This has lead to a proliferation of bias across the many media companies in existence today. Another aspect of media convergence is economic convergence. Media function as social control agents by gathering information, the media engage in surveillance of the social environment. With a bachelor degree in communication, you can gain the knowledge you need to work in a wide variety of communication jobs. Smartphones combine numerous technologies which used to be available on separate devices: a computer, a watch, an alarm clock, a GPS, a newspaper, a credit card, etc. 3M has been able to utilize the synergies between its subsidiaries to create value for shareholders. While some sources of information are far more trustworthy than others, mass media as a whole is vulnerable to propaganda and its lies. All rights reserved. Advantages And Disadvantages Of Cartels 712 Words | 3 Pages. 14. Also a conglomerate can create internal capital market if one of the external companies are not developed fully. Deregulation refers to government deregulation over . Any act that against this law may lead to fines or in much extreme cases, prison sentence. Fiat Chrysler is a conglomerate that has a number of subsidiaries that operate in different markets. is a modern generalized description.(Michael Pertschuck, and Scott Sherman, (1999). Conglomerates can also benefit from synergies. Why are you taking this course? This limitation of scope goes hand-in-hand with another benefit: improved quality. Dongfeng Motor is a conglomerate that has a number of subsidiaries that operate in different markets. 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. 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. Tracking of computer programs threatened personal privacy and had led to greater surveillance. That is not to say that digitization has been only a beneficial process. But is this a good thing? Synergies are created when two businesses come together and create efficiencies or cost savings by sharing resources, ideas, or knowledge. Hugh Zimmerbaum is a prospective PhD student in Slavic Languages and Literatures; After earning his BA degree in Literature with a concentration in Russian Studies in 2018, he spent two years as an EFL teacher in Russia. While mass media can create opportunities for anyone to share their story, the vast majority of our mass media is bought. Though many positive attributes exist in the media, there are inevitably negatives as well. It is the image that gives us our identity. These subsidiaries include Ferrari, Maserati, and Fiat Chrysler Automobiles. 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. 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. Hedges states, It is the electronic image that informs and defines us. Conglomerate Mergers: Definition, Purposes, and Examples - Investopedia Air India to discontinue Vistara after merger, DS Group Partners with Lderach (Swiss Chocolate Maker), Castrols unveils a New Logo and a Refreshed Brand Identity. What are the advantages and disadvantages of conglomerates? The two companies merged to form DowDuPont Inc. (DWDP), a new company that would be equally owned by shareholders of both firms. Magic Bullet Theory Overview & Effects | Hypodermic Needle Theory. Diverse media products alternative outlets offered by subsidiaries. The big-company sickness is referred to as this. The Advantages of Media Consolidation | Bizfluent 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. Within the media industry, more ratings equal a higher profit. Media Convergence | Examples & Explanation - Study.com In the context of Anglo-America, domination could not be possible without the assistance of media which strives to expand its hegemony while fending off challenges and interventions from the very classes and groups it seeks to subjugate," (Split Image, African Americans in the Mass Media). Conglomerate diversification is a strategy employed by large corporations to expand their businesses into new and unrelated sectors. Is this kind of fraud an inevitable result of corporate expansion or can the profit motive that undergirds, Identify the answer that uses a compound sentence to combine the following two sentences.The girl wanted a dog.Her parents bought her a fish. Conglomerate Merger: A conglomerate merger is a merger between firms that are involved in totally unrelated business activities . 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. Now, we are all connected. 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. Advantages and Disadvantages of Conglomerates - 2264 Words - EssayBizLab As a result, the conglomerate may find it difficult to utilize its economies of scale to save on costs. Undesirable consequences which occur due to media imperialism are: Efficiency integrating capital/human resources/technologies. 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. Finally, conglomerates may be less responsive to change than companies that are not conglomerates. Media convergence is driven by the development of computer technology, such as smartphones. 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. Let us know in the comments below. - Definition & Explanation, Media Effects: Definition, Effects & Beliefs, What is Mass Media Research? What is Conglomerate Diversification? (with picture) - Smart Capital Mind The enactment of the Multimedia and Communication Act 1998 strategises the local broadcasting industry for a positive and competitive future. 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. Conglomerates can become so diversified and complicated that they are too difficult to manage efficiently. This can be done through economies of scale and particularly economies of scope. According to Figure 1, only newspaper division has kept declining since 2007. 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 main objective of this research paper is to identify the working process and to recognize the challenges in the working mechanism. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. (Yeh. Are conglomerates good for the economy? Another disadvantage of conglomerates is that they may be less efficient than companies that are not . Conglomeration has change the industry in the fields of movies and television in such that now both industries can combine into one big company that can do multiple things. Most of the media firms have started to implement a 360-degree strategy that integrates content decisions shaped by the potential to generate consumer value and returns through multiple platforms of expression of that content via a number of distribution outlets (Doyle, 2010). Devices such as smartphones, tablets, smart TVs, and smart automobiles spur and facilitate this process. *Federal Communications Commission, Broadcast Station Totals as of September 30, 2016, on the internet as a PDF at. Smartphones, tablet computers, smart televisions, and even automobiles now provide people with access to media content that was previously available only through separate channels. 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. For example, Berkshire Hathaway has been able to use the synergies between its subsidiaries to save on costs and gain access to new markets and technologies. Diversification results when a company expands its business to areas that are outside its core functions. 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. One potential way of maximizing returns is to form conglomerates, which are huge entities comprising many and different companies and types of businesses. Conglomerates can benefit from synergies between their subsidiaries to save on costs. From reporters bringing us stories of people in difficult situations to social media allowing one persons thoughts to go viral and spread across the world, mass media can lift up an individual voice that would otherwise have gone unheard. Conglomerate (company) - Wikipedia OC disadvantages 1 Management's attention can be drawn thin due to layers of management to every conglomerate company. It also has been able to utilize the synergies between its subsidiaries that created value for shareholders. Similarly, an overall return will not highlight problems that may exist in some of the component companies, which may increasingly inhibit profitability. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Different radio stations with the same music, The effect of deregulation on today's radio. 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. WHY DOES ECONOMICS DRIVE MOST MEDIA COMPANIES ? 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. Impacts of Media Conglomerates' Dual Diversification on Financial Economic convergence refers to the economic strategies (digitalization, conglomeration, deregulation) which occur in response to the advent of these new technologies. Media has very important roles to play in democracy such as; projecting the problems of the people to the public, and protecting the fundamental rights given in a Constitution. User-created content has disrupted established practices in media companies and narrowed the gap between professional and amateur media content creation. 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. Media has detrimentally influenced. 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. 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. Some of the popular examples of multinational conglomerates are-. Citizen Journalism Overview & Examples | What is Citizen Journalism? Cameras, microphones, servers, computers and the necessary editing programs have significant costs more easily handled by a corporate entity than an individual owner. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Until fairly recently the most up to date news had to be heard through the grapevine or read in a newspaper. The new company, known as GE Alstom, was jointly owned by both GE and Alstom. The use of multiple formats allows media companies to offer extensive additional information. Conglomerates offer a number of advantages, including economies of scale, greater financial stability, and access to new markets. It has been contaminated by political influences. These subsidiaries include Sony Electronics, Sony Mobile, and Sony Pictures. After that TV turned into a fundamental source of assets for the mass communications. Cultural Convergence Overview & Examples | What is Cultural Convergence? July 9, 2022 By Hitesh Bhasin Filed Under: Business. The majority of conglomerates offer a variety of products and services that arent always connected. How has Conglomeration Changed the Movie and Telev Conglomeration of the movie and television industry, Motion Industry and The Effects of Conglomeration. However, they found this was an unreliable method of communication and the first newspapers and other media mediums were created. An error occurred trying to load this video. This is because a conglomerate is usually composed of a number of different subsidiaries that operate in different markets. Lack of focus, and inability to manage unrelated businesses equally well. I feel like its a lifeline. Media convergence has had major effects on all sorts of media: entertainment media, news media, social media, etc. Deregulation refers to government deregulation over these companies' size and functions. The research methods that Sobieraj and Berry use within their argument are quantitative and qulalitative. Organic convergence is when one person uses multiple media technologies at once. 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. 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. Economic convergence has three parts: digitization, conglomeration, and deregulation. Media help to correlate or co-ordinate various parts of the social system by gathering and disseminating valuable information. "Editorials" (Nation)) If youre interested in mass media, there are plenty of opportunities to make this field a career. Rather, they can tailor programming to serve the needs of different segments of the viewing population. 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. - Definition, Types, Influence & Examples, What Is Media Convergence? Advantages 1. 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.) Powerful acts of political representation can position audiences to perceive the accompanying outcomes and values as either positive or negative. Some of the advantages include minimal control by the government. *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. 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. While some enter the field with a business degree, a communication degree may better prepare you for the full breadth of careers available in mass media. This can be seen as an insurance policy for the parent company, as the performance of one subsidiary may offset the performance of another. As a result, they have transferred a considerable amount of their delivery channels from print to online format. A Conglomerate merger is seen as a valuable move if the value of the two companies combined is more than they are valued . Get unlimited access to over 88,000 lessons. By contrast, digital revenues on local websites have increased for many years, from MEG Annual Reports, various years. 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. Why does economics drive most media Companies? Global Mass Communication: pros, cons and the driving force behind it. 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. 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. A conglomerate can also show the growth of earnings, this is by acquiring companies who have shares that are more discounted then their own. Therefore, the main aim is to analyse and investigate the working mechanism and different models of multi-agency. As media companies grow larger and larger, they become more susceptible to bias. When confronted with said evidence, most media members blame it on education. The demise of mom-and-pop grocery stores at the hands of chain supermarkets serves as an analogue to the likely fate of small media outlets. How do you know what youre seeing or hearing from mass media is true? How will the Patient Protection, affect liability insurance costs? All told, we have more ways to reach more people than weve ever had in the history of humankind. This is because conglomerates usually have a number of different subsidiaries that operate in different markets. The theory of synergy is often used to explain the benefits of conglomerate structures. A viewer can pursue a topic on the internet about which they saw a news report, such as new stock offering, so the TV programming does not need to spend extensive time covering it. Pure . Smartphones, tablets, and other smart devices offer a plethora of services that used to only be available through various, unconnected technologies. Would the alternatives be more ethical or virtuous? Consumers' choice & minimal government control. 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. Here are some advantages of conglomerate diversification: People's spending patterns alter as the economy changes. Only a few companies representing the interests of a minority elite control the public airwaves. James Gattuso, in the same May 2003 article, offers NBC, MSNBC and msnbc.com as an example of this phenomenon. For example, schools are using these technologies as an alternative way of teaching students. 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. Conglomerate Merger: Definition, Examples, Best Practices - DealRoom 11) Beefing up media bias Print media take advantage of the internet as well. Also Read Chain Store: Definition, Types, Advantages and Disadvantages. 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. Technological convergence is also sometimes referred to as digital device convergence. Before mass media, art and culture were more localized, so they reflected diversity in how people spoke, dressed, and entertained themselves. Since the creation of the internet and the mass media that comes with it, information can now be spread all the way across the world in the time it takes to hit the enter button on a computer or phone and upload it to the internet. Instead of radio broadcasts, there are wartime journalists that travel to places like Syria and Iraq to document war. Business industries are using it to increase business efficiencies. Media consolidation can raise quality levels of local programming. In order to handle this, the corporation may sell off its holdings. Advantages and Disadvantages of Media - A Plus Topper advantages in society, and have limitations restricting them or their rights. Definition, Benefits and Techniques. Media outlets are thus the most pivotal institutions within society. 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 '. It has become easy for . In October 2016, Exxon Mobil Corporation (XOM) announced that it would be acquiring InterOil Corporation (IOC), an oil and gas exploration and production company with assets in Papua New Guinea, for $2.5 billion. A significant offshoot of social media has been the rise of user-created content. All other trademarks and copyrights are the property of their respective owners. Thus we can simply say that all this have given rise to cultural imperialism. Global Village Overview & Concept | What is a Global Village? Conglomeration: The process by which a conglomerate is created, as when a parent company begins to acquire subsidiaries. Citizen Journalism: Advantages & Disadvantages. They are generally large and multinational. What is Meant by Piercing The Corporate Veil? Without mass media, we would have far less ability to understand how were all connected and how we all need each another. Accounting disclosure is less useful information, many numbers are disclosed grouped, rather than separately for each business. Although the acquisition of more and more companies may potentially enable better overall performance during business cycle fluctuations, this may not always be the case. What is media convergence? Participating in a number of different enterprises might help a conglomerate firm diversify the risks associated with being in only one market. The Pros and Cons of Media Consolidation That are Worth Knowing 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). Laurentian university declares itself insolvent and subsequently closes a large number of its, Suppose the number of firms you compete with recently increased. This leads to an overall reduction in earnings. One advantage to media consolidation is the ability to provide more diverse offerings to the consumer. The returns from high performing business units within the conglomerate compensates for the low performing ones. Conglomeration advantages and disadvantages - Blogger Conglomerates are often large and multinational . Create your account. Groups of people that hold a certain belief or have an idea different from other groups. Consider the ethics of media conglomerates. 2023 Walden University LLC. United States [ edit] Conglomerates can also be created through mergers, which occur when two companies of approximately equal size combine to form a new company. HARM than MERITS. The difference in the working is mainly due to the difference in the. A multinational conglomerate can benefit from economies of scale and from the ability to operate in multiple markets. For example, smartphones can do the jobs which newspapers, GPS's, and telephones used to accomplish separately. Why Conglomerates Get Formed Within a single investment, there will always be negative shocks. One popular example of acquisition can be found in the energy sector. I guess thats a polite way to say. Some conglomerates own a series of companies . In this study positive side of media is highlighted as well as negative effects. Those concepts are: globalization, media concentration or conglomeration, electronic colonialism, and consumerism. Conglomerates can also benefit from scale economies. This limitation of scope goes hand-in-hand with another benefit: improved quality. At its worst, its a way for a tiny minority to seize power over the vast majority. 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. Conglomerates are less popular today, but were quite popular in the 1960s and 1970s. 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. Plus, get practice tests, quizzes, and personalized coaching to help you 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). 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. However, there are times when such a firm grows to be unwieldy and inefficient. Whether looking for information on programs, admissions, or financial aid, we're here to help. Global Convergence refers to the influence of media from different cultures spreading across the globe. Finally to increase learning among children researchers suggests that co-viewing of Parent and children should be promoted in families in Pakistan. One implication is that media economic research is mostly focused on media conglomerates like Bertelsmann, Disney, News Corporation, Time Warner and Viacom. 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. I.,& Santa, M., (2014). Central Broadcasting System created Viacom in an effort to own cable television systems and to syndicate its own programs. A conglomerate is a multi-industry company, such as General Electric and NBC Universal, that includes multiple business enterprises operating in distinct industries under the same corporate umbrella. For example, a conglomerate may have a subsidiary that manufactures cars and another subsidiary that manufactures tires. Digitalization facilitates fake news and manipulative media content. Which is to say, mass media simultaneously benefits us and creates new problems. As a result, the conglomerate can gain access to new markets and technologies through its subsidiaries and have many shareholders. A conglomerate is a large, diverse company made up of many smaller businesses. 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. Advantages and Disadvantages of Principal Communications Media . This has made many daily tasks easier for people, such as looking up a recipe or getting directions for a trip. The main disadvantages of the conglomerate model are as follows. This is because different subsidiaries operate in different markets and empower the large corporation to further enter into other sectors and increase profitability. Honeywell has been able to utilize the synergies between its subsidiaries to create value for shareholders. Viacom, a leading global media company, was formed in the 1970s by Central Broadcasting System (CBS).