CULTURAL INDUSTRY - DAVID HESMONDHALGH

• Believes that companies have to minimise risk and maximise profits to be successful
• 1. Make sure that companies are horizontally and vertically integrated. Horizontally integrated - buying out competition. Makes you more powerful Vertically integrated - buying out the production line eg. marketing, distribution, producing.
• 2) Work across a variety of media platforms and technologies. Eg the BBC: radio, TV, social media, websites. Making the most of technological convergence
• 3) Focus on popular genres formats and stars. Eg, BBC created No offence in 2015 possibly influenced by how successful the crime drama "The Killing" was in 2007.
• 4) Controlled release schedule. 29 February 2016 No offence was released on France 2 where 20.4% of the TV audience watched!
• 5) Detailed marketing campaign: Advancing into new markets overseas, posters, notices about the media.
• March 2019, Lil Nas signed for colombia records. 17th May 2019, Lil Nas released the old town road music video with Billy Ray Cyrus. Colombia Records looks to maximise profit by including other famous stars from the media to emphasise audiences attention. Such as, Chris Rock, Diplo, Vince Staples and Rico Nasty
• Horizontal integration: 

  Acquiring media companies that operate in similar sectors enables large-scale institutions to achieve scale based cost savings, while also allowing them to maximise profits by positioning brands so they do not compete with one another.
• Vertical integration:

  By acquiring production, distribution and marketing specialist subsidiaries, media conglomerates can control all aspects of their supply chain while also achieving significant cost saving efficiencies.
• Horizontal integration example: Disney’s $71 billion takeover of Fox in March 2019:

  Was pursued, in part, to give Disney exclusive access to the hugely successful film and television brands cultivated by 21st Century Fox. And, as a consequence of that acquisition, the task of Disney’s creative team in the coming years is not to produce new content, but to maximise the storytelling opportunities that are presented through Disney’s ownership of the X-Men franchise, The Simpsons, Deadpool and Kingsman.
• Apple, Mcdonalds and Amazon all utilise vertical integration to minimise costs and maximise profits.
• IKEA: Ikea primarily sells wooden furniture, so they purchased a Romanian forest and integrated vertically. By doing this, they gained more leverage on raw material production (backward integration), which in turn gives them more control over manufacturing and distribution processes.