What does "vertical integration" in the film industry refer to?

Vertical integration in the film industry refers to a company's control over multiple levels of production and distribution. This means that a studio or production company not only creates films but may also have ownership or significant influence over their distribution channels, such as theaters or streaming services. By integrating these different stages of the filmmaking process, a company can streamline operations, reduce costs, and increase profit margins. This strategy allows for greater control over the entire process, from development through to the audience's viewing, leading to more efficient management of resources and the ability to maximize revenues at various stages.

The other choices touch on different aspects of the industry but do not accurately capture the essence of vertical integration. The merger of different production companies refers to horizontal integration, which focuses on companies scaling by acquiring others at the same level of the supply chain. Filming in various international locations is a strategy aimed at enhancing production value and storytelling but does not pertain to the structural business strategy of integration. Distribution deals with online streaming services are specific agreements that can occur within a vertically integrated model but do not define vertical integration itself.