Suppose the U.S. conglomerate GMG (Giant Media Group) owns and operates 50% of the nation's media, including TV camera manufacturers, video recorders, local radio/TV stations, cable systems, production companies, a cinema theatre chain, and broadcast networks. GMG would be engaged in ____________.

Question

Quizplus · Accepted Answer

Vertical integration involves the ownership and control of multiple stages in the production and distribution of a product, and GMG's ownership of TV camera manufacturers, video recorders, local radio/TV stations, cable systems, production companies, a cinema theatre chain, and broadcast networks indicates that they are vertically integrating their operations within the media industry.