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. All rights reserved. Media convergence is a transformative process and has had major effects on people's lives and society as a whole. Like any other business, the purpose of the media is to earn profit and the only way they can do so, is by providing the viewers with whatever they want. 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. 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. Conglomerates also have access to new markets and technologies. 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. 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. Cultural Convergence is the way in which people experience cultural phenomena across a variety of different media platforms. 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? Here are a few of the pros and cons. Consumers' choice & minimal government control. Thirdly and finally, it will give . The working in partnership the key element of multi-agency, therefore the working of the multi-agency is faces variety of changes, however the perspectives and approach of the agency is supported by the government to enhance social condition, education and health facilities (Atkinson, 2005). is a modern generalized description.(Michael Pertschuck, and Scott Sherman, (1999). 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. Here are a few of the pros and cons. Viacom, a leading global media company, was formed in the 1970s by Central Broadcasting System (CBS). Media help to correlate or co-ordinate various parts of the social system by gathering and disseminating valuable information. First, conglomerates tend to have mixed results from their various business units. Finally to increase learning among children researchers suggests that co-viewing of Parent and children should be promoted in families in Pakistan. Conglomerates more easily run the risk of being, This page was last edited on 4 January 2023, at 19:05. 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. 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 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. Citizen Journalism: Advantages & Disadvantages. One of the most important benefits is that they diversify the risks associated with being in only one market. While its true that mass media has its positives and negatives, its also true that mass media isnt going away. Anyway, it cannot be denied that conglomerates play a very important role in the economy of any country. 3M has been able to utilize the synergies between its subsidiaries to create value for shareholders. While diversity still clearly exists, there is the risk that mass media might reduce cultural variety, leaving us with less art and fewer inspirations. Advantages of a Conglomerate Merger. Fiat Chrysler is a 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. Your email address will not be published. Media conglomerates benefit during warfare, currently equaling seven years of more commercial airtime for Iraq updates. A newspaper company may begin by acquiring television and radio stations before purchasing book publishers. 3. With a bachelor degree in communication, you can gain the knowledge you need to work in a wide variety of communication jobs. From the effects of this merging media, a purely capitalistic society relentlessly forms, diminishing individual rights . In short, the effect of mass medias influence is complicated. It has also been effective in using the synergies between its subsidiaries for saving on costs and gaining access to new markets and technologies. 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. GE has a number of subsidiaries that operate in different markets. Which is to say, mass media simultaneously benefits us and creates new problems. The use of multiple formats allows media companies to offer extensive additional information. Monopoly. From newspapers and radios to televisions and social networks, the various forms of media have provided the public with more knowledge and accessibility to information and connectivity to others than ever before. Copyright 2023 All rights reserved. For example, smartphones can do the jobs which newspapers, GPS's, and telephones used to accomplish separately. Its like a teacher waved a magic wand and did the work for me. This review study shed light on the debate over positive and negative aspects of media. Organic convergence refers to the way in which one organism can consume multiple types of digital media at one time. In general, the mass media simply means medium that gives out information. Economic convergence has three parts: digitization, conglomeration, and deregulation. They also benefit from synergies between its subsidiaries to gain access to new markets and technologies. "Media conglomerates strive for policies that facilitate their control of the markets around the world." At its worst, its a way for a tiny minority to seize power over the vast majority. On one hand, media convergence has expanded access to media, simplified media production, and democratized the base of media producers through user-created content. Deregulation refers to government deregulation over . Conglomerate diversification is a strategy employed by large corporations to expand their businesses into new and unrelated sectors. I feel like its a lifeline. But along with conglomeration come many advantages and disadvantages. 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. There are two parts of the credit agreement, the 8-year term loan and the penny warrants. It educates people. 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. Personal Injury: Stunts portrayed in the media have led to severe injuries for some people who do them. Conglomerates can become so diversified and complicated that they are too difficult to manage efficiently. 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. By becoming a diversified conglomerate across several industrial sectors, the parent company may reduce its exposure to single market risk. This has lead to a proliferation of bias across the many media companies in existence today. The whole is often worth less than the sum of its parts. This can be seen as an insurance policy for the parent company, as the performance of one subsidiary may offset the performance of another. Conglomerates can also benefit from synergies. Contemporary Journalism & Its Role in Society, The Media Industry: Roles, Impact & Ethics. Only a few companies representing the interests of a minority elite control the public airwaves. Economists warn that conglomerates may become too big to function properly. For instance if a particular movie and television industry were to combine they can put out a television show then sometime down the road the movie side of the corporation can make a movie of the television show. Though many positive attributes exist in the media, there are inevitably negatives as well. Here are some advantages of conglomerate diversification: People's spending patterns alter as the economy changes. It has become a major factor in the society as people are depending on it to accomplish specific tasks. This review study shed light on the debate over positive and negative aspects of media. This limitation of scope goes hand-in-hand with another benefit: improved quality. It consists of televisions, radios, newspapers and the internet. A conglomerate is a business model in which many companies are collected into a single large corporation owned by a parent company. Any act that against this law may lead to fines or in much extreme cases, prison sentence. 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. The aforementioned two subsidiaries can help conglomerates to gain access to new markets and technologies. Citizen Journalism Overview & Examples | What is Citizen Journalism? How do you know what youre seeing or hearing from mass media is true? On top of that, we have daily newspapers, magazines targeting all kinds of readers, and, of course, the immeasurable breadth of the internet. According to Lorimer et al, why does public policy "place a heavy emphasis on being able to exert national control over the broadcasting sector"? Diversification can, however, have disadvantages. 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. Finally, conglomerates may be less responsive to change than companies that are not conglomerates. 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! Fake news, increased surveillance, and even political instability have been tied to transformations in the media content landscape. Organic convergence is when one person uses multiple media technologies at once. 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. 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. One of the most important disadvantages is that they can be very complex and difficult to manage. Conglomerate firms often have greater access to capital markets and can spread research and development costs over a larger number of businesses. Newspapers such as the NY Times, Denver Post and USA Today maintain websites, as do major magazines such as Time and Newsweek. 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. Diversification results in a reduction of investment risk. Mass media can be divided into two categories, which is the print media include like newspaper, magazines, and books. Music, film, television, and publishing industries have suffered economically due to copyright infringement and loss of audience. Media Effects Theory, Beliefs & Influences | What is Media Effect? A. Business industries are using it to increase business efficiencies. 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. The definition of technological convergence, as its name implies, is the convergence of previously separate physical technologies (print newspapers, television, CDs) into single devices. In a sense, there is more honesty in journalism, but media still controls and manipulates peoples opinions, and is therefore just another iteration of World War II propaganda. Moreover, technological convergence has seen the rise of social media journalism. 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. Conglomerates offer many benefits to their parent companies. 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. Diversification results when a company expands its business to areas that are outside its core functions. Smartphones, tablets, and other smart devices offer a plethora of services that used to only be available through various, unconnected technologies. The three C's of media convergence are computing, communication, and content. For example, a book distribution company and a book publishing company can combine together as one company with two services. Excessive commercialization. Doing so may also assist the parent company to save money on operational costs while at the same time requiring less manpower. Today, the media has many vital roles in a modern democracy such as; political lies, reviling the truth to the public as well as helping to aid with the hypocrisy of the nation. Creates a divide between those with access to computer technology and those without. 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. Why are you taking this course? Dongfeng Motor is a conglomerate that has a number of subsidiaries that operate in different markets. The theory was contemporary since it repudiated more seasoned perspectives that expected the gathering of people was an inactive gathering. These numerous technologies are now available in the palm of a person's hand. Magic Bullet Theory Overview & Effects | Hypodermic Needle Theory. July 9, 2022 By Hitesh Bhasin Filed Under: Business. Nevertheless, the issues will be addressed from the perspective of the media conglomeration in Malaysia. 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. Some of the popular examples of conglomerates around the world are. Media function as social control agents by gathering information, the media engage in surveillance of the social environment. 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. 2023 Walden University LLC. A successful conglomerate is a company whose parts are made up of several smaller independent companies that operate in various sectors. HARM than MERITS. To put it another way, a corporation that is composed of different combined companies to sell a variety of goods and services is known as a conglomerate. Participating in a number of different enterprises might help a conglomerate firm diversify the risks associated with being in only one market. - Definition & Examples, Influence of Media Reports on Public Policy and Opinion, Media Bias & Criticism: Definition, Types & Examples, Practical Application: Evaluating the Impact of Media Bias, Media's Influence on the Public's Political Attitudes, Introduction to Management: Help and Review, Business Math Curriculum Resource & Lesson Plans, Principles of Microeconomics Syllabus Resource & Lesson Plans, Introduction to Public Speaking: Certificate Program, DSST Principles of Public Speaking: Study Guide & Test Prep, Praxis Family and Consumer Sciences (5122) Prep, CLEP Financial Accounting: Study Guide & Test Prep, Introduction to Financial Accounting: Certificate Program, High School Marketing for Teachers: Help & Review, UExcel Workplace Communications with Computers: Study Guide & Test Prep, Principles of Macroeconomics: Certificate Program, Effective Communication in the Workplace: Certificate Program, Emerging Technologies & Trends in Digital Marketing, Environmental Planning in Management: Definition & Explanation, Global Market Entry, M&A & Exit Strategies, Global Market Penetration Techniques & Their Impact, Pros & Cons of Outsourcing Global Market Research, What Is Full Service? The vast majority of business carried out in the United States is conducted by companies that have been incorporated. Economic convergence refers to the economic strategies widely adopted in response to technological convergence by media companies. As a result, the risks associated with being in only one market are diversified. Each subsidiary business operates independently from the other divisions in the conglomerate, but the managers of those subsidiaries report to the senior management team at the parent firm that is responsible for overseeing the various businesses and making sure they are all performing well. Newspaper firms have started to search for online delivery channels so as to retain the young readers. Let us have a look at some of the key benefits of conglomeration-. It also has been able to utilize the synergies between its subsidiaries that created value for shareholders. VII. A Conglomerate merger is seen as a valuable move if the value of the two companies combined is more than they are valued . A corporation is a conglomerate made up of several distinct enterprises. Conglomerates may also find it easier to diversify their businesses because they can use existing resources and capabilities to enter new markets. Potato chips might be the first product offered by a food conglomerate. Media conglomerates such as Viacom, represents the historical and present ideas of consolidation and convergence. The two companies merged to form DowDuPont Inc. (DWDP), a new company that would be equally owned by shareholders of both firms. Mergers and acquisitions are two ways to establish a conglomerate. 14 Steps to Buy a Business, C Corporation - Definition, Benefits and Disadvantages, What is Compliance? 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. 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. Some of the advantages include minimal control by the government. The first part, digitalization, refers to media companies moving to and expanding their media on digital platforms. Today, there are many various sorts of more specialized conglomerates, ranging from manufacturing to media to food. Let us know in the comments below. 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. 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. Efficiency integrating capital/human resources/technologies. This has made many daily tasks easier for people, such as looking up a recipe or getting directions for a trip. - 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). Conglomerates offer a number of advantages, including economies of scale, greater financial stability, and access to new markets. 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. Conglomerates also have a number of disadvantages. These structures can create a capital market within the group to allow growth of the conglomerate. For example, newspapers often offer digital versions with videos and weblinks. In fact. - Definition, Types, Influence & Examples, What Is Media Convergence? This gives the richand those connected to the richa far louder voice than the rest of us. A conglomerate can show earnings growth, by acquiring companies whose shares are more discounted than its own. One professional consultant who pioneered these formats justified them by claiming, People who watch television the most are unread, uneducated, untraveled and unable to concentrate on single subjects more than a minute or two. (Lazere 306). All rights reserved. Technological convergence is also sometimes referred to as digital device convergence. Cultural convergence is the way in which cultural output is affected by these developments, such as through trans-media storytelling and social media use. 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. This is because conglomerates usually have a number of different subsidiaries that operate in different markets. It decreases competition, commercializes the media, and opens the door to commercial interests' curtailing journalists' independence. A conglomerate can also show the growth of earnings, this is by acquiring companies who have shares that are more discounted then their own.