Media convergence influences people's lives and society overall in countless ways. In this study positive side of media is highlighted as well as negative effects. This can be done through economies of scale and particularly economies of scope. Diversification. 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 '. 3. But along with conglomeration come many advantages and disadvantages. Newspapers such as the NY Times, Denver Post and USA Today maintain websites, as do major magazines such as Time and Newsweek. In The Outrage Industry, Berry and Sobieraj argue that the topic of media outrage is very multidimensional. With the help of television or radio shows, the mob discovers various facts about health affairs, environmental preservation, and many more topics of relevance. 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. I feel like its a lifeline. A multinational conglomerate can benefit from economies of scale and from the ability to operate in multiple markets. James Gattuso, in the same May 2003 article, offers NBC, MSNBC and msnbc.com as an example of this phenomenon. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Cultural convergence is the way in which cultural output is affected by these developments, such as through trans-media storytelling and social media use. By submitting this form, I provide my signature, expressly consenting to calls, emails and/or texts regarding my educational options from Walden University and its affiliates and contractors using an automated dialing system to the number and email address provided. Thus we can simply say that all this have given rise to cultural imperialism. Digitalization facilitates fake news and manipulative media content. Why does economics drive most media companies. In that while global media has brought about several advantages or rather benefits to the world, there are notable consequences to it as well. Taking a look at the different Why Does Economics Drive Most Media Companies? Some of the ways through which companies conglomerate are-. How has Conglomeration Changed the Movie and Telev Conglomeration of the movie and television industry, Motion Industry and The Effects of Conglomeration. Also, read about its importance, pros, and cons. Organic convergence refers to the way in which one organism might use multiple media functions at one time (e.g., watching a movie on the internet while chatting online with a friend and googling a new recipe for dinner). As a result, they have transferred a considerable amount of their delivery channels from print to online format. While its true that mass media has its positives and negatives, its also true that mass media isnt going away. One of the most important benefits is that they diversify the risks associated with being in only one market. Print media take advantage of the internet as well. Excessive commercialization. Here are a few of the pros and cons. This has lead to a proliferation of bias across the many media companies in existence today. Increasingly, taking cross-enterprise synergy into account is essential for investors to properly evaluate future prospects has been done by GE effectively. By becoming a diversified conglomerate across several industrial sectors, the parent company may reduce its exposure to single market risk. Media convergence has a number of serious effects on society. HARM than MERITS. Among all of the technologies, the one that has the most important aspect in peoples lives is the mass media. 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. 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. 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. The computer technologies which have become part of people's everyday lives are the physical site of media convergence trends. asiarenee91", https://en.wikipedia.org/w/index.php?title=Conglomerate_(company)&oldid=1131567023. Now, the entire world often sees and hears the same cultural influences. From the television and radio, we receive the news very fast and learn about many subjects like our health and environment. But is this a good thing? Faulty advertisement tactics: Drug and alcohol use appears cool in this medium, which can be harmful to a country's youth. Do you think they are good or bad for the economy? Audiences are seen as capable of manipulating the media in an infinite variety of ways according to their prior needs and dispositions and as having access to what Halloran calls 'the plural values of society ' enabling them to 'conform, accommodate or. The main disadvantages of the conglomerate model are as follows. These structures can create a capital market within the group to allow growth of the conglomerate. Conglomerates can also benefit from scale economies. A newspaper company may begin by acquiring television and radio stations before purchasing book publishers. 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. media conglomerates: Technological convergence is the key element of media convergence. Conglomerates can become so diversified and complicated that they are too difficult to manage efficiently. advertisers and government rather than to the public interest. Conglomerates can also be created when a company expands its operations into new markets or industries. 84 lessons. Media convergence is exemplified by the various computerized devices which people use in their daily lives. This includes television, radio, advertising, movies, internet, newspapers, and magazines. From the in-depth movie analysis, this essay will be able to show that the media is able to influence the people and their stance towards certain topics by applying these media theories: agenda setting through gatekeeping, dramatization, and two-step flow of communication. In the political context, this could be how citizens react to a speech a politician has made, commentary between politicians aired on television, and or commentary between political journalists. The definition of technological convergence, as its name implies, is the convergence of previously separate physical technologies (print newspapers, television, CDs) into single devices. You dont even have to give up your current job to earn your bachelors degree. There are very important opportunities that can be exploited, to increase shareholder value. But in the long run by conglomeration both industries will profit off of it because they will be able to widen the spectrum of their companies which means that they will be able to produce more shows and movies at once. Why Conglomerates Get Formed Only a few companies representing the interests of a minority elite control the public airwaves. In-House Departments | Functions, Pros & Cons, Understanding the Role of Books in Mass Communication, Issue Management Process | Public Relations Issues. This means that with overall control being exercised by a management that does not fully comprehend the forces that drive success in some of its component parts, a conglomerate can become a confusing and dysfunctional entity that is not maximizing all of its potential. A Conglomerate merger is seen as a valuable move if the value of the two companies combined is more than they are valued . At its best, this is unfair. After that TV turned into a fundamental source of assets for the mass communications. This type of company formation is distinctly different from other types and has many advantages. 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. A downturn suffered by one subsidiary, for instance, can be counterbalanced by stability, or even expansion, in another division. Try refreshing the page, or contact customer support. The theory of synergy is often used to explain the benefits of conglomerate structures. 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. advantages in society, and have limitations restricting them or their rights. One popular example of acquisition can be found in the energy sector. 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. Mass Media Research Concept & Examples | What is Mass Media Research? Totalitarian regimes have used mass media for nearly a century to control what their people believe. Required fields are marked *. The author provides a realistic insight into the negative effects of electronic media. "Media conglomerates strive for policies that facilitate their control of the markets around the world." The message are primarily about reinforcing shared ideals such as justice, individualism, democracy and respect for the law. What is the e Why does economics drive most media companies? 3M is a conglomerate that has a number of subsidiaries that operate in different markets. These subsidiaries include Boeing Commercial Airplanes, Boeing Defense, Space & Security, and Jeppesen. There are two parts of the credit agreement, the 8-year term loan and the penny warrants. July 9, 2022 By Hitesh Bhasin Filed Under: Business. Before mass media, art and culture were more localized, so they reflected diversity in how people spoke, dressed, and entertained themselves. - Definition & Explanation, Media Effects: Definition, Effects & Beliefs, What is Mass Media Research? Some of these effects are positive, especially as concerns convenience, accessibility, and access to information: Not all the effects of media convergence have been positive, however. Personal Injury: Stunts portrayed in the media have led to severe injuries for some people who do them. It has been able to reduce costs and gain access to new markets and technologies by leveraging the synergies among its subsidiaries. Andersen, R,.Thomas, H., Kominski, & Gerald. Media conglomerates such as Viacom, represents the historical and present ideas of consolidation and convergence. Here are some advantages of conglomerate diversification: People's spending patterns alter as the economy changes. Control of the media is said to be in the hands of an autonomous managerial lite who allow a considerable degree of flexibility to media professionals. Media convergence is a transformative process and has had major effects on people's lives and society as a whole. Media conglomeration brings more. Economists warn that conglomerates may become too big to function properly. However, there are times when such a firm grows to be unwieldy and inefficient. 1. Those involved in multimedia studies have been answering this question in different ways for many years. What are alternative ways the. Conglomeration means a few large media companies own a large proportion of various media. Course Hero is not sponsored or endorsed by any college or university. Media outlets are thus the most pivotal institutions within society. Conglomerates also have a number of disadvantages. - Definition & Overview, Franchisee in Marketing: Definition & Explanation, Influencer in Marketing: Definition & Overview, Intangibility in Marketing: Definition & Overview, Learned Behavior in Marketing: Definition, Types & Examples, Marketing Orientation: Definition & Examples, Schedule Variance: Definition, Formula & Calculation, Working Scholars Bringing Tuition-Free College to the Community, Speeds up and expands possibilities of media content distribution, Users can access multiple types of media on one device, Democratization of media (anyone can produce media on a social media website), Expands access to information (anyone with an internet connection can listen to open courses from American universities, for example). First, conglomerates tend to have mixed results from their various business units. Previously researchers have found that all types of electronic media whether its TV or computer or internet or social media have negative impact on children but now researchers are focusing on educational aspect of media and how educational programs can help in developing cognitive thinking among children. In the same way, big conglomerates further enjoy upsides from synergies between their subsidiaries to create scale economies, diversify risks, and create new products and services as per their business interests. In fact. 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. A conglomerate is a business model in which many companies are collected into a single large corporation owned by a parent company. Its like a teacher waved a magic wand and did the work for me. On top of that, we have daily newspapers, magazines targeting all kinds of readers, and, of course, the immeasurable breadth of the internet. Mergers and acquisitions are two ways to establish a conglomerate. Accounting disclosure is less useful information, many numbers are disclosed grouped, rather than separately for each business. A successful conglomerate is a company whose parts are made up of several smaller independent companies that operate in various sectors. The involvement of ranges of professionals in an integrated way provides a strong platform which helps to attain a positive outcome for the young generation and the children. 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It has become easy for . Consider the ethics of media conglomerates. 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. Economic convergence has three parts: digitization, conglomeration, and deregulation.
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