Introduction To Media And Entertainment Industries
Introduction to Media and Entertainment Industries
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Introduction to Media and Entertainment Industries
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Introduction To Media And Entertainment Industries
PART ONE Question 1. Explain the concept of ‘vertical integration’ and give an example of how this might manifest in a specific sector (Film, TV, music, journalism, advertising) of the media and entertainment industries. Vertical integration refers to the situation whereby a production company ...
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CYB102 A1 Take Home Exam Answer Booklet
Due Friday 12 April, 11.59pm
Exam Instructions
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PART ONE
Question 1. Explain the concept of ‘vertical integration’ and give an
example of how
this might manifest in a specific sector (Film, TV, music, journalism,
advertising) of the media
and entertainment industries.
Vertical integration refers to the situation whereby a production company tend to have
ownership of the means of production, exhibition and distribution of a particular film by the
same company. In such a situation, the company receives all profits/ revenue that is generated
from the content. An example of vertical integration most specifically in the film is in Warner
Bros production of Harry Potter. As such, the company participated in production,
distribution and the exhibition of the film. In simple terms, Warner Bros owned the entire
supply chain that led to production and distribution among other related activities of Harry
Potter. Sometimes vertical integration could be termed as a domination strategy that would
eventually lead to high profitability levels as well as increased efficiency in terms of film
production, exhibition and distribution.
(Word count: 132)
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, Question 2. Describe what a ‘media conglomeration’ is, and using
examples, explain
how a company such as Disney (or another of your choice) fits that
definition.
Media conglomeration refers to the situation whereby a media institution or group
owns larger number of other companies that are involved in different types of mass media
such as radio, movies, publishing, television, and the internet. Media conglomerates tend to
promote policies that would help facilitate their control of markets in different parts of the
world. Walt Disney represents one of the largest conglomerate in the world based on the
revenue that it generates. The conglomerate has other companies such as CBS Corporation,
Time Warner, Viacom and News Corporation. Through the above-mentioned companies, Walt
Disney has been at a better position of diversifying into other forms of media and
entertainment production as well as distribution. It is important to note that media
conglomerates represent a multi-industry company within media and entertainment field.
Additionally, this companies are usually large and multinational.
(Word count: 140)
Question 3. ‘Formatting’ is a strategy used to combat the uncertainty of
audience behaviour. Choose onesector of the media and entertainment
industries (Film, TV, music, journalism, advertising) and explain in 100-
150 words, using an example, how formatting is used successfully to
mitigate risk and reach a target audience.
In the films and video production sector, the concept of formatting is usually used in
coming up with content that targets specific group of consumers. Ideally, with presence of
technology which has immensely transformed the media and entertainment industry,
companies are quickly formatting or producing their content based on other underlying
factors such as demographics and psychographic features of the targeted audience. This move
works at defining the exact share of the market that companies would like to share with their
2
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