In this essay I will be wrtiting how the importance of franchises are to film companies through adding to their profit.
Horizontal Integration is the process of expanding in to other sectors of one industry. This means that a company can produce one product and sell and produce it over a wide variety of platforms. This allows for the ability to share resources and products across many different forms. This is known as synergy.
This theology is a successful business technique which allows companies to have a boosted revenue through selling on multiple levels. A major example of this is Marvel Studios, a sub-company owned by The Walt Disney Company. The Walt Disney Company experienced a major rise in profits after it purchased Marvel Studios in 2012. Marvel Studios had previously released 8 motion feature films, grossing to a total Box Office revenue of $2,359,995,914. This alongside the $5.6 billion made from merchandise helped The Walt Disney Company make an overall $44 billion in annual grossing.
The Walt Disneys Company's purchase of Marvel is a major factor in how franchises are a key aspect for film studios to generate money. This is because franchises appeal to a broader audience, thus making more money at ticket sales as more people will see the film. Also with a franchise it can branch off with merchandise to promote the film and make even more revenue. Adding to this, through franchises there are smaller branches such as TV and animation, allowing a further boost in revenue for the company who own the franchises' properties.
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