Independent Films + Joint Ventures

Independent Films + Joint Ventures

 Joint Venture= when a media company works with another on a project mutually beneficial for both parties (independent companies) - independent and conglomerate e.g  blumhouse + universal 

Funding 

Distribution 

Ownership 

Marketing 

Personnel 

Diversification into different platforms 

Advantages: 

- independent company gains more profit

- distribution from bigger conglomerates causes more recognition for smaller independent companies 

- Headhunting from conglomerate to independent company to gain new employers 

- the bigger conglomerate may have the links for expanding onto different platforms and therefore will help the independent company expand to different platforms e.g linking with Netflix, prime 

- Conglomerate able to provide much more funding to help support independent company 

- Both got same risk (ownership)

- Different ideologies with smaller companies - new ideas/formulas 

- Smaller companies can have better people to help produce the product due to advance in conglomerate personnel 

Disadvantage:

- shared ownership causes less recognition for big conglomerate

- revenue split so won't get the most money 

- Imbalance of power over product 

- Limited flex-ability 

- Distribution will change value of each company 

Explain why an independent company often works with another companies as part of a joint venture. 

Independent companies often work with another company as part of a joint venture to increase recognition for the independent companies. For example, the movie Get Out entered a joint venture with Universal for the increase in blumhouse's recognition of their company. This increased it's recognition as Universal has a large following and therefore will be distributed widely- gaining more recognition for blumhouse's production which would benefit them in the long run.

Explain two disadvantages of being an independent company. 

1. One disadvantage of an independent company is that they may not have enough money to distribute its products and therefore may not make a large revenues. This is why blumhouse joint with Universal as a joint venture to expand its distribution. 

2. Another disadvantage of an independent company is that they may not have the funding to employ advanced personnel to make their film good enough for viewing. This is why blumhouse joining with Universal as a joint venture allowed blumhouse to gain the advanced personnel needed to help the film be distributed successfully. 

Marked by Mayan xxx

Q1= 4/4

WWW - wow!

EBI - Use capital letter for Blumhouse g

Q2= 6/6 

WWW - very good x 

EBI- maybe use examples for personnel idk