Media convergence is not one process but a number of different processes which occur simultaneously and influence one another. Economic convergence is very beneficial to companies but has detrimental effects on society and the economy overall. Economic convergence has three parts: digitization, conglomeration, and deregulation. Synergies are created when two businesses come together and create efficiencies or cost savings by sharing resources, ideas, or knowledge. 1. For example, if Berkshire Hathaway's construction materials business has a good year, the profit might be offset by a bad year in its insurance business. Now, the entire world often sees and hears the same cultural influences. If youre interested in mass media, there are plenty of opportunities to make this field a career. As a result, the conglomerate may find it difficult to utilize its economies of scale to save on costs. Outrage is defined as avstrong reaction with anger, shock, or rage. The emergence of a new, large media, Media organizations are seen as bounded organizational systems, enjoying an important degree of autonomy from the state, political parties and institutionalised pressure groups. Technological convergence is also sometimes referred to as digital device convergence. *Federal Communications Commission, Broadcast Station Totals as of September 30, 2016, on the internet as a PDF at. Whether looking for information on programs, admissions, or financial aid, we're here to help. Mass Media is refers to every medium or source which is used to connect and communicate with a large number of people at once. In order to handle this, the corporation may sell off its holdings. Conglomerates require less manpower than companies that are not conglomerates. He also satirises the. Print media take advantage of the internet as well. Contemporary Journalism & Its Role in Society, The Media Industry: Roles, Impact & Ethics. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. By becoming a diversified conglomerate across several industrial sectors, the parent company may reduce its exposure to single market risk. For example, Sony has been able to use the synergies between its subsidiaries to save on costs and gain access to new markets and technologies. In the stock market, it is understood as portfolio diversification. 3M is a conglomerate that has a number of subsidiaries that operate in different markets. However, in recent years the media has, like other agencies, come under the influence of politicians. Advantages And Disadvantages Of Media Conglomeration, These policies coupled with the economic stream policies, namely Privatisation, Malaysia Incorporated, Look East Policy and Multimedia Super Corridor project, have eventually produced benefits and drawbacks for the nation. Your email address will not be published. It has become a major factor in the society as people are depending on it to accomplish specific tasks. Learn all about media convergence, its definition, and examples, and see the different types of media convergence. Narrowcasting Background, Use & Examples | What is Narrowcasting? Media conglomerates are a good example of this type of diversification. Access to new markets and technologies, Business Markets Definition, Characteristics and Types, C Corporation Definition, Benefits and Disadvantages, Corporate Governance Definition and Principles, Top 15 Family Owned Businesses in the World. I feel like its a lifeline. What are the advantages and drawbacks of, allowing large conglomerates to control the mass media? 2023 Walden University LLC. Media Literacy Examples & Skills | What is Media Literacy? I guess thats a polite way to say. 11) Beefing up media bias What is the How will the print industry survive? General Electric is one of the largest conglomerates in the world. Media corporations often employ multiple media formats, such as TV, print and the internet to enhance their offerings. Some conglomerates are able to utilize the synergies between their subsidiaries to create value for shareholders while some face difficulties in handling so many different businesses together. Technological convergence is the process by which one device, such as a smartphone, combines functions of a number of previously separate devices (newspaper, GPS, post office, etc.) Conglomerates also have a number of disadvantages. Later the radio provided another source to achieve the majority. The main objective of this research paper is to identify the working process and to recognize the challenges in the working mechanism. There are very important opportunities that can be exploited, to increase shareholder value. With the help of television or radio shows, the mob discovers various facts about health affairs, environmental preservation, and many more topics of relevance. Media convergence is the process by which multiple media technologies are brought together into one computerized device. Mass media can be divided into two categories, which is the print media include like newspaper, magazines, and books. For example, schools are using these technologies as an alternative way of teaching students. Media, and its inherent manipulation, is the face of todays propaganda. Improved Quality Media consolidation can raise quality levels of local programming. Media conglomeration brings more. Economists warn that conglomerates may become too big to function properly. Diversification can, however, have disadvantages. As a result, the conglomerate can gain access to new markets and technologies through its subsidiaries and have many shareholders. What are alternative ways the. Some people think that this is a bad thing because so many things that are uploaded can be either false information or simply information that is misleading and could teach individuals the wrong thing. Conglomerate diversification is a strategy employed by large corporations to expand their businesses into new and unrelated sectors. These structures can create a capital market within the group to allow growth of the conglomerate. A conglomerate can grow by acquiring companies, whose shares are more discounted, thereby showing growth in earnings. Central Broadcasting System created Viacom in an effort to own cable television systems and to syndicate its own programs. This can be seen as an insurance policy for the parent company, as the performance of one subsidiary may offset the performance of another. Let us have a look at some of the key benefits of conglomeration-. Conglomerates offer many benefits to their parent companies. Hi, I am an MBA and the CEO of Marketing91. An international conglomerate is a conglomerate that operates in multiple countries through unrelated businesses. Advantages and Disadvantages of Media Consolidation Pros of Media Consolidation Media for the Consumers What works for the consumers, works in the media. Any act that against this law may lead to fines or in much extreme cases, prison sentence. The Article 10 allows all citizens the absolute freedom as not restricted by the government. Sony has been able to utilize the synergies between its subsidiaries to create value for shareholders. The deal gave Exxon a controlling stake in one of the worlds largest undeveloped natural gas fields. As much as mass media can connect us with people all over the world, it can disconnect us from the people right in front of us. You must have JavaScript enabled to use this form. For example, in 2014, Amazon (AMZN) announced that it would be expanding its Amazon Web Services (AWS) cloud computing business into the government sector with a new GovCloud region. Updated: People receive the latest news in a short time. . Diversification. Cultural. These services have drastically changed the kind of media that people view and diversified and democratized the base of people producing this media. From the effects of this merging media, a purely capitalistic society relentlessly forms, diminishing individual rights . The vast majority of business carried out in the United States is conducted by companies that have been incorporated. Berkshire Hathaway is another conglomerate that has a number of subsidiaries that operate in different markets. Diversification results when a company expands its business to areas that are outside its core functions. Whether you are starting your first company or you are a dedicated entrepreneur diving into a new venture, Bizfluent is here to equip you with the tactics, tools and information to establish and run your ventures. Direct medium of communication; 2. advantages of physical proximity and, usually, both sight and sound of sender and receiver; 3. allows for instant interchange of opinions views, attitudes instantaneous feedback; easier to convince or persuade; OC advantages contd 1. allows for contribution and participation from all present. For example, smartphones can do the jobs which newspapers, GPS's, and telephones used to accomplish separately. The TV was a mix of the radio and the newspaper and individuals were interested in it. All rights reserved. This review study shed light on the debate over positive and negative aspects of media. Also Read Chain Store: Definition, Types, Advantages and Disadvantages. In this study positive side of media is highlighted as well as negative effects. A. Are conglomerates good for the economy? These are, it undermines the publics trust in the media, it leads to a decline in productive discussion, it can ruin the reputation of businesses or individuals. The author provides a realistic insight into the negative effects of electronic media. Barry Levinsons thought-provoking, satirical black comedy, Wag the Dog (1997) demonstrates the power that media has in our society and its effects, through an exaggerated perspective, which emphasises the way media manipulates the public 's beliefs, thoughts and the way they interact. On one hand, media convergence has expanded access to media, simplified media production, and democratized the base of media producers through user-created content. Fiat Chrysler is a conglomerate that has a number of subsidiaries that operate in different markets. Global Convergence refers to the influence of media from different cultures spreading across the globe. It has become easy for . The point of view rose in the mid 1970 's as Katz and his two associates, Jay Blumler and Michael Gurevitch kept on extending the thought. The firm may decide to diversify by purchasing a soft drink firm, after which it can grow via the acquisition of other firms that produce different types of air-fried snacks. In this advance era, mass media plays a significant role towards all of us and we can truly admit that mass media is one of the basic essenssial that used by everyone in their daily life. Finally to increase learning among children researchers suggests that co-viewing of Parent and children should be promoted in families in Pakistan. Concentration of media ownership the absence of diversity. In his essay he explains the importance of the media and its effect on the general public. Media convergence is a transformative process and has had major effects on people's lives and society as a whole. According to the Fortune 500 list of 2014 The Walt Disney Company is America 's largest media conglomerate in terms of revenue with 21st Century Fox, Time Warner, CBS Corporation, and Viacom are amongst the top five. Fill out the form and we will contact you to provide information about furthering your education. A newspaper company may begin by acquiring television and radio stations before purchasing book publishers. 1. As a result, they have transferred a considerable amount of their delivery channels from print to online format. In this study positive side of media is highlighted as well as negative effects. Only a few companies representing the interests of a minority elite control the public airwaves. Conglomerates offer diversification of risks to their parent companies. Through television and radio programs, people get to learn about health matters, environmental conservation, and much more. Media has detrimentally influenced. Although Malaysia has the right to freedom of speech, the media are still being controlled by the government which restrict them to publish anything against the government. Typographic Contrast Overview & Principles | What is Typographic Contrast? The Heritage Foundation:The Myth of Media Concentration: Why the FCC's Media Ownership Rules Are Unnecessary. The societies rely on mass media for information, entertainments and even communications. Copyright 2023 IPL.org All rights reserved. Bagdikian writes of the conglomeration effect stating that "the awesome power of the contemporary mass media has in one generation been a major factor in reversing the country's progressive political, social and economic momentum of the twentieth century." (pg. For instance, when a tsunami strikes, people all over the world hear about it within moments and can mobilize immediately to help. It is often argued that the existence of a democratic society necessitates the existence of information outlets whose duty is to provide the populace with authentic, unbiased and relevant material. Doing so may also assist the parent company to save money on operational costs while at the same time requiring less manpower. Another advantage of this is that what works for the people also works for the media. Newspaper firms have started to search for online delivery channels so as to retain the young readers. What is the e Why does economics drive most media companies? Plus, get practice tests, quizzes, and personalized coaching to help you People could easily access to the latest news and scoops of both hard news and soft news through television-news broadcasts to keep themselves updated with the occurring or happenings around the world. Within a single investment, there will always be negative shocks. Professional Codes of Ethics in Public Relations, Advertising vs. Public Relations | Differences, Purpose & Overview, Power of Social Media: Consumerism & Trends | Why Social Media is Attractive. Advantages 1. Creates a divide between those with access to computer technology and those without. Economic convergence refers to the economic strategies (digitalization, conglomeration, deregulation) which occur in response to the advent of these new technologies. It decreases competition, commercializes the media, and opens the door to commercial interests' curtailing journalists' independence. Nevertheless, the issues will be addressed from the perspective of the media conglomeration in Malaysia. A multinational conglomerate can benefit from economies of scale and from the ability to operate in multiple markets. A basic symmetry is seen to exist between media institutions and their audiences, since in McQuail 's words, the 'relationship is generally entered into voluntarily and on apparently equal terms '. For example, a book distribution company and a book publishing company can combine together as one company with two services. Conglomerates may also be created through joint ventures, which occur when two companies come together to form a new company that is jointly owned by both firms. Efficiency integrating capital/human resources/technologies. Established industries, technologies, and standards have had to change drastically in response to computerization. Conglomerates may also find it easier to diversify their businesses because they can use existing resources and capabilities to enter new markets. One obvious difference is that ownership and control are separated, and the primary objective of those who control these companies is to maximize returns to investors. Do you think they are good or bad for the economy? In fact. Management costs increases due to size of the group Conglomerates have to face many accounting-related problems, for example, consolidation Similarly, an overall return will not highlight problems that may exist in some of the component companies, which may increasingly inhibit profitability. While almost all people experience major benefits from the convenient services offered by converged digitalized technologies, they also experience decreased levels of personal privacy and increased exposure to fake media content. Conglomeration: The process by which a conglomerate is created, as when a parent company begins to acquire subsidiaries. It is the backbone of a democracy; it makes us vigilant of numerous social, political and economic activities happening around the world. Only a few companies representing the interests of a minority elite control the public airwaves. The theory was contemporary since it repudiated more seasoned perspectives that expected the gathering of people was an inactive gathering. In a May 2003 article appearing on the Heritage Foundation, James Gattuso - a senior research fellow in regulatory policy - reports that the ability to own multiple television stations, for example, allows the owners to provide programming for niche markets on the different stations. The conglomerate can utilize the synergy between these two subsidiaries to save on costs. 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