There have been a number of negative and very impactful consequences of the restructuring of the media landscape: There are two sides to every coin, and media convergence is no exception. Websites and applications such as Facebook, YouTube, Twitter, and TikTok have seen unprecedented, explosive growth in the last decades. Advantages and Disadvantages of Media Consolidation Pros of Media Consolidation Media for the Consumers What works for the consumers, works in the media. media conglomerates: Media corporations often employ multiple media formats, such as TV, print and the internet to enhance their offerings. Citizen Journalism: Advantages & Disadvantages. Media Effects Theory, Beliefs & Influences | What is Media Effect? Three C's of Media Convergence: Content, Corporations & Computers, Psychological Research & Experimental Design, All Teacher Certification Test Prep Courses, Advantages and Disadvantages of Media Convergence, What Is Mass Media? *Federal Communications Commission, Broadcast Station Totals as of September 30, 2016, on the internet as a PDF at https://apps.fcc.gov/edocs_public/attachmatch/DOC-341807A1.pdf. Multimedia storytelling, such as when the Star Wars franchise released movies, books, comics, and video games, is one important aspect of cultural convergence. Media convergence describes the process by which computer devices and digitalization bring together various media technologies. What are alternative ways the. The Uses and Gratification theory by Elihu Katz came into existence when the theorist concocted the idea that individuals utilize the media to their advantage. There are other big stars that plays in the movie, such as Courtney Love, Danny DeVito, and many others. Its like a teacher waved a magic wand and did the work for me. Accounting disclosure is less useful information, many numbers are disclosed grouped, rather than separately for each business. In nations described as authoritarian by most international think-tanks and NGOs media ownership is generally something very close to the complete state control over information in direct or indirect ways. Berkshire Hathaway has been able to utilize the synergies between its subsidiaries to create value for shareholders. This can be seen as an insurance policy for the parent company, as the performance of one subsidiary may offset the performance of another. Which is to say, mass media simultaneously benefits us and creates new problems. Conglomerates may also conglomerate via greenfield ventures, which is when a company builds a new facility from scratch rather than acquiring an existing one. These numerous technologies are now available in the palm of a person's hand. is a modern generalized description.(Michael Pertschuck, and Scott Sherman, (1999). A legal entity may also be there as a company or organization that has a separate existence from its owners. Comment * document.getElementById("comment").setAttribute( "id", "ae2097044bcf4eadb3719e41bcea7d1f" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved, Conglomerate Definition, Benefits and Examples, 22 Best Side Hustle Ideas (Online and Offline), How To Buy Into A Business? I.,& Santa, M., (2014). 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. Some of the advantages are that there is diversification, which can result in the reduction of investment risk. This has lead to a proliferation of bias across the many media companies in existence today. User-created content has disrupted established practices in media companies and narrowed the gap between professional and amateur media content creation. lessons in math, English, science, history, and more. A conglomerate can show earnings growth, by acquiring companies whose shares are more discounted than its own. Media convergence is a transformative process. The media is supposed to be just like a warrior fighting with a pen or like a mirror which shows us or strives to show us the bare truth and astringent realities of life. Many modern tabloids, twenty four hour news channels and other mainstream media sources have increasingly been criticized for not conforming to general standards of journalistic integrity. Newspapers were still sought after and still utilized frequently. Media convergence is a transformative process and has had major effects on people's lives and society as a whole. English 103: Analyzing and Interpreting Literature, Environmental Science 101: Environment and Humanity, Psychology 105: Research Methods in Psychology, Create an account to start this course today. Consider the ethics of media conglomerates. Why are you taking this course? The movie debuted on 22nd of December 1999, the movie length went on for 1 hour and 58 minutes. Management costs increases due to size of the group Conglomerates have to face many accounting-related problems, for example, consolidation Conglomerates can trade at a discount to the overall individual value of their businesses because investors can achieve diversification on their own simply by purchasing multiple stocks. This is because different subsidiaries operate in different markets and empower the large corporation to further enter into other sectors and increase profitability. This is because diversity reduces risk, not only for unforeseen events, such as particularly adverse conditions in one sector or unexpected bankruptcy in one company, but also in the differing effects of the business cycle on individual businesses. There are an abundance of ways to obtain free flowing information that ultimately can be beneficial to our daily lives. According to Baran (2012) mass communication can be defined as the process of creating shared meaning between the mass media and their audiences. This essay aims to discuss the degree to which we are shaped by our interaction with the media. How will the Patient Protection, affect liability insurance costs? When the media broadcasts negatively charged reactions between political journalists or politicians, their ratings go up. Similarly, an overall return will not highlight problems that may exist in some of the component companies, which may increasingly inhibit profitability. Within a single investment, there will always be negative shocks. Edition: 2nd ed. Many media corporations have developed cross-media content to adapt to this new technological reality. Man on the Moon is a biographical movie with a drama and comedy genre about the late American entertainer, actor, and performance artist named Andy Kaufman. By contrast, digital revenues on local websites have increased for many years, from MEG Annual Reports, various years. A downturn suffered by one subsidiary, for instance, can be counterbalanced by stability, or even expansion, in another division. For instance, when a tsunami strikes, people all over the world hear about it within moments and can mobilize immediately to help. The argument can be made that, instead of appealing to the lowest common denominator in the public, at least some media should give the more informed and critical segment of the people what it wants (Lazere 305). Advantages: Due to diversification, conglomerates can reduce their investment risk. Digital content can be easily pirated and leaked. Chief Executive Officer (CEO) Roles, Responsibilities and FAQs, Self service technologies Definition, Meaning and 10 Examples, Data Warehousing Definition, Types, Advantages and Disadvantages, JioMart launches its Digital-First Holi Campaign targeting Sale from 1st to 8th march, Tata Groups talks over $1 billion Bisleri stake stall, Goodbye Vistara Airlines! The people are considered to be the largest segment of the audience and that should be enough evidence for the media members to make the news tailor made for the viewing public. Media and governments are able to manipulate the social construct to control and impose political motives on society, bringing out the best and the worst of human nature. Cultural Convergence Overview & Examples | What is Cultural Convergence? We also have entertaining programs like music program on the radio and on the television. 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. Other major players are Comcast and Sony. Some of the advantages include minimal control by the government. Media convergence has a number of serious effects on society. 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. Media consolidation can raise quality levels of local programming. Media, and its inherent manipulation, is the face of todays propaganda. Conglomerates offer many benefits to their parent companies. These companies often own a number of smaller companies that operate in different sectors, such as television, radio, films, and the internet. Media convergence is driven by the development of computer technology, such as smartphones. Over the years, technologies have been gradually advancing and have played an important role in todays fast growing societies. Another advantage of this is that what works for the people also works for the media. The societies rely on mass media for information, entertainments and even communications. Powerful acts of political representation can position audiences to perceive the accompanying outcomes and values as either positive or negative. You dont even have to give up your current job to earn your bachelors degree. In the same way, one advantage of a conglomerate is that it is better equipped to retain a general position and be less affected by adverse fluctuations. 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. On top of that, we have daily newspapers, magazines targeting all kinds of readers, and, of course, the immeasurable breadth of the internet. 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. 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. factions are organized and there are many factions inside the U.S. Multi-agency can be defined as the involvement of different corporations which works together to eliminate vital issues or problems in the society. What is Meant by Piercing The Corporate Veil? Diversification results when a company expands its business to areas that are outside its core functions. 2. It decreases competition, commercializes the media, and opens the door to commercial interests' curtailing journalists' independence. 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. A corporation is a conglomerate made up of several distinct enterprises. On one hand, media convergence has expanded access to media, simplified media production, and democratized the base of media producers through user-created content. The target company then becomes a subsidiary of the conglomerate. Conglomeration means a few large media companies own a large proportion of various media. After that TV turned into a fundamental source of assets for the mass communications. Participating in a number of different enterprises might help a conglomerate firm diversify the risks associated with being in only one market. In particular, you should consider earning a BS in Communication. Economic convergence has three parts: digitization, conglomeration, and deregulation. For some small media outlets, consolidation with a corporation means survival. Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career. Conglomerates are usually formed via acquisitions, in which one company buys a controlling stake in another firm. Perhaps the key one is that the specialist skills built up in the original company or group of companies may not be relevant in the newly-acquired entities. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Learn all about media convergence, its definition, and examples, and see the different types of media convergence. From the effects of this merging media, a purely capitalistic society relentlessly forms, diminishing individual rights . The perspectives and working style may be different for different multi-agency, however the core objective of the agency are centred on these three elements (Cheminais, 2009). This article was written by the Bizfluent team, copy edited, and fact checked through a multi-point auditing system, in efforts to ensure our readers only receive the best information. A conglomerate can be made up of many businesses within the same industry or from different industries in order to diversify the business and mitigate financial risk. This can be done through economies of scale and particularly economies of scope. Some of the popular examples of multinational conglomerates are-. Berkshire Hathaway is another conglomerate that has a number of subsidiaries that operate in different markets. In 2014, General Electric (GE) and Alstom, a French company that specializes in rail transportation, announced the formation of a joint venture that would combine their rail businesses. 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. A conglomerate can also show the growth of earnings, this is by acquiring companies who have shares that are more discounted then their own. In-House Departments | Functions, Pros & Cons, Understanding the Role of Books in Mass Communication, Issue Management Process | Public Relations Issues. Media has detrimentally influenced. However, if mass media is used in the right way it can be beneficial to the accessibility of valuable information, When a journalist wants to report an article, interview, survey, etc. Why do economics drive most media companies? On the other hand, it has allowed fake news to spread, facilitated increased surveillance, and allowed for pirating of copyrighted material. Undesirable consequences which occur due to media imperialism are: The former says that, up to a certain point, companies will consistently lower relative costs as they grow, and the latter that advantages can be increasingly gained from complementary services available within a growing entity. There are many services under the media sector which includes Newspaper, TV and radios are the main parts to the factor as their coverage spans over a wider area unlike pressure groups. factions can be small and others can be big, but each one is different. media can be organized? Where would business be without advertising and marketing? What is the How will the print industry survive? The positive and negative aspects of deregulation, Conglomeration advantages and disadvantages, Conglomeration with TV and Movie Industry, Conglomeration changes in the TV and movie industries, Deregulation Changing the Industry for the Better. Honeywell has been able to utilize the synergies between its subsidiaries to create value for shareholders. This trend has met with considerable resistance, but it does provide advantages as well as pitfalls. Why does economics drive most media Companies? One of the most important benefits is that they diversify the risks associated with being in only one market. WHY DOES ECONOMICS DRIVE MOST MEDIA COMPANIES ? I understand my consent is not required to enroll at Walden University, and that I can withdraw my consent at any time. Weve all seen it or been a part of it: a group out to dinner where everyone spends much of the evening staring at their phones or gazing at a TV in the corner. Diversification can, however, have disadvantages. This move to multiple formats does not end with TV. These subsidiaries include GEICO, BNSF Railway, and Berkshire Hathaway Energy. Conglomerates also have a number of disadvantages. Media conglomerates benefit during warfare, currently equaling seven years of more commercial airtime for Iraq updates. Another essential aspect of cultural convergence is the widespread use of social media. 3M is a conglomerate that has a number of subsidiaries that operate in different markets. Media corporations often employ multiple media formats, such as TV, print and the internet to enhance their offerings. For example, in 2013, General Motors (GM) announced that it would be extending its Chevrolet brand into the bicycle market with the launch of a new line of electric bicycles. Here are some advantages of conglomerate diversification: People's spending patterns alter as the economy changes. Due to these media conglomerates the theory of media imperialism evolved which states that due to over concentration of mass, Chris Hedges article, Our Country Is Lost Believing in What It Sees on Screens, and We Are Going to Pay a Nasty Price for It, highlights the negative influence electronic media has on society. Sometimes conglomeration can refer to a time period when many conglomerates . This is done by acquiring smaller companies that are not necessarily related to the corporations existing businesses. Now, we are all connected. A Conglomerate merger is seen as a valuable move if the value of the two companies combined is more than they are valued . The difference in the working is mainly due to the difference in the. On the concluding note, it can be said that conglomerates are the big business houses that have many subsidiaries working under them and conglomerates have their own pros and cons. One popular example of acquisition can be found in the energy sector. It is the backbone of a democracy; it makes us vigilant of numerous social, political and economic activities happening around the world. Conglomerates require less manpower than companies that are not conglomerates. Advantages of a Conglomerate Merger. Media consolidation refers to a trend in which a single company or corporation owns multiple media outlets in a given market (area of distribution or transmission). Let us know in the comments below. That is not to say that digitization has been only a beneficial process. America loves sensationalism. 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. Another aspect of media convergence is economic convergence. It is believed that the government censors as a way to have control not to protect citizens; by knowing more, they have the upper, Before media, politicians and other newsmakers had to rely on word of mouth to communicate the various messages they were espousing. Walden University is an accredited institution offering an online BS in Communication degree program. GE has a number of subsidiaries that operate in different markets. If conglomerates control the mass media, and it is the people who decide what they want to see, then the control of the government is reduced. In this study positive side of media is highlighted as well as negative effects. Media convergence is the process by which multiple media technologies are brought together into one computerized device. In addition, numerous TV and radio programs devote themselves to exploring the world, offering us the chance to discover new things and new ideas, and enlighten ourselves in the process. Advantages of Conglomerate Merger Diversification of Business Gain Synergies Utilization of Excess Cash Improves Customer Base Utilization of Human Resources Economies of Scale Disadvantages of Conglomerate Merger No Past Experience Shift in Focus Complication Governance Issue Horizontal Merger Vertical Merger Conglomerate Merger Concentric Merger To unlock this lesson you must be a Study.com Member. Examples of media convergence are all around us. For example, in 2014, Walmart (WMT) announced that it would be building a new distribution center in Texas that would create more than 500 jobs. "Editorials" (Nation)) Economic convergence refers to the economic strategies (digitalization, conglomeration, deregulation) which occur in response to the advent of these new technologies. Nevertheless, the issues will be addressed from the perspective of the media conglomeration in Malaysia. Media convergence is exemplified by the various computerized devices which people use in their daily lives. Some of the advantages are that there is diversification, which can result in the reduction of investment risk. For example, newspapers often offer digital versions with videos and weblinks. Cameras, microphones, servers, computers and the necessary editing programs have significant costs more easily handled by a corporate entity than an individual owner. The state of global mass communication today can be identified through a discussion of key concepts at play. The Heritage Foundation:The Myth of Media Concentration: Why the FCC's Media Ownership Rules Are Unnecessary. Due to these media conglomerates the theory of media imperialism evolved which states that due to over concentration of mass, A media source which ignores or censors important issues and events severely damages freedom of information. General Electric is one of the largest conglomerates in the world. It has come to our attention that media is changing since its origin. In essence, owners no longer need to try to appeal to the widest possible audience in a single media format. The girl wanted a dog; however, her parents, 0 (1 point) Listen In the case study, how is power and privilege demonstrated in relation to education? In Malaysia, Law such as Publications act and printing presses give the Malaysian authorities the control over all the media. 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. Digitalization facilitates fake news and manipulative media content. Media conglomeration brings more. Definition, Benefits and Techniques. I guess thats a polite way to say. Many of these terms, such as globalization . Thus we can simply say that all this have given rise to cultural imperialism. For example, schools are using these technologies as an alternative way of teaching students. In recent years, rhetoric has triumphed over reality and the general public seem to remain unaware. People get the latest news in a very short time. See also 10+ Advantages and Disadvantages of Technology. they cannot report what people need and/or want to know, they can only report what the government wants the people to know (Censorship Effects on Society). Some of the disadvantages are that Culture clashes can destroy the value of the company; the extra layers of management can increase costs. The computer technologies which have become part of people's everyday lives are the physical site of media convergence trends. Devices such as smartphones, tablets, smart TVs, and smart automobiles spur and facilitate this process. From the television and radio, we receive the news very fast and learn about many subjects like our health and environment. As media companies grow larger and larger, they become more susceptible to bias. You estimated that as a result of the increased competition, the demand elasticity has increased from -2 to -3, ie you face more, 2. Media bias has a very large effect on society and most often in a negative way. Media help to correlate or co-ordinate various parts of the social system by gathering and disseminating valuable information. Consumers' choice & minimal government control. Advantages and Disadvantages of Media Convergence. Before mass media, you could live your entire life knowing nothing about the world outside of your village.