Mega Media

Vertical Integration

A situtation when two firms in the same industry but at different stages of production come together.

Production Company --> Marketing Company --> Distribution Company --> ExhibitionCompany

When a parent company owns lots of companies at different stages of production. Horizontal Intergration is where parent companies own smaller companies at the same stage of production.


News Corporation:

20th Century Fox - Fox Searchlight - Blue Sky
The Sun - News of the World - Myspace
Sky - ITV - FOX


KEY WORDS

Parent Company - A large company that can absorb other small companies to expand its empire

Subsidiary Company - A small company which is owned by another large company

Conglomerate - A group of comapnies owned by one large company which may have a diverse variety of media interests

Veritical Integration - A conglomerate owning more than one step in the supply process or value chain

Horizontal Integration - A number of companies in the same stage of the production process owned by one conglomerate.