LO1 Script: Operating Model (Starter Task)

Horizontal Integration: A conglomerate and subsidiary, a parent company or joint venture Works together to cross promote a product, this create synergy.

Vertical Integration: Only Conglomerates can do this as it can control production, distribution and exchange of its products (this is where the profit is made), within its subsidiaries.

Film Production Cycle:

Vertical:

Production: Makes the media (Film, game etc.)

Distribution: 1. Distributes the media on a/different platform(s). 2.Advertisements and Marketing. This is the part that makes the profit as it’s selling the media to the audience.

Exchanging: Consuming/Playing/watching the media.

Horizontal:

All extra media made in a conglomerate are made by subsidiaries, if it’s an independent company it is made by a parent company, joint venture or subsidiary.

These will make different media’s like TV, radio, film, games/electronics, website or newspaper/magazine. For example, 20th Century Fox has; Fox TV, Sky and Star for TV, Talk Radio for Radio, Fox Home Entertainment for DVD/Blu-ray and sometimes for electronics and The Sun for Newspaper.