I will look at this with two types of companies, ones side will be from and big well known company and the other side a small independent company. First of all a big company for example Time Warner have a really big budget and are a big conglomerate with loads of useful subsidiaries that will make anything possible when creating a product like ours. A huge advantage of this is that it can have a large successful market and advertising campaign that make more potential audience really aware of our product due to its budget and subsidiaries such as Time Warner owning magazine and TV companies like Time magazine and HBO TV which are both really successful in their individual field of business and from there after the release it could start to spread due to word of mouth and even more potential audience will try and watch it and could turn into a huge sensation but the disadvantage to this is the run up might be all appealing but the whole product might not fulfil its potential and get bad reviews and have bad publicity which can be bad due to a high spend in creating this film and potentially not turn a profit which may be worse for the products expansion. Another advantage is that Time Warner has a big repetition the recognition will be easier to get for example you here that a film has been made by Time Warner and the audience know that they have made some good films in the past it will encourage more potential audience to watch it. A disadvantage is that big companies are known for overdoing it and spending too much which can make it unrealistic which can make the product loose potential audience.
The other companies are small independent film companies and the advantage is that there creating is cheap which could potential have a bigger profit margin and also the budget can increase freely by things like crowd funding which is when you give potential audience the idea and they can donate money for the creation which also means that you have audience who are willing to see the film and can allows extra detail to be added into the film. Another advantage is that films created by small businesses is that they tend to be appealing to the hard fussy audience who despise the generic over budgeted action films with too much flash and money, this means it can also appeal to a wider audience. A disadvantage is that it has to do horizontal integration which means it has to combine with different companies to create the product as it not a conglomerate which has not got subsidiaries to help create and market the product. This can cost more which is taken from the budget which could have gone elsewhere to the product. Another disadvantage is that they are not globally well known so that it tends to have a smaller range of audience which may not turn as much profit as the big company but in some situations the films can tend to do well and become huger then the big budgeted films overtime due to the word of mouth. Another disadvantage is the budget and that it don’t allow everything for the product to be completed as best as it can be for example equipment quality when creating the film the camera might be the best resolution which can be harder for the audience to choose this film over a big budgeted if close to release to one and other.
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