Companies can work together through synergy, like phone producers and carriers, to mutually benefit from each other. Vertical integration occurs when a single company owns and controls all stages of production, development, and distribution of a product to better manage finances and profits. Production companies partnering with major studios experience benefits of vertical integration, such as financial support if a film underperforms and guaranteed distribution through the studio's established channels.

1. Synergy
Companies that work together are said to have synergy. For examples phone
producers, like Samsung, and phone companies, like EE, working together.
Vertical integration is when all stages of production of a product and the
development of the product are owned and run by the same company. They do this
to manage all money inputs and outputs and profit made on products. This can save
money in the long run.
Working Titles got involved with Universal as they display the network of vertical
integration. They can rely on Universal to keep them afloat when they make one bad
film, which would usually jeopardise a more independent production company.
Warp Pictures have to pitch the film to the distributers to get it out to the public. If
they don’t produce all good films they are at risk of sinking into debt or by not
gaining any box office profit they wont have funding for the next film.
Planning Production Post Production Distributio
n
All Stages Run by One Company