Vertical And Horizontal Integration

Vertical And Horizontal Integration 

Vertical Integration 

                                   

When a production company has complete ownership of the production, distribution and exhibition of the film by the same company and receive all of the profit.

Eg. Disney

Horizontal Integration 

                                        

When a product company expands into other areas of an industry. The company can develop u=in a particular area of production (production, distribution, exhibition) or can buy out another company that deals withe these areas and therefore reduce competitors.

Eg. Disney and Pixar 

Production: The making of the product

Distribution: How the product is distributed. e.g.. DVD, iTunes, Netflix 

Exhibiton: How we view/ access/ watch the product. e.g.. laptop, cinema, phone



Please present 1 advantage and 1 disadvantage to horizontal integration

Advantage- Further promotes the work on a different platform, gaining a new audience
Disadvantage- It requires working with another company which means that the original company does not have full ownership of the products, therefore... won't be receiving all the money and credit