Types of Entertainment Businesses (Part 1)

Question 1

Define corporate conglomerate

Question 2

List the big 5 entertainment conglomerates

Answer 2

1. The Walt Disney Company
2. Sony Entertainment
3. Viacom (paramount)
4. Time Warner
5. Comcast

Question 3

Explain a horizontal distribution business structure. Give an example

Answer 3

• How the big conglomerates are structured or organized:
• They create and produce entertainment products and services
• They market them
• They distribute them
• Perform all the functions in the channel of distribution from producer to consumer
  Ex. Sony

Question 4

Explain a vertical distribution business structure. Give an example

Answer 4

Relies on others for the product and most of the promotion
Ex. Old video rental places like Blockbuster; EB Games

Question 5

Define oligopoly and give an example

Answer 5

Business situation in which a few firms affect but do not control an industry individually
Ex. Walt Disney, MGM, Paramount Studios

Question 6

Explain what an indie is and give an example

Answer 6

Independent movie companies that operate on their own to make films and are not affiliated which major movie studios
Ex. Sundial Pictures, Red Crown Productions

Question 7

Describe what happens with the first week ticket sales for movies

Answer 7

Usually the first week s film is in theaters, all ticket-sales money goes to the distributor or studio and after that the revenue is split more evenly