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.
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