Vertical & Horizontal Integration
Vertical Integration is when a production company has complete ownership of a production, it's distribution and it's exhibition of the production which is all done completely by the exact same company this means that they are entitled to receive all the profits that the production has profited. An example of a company that benefits from Vertical Integration is Warner Brothers. This is one of the most successful collections of brands worldwide and stands at the forefront of every aspect of the entertainment industry. For instance feature film, television and home entertainment production and worldwide distribution to DVD and Blu-ray, digital distribution, animation, comic books, video games, product and brand licensing, and broadcasting. By doing some research it is shown that Warner brothers earns around $5.035 billion dollars a year.
Vertical integration is beneficial for companies because this allows them to have more of a control over the value chain. Also this allows the company to have more of a control of the production it self and the distribution process. Also this means that the company gains more money since it is not being shared out and they are able to keep all the profit that they receive for themselves.
An example of vertical integration at Warner Brothers is the Harry Potter movies. The most recent Harry Potter movie was the Deathly Hallows Part 2 which was produced by Warner Brothers which was mostly filmed in Warner Leavesdon Studios. The distribution was also done by Warner Brothers Pictures Company. Then it was then marketed by Time Warner's Companies and was promoted worldwide and is one of the most popular movie franchises out there. 
Horizontal Integration this is when a production company expands in different areas of the industry. This allows a company to develop in a particular area of the production. An example of a company that benefits from Horizontal integration is Disney. The Disney company integrates with other industries such as Pixar, Touchstone Pictures etc. Pixar created 13 feature length movies for example, Toy Story, Monsters inc, The incredibles and along with many others. In the year 2006 Disney bought Pixar which won 29 Academy Awards, 7 Golden Globes and had grossed more than 7.2 billion dollars. Touchstone had their first hit film called Splash, in the year 1984. From then they have had other great films such as Gone in 60 seconds, Pretty Woman, Pearl Harbour etc. By doing some further research into Disney it has told me that Disney earns about $11.57 billion dollars a year.
Horizontal Integration is beneficial because it allows the company to continue growing. It also leaves competitors with a lack of some capabilities, competencies, skills, or resources that the company already possess. This also gives the company better use of the different services and products within the companies that they have bought into.
An example of Horizontal Integration at Disney are the very popular Toy Story movies this became very big and successful that Toy Story is known all around the world. The Toy Story franchise has its own attraction Toy Story Midway Mania which is found within the Walt Disney Parks in California, Florida and Tokyo. Disney Interactive Studios then released Toy story 3 the video game. Even the History Channel commemorates the day that Toy Story began which was on January 19th. 