Vertical & Horizontal IntegrationIn the Music Industry

Owning the stages of production and distribution. Vertical integration: An ownership structure in which one conglomerate owns or operates all aspects of production and distribution within a single segment of the media industry; for example, production studio, talent agency, Online distribution company, CD manufacturing plant rental stores. What are the benefits of being vertically integrated?

Media Conglomerate

Factory

High Street Shop

Distribution Channels

Recording Studio

Content Producers

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Owning a range of companies at the same production level. Horizontal Integration: An ownership structure in which one conglomerate owns or operates different kinds of media (for example, movie studios, television networks, music labels and radio stations), concentrating ownership across the different segments of the media industry. What benefits arise from being horizontally integrated?

Horizontal Integration Examples Owning different types of media.

Research and add to Case Study• What subsidiary labels does your conglomerate own?• How does your label use the internet?• Considering the portfolio of labels and the artists signed to them, is there

any evidence of the long tail?• How is your label horizontally integrated?• How do they use this to their benefit? (refer to specific examples)• How is your label vertically integrated? ( how do they profit from the

different stages of music production, distribution and consumption)• What is synergy? Are there any examples of your conglomerate using it?• What are your conglomerate’s current strategies to combat piracy?