Media Studies www.curriculum-press.co.uk Number 022 Vertical and Horizontal Integration in Media Institutions – A Focus on Film

The aims of this Factsheet are to: Mass Production and House Styles in Hollywood’s Studio Era • Define the concepts of vertical and horizontal integration using Films were made very cheaply during the studio system. The same the Hollywood film industry as a case study sets were used over and over again and cast and crew worked to • Evaluate the effect of vertical and horizontal integration on the very tight deadlines. Each studio developed its own way of mass production and consumption of media texts producing films, known as a house style. For example, Warner • Demonstrate what vertical and horizontal integration tell us about Brothers employed a European art director called Anton Grot to the construction of audiences as well as the pleasures the develop a low-key lighting style which would obscure the fact that audience experience the set was made up of props that had appeared in many other films.

Introduction To encourage efficiency the crew were split into production teams The purpose of studying Institution is to better understand how who worked with each other on the same films. Also, when the the organisation of media industries affects the types of products studios realised that a star became particularly popular in films of a created by the industries and the manner in which audiences access certain genre then the star would become typecast and would those products. repeatedly star in the same genre.

AQA/WJEC/OCR? These approaches to film making could be followed because the Institution is an important part of all specifications. An same company was in charge of production, distribution and understanding of the relationship between institutions and their exhibition. By owning the production company they could audiences will be assessed in all examinations for all awarding standardise the way films were made and keep production costs bodies. down.

Vertical Integration When a company oversees the planning and creation of a product, through to the marketing, advertising and distribution and then on to the retail of the product to the public, the process is known as vertical integration. A company which is vertically integrated has control over all the stages of a product’s life. In the case of the media this means that a vertically integrated company has control of three processes:

1. Production – this includes writing, planning and the creation of the product Mildred Pierce (1945) 2. Distribution – taking the finished product to the retailer and www.classicfilmpreview.com marketing the product 3. Exhibition – the point at which the product is sold to the customer. The image from Mildred Pierce (Curtiz, 1945) demonstrates Anton A film is exhibited at a cinema or on DVD, a TV show may be Grot’s low-key art direction. A sparse set is lit to connote a large exhibited on TV and also on DVD. The internet is becoming a empty background and water bounces light off the floor to create popular mode of exhibition for many products. the look of a road’s surface. This type of image was typical of Warner Brothers during the studio era and demonstrates a direct Vertical Integration in Film relationship between institutional economic needs and the construction of media text. Vertical integration emerged in the film industry in the 1920s. By the 1930s the industry was dominated by five vertically integrated companies: Warner Brothers, Paramount, RKO, MGM and 20th Classical Hollywood Narrative: Institution and Audience Century Fox. Vertical integration allowed the studios to gather information from both distribution and exhibition points. The distributors and Vertical integration enabled studios to achieve control over the exhibitors could report back to the studios to let them know which entire film industry and this studio system (from the 1930s to films, or parts of films, were popular with the paying customer. Using the1950s) affected the way films were made and the way they were that information the studios were able to design films which were watched. specifically aimed at attracting the largest audience possible.

1 022. Vertical and Horizontal Integration in Media Institutions – A Focus on Film Media Studies www.curriculum-press.co.uk

Classical Hollywood Narrative is a structure employed in the story- Classical Hollywood Narrative could not have existed without telling aspect of films which attempts to please as many people as vertical integration. In fact it was the logical result of vertical possible by constructing a single audience. It bases itself on the integration, because by controlling production, distribution and idea of a single audience who share the same Uses and Gratifications exhibition it became clear to the studios what type of film would when watching a film. appeal to the broadest possible audience. Therefore vertical integration had a major impact on the way films were made (mass Some features of Classical Hollywood Narrative are: production and production styles) and the type of films that were • A clear beginning, middle and end made (Classical Hollywood Narrative and Genre films) as well as the • A tight chain of cause and effect Uses and Gratifications that audiences experienced when watching • A heterosexual love affair those films. • A goal oriented protagonist • A firm resolution where all preceding problems are solved Horizontal Integration: Institution and Audience Modern media industries are organised differently and, therefore, Activity approach the construction of texts, the identification of audiences Even though Classical Hollywood Narrative is a structure and marketing the products differently. Film companies do not simply associated with Hollywood’s studio era, it is often still the core produce films. They will be part of larger entertainment corporations of contemporary Hollywood texts. which will produce music, video games, T.V. programming, magazines and will have a new media presence too. It was in the 1980s that Consider some recent films you are familiar with and identify studios started to work with the other media formats, rather than whether they still use aspects of Classical Hollywood Narrative against them. By achieving ownership of several different forms of in the construction of their story. media at once the studios became multi-media conglomerates and quickly saw that the different forms of media could work together to increase profits. This is horizontal integration. The uses and gratifications that accompany the Classical Hollywood Narrative are related to the idea of watching a film as a group and Rather than thinking about the audience as a single group sharing creating a sense of belonging within the audience. One of the similar tastes and behaving in the same way, industries consider pleasures created, therefore, is a social one. their audience as being a set of diverse groups with different desires. Media texts are packaged and marketed with a view to meeting the Product Uses and Gratifications various gratification needs these audiences have. The various arms Classical Social pleasures: watching a film with other of the entertainment corporations are able to create products which Hollywood people. Reinforcement of personal identity: can fulfil diverse interests. Narrative feeling as though you belong in a group Repetition of dominant values within the A horizontally integrated company owns or has shares in lots of narrative provides comfort and reassurance different companies and these companies can be used to produce, Audience expectations met as narrative follows market and supply products. For example, a film can be purchased a set of conventions and uses a familiar in many different ways: • structure – again creating comfort and As a feature at the cinema • reassurance Rented on DVD • Purchased as a download • Vertical integration and the information it provided allowed the Purchased as a DVD studios to construct texts which met audience needs, not only in narrative terms but also in terms of genre. The repetition of genre Additionally, related merchandise can also be purchased, such as codes across a number of film helped audiences to form expectations computer game tie-ins, soundtrack albums, board games, books, and also provided gratifications when these expectations were met. clothing and many other types of products. Ideally, a horizontally For example, in the 1930s Universal Studios became known for their integrated company would be involved in almost every different ‘monster’ movies. As with Classical Hollywood Narrative, this also form of the product, such as the DVD, the CD, the book and the kept production costs down as the visual look of these films are game, so that they make a profit from all the different formats of the similar as are the filming techniques. product.

Activity Consider your own activity. Identify different ways you ‘purchase’ a film text - either the film itself or its related products.

1) 2) 3) 4) Universal Monsters 5) http://www.briansdriveintheater.com/index.html 6) http://wolves.dsc.k12.ar.us/jrhigh/media/%20ACE/Psalms%2023/ good%20depression/stein.jpg 2 022. Vertical and Horizontal Integration in Media Institutions – A Focus on Film Media Studies www.curriculum-press.co.uk

Case Study: The Sony Corporation These various versions of the film show an industry which is attempting to appeal to different audiences’ needs, rather than The Sony Corporation is a major entertainment company. They constructing one large audience based on the same assumed uses own a number of film production companies under the name of and gratifications. Columbia Tristar - every time you see a film begin with the Columbia ‘mountain top’ or the Mandalay tiger you are watching Activity a Sony product. They also own a DVD and video distribution Look at the list of Modes of Distribution below and select an company called Columbia Tristar Home Entertainment as well audience from the box that you think is appropriate for that as a television company called Sony Pictures Television Group. particular mode. In addition, they make computer games, are a record company and music publisher… plus they make the playstation, mp3 Audiences players, walkman phones, televisions, computers and DVD players. Mainstream audiences who enjoy blockbusters Genre fans Film buffs who build collections Fans of art films Fans of particular directors Niche audiences who enjoy special features

Modes of Distribution Audience Type Special Edition DVD with a higher certification: more violence or swearing http://en.wikipedia.org/wiki/Columbia_Pictures or nudity

Activity Narrow cinematic release, Imagine that Sony and an independent film company, who growing bigger on word of have no links to other forms of media, are releasing films at the mouth same time. What marketing methods could Sony use that would Wide cinematic release in be unavailable or unaffordable to an independent film multiplex cinemas company? Director’s cut DVD with documentaries and Film and DVD commentaries as ‘extras’ Although films are made to be watched Special edition with new by lots of people, they are marketed and packaging distributed in such a way that they can please people in different ways. For Very narrow cinematic example, for maximum profit a cinematic release in city centre release will still try and please a broad cinemas or specialist audience whilst DVD versions of the theatres same film may try and please different audience groups. Consider the example of Die Hard 4.0 (Wiseman, 2007). The use of different formats and an http://www.britfilms.tv/v3/ acknowledgement that different user_files/Image/ Die%20Hard4.jpg audience types have different needs that can be met by specific products Mode of Distribution Audience helps to maximise the potential for for Die Hard 4.0 profit. Some texts may not have a specific appeal to a mainstream Wide cinematic release Mainstream audience who enjoy cinema audience but can still make at multiplexes blockbusters with action and special money from carefully targeted and effects managed DVD releases. Donnie Early DVD release Fans of the series and people who Darko (Kelly, 2001) did not have really enjoyed the film mainstream appeal but its reputation Special edition DVD Fans who want to watch a slightly grew and it became successful on release more violent version with stronger DVD. language http://geraldpeary.com/reviews/def/donnie-darko.jpg Director’s cut DVD Film fans who enjoy specialist releases Exam Hint:-When discussing institution in exams always release to keep as part of their collection consider how the businesses behind the texts you are Die Hard ‘Quadrilogy’ For devoted fans of the series and discussing influence the construction of texts in order to DVD fans who enjoy having a specialised maximise the potential for profit. Some specific factual collection – also for new fans who may information on key institutions is helpful but not as important not have copies of the earlier films in as the relationship institutions have with production and the series or who wish to replace older audiences. versions 3 022. Vertical and Horizontal Integration in Media Institutions – A Focus on Film Media Studies www.curriculum-press.co.uk

High concept production: Institution and Audience Summary The vertically integrated companies of the studio system were able It is important that you are able to demonstrate an understanding to develop films which attempted to construct the broadest possible of the relationships between an institution, the types of media audience by pleasing as many people as possible. The horizontally products they create and distribute and the audience who integrated companies have used their multi-media interests to devise consumes it. Within the film industry this can be summarised in the a product which is also designed to please as broad an audience as following way: possible, but this time they are considering specific audiences for the different media formats. A high concept product aims to construct Institutional Product Audience audiences for a product in different formats, and encourages those Structure audiences to cross over into different media formats. Vertical Classical A large audience sharing Resident Evil (Anderson, 2002) started life Integration Hollywood in the same uses and as a computer game, but it has also been Narrative/Genre gratifications. made into a trilogy of films and has sold Films – a single soundtrack albums as well as promoting the product. music of Slipknot. We can argue that Resident Evil is a high concept product Horizontal High Concept films A large but diverse because it is an idea that has been developed Integration – a single concept range of audiences, with more than one media format in mind. present in a variety experiencing different The concept of synergy is critical to the of products. uses and gratifications formation of high concept products. according to the media format. http://www.heroinecontent.net/archives/2007/05/Resident-Evil-3-poster.jpg

• Vertical Integration and Horizontal Integration describe the Definition structure of a media company Synergy: The relationship between two or more separate media o Vertical integration means a company has control of its own texts or products that share similar characteristics so that one distribution and sales helps market the other. o A horizontally integrated company has formal links with other forms of media • Vertical Integration created the perfect conditions for the Furthermore, high concept products Classical Hollywood Narrative and genre films, products encourage media audiences to experiment designed to please as many people as possible at the same time with synergy. For example, if someone likes • Horizontal Integration has paved the way for companies to the film Resident Evil it may encourage diversify their product’s appeal for a range of different audience them to try the game or to buy a Slipknot groups album. The Harry Potter films have encouraged people to buy the books and the video games as well as the extensive Whilst this Factsheet uses the film industry as a case study, merchandising. these issues apply to other media institutions too. Consider www.hotmovienews.com/images/news/ how the BBC constructs specific audiences for each of its 994-harry-1.jpg terrestrial and cable channels, how it targets specific audiences with DVD releases and how it uses synergy with BBC publications including books and magazine tie-ins with specific Exam Hint:- It is important in your exams that you demonstrate TV programmes and genres. an understanding of the factors that are involved in constructing an audience: · The institution: is it independent or part of a horizontally integrated company? · The form: every media form has a different type of audience. The audiences for cinema, DVD and TV are all have different gratification needs. · The release: remember the example of Die Hard 4.0. It has already had more than one DVD release so that it can cater for slightly different audiences. Consider the release date as well – a summer or Christmas release is usually aiming for a broad, mainstream audience. Pay close attention and you will notice that family films or films aimed specifically at children tend to be released around bank holidays and half Acknowledgements: This Media Studies Factsheet was researched and written by Kevin terms. McMenamin Curriculum Press. Bank House, 105 King Street, Wellington, TF1 1NU. Media Factsheets · The uses and gratifications: each form and release is may be copied free of charge by teaching staff or students, provided that their school is a connected to a particular set of uses and gratifications which registered subscriber. No part of these Factsheets may be reproduced, stored in a retrieval relate to specific audience groups. system, or transmitted, in any other form or by any other means, without the prior permission of the publisher. ISSN 1351-5136 4