Verticle and horizontal integration EXAM NOTES For unit 1

1: Pre-production 

2: production

3: Post production 

4: marketing and advertisisng

5: Distribution (What platforms can you access it e.g dvd or tv)

6: Exhibition (How can you access it e.g. cinema, streaming) 

Disney and Warner Bros are Vertically integrated 

Vertical Integration - Disney (Frozen, Lego movie) and Warner Bros 

Positives 

1. 100% Profit 

2. Tent-pole (Lego movie made enough money to pole onto Lego movie 2) 

3. Spending less money as its all done in-house 

4. Different stages are completed quicker as its done in house

5. You have COMPLETE OWNERSHIP 

Negatives 

1. Lose profits IF the product fails 

2. Less inclined to take risks 

Horizontal Integration - Lego Movie 

Two or more companies working together along the stages of production e.g company #1 working on pre production, company #2 and #3 working on production and so on. 

Positives 

1. Sharing out funds 

2. Using expertise of other companies (if you need an animation specialist you can go to that specific company) 

3. Builds the reputation of smaller independent companies (In beginning of films it shows the companies symbols to promote them) 

Negatives 

1. Have to share the profits, if your working with smaller companies the bigger companies overpower and take most of the percentage of the money. 

2. Bigger companies have more control as they have more money to work with