Diversification

Expansion into different products or areas of business to spread risk and increase possible sources of income.

The expansion of a company's activities into a broader range of related or unrelated products and business areas to spread risk and increase income.

Diversification means spreading business activities across a broader range of products or areas. Disney expanded beyond its origins as a film studio into activities including television, games, streaming and theme parks. Different activities provide different sources of income, so the company is less dependent on the success of a single product or business area.

Keep horizontal integration, vertical integration and diversification distinct: same stage, different stages, and a broader range of business activities.

Distinguish vertical integration (ownership of stages in the production and distribution chain), diversification (expansion into different media forms) and convergence (industries, platforms or technologies coming together).

Keep ownership, diversification, vertical integration and convergence distinct. Publishing on several platforms does not by itself prove vertical integration.

Expansion into different products or business areas to spread financial risk and create additional sources of income.

Expansion into different products or business areas to spread financial risk and increase possible sources of income.

Expansion by a media organisation from producing content in one form into producing content across a range of forms.

Diversification occurs when an organisation expands into different media forms. The BBC, for example, has expanded from broadcasting into digital and online content. This allows an organisation to reach audiences in more ways and reduces reliance on a single form.

Expansion into additional products, services or business areas to create further sources of income.

Expansion into different types of products or business activities, giving a company additional sources of income.

Definition

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AQA GCSE Media Studies · 8572

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Eduqas GCSE Media Studies · C680