A particularly important aspect of how the studio system works was their use of vertical integration. This vertical integration among the big film-making companies guaranteed additional sales of film through manipulative bookkeeping techniques. This affected the kinds of film produced because it saved the companies money because every step of the production technique was owned and operated by the company so they never lost money during the course of the production.
Universal Orlando rolls out new ticket-price strategy ahead of Harry Potter
January 11, 2010|By Jason Garcia, Orlando Sentinel
Universal Orlando introduced a new ticket-pricing structure Monday designed to capitalize on an attendance surge expected this spring when the resort opens the Wizarding World of Harry Potter.
Universal's changes included eliminating a long-running promotional offer for weeklong passes and raising the price of standard two-day tickets. But it also introduced new three- and four-day ticket options.
Under the new structure, which Universal dubbed "U Select," the base price for a one-day, one-park ticket remains unchanged at $79.
In this example one of the major film-making companies Universal Studios controls and adjusts the ticket prices of the film Harry Potter due to an anticipation of a large number of customers. Because Universal Studios is an example of vertical integration and owns all of the process of production, it can raise prices to increase revenue since all of the revenue will be earned only by the company.
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