Media Studies
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Number 022
Vertical and Horizontal Integration in Media Institutions – A Focus on Film The aims of this Factsheet are to: • Define the concepts of vertical and horizontal integration using the Hollywood film industry as a case study • Evaluate the effect of vertical and horizontal integration on the production and consumption of media texts • Demonstrate what vertical and horizontal integration tell us about the construction of audiences as well as the pleasures the audience experience
Mass Production and House Styles in Hollywood’s Studio Era Films were made very cheaply during the studio system. The same sets were used over and over again and cast and crew worked to very tight deadlines. Each studio developed its own way of mass producing films, known as a house style. For example, Warner Brothers employed a European art director called Anton Grot to develop a low-key lighting style which would obscure the fact that 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 who worked with each other on the same films. Also, when the studios realised that a star became particularly popular in films of a certain genre then the star would become typecast and would repeatedly star in the same genre.
The purpose of studying Institution is to better understand how the organisation of media industries affects the types of products created by the industries and the manner in which audiences access those products.
These approaches to film making could be followed because the same company was in charge of production, distribution and exhibition. By owning the production company they could standardise the way films were made and keep production costs down.
AQA/WJEC/OCR? Institution is an important part of all specifications. An understanding of the relationship between institutions and their audiences will be assessed in all examinations for all awarding bodies.
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 2. Distribution – taking the finished product to the retailer and marketing the product 3. Exhibition – the point at which the product is sold to the customer. A film is exhibited at a cinema or on DVD, a TV show may be exhibited on TV and also on DVD. The internet is becoming a popular mode of exhibition for many products.
Mildred Pierce (1945) www.classicfilmpreview.com The image from Mildred Pierce (Curtiz, 1945) demonstrates Anton Grot’s low-key art direction. A sparse set is lit to connote a large empty background and water bounces light off the floor to create the look of a road’s surface. This type of image was typical of Warner Brothers during the studio era and demonstrates a direct relationship between institutional economic needs and the construction of media text.
Vertical Integration in Film 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 20 th Century Fox.
Classical Hollywood Narrative: Institution and Audience Vertical integration allowed the studios to gather information from both distribution and exhibition points. The distributors and exhibitors could report back to the studios to let them know which films, or parts of films, were popular with the paying customer. Using that information the studios were able to design films which were specifically aimed at attracting the largest audience possible.
Vertical integration enabled studios to achieve control over the entire film industry and this studio system (from the 1930s to the1950s) affected the way films were made and the way they were watched.
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022. Vertical and Horizontal Integration in Media Institutions – A Focus on Film
Media Studies
www.curriculum-press.co.uk
Classical Hollywood Narrative could not have existed without vertical integration. In fact it was the logical result of vertical integration, because by controlling production, distribution and exhibition it became clear to the studios what type of film would appeal to the broadest possible audience. Therefore vertical integration had a major impact on the way films were made (mass production and production styles) and the type of films that were made (Classical Hollywood Narrative and Genre films) as well as the Uses and Gratifications that audiences experienced when watching those films.
Classical Hollywood Narrative is a structure employed in the storytelling aspect of films which attempts to please as many people as possible by constructing a single audience. It bases itself on the idea of a single audience who share the same Uses and Gratifications when watching a film. Some features of Classical Hollywood Narrative are: • A clear beginning, middle and end • A tight chain of cause and effect • A heterosexual love affair • 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, approach the construction of texts, the identification of audiences and marketing the products differently. Film companies do not simply produce films. They will be part of larger entertainment corporations which will produce music, video games, T.V. programming, magazines and will have a new media presence too. It was in the 1980s that studios started to work with the other media formats, rather than against them. By achieving ownership of several different forms of 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.
Activity Even though Classical Hollywood Narrative is a structure associated with Hollywood’s studio era, it is often still the core of contemporary Hollywood texts. Consider some recent films you are familiar with and identify whether they still use aspects of Classical Hollywood Narrative in the construction of their story.
The uses and gratifications that accompany the Classical Hollywood Narrative are related to the idea of watching a film as a group and creating a sense of belonging within the audience. One of the pleasures created, therefore, is a social one. Product
Uses and Gratifications
Classical Hollywood Narrative
Social pleasures: watching a film with other people. Reinforcement of personal identity: feeling as though you belong in a group Repetition of dominant values within the narrative provides comfort and reassurance Audience expectations met as narrative follows a set of conventions and uses a familiar structure – again creating comfort and reassurance
Rather than thinking about the audience as a single group sharing similar tastes and behaving in the same way, industries consider their audience as being a set of diverse groups with different desires. Media texts are packaged and marketed with a view to meeting the various gratification needs these audiences have. The various arms of the entertainment corporations are able to create products which can fulfil diverse interests. A horizontally integrated company owns or has shares in lots of different companies and these companies can be used to produce, market and supply products. For example, a film can be purchased in many different ways: • As a feature at the cinema • Rented on DVD • Purchased as a download • Purchased as a DVD
Vertical integration and the information it provided allowed the studios to construct texts which met audience needs, not only in narrative terms but also in terms of genre. The repetition of genre codes across a number of film helped audiences to form expectations and also provided gratifications when these expectations were met. For example, in the 1930s Universal Studios became known for their ‘monster’ movies. As with Classical Hollywood Narrative, this also kept production costs down as the visual look of these films are similar as are the filming techniques.
Additionally, related merchandise can also be purchased, such as computer game tie-ins, soundtrack albums, board games, books, clothing and many other types of products. Ideally, a horizontally integrated company would be involved in almost every different form of the product, such as the DVD, the CD, the book and the game, so that they make a profit from all the different formats of the 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 http://www.briansdriveintheater.com/index.html http://wolves.dsc.k12.ar.us/jrhigh/media/%20ACE/Psalms%2023/ good%20depression/stein.jpg
5) 6)
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022. Vertical and Horizontal Integration in Media Institutions – A Focus on Film
Media Studies
www.curriculum-press.co.uk
These various versions of the film show an industry which is attempting to appeal to different audiences’ needs, rather than constructing one large audience based on the same assumed uses and gratifications.
Case Study: The Sony Corporation The Sony Corporation is a major entertainment company. They own a number of film production companies under the name of Columbia Tristar - every time you see a film begin with the Columbia ‘mountain top’ or the Mandalay tiger you are watching a Sony product. They also own a DVD and video distribution company called Columbia Tristar Home Entertainment as well as a television company called Sony Pictures Television Group. In addition, they make computer games, are a record company and music publisher… plus they make the playstation, mp3 players, walkman phones, televisions, computers and DVD players.
Activity Look at the list of Modes of Distribution below and select an audience from the box that you think is appropriate for that particular mode. Audiences 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 or nudity
http://en.wikipedia.org/wiki/Columbia_Pictures
Narrow cinematic release, growing bigger on word of mouth
Activity Imagine that Sony and an independent film company, who have no links to other forms of media, are releasing films at the same time. What marketing methods could Sony use that would be unavailable or unaffordable to an independent film company?
Wide cinematic release in multiplex cinemas Director’s cut DVD with documentaries and commentaries as ‘extras’
Film and DVD Although films are made to be watched by lots of people, they are marketed and distributed in such a way that they can please people in different ways. For example, for maximum profit a cinematic release will still try and please a broad audience whilst DVD versions of the same film may try and please different audience groups. Consider the example of Die Hard 4.0 (Wiseman, 2007).
Special edition with new packaging Very narrow cinematic release in city centre cinemas or specialist theatres
The use of different formats and an acknowledgement that different audience types have different needs that can be met by specific products helps to maximise the potential for profit. Some texts may not have a specific appeal to a mainstream cinema audience but can still make money from carefully targeted and managed DVD releases. Donnie Darko (Kelly, 2001) did not have mainstream appeal but its reputation grew and it became successful on DVD. http://geraldpeary.com/reviews/def/donnie-darko.jpg
http://www.britfilms.tv/v3/ user_files/Image/ Die%20Hard4.jpg
Mode of Distribution for Die Hard 4.0
Audience
Wide cinematic release at multiplexes
Mainstream audience who enjoy blockbusters with action and special effects
Early DVD release
Fans of the series and people who really enjoyed the film
Special edition DVD release
Fans who want to watch a slightly more violent version with stronger language
Director ’s cut DVD release
Film fans who enjoy specialist releases to keep as part of their collection
Die Hard ‘Quadrilogy’ DVD
For devoted fans of the series and fans who enjoy having a specialised collection – also for new fans who may not have copies of the earlier films in the series or who wish to replace older versions
Exam Hint:-When discussing institution in exams always consider how the businesses behind the texts you are discussing influence the construction of texts in order to maximise the potential for profit. Some specific factual information on key institutions is helpful but not as important as the relationship institutions have with production and audiences.
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Media Studies
022. Vertical and Horizontal Integration in Media Institutions – A Focus on Film
www.curriculum-press.co.uk
High concept production: Institution and Audience
Summary
The vertically integrated companies of the studio system were able to develop films which attempted to construct the broadest possible audience by pleasing as many people as possible. The horizontally integrated companies have used their multi-media interests to devise a product which is also designed to please as broad an audience as possible, but this time they are considering specific audiences for the different media formats. A high concept product aims to construct audiences for a product in different formats, and encourages those audiences to cross over into different media formats.
It is important that you are able to demonstrate an understanding of the relationships between an institution, the types of media products they create and distribute and the audience who consumes it. Within the film industry this can be summarised in the following way:
Resident Evil (Anderson, 2002) started life as a computer game, but it has also been made into a trilogy of films and has sold soundtrack albums as well as promoting the music of Slipknot. We can argue that Resident Evil is a high concept product because it is an idea that has been developed with more than one media format in mind. The concept of synergy is critical to the formation of high concept products.
Institutional Structure
Product
Audience
Vertical Integration
Classical Hollywood Narrative/Genre Films – a single product.
A large audience sharing in the same uses and gratifications.
Horizontal Integration
High Concept films – a single concept present in a variety of products.
A large but diverse range of audiences, experiencing different uses and gratifications according to the media format.
http://www.heroinecontent.net/archives/2007/05/Resident-Evil-3-poster.jpg
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Definition Synergy: The relationship between two or more separate media texts or products that share similar characteristics so that one helps market the other.
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Furthermore, high concept products encourage media audiences to experiment with synergy. For example, if someone likes the film Resident Evil it may encourage them to try the game or to buy a Slipknot album. The Harry Potter films have encouraged people to buy the books and the video games as well as the extensive merchandising. www.hotmovienews.com/images/news/ 994-harry-1.jpg
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Vertical Integration and Horizontal Integration describe the structure of a media company o Vertical integration means a company has control of its own distribution and sales o A horizontally integrated company has formal links with other forms of media Vertical Integration created the perfect conditions for the Classical Hollywood Narrative and genre films, products designed to please as many people as possible at the same time Horizontal Integration has paved the way for companies to diversify their product’s appeal for a range of different audience groups
Whilst this Factsheet uses the film industry as a case study, these issues apply to other media institutions too. Consider how the BBC constructs specific audiences for each of its 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 TV programmes and genres.
Exam Hint:- It is important in your exams that you demonstrate 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 terms. · The uses and gratifications: each form and release is connected to a particular set of uses and gratifications which relate to specific audience groups.
Acknowledgements: This Media Studies Factsheet was researched and written by Kevin McMenamin Curriculum Press. Bank House, 105 King Street, Wellington, TF1 1NU. Media Factsheets may be copied free of charge by teaching staff or students, provided that their school is a registered subscriber. No part of these Factsheets may be reproduced, stored in a retrieval system, or transmitted, in any other form or by any other means, without the prior permission of the publisher. ISSN 1351-5136
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