1) Symbiosis - Companies working together to achieve common goals
2) Convergence - Blending the different types of media into a seamless whole
1) Convergence in Distribution
2) Convergence in Content
3) Convergence in Hardware
1) Convergence in Distribution
Content used to be bound by a specific channel, a unique technology was needed to receive the message. Now, multiple mass media channels are being used to deliver the same message.
Positive aspects of distribution convergence
1) More channels airing the same information make it easier to get the information
2) "Cross promotion" increases the audience for a specific message
Negative
More channels airing the same information means fewer sources of information.
Before convergence, a town's two newspapers, television stations, and news radio would compete for stories, audience, and advertisers.
These multiple media channels lead to many voices to choose from, and the competition among channels kept quality and service high.
"This kind of synergy between print and TV rivals appears to be the future of electronic media. 'It's definitely the way things are going,' Mr. De Wolk said.
He believes there will always be a rivalry between print and television, but convergence is inevitable. 'The Chronicle cannot do television, and KTVU cannot do newspapers -- we need each other,' he said. 'We're not doing it just for next Sunday or the next sweeps, we're doing it for the next generation. When everything changes, we'll be in position.'"
This image from the CNN web site shows COPE, with articles by writers from "Time" and "Sports Illustrated" appearing on both the parent and the CNN web sites. Having several places to find the "Time" articles increases the audience. But it also means CNN has to hire fewer reporters to generate the same content, limiting the number of independent sources of information.
2) Convergence in Content
Companies are no longer identified by their technology.
They are now "content providers" instead of "newspapers," "film studios," or "networks". The organization I work for has three content units, television, radio, and interactive media. Projects and producers can span any or all of these units.
Positive aspects of content convergence
1) The cost of distributing content drops the more it can be "revisioned." This is the COPE theory in action.
As this article notes, the newest content convergence frontier is video games.
"Computer games represent one of the fastest-growing, most profitable entertainment businesses. Making movies, by contrast, is getting tougher and more expensive, now costing, with marketing fees, an average of $103 million a film. That is one reason, among others, that those with power in Hollywood are avidly seeking to get into the game business while also reshaping standard movie contracts so they can grab a personal share of game rights."
2) Greater resources can be utilized to generate content. A small company can draw on the resources of its larger parent or partners.
Negative
1) There are fewer original sources of information
2) A single set of gatekeepers now control multiple channels feeding information from fewer sources
Since the article below was written, the FCC has further relaxed its ownership restrictions. Clear Channel has reduced its radio holdings from 1200 to 850 but has established one of the must successful internet radio services, IHeartRadio. IHeartRadio is now being marketed in over twenty countries.
"When it comes to commercial radio, it appears everybody has a gripe — except the corporations atop the multibillion-dollar industry. Their stations, they say, are just following the advice of the Kinks' Ray Davies: Give the people what they want.
"We play what people want to hear," said John Hogan, president and chief operating officer of Clear Channel Radio and its 1,200 stations. "And if we play too little of what people want to hear, they're going to go somewhere else."
They already are — although it's not necessarily to other radio stations. Radio listeners are listening less. In 1993 they spent an average of 23 hours per week with the radio on, last year it was down to 20 hours, according to Arbitron numbers."
Content convergence has also had an impact on live concerts and CDs.
"But in a move expected to severely limit the industry, Clear Channel Entertainment has bought the patent from the technology's inventors and now claims to own the exclusive right to sell concert CDs after shows. The company, which is the biggest concert promoter in the world, says the patent covers its 130 venues along with every other venue in the country."
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