advantages and disadvantages of media conglomeration

A multinational conglomerate can benefit from economies of scale and from the ability to operate in multiple markets. Different radio stations with the same music, The effect of deregulation on today's radio. Advantages And Disadvantages Of Cartels 712 Words | 3 Pages. Media convergence influences people's lives and society overall in countless ways. With a bachelor degree in communication, you can gain the knowledge you need to work in a wide variety of communication jobs. Global Mass Communication: pros, cons and the driving force behind it. A conglomerate can grow by acquiring companies, whose shares are more discounted, thereby showing growth in earnings. In a conglomerate, it is vital to set up efficient systems to ensure productivity across subsidiaries to maintain productivity and profits. Thanks to the business communication made possible by mass media, businesses can reach potential consumers faster and easier than ever before. Therefore, the main aim is to analyse and investigate the working mechanism and different models of multi-agency. 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. 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. Newspapers such as the NY Times, Denver Post and USA Today maintain websites, as do major magazines such as Time and Newsweek. Copyright 2023 IPL.org All rights reserved. Digital content can be easily pirated and leaked. Investopedia: Conglomerates -- Cash Cows or Corporate Chaos. 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. 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). However, they found this was an unreliable method of communication and the first newspapers and other media mediums were created. Thirdly and finally, it will give . Media Effects Theory, Beliefs & Influences | What is Media Effect? The firm may decide to diversify by purchasing a soft drink firm, after which it can grow via the acquisition of other firms that produce different types of air-fried snacks. The use of multiple formats allows media companies to offer extensive additional information. We also have entertaining programs like music program on the radio and on the television. Media is one of the most influential aspects of our lives. 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. As a result, the conglomerate may find it difficult to respond to changes in the market. These subsidiaries include GEICO, BNSF Railway, and Berkshire Hathaway Energy. It is the image that gives us our identity. As a result, the risks associated with being in only one market are diversified. While some sources of information are far more trustworthy than others, mass media as a whole is vulnerable to propaganda and its lies. Conglomerates can also benefit from scale economies. Another essential aspect of cultural convergence is the widespread use of social media. they cannot report what people need and/or want to know, they can only report what the government wants the people to know (Censorship Effects on Society). Accounting disclosure is less useful information, many numbers are disclosed grouped, rather than separately for each business. 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. 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. The message are primarily about reinforcing shared ideals such as justice, individualism, democracy and respect for the law. - Definition & Explanation, Media Effects: Definition, Effects & Beliefs, What is Mass Media Research? And this can be a very good thing. Your email address will not be published. One implication is that media economic research is mostly focused on media conglomerates like Bertelsmann, Disney, News Corporation, Time Warner and Viacom. Another disadvantage of conglomerates is that they may be less efficient than companies that are not . Finally to increase learning among children researchers suggests that co-viewing of Parent and children should be promoted in families in Pakistan. It has become a major factor in the society as people are depending on it to accomplish specific tasks. 14. 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. Conglomerates also have a number of disadvantages. Copyright 2023 IPL.org All rights reserved. The TV was a mix of the radio and the newspaper and individuals were interested in it. 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. Electronic Media is a form of entertainment, knowledge and communication and influences societys conductivity and is deeply censored, biased and manipulative in order to control society. The conglomerate can utilize the synergy between these two subsidiaries to save on costs. Concentration of media ownership the absence of diversity. Conglomerates may also be created when a company extends its operations into new product lines or services. Media conglomerates benefit during warfare, currently equaling seven years of more commercial airtime for Iraq updates. Definition, Benefits and Techniques. asiarenee91", https://en.wikipedia.org/w/index.php?title=Conglomerate_(company)&oldid=1131567023. The mechanism of the multi-agency is mainly oriented with the three segments; they are multi-agency working, improving the services and positive outcomes for the children and related group. These subsidiaries include Ferrari, Maserati, and Fiat Chrysler Automobiles. Cultural Convergence is the way in which people experience cultural phenomena across a variety of different media platforms. 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. The state of global mass communication today can be identified through a discussion of key concepts at play. 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. The research paper also helps to understand the different types of multi-agency and their activities in the process of operation. 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. Economists warn that conglomerates may become too big to function properly. Multimedia studies help us understand the benefits and drawbacks of mass media. Media convergence has had major effects on all sorts of media: entertainment media, news media, social media, etc. Here are a few of the pros and cons. Advantages and Disadvantages of Media Convergence. 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. For example, in 2014, Walmart (WMT) announced that it would be building a new distribution center in Texas that would create more than 500 jobs. The whole is often worth less than the sum of its parts. Another disadvantage of conglomerates is that they may be less efficient than companies that are not conglomerates. See also 10+ Advantages and Disadvantages of Technology. The Walt Disney Company, for example, is a media conglomerate that owns and operates businesses in the entertainment, parks, resorts, and consumer products industries. 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. This is done by acquiring smaller companies that are not necessarily related to the corporations existing businesses. Newspaper firms have started to search for online delivery channels so as to retain the young readers. This has made many daily tasks easier for people, such as looking up a recipe or getting directions for a trip. In fact. A conglomerate is a large, diverse company made up of many smaller businesses. On one hand, media convergence has expanded access to media, simplified media production, and democratized the base of media producers through user-created content. 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. Or we can simply say that Some of the popular examples of multinational conglomerates are-. All rights reserved. It is smartphones, computers, and other smart technologies which give people access to a wide variety of media at all times and in almost all places. Diversification can, however, have disadvantages. They do not have the freedom to express what they really want to which deprives them of their rights. "Media conglomerates strive for policies that facilitate their control of the markets around the world." Conglomerates can benefit from synergies between their subsidiaries to save on costs. HARM than MERITS. Conglomerates are usually formed via acquisitions, in which one company buys a controlling stake in another firm. 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. Conglomerate diversification is a strategy employed by large corporations to expand their businesses into new and unrelated sectors. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. Thus we can simply say that all this have given rise to cultural imperialism. 3. Plus, get practice tests, quizzes, and personalized coaching to help you Updated: People receive the latest news in a short time. There are a variety of consequences of media convergence, some positive, such as greater convenience for users, and some negative, such as less regulation of untrue and misleading content. Doing so may also assist the parent company to save money on operational costs while at the same time requiring less manpower. 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. In his essay he explains the importance of the media and its effect on the general public. Why does economics drive most media Companies? Rather, they can tailor programming to serve the needs of different segments of the viewing population. OC disadvantages 1 This can be done through economies of scale and particularly economies of scope. A. Conglomerates can also be created when a company expands its operations into new markets or industries. When confronted with said evidence, most media members blame it on education. They also benefit from synergies between its subsidiaries to gain access to new markets and technologies. Small media operations often cannot afford to produce programming, hire the talent or the quality of technical staff to compete with larger media companies. 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). This is because different subsidiaries operate in different markets and empower the large corporation to further enter into other sectors and increase profitability. This can be done through economies of scale and particularly economies of scope. Sony is a multinational conglomerate that has a number of subsidiaries that operate in different markets. 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. Cultural. Some positive consequences of media convergence are the simplification of media creation, the acceleration of media distribution, and the democratization of media production. Magic Bullet Theory Overview & Effects | Hypodermic Needle Theory. 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. How has Conglomeration Changed the Movie and Telev Conglomeration of the movie and television industry, Motion Industry and The Effects of Conglomeration. Walden University is an accredited institution offering an online BS in Communication degree program. James Gattuso, in the same May 2003 article, offers NBC, MSNBC and msnbc.com as an example of this phenomenon. One firm controls a significant portion of numerous small firms that operate independently in a conglomerate. Three important aspects of media convergence are technological convergence, economic convergence, and cultural convergence. Conglomerates offer diversification of risks to their parent companies. These subsidiaries include Sony Electronics, Sony Mobile, and Sony Pictures. 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. The obligation of the modern media and its journalists to perform sufficiently as the "fourth estate of democracy" - that is, the vital pillar in maintaining social equality - arguably stopped being fulfilled when media became privately owned. Which is to say, mass media simultaneously benefits us and creates new problems. Conglomerates also have access to new markets and technologies. They are generally large and multinational. Honeywell is a multinational conglomerate that has a number of subsidiaries that operate in different markets. Viacom, a leading global media company, was formed in the 1970s by Central Broadcasting System (CBS). There are four specific effects that will be discussed. The difference in the working is mainly due to the difference in the. For example, in 2014, Amazon (AMZN) announced that it would be expanding its Amazon Web Services (AWS) cloud computing business into the government sector with a new GovCloud region. Are you or your spouse an active or retired U.S. military service member?*. Therefore, the media no more writes about the peoples grievance but in support of the ruling government party. These media conglomerates exist in Europe, Asia and Latin America. The societies rely on mass media for information, entertainments and even communications. A conglomerate can be made up of many businesses within the same industry or from different industries in order to diversify the business and mitigate financial risk. It decreases competition, commercializes the media, and opens the door to commercial interests' curtailing journalists' independence. Course Hero is not sponsored or endorsed by any college or university. Also, read about its importance, pros, and cons. For instance, when a tsunami strikes, people all over the world hear about it within moments and can mobilize immediately to help. Without mass media, we would have far less ability to understand how were all connected and how we all need each another. 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. Conglomerates are often large and multinational . These companies often own a number of smaller companies that operate in different sectors, such as television, radio, films, and the internet. The deal gave Exxon a controlling stake in one of the worlds largest undeveloped natural gas fields. This review study shed light on the debate over positive and negative aspects of media. Why does economics drive most media companies. Totalitarian regimes have used mass media for nearly a century to control what their people believe. Diversification. What is Meant by Piercing The Corporate Veil? These services have drastically changed the kind of media that people view and diversified and democratized the base of people producing this media. 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. Many modern tabloids, twenty four hour news channels and other mainstream media sources have increasingly been criticized for not conforming to general standards of journalistic integrity. The definition of technological convergence, as its name implies, is the convergence of previously separate physical technologies (print newspapers, television, CDs) into single devices. As media companies grow larger and larger, they become more susceptible to bias. The Article 10 allows all citizens the absolute freedom as not restricted by the government. Media corporations often employ multiple media formats, such as TV, print and the internet to enhance their offerings. "Editorials" (Nation)) 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. However, in recent years the media has, like other agencies, come under the influence of politicians. Thus we can simply say that all this have given rise to cultural imperialism. A downturn suffered by one subsidiary, for instance, can be counterbalanced by stability, or even expansion, in another division. Conglomerates are often composed of companies in different industries that operate in different parts of the world. One example of a Conglomerate merger is the combination of Dow Chemical and DuPont, which was announced in December 2015. . Creates a divide between those with access to computer technology and those without. Established industries, technologies, and standards have had to change drastically in response to computerization. factions can be small and others can be big, but each one is different. VI. Fake news, increased surveillance, and even political instability have been tied to transformations in the media content landscape. Those concepts are: globalization, media concentration or conglomeration, electronic colonialism, and consumerism. Andersen, R,.Thomas, H., Kominski, & Gerald. Media consolidation can raise quality levels of local programming. For example, schools are using these technologies as an alternative way of teaching students. 12 chapters | factions are organized and there are many factions inside the U.S. Multi-agency can be defined as the involvement of different corporations which works together to eliminate vital issues or problems in the society. What is the How will the print industry survive? Sony has been able to utilize the synergies between its subsidiaries to create value for shareholders. Newspapers were still sought after and still utilized frequently. For instance, electronic news media typically favours one political party over another and their articles persuade individuals to vote for the particular. Some of the popular examples of conglomerates around the world are. Many of these terms, such as globalization . The theory of synergy is often used to explain the benefits of conglomerate structures. There are an abundance of ways to obtain free flowing information that ultimately can be beneficial to our daily lives. Business industries are using it to increase business efficiencies. Enrolling in a course lets you earn progress by passing quizzes and exams. This has made it harder for media companies to control the news narrative, which has led both to expose new, true information to the public and the propagation of fake and manipulative content. In general, the mass media simply means medium that gives out information. And because its bought, those with money can deeply influence what we see and hear. Two final aspects of media convergence are organic convergence and global convergence. 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. Your email address will not be published. media conglomerates: Common Cause reports that one company may own three TV stations, eight radio stations, a local newspaper and the cable system in a market. Other major players are Comcast and Sony. 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. A corporation is a conglomerate made up of several distinct enterprises.

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