Media Theory Revision Guide

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Daily Mirror

Vertical integration and Reach PLC

Curran and Seaton

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Reach PLC can also be described as a vertically aligned conglomerate, using a variety of subsidiaries to fulfill vital production, distribution and promotion functions. 


Reach Printing Services, for example, offers a centralised printing facility for all its papers, rationalising production costs for all newspapers produced by the parent company, while ownership of Reach Solutions offers advertisers a comprehensive ad placement service that no single publisher alone could coordinate. 


Reach PLC’s 50% stake in the Brand Events subsid also provides vital publicity for the company’s papers at a host of public events via the organisation's nationwide food and car roadshows.

Subsidiary

A company controlled by a much larger company.

Media terminology used

Cost rationalisation

Any strategy used by media producers to help them save production costs. Bulk buying for instance allows media producers to save money on raw material costs. Horizontal integration also saves money by rationalising personnel needs.

Vertical integration

Ownership of subsidiaries that enable a media producer to produce/promote and distribute products.

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