What are the advantages for a parent company of each type of ownership?

Advantages of a parent company owning horizontal integration

• The can develop their skills in one area instead of spreading themselves thin in all 3 stages.
• Through horizontal integration, the parent company can reach new audiences and control a bigger share of the film industry. (For example, Disney creating animation, mainly for children and then integrating to more action films such as the pirates of the Caribbean).
• Allows companies to come together and work as a team to create something that couldn’t be produced on their own 
• Through horizontal, a company owns several different writers and earns money from each of them when they work on a new film or project.

Advantages of a parent company owning vertical integration

• In vertical integration, as the parent company owns the main areas of production, distribution and exhibition, they have final decision and they can cut out interference from other people at all three stages. 
• By being in charge of all three stages, they can gain the maximum profit from exhibition instead of investing in a film and another company taking the majority of the profits. 
• The distributor had control of the forms of exhibition and for how long ect.
• Using vertical integration, big parent companies and overcome competition from independent film makers that cannot compete on the same level due to money, time, ect.