How franchises create synergy

How franchises create synergy

Film companies rely on their films to become franchises and become really big. The reason for this is because if they do end up becoming big they are able to create synergy and the horizontal integration plan really helps out with this. This is because they could make their own franchise and try and make a lot of money of the movies and end up creating synergy form that because they could end up making games for the franchise and make a lot of merchandise and then make even more money. Or companies can makes the choice to try and buy a successful franchise and then make movies and merchandise and earn even more merchandise while already making money from the merchandise that is already out this is a good and less risky idea but this is also a very pricey idea.  

 

 

 

Horizontal integration

Horizontal integration is where film companies have to spread out where they put their movies for example everyone has to put their films in with everyone else’s in an Odeon for example. This is so that both film companies and cinemas are able to make as much money as possible. To make sure that both film companies and cinemas can stay keep producing films and stay in business. Another thing is that this model really helps the small film companies to keep producing films and this is because if you are in a cinema waiting in line to buy your ticket other movies are advertised and this is where those small films have a chance of earning money. This is better than the older model and this is because the old model was where the film companies had their own cinemas showing only their movies. This meant that it was very difficult for smaller film companies to start up because they had to have their own cinema.

 

An example of a horizontally integrated company is Sony and this is because

 

 Sony are a massive company in this world and have a lot of money nearly to the point where they can buy any franchise they want and make a lot of money of its merchandise and its movies and then end up having the rights to make as many movies as they can and also make as much merchandise as they want. This means that they could revive a franchise or even destroy it depending on how go they make the movies. Some examples of sonys franchises that they have bought is James Bond and Spider man these are the two most successful franchises that Sony have bought and are making a lot of money of it they have made games for the franchises and also hjave made new movies giving them a hefty profit after buying the games.

 

Synergy is where films companies make films obviously in the hope that it is well received and big but also so they can make some more products and earn more money of their products. For example a lot of film companies make merchandise that is part of the film and to make sure they earn the most amount of money they can they release around the same date that the movie comes out. Sony is one example that does this one franchise as an example that they use is the James Bond franchise and this is a great example because the James Bond franchise is one of the biggest franchises in the world. This means that they are able to sell a lot of merchandise and they know that they are going to get their money with quite a bit of profit as well. This is why there has been James Bond video games made for years because they always get sales and they end up getting a profit of the games because they are out for years.