Vertical & Horizontal Integration

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.

Synergy

Synergy is a common action of the multi-media conglomerates who own the Hollywood studios. Often they will incorporate products from their different subsidiaries. For example, one of their Studios will produce a film, one of their TV studios will create a spin-off series, and one of their games manufacturers will produce a game. This will benefit the conglomerate as their products will be cross-promoted by each other, multiplying the profits for the conglomerate. Remember conglomerates are horizontally and vertically integrated meaning they have several companies in a number of different multi-media fields, which allows them easy access to synergy opportunities.

Exchange

The unintended use of an institution’s media text (i.e. a film) by OTHER PEOPLE who use the film or parts of it to form new texts. What happens to a film, etc. after the public get their hands on it using digital technology. The term ‘EXCHANGE’ in the spec has worried students and teachers. Here is some help.

The spec says:

‘The technologies that have been introduced in recent years at the levels of production, distribution, marketing and exchange’

The word exchange was used in the January exam 2011.

Examples:

People unconnected to the institution/ film using WEB 2.0 applications such as YOUTUBE, Blogger, Amazon film message boards, TWITTER, Face-Book, discuss the film or edit parts of together to form a new text which the may then put a new soundtrack to and publish on YOUTUBE, etc. When you add a trailer from a site like YouTube on your blog you have been engaging with exchange.

Exhibition

Showing films in cinemas or on DVD. Media attention through opening nights and premieres How the audience can see the film: in cinemas, at home, on DVD, through downloads, through television, including premieres, the box office take in the opening weeks; audience reviews which includes those of the film critics, ordinary people, cinemas runs; awards in festivals, The Oscars, BAFTAS, etc.

Above the line and Below the line

(ATL) is a type of advertising through media such as television, cinema, radio, print, and Out-of-home to promote brands or convey a specific offer. This type of communication is conventional in its nature and is considered impersonal to customers.

(BTL) advertising, which uses unconventional brand-building and promotional strategies, such as direct mail, sales promotions, flyers, point-of-sale, telemarketing and printed media (for example brochures) – and usually involves no motion graphics.^[1] It is much more effective than when the target group is very large and difficult to define.


The term comes from top business managers and involves the way in which Procter & Gamble, one of the world’s biggest advertising clients, was charged for its media in the 1950s and 1960s. Advertising agencies made commission from booking media (Television, cinema, radio, press, out-of-home and magazines). As below the line had no media involvement there was no commission to be made for the advertising agencies. The accountants thus labeled the different media ATL and BTL depending on where it would sit in the balance sheet and profit and loss accounts (ATL where they made a profit and BTL where they did not) Since then, models have changed and clients are no longer charged for their media in that way.

Working Title

Working Title

Working Title is funded (among other British film studios) by Universal Studios in America. This covers ownership; anything that Working Title does is given the all clear by Universal Studios.

 

Working Title is run by Tim Bevan – Google him to find out more

Distribution & Marketing

The business of getting films to their audiences by booking them for runs into cinemas and taking them there in vans or through digital downloads; distributors also create the marketing campaign for films producing posters, trailers, websites, organise free previews, press packs, television interviews with the "talent", sign contracts for promotions, competitions, etc. Distributors use their know-how and size to ensure that DVDs of the film end up in stores and on supermarket shelves. Distributors also obtain the BBFC certificate, and try to get films released as the most favourable times of the year for their genre, etc.