Wednesday, 22 April 2015

Synergy

What is synergy and how is it easier for a media conglomerate than a smaller independent British company?

Synergy is defined as the interaction or cooperation of two or more organisations, substances, or other agents to produce a combined effect greater than the sum of their separate effects. In relation to the film industry, synergy refers to the way in which different companies, usually within a conglomerate - a corporation that is made up of a number of different, seemingly unrelated businesses - work together to promote different linked products across different media, usually by releasing two or more products to promote one another.

The Walt Disney Company is an example of a conglomerate company, and in total owns over one hundred subsidiaries, such as PIXAR, ESPN, Marvel Studios and Buena Vista Entertainment. Conglomerates such as Disney often use synergy as a tactic to promote new product releases. An example of this is when the film Frozen was released. Alongside this release, Disney released a variety of complimentary products, most notably merchandise. This merchandise was mainly in the form of kids' toys and accessories, which became particularly popular amongst young children around the time of the release. As a result of this synergetic collaboration, Disney received increased sales on their merchandise, as children watching the film became interested in buying the products whilst children seeing the products would be more inclined to consume the film product. 

In addition, Disney also released the soundtracks to the film during the opening period of the film, including songs such as 'Let It Go', which received over 442,000,000 views on YouTube and made the number 1 on the US and UK Billboard charts. The 'viral' aspect of the soundtrack increased awareness of the film significantly, raising sales, whilst the film's release raised awareness of the soundtracks, increasing their iTunes sales. These soundtracks were released on Walt Disney's own record label and on Disney's own radio show - Disney Radio.

There are examples however where smaller independent companies have used synergy similarly to promote the release of their films. Ill Manors, a low budget film distributed by Revolver Entertainment, is an example of this. At a similar time to the release of the film, Plan B's album, also titled 'Ill Manors' was released. Although this was received well and had a large impact on admission figures for the film,  we can observe the difference in the success of this in comparison to Disney's Frozen. For example, Ill Manors' YouTube upload, which included many actors from the main film production, such as Riz Ahmed, only received 6,800,000 views on YouTube, which allows us to notice the difference between the impact of an independent and conglomerate company such as Disney releasing a soundtrack, as Let it Go received 442,000,000.

It is easier for conglomerate rather than independent companies to use synergy tactics as they will often have many subsidiary companies under their control, which will often be renowned in their media area. This means that it will be easier for these companies to release products successfully,  as they have a greater influence than independent companies due to their relative size. Disney's soundtrack release is a good example of this, as Disney own a radio show as well as a record label as subsidiaries, meaning that they have the power to release this media, whereas independent companies such as Revolver Entertainment often do not have corresponding subsidiary companies that may have the power or resources to produce such products.

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