Absorption into a single firm of
several firms involved in all aspects of a product's manufacture from raw
materials to distribution.
Example:
Vivendi Universal have integrated film, music, web and distribution technology into the company, including owning big stakes in cables and wires that deliver these services. Therefore they are vertically integrated because they own all the different companies involved in film, from production to distribution to exhibition. They are also horizontally integrated because they have all the expertise for producing media content under one roof – films, TV, magazines, books, music, games thus being able to produce all the related media content for one film under the same roof (see synergy). This is important for the control the institution has over their product/film.
Example:
Vivendi Universal have integrated film, music, web and distribution technology into the company, including owning big stakes in cables and wires that deliver these services. Therefore they are vertically integrated because they own all the different companies involved in film, from production to distribution to exhibition. They are also horizontally integrated because they have all the expertise for producing media content under one roof – films, TV, magazines, books, music, games thus being able to produce all the related media content for one film under the same roof (see synergy). This is important for the control the institution has over their product/film.
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