Horizontal and Vertical Integration

Hi Guys, 

Today I will be looking at Horizontal and Vertical Integration as well as a few key media terms that I have found out about

KEY WORDS

Parent Company = A large company that can absorb other  small companies to expand its empire and ultimately increase profit 


Subsidiary Company = A small company which is owned by another large company


Conglomerate = A group of companies owned by one large company which may have a diverse variety of media interests

Vertical Integration= A conglomerate owning more than one step in the supply process or value chain


Horizontal Integration = A number of companies in the same stage of the production process owned by one conglomerate


Vertical Integration

An example of Vertical Integration would be a situation when two firms in the same industry but at different stages of production come together to help create the film. For example Production Company, Marketing Company, Distribution Company and then Exhibition Company all play apart in making a film and need each other skills to make the film be successful 


Horizontal Integration

When a parent company owns lots of companies at different stages of production. Horizontal Integration is where parent companies own smaller companies at the same stage of production. 


Wow now I know the difference between the two do you?

Michael 

How has Warner Bros converged in order to increase revenue?

How has Warner Bros converged in order to increase revenue?

One of the things that Warner Bros did in 1989 was to improve its strategy of growing a market for its films by building state of the the-art multiplex theatres in undeserved territories. In addition, Warner Communications bought entertainment company Lorimar Telepictures which increased Warner Bros profile. When they bought Studio umbrella this lead to Warner Bros becoming one of the leading companies in both feature films and TV. The 1990s was a key decade for the Studio, starting in 1990 when Warner Communications, Inc and Time Inc who joined together to form Time Warner, which at the time was one of the world's largest communications and entertainment companies in the world. In 1995 W.B became a dominant force in the production. In 1996 Warner Bros took over the management of the Turner library which lead to it  becoming an early adopter of the Internet as well as a promotional tool which resulted in the launch of the DVD format. Warner Bros includes companies such as Television Group, Warner Bros, Home Entertainment Group and  WBTVG which have all helped Warner Brothers increase revenue and profit. 

Blog soon

Michael 

What is Media Cross Convergence?

Hi guys, 

Media convergence is seen as a form of cross-media cooperation, which usually involves the Internet, Radio, TV Broadcast and Audio Recordings.  An example of media convergence is the cell phone. Mobile phones were originally created to make and receive calls whilst travelling. After convergence, a mobile phone can now be used in different ways including as a music player, as well as accessing Internet applications. The mobile phone has been adapted and developed in to a device that could cross over and perform other tasks normally performed by a computer. Therefore, it has become a device which can be used in lots of different ways e.g for work or Business. Another example of Media Cross Convergence would be if you miss a TV program you can go on line and see it on iplayer. This allows more people to stay update with their favourite programs. Finally, the number of people reading Newspapers has gone down as Media becomes more developed and gravities towards the Internet. To keep up with this lots of Newspapers companies have on line newspapers so that they keep the amount of people reading them up as people tend to want to read them on the Internet as they are free instead of buying a paper copy.

Check back for more exciting blogs !

Michael