1.4.2
Ownership
Ownership: Vertically or Horizontally Integrated
Ownership: Vertically or Horizontally Integrated
Ownership patterns and structures influence the production, distribution and circulation strategies of the industry.
Ownership patterns
Ownership patterns
- Ownership patterns and structures influence the production, distribution and circulation strategies of the industry.
- Traditionally an institution would be any of the following structures:
- Independent, vertically integrated or horizontally integrated.
Vertically integrated
Vertically integrated
- A vertically integrated business owns all of the stages of production.
- E.g. production, distribution and circulation.
- Because of this, it means all work can be completed in house, meaning the overall production is cheaper.
- As well as this, all profit is maintained by the institution.
Horizontally integrated
Horizontally integrated
- A horizontally integrated business means it owns multiple businesses at the same stage of production.
- Because of this, they may become specialists in their field and will be able to sell their expertise to other companies at different stages of the production chain.
- This means the institution will need to work in synergy with others to pass a product through all stages of production and to make profit.
Working in synergy
Working in synergy
- When two companies work together to mutually benefit each other it is referred to as working in synergy.
- Working in synergy has benefits as it allows institutions to work with specialists, gain funding from other sources or to share resources.
- Working in synergy does not mean either company owns the other.
- When a company is taken over by another company, this is referred to as a merger.
Ownership: Diagonal and Independent Integration
Ownership: Diagonal and Independent Integration
Diagonal integration means having cross-ownership of a range of mediums and stages of production. In contrast, independent institutions often only owns one stage of production.
Diagonal integration
Diagonal integration
- Due to institutions expanding even further, being diagonally integrated is very common for the largest institutions.
- This means they have cross-ownership of a range of mediums and stages of production.
Diversification
Diversification
- Diversification is the process of an institution operating vertically in multiple industries which leads to them becoming diagonally integrated.
- As industries become dominated by large institutions, it can lead to less choice in products for audiences, as well as making it harder for independent companies to compete and survive.
Sony and Disney
Sony and Disney
- Sony and Disney are good examples of cross-ownership.
- They own multiple different companies across a range of industries.
- E.g. TV, Film etc.
- They own multiple different companies across a range of industries.
Independent institutions
Independent institutions
- An independent institution means that the stage of production is solely owned by a private company and no one else, including the government.
- Often the independent institution only owns one stage of production e.g. production - creation of the product only.
- In order to distribute the product the institution will need to work with another company to do this.
1Overview
1.1Media Language
1.3Representation
2Component 1: Section A
2.1Magazines
2.3Advertising & Marketing
2.4Print Advertisements
2.5Film Posters (Marketing)
2.6Newspapers
2.8The Guardian
3Component 1: Section B
3.1Video Games
3.3Radio
3.4No Time To Die
4Component 2: Section A
4.1Television
4.2Sitcom
5Component 2: Section B
5.1Music Video
5.2Michael Jackson
5.3Taylor Swift
Jump to other topics
1Overview
1.1Media Language
1.3Representation
2Component 1: Section A
2.1Magazines
2.3Advertising & Marketing
2.4Print Advertisements
2.5Film Posters (Marketing)
2.6Newspapers
2.8The Guardian
3Component 1: Section B
3.1Video Games
3.3Radio
3.4No Time To Die
4Component 2: Section A
4.1Television
4.2Sitcom
5Component 2: Section B
5.1Music Video
5.2Michael Jackson
5.3Taylor Swift
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