Film industry

Question 1

What is vertical integration?

Answer 1

When a media company owns various stages of the production process within the same industry.
eg. Disney owns streaming services such as Hulu and Disney +.

Question 2

Advantages of vertical integration

Answer 2

• Disney retains all of the profits.
• There is full control of when and where the products will be distributed.
• Producing and distributing product internally creates
  substantial cost savings

Question 3

What is horizontal integration?

Answer 3

When a media company owns several businesses of the same value.
eg. Disney owns Pixar and Marvel.

Question 4

Advantages of horizontal integration

Answer 4

• Resources can be shared (Disney production studios).
• Markets can be controlled.
• Reduced competition.

Question 5

Marketing techniques in Black Panther

Answer 5

• Actors attended Comic Con which insured that they targeted a ready-made audience of comic lovers.
• Kendrick Lamar was asked to create an album for the soundtrack which ensured there was a ready-made audience of young black men.