Vertical Integration - Benefits Street and Baking Bought by Sky

Here is a small, but good example of vertical integration in action with a takeover by Sky of the production company behind the likes of Great British Bake-Off and Benefits Street.Vertical integration arises when a firm buys a business at an earlier or later stage of the supply chain. In this case, Sky is undertaking "backwards vertical integration" - by investing in a controlling stake in one of the many television production companies that provide programming for Sky and other channels.It looks like there may be some significant revenue synergies available to Sky as a result of its investment. For example we are told that "Sky's distribution business, Sky Vision, will promote Love Production's formats and programmes to networks overseas.".