Impact of Media Convergence on the Media Economy

Media Convergence is the occurrence comprised of bringing together informational and communicative tech, media content and digital networks, prompted by the computerization of media and the immersion of internet in routine life. Internet has granted geographical hindrances as redundant, enhancing the exchange of informative data. Media Convergence is characterized by the mingling of content spanning an array of platforms, prompting migratory tendencies of the audiences. ("Media convergence - Transmedia storytelling", 2020) It isn't only the juncture of the conventional and the new computerized media yet it is additionally about the unusual methods for collaboration and relationship of the buyers and makers of media. It isn't exclusively mechanical yet there is an enormous array of socio-social outlook changes that have changed the manner in which the buyer assesses an item, settles on his choice and his social cooperation to look for data. It additionally incorporates the experience that the maker of the media causes the shopper to experience (Viau, 2001).

This definition could be viewed as grasping three principle attributes of convergence where:

1. Convergence influences not simply media communications and broadcasting. The extension of convergence is the whole information and exchange escalated administrations area;
2. Convergence is basic in nature, and changes to industry structure are the most significant changes related with it; and
3. Convergence is empowered by innovative change, however isn't driven by it. The drivers of convergence are for the most part business.

At a market level, convergence is related with the expanding mergers, acquisitions and vital collusions among organizations in communicating, broadcast communications and IT. Industry lines appear to obscure as different interchanges organization look to investigate interests in non-conventional segments. At this level, convergence is thought to raise monetary issues of rivalry when progressively oligopolies appear to rise out the different joint endeavors between the three correspondence segments.

The monetary methodology of media convergence (otherwise called media solidification, media fixation or financial convergence) is a result of three components. In the first place: digitization, and in the second: corporate focus. Less enormous organizations claim more media properties. (See likewise Royal Commission on Corporate Concentration). What's more, third, government deregulation. These components have permitted media aggregates to claim various types of media (e.g., TV and radio broadcasts and papers) in similar markets. It additionally allows content carriage organizations (e.g., link and satellite TV merchants) to claim content makers (e.g., strength TV stations).

Media convergence can mean one of two things: Either the converging of beforehand particular media advancements coming about because of digitization and PC organizing some of which are canvassed somewhere else right now a financial procedure wherein the media properties claimed by correspondences organizations utilize digitization and PC systems administration to cooperate.

One significant case of media convergence has included the paper and magazine industry, and somewhat book distributing. Papers and magazines' print adaptations have seen significant decreases in readership and dissemination since the mass selection of the Internet (and the desire for some web per users that substance be free). While this plan of action is as yet shaking out, some news associations are meeting the challenge at hand. For instance, in what is depicted as triple play, corporate convergence has prompted similar organizations presently being dynamic in broadcast communications, broadcasting just as on the Internet. Whenever fixed and portable communication is incorporated, this becomes fourfold play. Following center organizations, for example, web indexes (for instance Google) and electronic exchanging (for instance eBay), new sorts of convergence endeavors are developing. Conventional media and broadcast communications organizations, including open supporters, are changing to new plans of action, which is additionally joined with inner 10 rearrangements. Press and TV organizations are genuine models (Killebrew, 2005). Their current problem is essentially that old plans of action do not work anymore, and readymade, tried new ones are not yet accessible. A case of authoritative convergence is the experimentation with incorporated multimedia newsrooms, which, in a next-level impact, calls for changes with respect to capabilities and aptitudes. Eventually, these auxiliary changes have an effect on the item, on the nature of the substance delivered, with repercussions for open correspondence in national and supranational interchanges framework as a rule.

The New York Times' site has sent imaginative methods for recounting stories and connecting with users, and its membership rates are up in excess of 23 percent in 2017 over the earlier year. Amusement Weekly and People, two of Time Warner's best print magazines, have had large victories on the web (The Entertainment Weekly Must List iPad application, one of the first of its sort, in 2011) and on TV. Jess Cagle, who manages the two brands, has been a main power in adjusting the media to interface with the purchasers who need it. He says the thought is to communicate, work together and share data with users/shoppers from various perspectives as could be expected under the circumstances, and changing it from a uninvolved crowd to a drew in and dynamic one.

Television and radio mergers have been happening since the 1980s, however these are still to some degree constrained by the Federal Communications Commission. Facebook gained Oculus the augmented simulation/gaming stage, with Mark Zuckerberg's vision that soon the association would empower encounters like having the option to get a specialist's ability anyplace on the planet.

In Canada, Quebecor Inc. has become the champion of media convergence. Quebecor employs the media outlets to popularize its publications and productions across multiple platforms, which comprise of the books, newspapers, and magazines. It produces and distributes television content. It also offers wireless phone networks and cable, music distribution and retailing and internet services. It even engineers video games.

Another example of Media convergence provoked by economic advantage is observed at the Canadian Broadcasting Corporation (CBC). CBC started from being a radio and tv broadcaster and now offers music applications, web services and digital news. It also has its own site and YouTube channel.

Corporate convergence is often highly beneficial to companies. It allows them to chop back the costs of labor, materials and management. They’ll use the identical media content across several media outlets. Advertisers can receive package deals for kind of media platforms. ("Media Convergence | The Canadian Encyclopedia", 2020) Brand recognition and loyalty are often improved through cross-promotion and cross-selling. Historically, communications companies have formed newspaper chains and networks of radio and tv stations to grasp these same advantages. Convergence is often seen because the subsequent step during this same logic.

However, economic convergence also has potential drawbacks for society and thus the economy as a full. Reduced competition can increase barriers to entry for brand new companies. The media can become more commercialized. People are often treated more as consumers than citizens. Also, corporate mergers are often very costly. Converged companies tend to hunt profits through cost-cutting rather than investing more in services.

Media convergence also triggers worries about the content quality to be offered corporate journalism. Coming under greater scrutiny is Media’s role as the propagator of objective analysis and information. The range of perspectives on current news and independence of journalists becomes a glaring concern. The coverage of local issues is reduced. Conflicts of interest between properties owned by the identical company can arise.                                                                                                                            

References

Media convergence - Transmedia storytelling. (2020). Retrieved 8 April 2020, from https://www.britannica.com/topic/media-convergence/Transmedia-storytelling

Finger, G. (2007). Digital convergence and its economic implications.

Latzer, Michael, Media Convergence (April 1, 2013). A revised version in: R. Towse & C. Handke (Eds.), Handbook of the Digital Creative Economy, Cheltenham: Edward Elgar, Forthcoming

Campbell, Richard, Christopher R. Martin, and Bettina Fabos. Media & Culture An Introduction To Mass Communication. 8th ed. Boston: Bedford/St. Martin's, 2013. 9–10. Print.

Media Convergence | The Canadian Encyclopedia. (2020). Retrieved 8 April 2020, from https://thecanadianencyclopedia.ca/en/article/media-convergence