Advantages of a Conglomerate Merger. It has come to our attention that media is changing since its origin. Conglomeration means a few large media companies own a large proportion of various media. Financial Conglomerates have very different compliance requirements from insurance or reinsurance solo entities or groups. Whether looking for information on programs, admissions, or financial aid, we're here to help. 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Riley College of Education and Human Sciences, College of Health Sciences and Public Policy, College of Psychology and Community Services. Diversification. General Electric is one of the largest conglomerates in the world. 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. Some positive consequences of media convergence are the simplification of media creation, the acceleration of media distribution, and the democratization of media production. A , 2012) It acts as powerful agents of socialization by transmitting societys cultural heritage and its basic system of norms and values. Improved Quality Media consolidation can raise quality levels of local programming. Before mass media, you could live your entire life knowing nothing about the world outside of your village. 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. Advantages 1. 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. These numerous technologies are now available in the palm of a person's hand. This can be done through economies of scale and particularly economies of scope. This leads to an overall reduction in earnings. Anyway, it cannot be denied that conglomerates play a very important role in the economy of any country. "Editorials" (Nation)) Advantages of Media Education: Media educates the mass. The deal gave Exxon a controlling stake in one of the worlds largest undeveloped natural gas fields. The definition of media convergence is the process by which previously separate media technologies are brought together by digitization and computer networks. VII. James Gattuso, in the same May 2003 article, offers NBC, MSNBC and msnbc.com as an example of this phenomenon. Advantages and Disadvantages of Media Consolidation Pros of Media Consolidation Media for the Consumers What works for the consumers, works in the media. Therefore, the main aim is to analyse and investigate the working mechanism and different models of multi-agency. Would the alternatives be more ethical or virtuous? With the rise of the internet, even those in democracies can be easily exposed to media designed to drive us to hate or believe in lies. Required fields are marked *. The three C's of media convergence are computing, communication, and content. See also 10+ Advantages and Disadvantages of Technology. How do you know what youre seeing or hearing from mass media is true? They do not have the freedom to express what they really want to which deprives them of their rights. Why do economics drive most media companies? This movie was written by Scott Alexander along with Larry Karaszewski and the movie was directed by a Czech film director, Milos Forman. You estimated that as a result of the increased competition, the demand elasticity has increased from -2 to -3, ie you face more, 2. Boeing is a multinational conglomerate that has a number of subsidiaries that operate in different markets. 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. In-House Departments | Functions, Pros & Cons, Understanding the Role of Books in Mass Communication, Issue Management Process | Public Relations Issues. Media outlets are thus the most pivotal institutions within society. Media convergence and the digital devices that facilitate it are usually divided into various types to describe various phenomena observed as part of the media convergence process. 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). It has also been effective in using the synergies between its subsidiaries for saving on costs and gaining access to new markets and technologies. Expand your career options and earn your degree in a convenient, flexible format that fits your busy life. 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. Efficiency integrating capital/human resources/technologies. Different radio stations with the same music, The effect of deregulation on today's radio. Conglomerates are less popular today, but were quite popular in the 1960s and 1970s. Why are you taking this course? Some of the popular examples of conglomerates around the world are. A multinational conglomerate can benefit from economies of scale and from the ability to operate in multiple markets. Conglomerates require less manpower than companies that are not conglomerates. 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. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Media convergence is not one process but a number of different processes which occur simultaneously and influence one another. A conglomerate benefits the subsidiaries and the parent company by reducing business risks, sharing the resources and increasing its market share in several industries. Media conglomerates benefit during warfare, currently equaling seven years of more commercial airtime for Iraq updates. A conglomerate may keep its poorly performing units for the purposes of diversification, but in doing so, these poor performers may dampen the performance of its more successful parts. This gives the richand those connected to the richa far louder voice than the rest of us. Monopoly. According to Figure 1, only newspaper division has kept declining since 2007. Thus we can simply say that all this have given rise to cultural imperialism. Synergy is the creation of value by two or more entities working together that is greater than the sum of the values of the individual entities. Within a single investment, there will always be negative shocks. A successful conglomerate is a company whose parts are made up of several smaller independent companies that operate in various sectors. I.,& Santa, M., (2014). Diversification results when a company expands its business to areas that are outside its core functions. 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. 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. Media convergence is the process by which multiple media technologies are brought together into one computerized device. I understand my consent is not required to enroll at Walden University, and that I can withdraw my consent at any time. 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. This is done by acquiring smaller companies that are not necessarily related to the corporations existing businesses. The research methods that Sobieraj and Berry use within their argument are quantitative and qulalitative. The TV was a mix of the radio and the newspaper and individuals were interested in it. Andersen, R,.Thomas, H., Kominski, & Gerald. Narrowcasting Background, Use & Examples | What is Narrowcasting? A smartphone or tablet computer puts an entire library, a GPS, a telephone, and a postal service into the palm of the user's hand. Small operations that compete with large operations often suffer for or go under from a lack of resources. Updated: People receive the latest news in a short time. For example, a conglomerate may have a subsidiary that manufactures cars and another subsidiary that manufactures tires. The definition of technological convergence, as its name implies, is the convergence of previously separate physical technologies (print newspapers, television, CDs) into single devices. Economists warn that conglomerates may become too big to function properly. 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. Sony has been able to utilize the synergies between its subsidiaries to create value for shareholders. advertisers and government rather than to the public interest. Media convergence describes the process by which computer devices and digitalization bring together various media technologies. Advantages of Size As a conglomerate grows and acquires more companies, it can increasingly take advantage of the greater flexibility it has to develop newly-bought companies and increase their size and profitability. Create your account. These companies often own a number of smaller companies that operate in different sectors, such as television, radio, films, and the internet. It has its advantages and, unfortunately it also has its disadvantages. 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). These services have drastically changed the kind of media that people view and diversified and democratized the base of people producing this media. Laurentian university declares itself insolvent and subsequently closes a large number of its, Suppose the number of firms you compete with recently increased. Finally to increase learning among children researchers suggests that co-viewing of Parent and children should be promoted in families in Pakistan. 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. Sometimes conglomeration can refer to a time period when many conglomerates . 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. Mass Media Research Concept & Examples | What is Mass Media Research? Organic convergence refers to the way in which one organism can consume multiple types of digital media at one time. Media convergence influences people's lives and society overall in countless ways. What are alternative ways the. The complexity of a conglomerate's accounts make them harder for managers, investors and regulators to analyze, and makes it easier for management to hide issues. It has become easy for . However, there are times when such a firm grows to be unwieldy and inefficient. For example, a book distribution company and a book publishing company can combine together as one company with two services. Conglomeration means a few large media companies own a large proportion of various media. You must have JavaScript enabled to use this form. *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. 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. Copyright 2023 IPL.org All rights reserved. Economic convergence has three parts: digitization, conglomeration, and deregulation. There are very important opportunities that can be exploited, to increase shareholder value. By contrast, conglomerate diversification is the product of two companies that have little in common coming together, which presents a unique set of advantages and disadvantages. An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows: Quantity Price ($) Adults Children 5 15 20 6 14 18 7 13 16 8 12 14. In that while global media has brought about several advantages or rather benefits to the world, there are notable consequences to it as well. All other trademarks and copyrights are the property of their respective owners. On the other hand, it has allowed fake news to spread, facilitated increased surveillance, and allowed for pirating of copyrighted material. Recently conducted studies examine e.g . Powerful acts of political representation can position audiences to perceive the accompanying outcomes and values as either positive or negative. A conglomerate can show earnings growth, by acquiring companies whose shares are more discounted than its own. Conglomerates may also be created when a company extends its operations into new product lines or services. 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. 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. Definition, Benefits and Techniques. The big-company sickness is referred to as this. This is because conglomerates usually have a number of different subsidiaries that operate in different markets. Finally, conglomerates may be less responsive to change than companies that are not conglomerates. Creates a divide between those with access to computer technology and those without. The state of global mass communication today can be identified through a discussion of key concepts at play. The theory of synergy is often used to explain the benefits of conglomerate structures. These subsidiaries include GEICO, BNSF Railway, and Berkshire Hathaway Energy. Another aspect of media convergence is economic convergence. This has lead to a proliferation of bias across the many media companies in existence today. In order to achieve the aforementioned aim of this essay I will focus on the following: limited-effects theory, two-step flow theory, attitude change theory and agenda setting. Are you or your spouse an active or retired U.S. military service member?*. 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. 84 lessons. 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? Thus we can simply say that all this have given rise to cultural imperialism. The United States and many other countries see the internet as a threat and a means of control which is why information of the World Wide Web is censored (Bennett). Technological convergence is the key element of media convergence. I guess thats a polite way to say. Conglomerates can benefit from synergies between their subsidiaries to save on costs. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. Print media take advantage of the internet as well. Learn all about media convergence, its definition, and examples, and see the different types of media convergence. Conglomerates can also benefit from scale economies. This can be seen as an insurance policy for the parent company, as the performance of one subsidiary may offset the performance of another. These subsidiaries include Sony Electronics, Sony Mobile, and Sony Pictures. I feel like its a lifeline. Economic convergence refers to the economic strategies widely adopted in response to technological convergence by media companies. Why does economics drive most media Companies? This is because the content of mass media is very powerful and it has become a agent of socialization which can shape peoples behavior or even influence the ways of how people think. 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. Which of the following is a possible consequence of the growing role of social media sites? Devices such as smartphones, tablets, smart TVs, and smart automobiles spur and facilitate this process. For example, schools are using these technologies as an alternative way of teaching students. Sony is a multinational conglomerate that has a number of subsidiaries that operate in different markets. Media is one of the most influential aspects of our lives. OC disadvantages 1 San Francisco : Jossey-Bass. VI. Later the radio provided another source to achieve the majority. 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. These structures can create a capital market within the group to allow growth of the conglomerate. This review study shed light on the debate over positive and negative aspects of media. In particular, you should consider earning a BS in Communication. It is the backbone of a democracy; it makes us vigilant of numerous social, political and economic activities happening around the world. Tracking of computer programs threatened personal privacy and had led to greater surveillance. Another disadvantage of conglomerates is that they may be less efficient than companies that are not . The Uses and Gratifications Approach sees the gathering of people as dynamic, implying that they effectively search out particular media and substance to accomplish certain outcomes or delights that fulfill their own needs. In Malaysia, Law such as Publications act and printing presses give the Malaysian authorities the control over all the media. Management's attention can be drawn thin due to layers of management to every conglomerate company. Digitalization facilitates fake news and manipulative media content. A conglomerate is sometimes referred to as an umbrella company, since it includes several different companies that have been combined together through takeovers or mergers (or both). 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 faction is basically a group of people who all agree upon the same thing and their point of view is different from other factions. Mass media is communication whether written, broadcast, or spoken to reaches a large audience. Commercially driven ultra-powerful mass market media is primarily loyal to sponsors i.e. This is because a conglomerate is usually composed of a number of different subsidiaries that operate in different markets. As media companies grow larger and larger, they become more susceptible to bias. Your email address will not be published. Viacom, a leading global media company, was formed in the 1970s by Central Broadcasting System (CBS). On top of that, we have daily newspapers, magazines targeting all kinds of readers, and, of course, the immeasurable breadth of the internet. The vast majority of business carried out in the United States is conducted by companies that have been incorporated. How has Conglomeration Changed the Movie and Telev Conglomeration of the movie and television industry, Motion Industry and The Effects of Conglomeration. 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. 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. Cultural Convergence is the way in which people experience cultural phenomena across a variety of different media platforms. Series. With a bachelor degree in communication, you can gain the knowledge you need to work in a wide variety of communication jobs. Bollywood, the nickname for the Indian film industry, is an example of how global convergence brought the influence of American Hollywood culture to the Indian film industry. 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. In order to handle this, the corporation may sell off its holdings. A Conglomerate merger is seen as a valuable move if the value of the two companies combined is more than they are valued . 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. The Article 10 allows all citizens the absolute freedom as not restricted by the government. Conglomerate Merger: A conglomerate merger is a merger between firms that are involved in totally unrelated business activities .

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