From Wales to Hollywood: Vertical Integration

Vertical integration refers to a business model where a single company owns or controls the entire process from production to distribution to exhibition.
In the context of media, this might mean a media corporation owns the production companies that create media content, the distributors who get that content to consumers, and the platforms or channels where consumers access that content.
This process allows media corporations to reduce costs, have greater control over their products, and maximise profits.

Hollywood is a prime example of vertical integration within the film industry. Many large film studios own production, distribution and exhibition businesses.
This allows Hollywood studios to have greater control over their film products, from the initial production phase to the viewing experience in cinemas.
Such model can lead to a lack of industry competition and consumer choice as a few major players dominate the market.

In contrast, the media industry in Wales represents a much smaller scale of vertical integration.
Independent companies often own and operate just one stage of the production, distribution, and exhibition process. They rely on partnerships and collaborations for the rest.
However, the concept of vertical integration still applies at this level. Owning a studio, production software, or a local broadcasting channel represents a form of vertical integration.

While vertical integration maximises control and profits for Hollywood and Welsh media corporations, it might also limit the diversity of content.
These corporations might prioritise their projects over externally produced content, negatively impacting consumers’ access to a broader range of media.

Different countries have various rules and regulations to limit vertical integration, aiming to promote competition and maintain consumer choice.
The understanding of the specific regulatory environment and how it might encourage or discourage vertical integration can be crucial for media corporations both in Hollywood and Wales.

Ownership and Control theory highlights how control over media products can influence the media landscape.
Political Economy theory can be used to analyse how economic factors drive decisions about production, distribution, and exhibition within media systems.
Hegemony theory by Antonio Gramsci might help understand how dominant ideologies get perpetuated through media systems governed by vertical integration.