Theory Key Terms Recap

Production: This is the second step in the process of film making and follows pre-production. It is the actual process which must be completed during the filming or shooting of the movie, including using actors and sets in order to collect the raw footage.

Subsidiary: A company that is owned or controlled by another company which is called the parent company. For example, Pixar was bought by Disney so is a company in itself which works within Disney but is a subsidiary because Disney owns it.

Distribution: The process of making the film available to the people. Distributers not only get the film into the cinema but they also market them to ensure that the film makes a profit. Films often have different distributers for different markets because they have separate needs which need to be specifically understood and catered for.

Marketing: Promoting the film, specifically within the film industry, usually in coordination with the distribution of the film to ensure it makes as bigger profit as possible by making people aware of the film and consequently going to see it.

Exhibition: This relates to the public screening of a film in a site devoted to screenings such as the cinema. However more recently different sites have been used for exhibition such as Netflix which is home exhibition.

Horizontal Integration: When a production company owns several businesses that provide similar services e.g. a production company owning two radio stations. Disney was originally an animation studio aimed at children and families but did a horizontal integration into live action films which enabled the company to reach larger audiences in the film industry.

Vertical integration: When the production company has the means to produce, distribute and exhibit the film itself consequently receiving all the profit. e.g. Disney controls its own production, distribution and exhibition which means it receives all the profits made from the film.