Disney and Vertical Integration

You MUST be able to define Vertical Integration and give Disney examples.

You SHOULD be able to comment on HSM3 examplesYou COULD outline and evaluate the benefits to Disney’s

development and success.

Objectives

• You MUST be able to define Vertical Integration and give Disney examples.

• You SHOULD be able to comment on HSM3 examples

• You COULD outline and evaluate the benefits to Disney’s development and success.

You MUST be able to define Vertical Integration and give Disney examples.You SHOULD be able to comment on HSM3 examples

You COULD outline and evaluate the benefits to Disney’s development and success.

• Disney can profit from every aspect of making movies by using ONLY Disney owned companies – produce them, market them, distribute them around the world and produce the merchandise for them.

• This is called Vertical Integration.

You MUST be able to define Vertical Integration and give Disney examples.You SHOULD be able to comment on HSM3 examples

You COULD outline and evaluate the benefits to Disney’s development and success.

• Read through the High School Musical 3 handout.

• Did you notice anything about how HSM3 was produced, marketed and funded?

• Highlight in one colour all the areas that they used a Disney owned company to produce, market, distribute or exhibit.

You MUST be able to define Vertical Integration and give Disney examples.You SHOULD be able to comment on HSM3 examples

You COULD outline and evaluate the benefits to Disney’s development and success.

High School Musical 3• All parts of the film production process were

done under the ‘Disney’ umbrella.– Production• Walt Disney Pictures

– Distribution• Walt Disney Studios Motion Pictures

You MUST be able to define Vertical Integration and give Disney examples.You SHOULD be able to comment on HSM3 examples

You COULD outline and evaluate the benefits to Disney’s development and success.

– Marketing• Pre-Launch Marketing:

– Television - ABC summer reality TV show ‘High School Musical: Get in the Picture‘

– Singles - Now or Never (HSM song) Released on Radio Disney in July 2008. A preview of the single‘s use in the movies premiered on Disney Channel in July 2008. This model was repeated later in 2008 for singles A Night to Remember’ and ‘Right Here, Right Now’ in September in late September and October 2008 respectively.

You MUST be able to define Vertical Integration and give Disney examples.You SHOULD be able to comment on HSM3 examples

You COULD outline and evaluate the benefits to Disney’s development and success.

• Launch Marketing:– High School Musical: Senior Year Nintendo DS released in

October 2008 including an integration with DGamer (Disney Gamer – an online game and social network service developed by Disney for use with Nintendo DS) online community which includes game achievements and content from Disney television networks.

– Disney Sing It! – High School Musical 3: Senior Year. Karaoke video game (set out exactly like Sing-Star but with the actual musical sequences from the film) released November 2008 in multiple platforms within Europe, and February 2009 in the US, coinciding with their DVD and Blu-ray release of the film.

You MUST be able to define Vertical Integration and give Disney examples.You SHOULD be able to comment on HSM3 examples

You COULD outline and evaluate the benefits to Disney’s development and success.

• Research the production of ‘UP.’ Where is the vertical integration?

• Draw a vertical flow diagram of the vertical integration Disney used to produce the films HSM3 and UP.

• Write a summative paragraph on the benefits of vertical integration drawing examples from these two case studies.

Reflect

• You MUST be able to define Vertical Integration and give Disney examples.

• You SHOULD be able to comment on HSM3 examples

• You COULD outline and evaluate the benefits to Disney’s development and success.