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Vertical & horizontal integration

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LiamDonnelly

This document discusses different types of integration in the film industry: vertical integration where a company owns production, distribution, and exhibition; horizontal integration where a company expands into other areas of the industry; and synergy, where products are promoted within films. It provides the example of how Sony used these integration strategies for the film Casino Royale, with Sony phones, laptops, and cameras featured and the film distributed by Sony-owned companies. Casino Royale also exhibited horizontal integration through involvement of other production companies like MGM.

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Liam Donnelly
Vertical Integration • This is when the production company has the ownership of the means of production, distribution and exhibition of the film by the same company, because of this they receive all of the profit.
Horizontal Integration • This is where a production company expands into other areas of one industry. This means that the company can develop in a particular area of production or they can buy out another company that deals with these areas.
Synergy • Synergy is the promotion and sale of a product within films, examples of this would be soundtracks, phones and laptops etc. • There are many advantages to using synergy in films, it can increase the profit made on the film, it enhances the companies image and it can influence public opinion • However, there are problems with synergy as well, such as the vast amount of jobs that are lost because of it, with over 19.5k losing their jobs at Sony
Sony Synergy - Casino Royale Product Placement: • Sony mobile phones • James Bond theme used on Guitar Hero, which was released on Sony consoles • Sony laptops • Sony cameras
Sony Synergy - Casino Royale Institutional Involvement: • Casino Royale was distributed by MGM and Columbia pictures which are Sony owned • DVD distributed, was also released on Blu-Ray which is a Sony product • Soundtrack also produced by Sony
Casino Royale – Horizontal Integration • Casino Royale is mostly made by Sony owned companies such as Columbia pictures, however other companies were involved in the production such as MGM, which is based in America. • This means that Casino Royale uses horizontal integration because it expands into other companies during the making of the film.

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Vertical & horizontal integration

  • 2. Vertical Integration • This is when the production company has the ownership of the means of production, distribution and exhibition of the film by the same company, because of this they receive all of the profit.
  • 3. Horizontal Integration • This is where a production company expands into other areas of one industry. This means that the company can develop in a particular area of production or they can buy out another company that deals with these areas.
  • 4. Synergy • Synergy is the promotion and sale of a product within films, examples of this would be soundtracks, phones and laptops etc. • There are many advantages to using synergy in films, it can increase the profit made on the film, it enhances the companies image and it can influence public opinion • However, there are problems with synergy as well, such as the vast amount of jobs that are lost because of it, with over 19.5k losing their jobs at Sony
  • 5. Sony Synergy - Casino Royale Product Placement: • Sony mobile phones • James Bond theme used on Guitar Hero, which was released on Sony consoles • Sony laptops • Sony cameras
  • 6. Sony Synergy - Casino Royale Institutional Involvement: • Casino Royale was distributed by MGM and Columbia pictures which are Sony owned • DVD distributed, was also released on Blu-Ray which is a Sony product • Soundtrack also produced by Sony
  • 7. Casino Royale – Horizontal Integration • Casino Royale is mostly made by Sony owned companies such as Columbia pictures, however other companies were involved in the production such as MGM, which is based in America. • This means that Casino Royale uses horizontal integration because it expands into other companies during the making of the film.