Trends

• Horizontal integration =

  • when large media companies own various types of media
  • Eg - News Corp
  • Trends
• Vertical integration :

  • one company owns all of the stages of production of media products
  • Eg - company owning a film production studio + cinema where the film is shown
  • Times Warner : makes films, cinema chain
• Horizontal integration :

  • Some media companies are characterised by horizontal integration or cross media ownership
  • this refers to the fact that global media corporations often cross media boundaries and invest in a wide range of media products.
  • NewsCorp, for example, owns newspapers, magazines, book publishers, terrestrial and satellite television channels and film studios in several countries
• Diversification :

  • Own more than 1 thing, outside of media = lateral expansion
  • Example = Virgin
  • began as music label + record shop chain,
  • but expanded into a wide range of products and services : cola, vodka, banking, insurance, transport, digital tv, cinema + wedding dresses.
• Global conglomerate :

  • Trend of media groups having a presence in many countries
  • News Corp : USA, UK, Australia
  • International competition
• Synergy :

  • When businesses work together to sell a range of products
  • Eg spiderman Film, soundtrack, Action figures
• Technological convergence:

  • Several technologies together in 1 product
  • Eg - computer, phone
  • Multiple companies involved in partnership
  • Deals + discount to attract + increase audience