LFTVD INDUSTRY - HESMONDHALGH'S CULTURAL INDUSTRIES THEORY

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Horizontal Integration is when a company buys other companies which do similar things on the same part of the media production process. The benefit of this type of integration is chiefly diversification and increased output to minimize risk. It also limits direct competition.

Vertical integration is when a company buys other companies which do different things in the media production process. The benefit of this type of integration is to maximise profit by keeping the cost of using external company's services down.

THE WALT DISNEY COMPANY



On top of all this, Disney also have their own record company, theme parks, resorts, merchandise.... This further diversifies their share of the market to minimize risk and maximise profit!

WHAT IS HESMONDALGH'S THEORY?
  • David Hesmondalgh's theory states that there is an inherently high risk in producing products in cultural industries such as the film industry:
    • Hard to predict success
    • High production costs
    • Low reproduction costs
    • Risk of piracy
  • So, media companies like Disney need to be vertically and horizontally integrated to minimize risk and maximise profit.
  • There is a reliance of creating big hits to cover the cost of failed productions. This means products become formulaic as they rely on repetition of previous successes - big stars, safe genres, franchises, repeated narratives. Does the Marvel Universe spring to mind? 
DOES THIS THEORY APPLY TO THE TV INDUSTRY?
  • Not particularly true of traditional broadcast television:
    • PSB is protected by public funding and regulation requirements.
    • Audiences figures don't necessarily reflect success of a show i.e. you watch something because it happened to be on after a show you wanted to watch or because there is nothing else on.
    • Once a programme has been commissioned, it has a run of shows to attract an audience. Less impetus on being a one-off big hit.
  • True for streaming services like Netflix and Amazon Prime:
    • Must attract audiences and convince them to pay for service.
    • New streaming services need to expand rapidly to complete in a crowded entertainment marketplace.
    • Streaming service need 'flagship' shows to be their big-hitters to attract audience. this is why LFTVD on Netflix often rely on star actors, high production costs and have a 'must-see' factor about them.
  • But:
    • There is a reliance on streaming shows to be the creative vision of a 'show-runner' - similar to an auteur director in film - to give the show a distinctive stamp and thus make it stand out from formulaic TV shows.
REVIEW

Q4: To what extent do long form TV dramas reflect David Hesmondalgh's theory of cultural industries?
  • Point to show how LFTVDs don't fit within Hesmondalgh's theory
    • Reference to Deutschland 83 as being a non-English language media product which has a relatively low appeal to a big audience.
  • Point to show how LFTVDs do fit with Hesmondalgh's theory
    • Reference to Stranger Things as being a big media event which attracts subscribers to Netflix
  • Conclusion
    • Which method of production is better for the industry? Which method of production is better for audience? Will Hesmondalgh's theory apply in the future?

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