The film studios are now owned by Conglomerates which means that Producers are more able to control all aspects of production, exhibition and distribution. Producers are able to do this because they either work under Vertical or Horizontal Integration. When a company expands it's business to try and make it a lot bigger in specific areas that are on the same production path. Such as when a manufacturer company owns suppliers and distributors. Film studios are organised kind of like this because they need distributors to get the film into the cinemas etc. Some of the advantages if company's use Vertical Integration are it can help companies reduce costs and improve efficiency by decreasing transportation expenses. And there are many more Advantages other than the two stated before this sentence. However there are some things that will be better with Horizontal Integration and some of these things are; it is more effective to rely on another companies expertise and economies. There are also two types of Vertical Integration and the two types of Integration are backward and forward integration. A company that expands backwards on the production path is classed as backward integration and a company that expands forwards on the production path is classed as forward integration. A brief sentence or two to describe a Vertically Integrated company is it does everything by it's self on more than one level. An example of one of the most famous Vertically Integrated company is Apple inc. They distribute, produce and supply etc all of their Apple products to the public. And Apple it's self collect all of the money and it also does not have to distribute it too another company that they might be working with and this on the other hand is another advantage of a Vertically Integrated company. To conclude my paragraph about vertical integration I think Vertically Integrated companies work well on tier own however it is a lot harder to make the company bigger and stronger because there is only one company in power and not multiple so they can attract more people.
Now I will move on to talk about the second form of Integration which is Horizontal Integration. Within Horizontal Integration a company will mainly work with another one that specify's in a different industry so they get a lot more expertise in specific industry's. By doing this they will have a better understanding it at least two different industry's so they can sell their product a lot better. Also a difference between Vertical Integration & Horizontal Integration is that Horizontal Integration uses either internal or external expansion where as Vertical Integration uses backwards or forwards expansion. They are able to use either external or internal expansion because the different firms are at the same stage of production so on the other hand it allows them to share resources if they are at the same level of production. However if products offered by specific companies are similar it is classed as a merger of competitors. In other words if the producers of a good company were to merge with another company in the same industry so they know similar things it is called Lateral Integration. Horizontal Integration also also can offer several advantages such as favorable economies, increased market power and reduction in the costs of international trade by operating in foreign markets. By having this much power is markets as an example it will be much easier for the companies to sell the film to the cinemas because of all of the supply's they could have got from international trade. Horizontal Integration is also in contrast with Vertical Integration what I mean by this is when firms expand into different activities, commonly known as upstream or downstream activities. In my overall conclusion I think both Vertical & Horizontal Integration work hard to sell their product or film and most of the time they are successful and the different types of Integration use different methods to sell the product etc. However in my opinion I think Vertically Integrated companies are better because they don't have to have a meeting with a different company to see if everyone agree's with the idea that a specific company want to apply to the product or film.