer the case as the courts ruled that the studios had to sell off their
cinemas as it gave them too much of a monopoly on the industry

11.  Hollywood has moved from vertical
integration to horizontal integration
 Because of this they now focus on producing
films which can be cross-promoted with other
media texts.
 Ancillary revenue has now become more
important than box office revenue.

12.  Every piece of media within the same brand
promotes every other piece of media under
that umbrella.
 “The Disney stores promote the consumer
products which promotes the parks which
promote the television shows. The television
shows promote the company.” Former
Disney CEO Michael Eisner

13.  “The industry can scaresely be treated in
terms of movie and videogames and theme-
park rides as separate entities or isolated
media texts. Rather, they are related
aspects…of entertainment supertexts,
multimedia narrative forms…the essential
text within these media franchises is the
Hollywood Blockbuster film” Thomas Schatz

14.  James Bond
 Shrek
 Batman
 Twilight

15.  Megafranchise films rely on the use of
spectacle.
 High budget productions with expensive set
design and special effects.
 This works as a ‘barrier to entry’ to lower-
budget films, allowing the major studios to
continue to dominate the film industry.

16.  Write a short paragraph explaining what you
understand by synergy.