Media A1 recap OWNERSHIP AND INTEGRATION
Keywords:
- Horizontal integration
- Synergy- different elements of a company coming together to promote related products
- Technological convergence: two or more types of media coming together
- Parent company- owning multiple smaller companies
- Hardware
- Cross media convergence- media companies coming together to work across media e.g., promotion
- Vertical integration
- Proliferation
- Institutional convergence
- Conglomerate- a large parent company that owns a range of smaller companies or types of media
- Subsidiary- smaller companies owned by parent companies
- Content
- Oligopoly- when the market is dominated by a small number of companies
Horizontal integration- when 2 companies/ businesses in the same industry at the same stage of production come together. This could be 2 businesses merging together or one buying the other. It is also when an organisation grows and buys out the competition in the same section of the market
Vertical integration- when 2 companies in the same industry but at two different stages of production come together. This could be through a merging or one business buying the other. For example, A car company could buy a could buy a tire manufacturing company.
For example, Warner brothers and Belstone pictures did one of these integration methods. Both of these methods make the competition for other companies more difficult.
Benefits to cross media convergence:
- Saves costs by doing business with other companies
- Reduces risk and maximises profits through additional non-film revenue e.g., music sound tracks
