Media Studies (9257) | Convergence

Welcome to the World of Convergence!

Hello Media Students! Get ready to tackle one of the most important (and coolest) concepts in modern media studies: Convergence. Don 't worry if this sounds complicated; it just means media industries are joining forces and blurring the lines between different platforms.

This chapter is crucial because it helps us understand the massive, global companies that own and control the media products we consume every day. We are focusing specifically on how convergence impacts the
Media Industries – the producers, distributors, and owners of media content.

What you will learn:

• How different media technologies and platforms merge together.
• The concept of Cross-Media Ownership.
• How company restructuring (Mergers, Takeovers) is driven by convergence.

1. Defining Convergence: The Media Swiss Army Knife

What exactly is Convergence?

Convergence, in simple terms, is the coming together of previously separate technologies, media forms, and/or industries.

Analogy time! Think of your smartphone. Ten years ago, you needed a separate camera, a map, an MP3 player, and a phone. Now, one device does it all. That is technological convergence. In Media Industries, the principle is the same: previously separate companies (like a film studio and a cable company) start merging their businesses, technology, and content.

Key Definitions of Industrial Convergence

When studying Media Industries, convergence is less about the device and more about the business strategy. It’s about huge companies trying to own every step of the process, from creation to consumption.

• Technological Convergence: When devices that performed different functions merge into one. (Example: Smart TVs, smartphones.)
• Industrial (or Corporate) Convergence: When media organisations previously linked to specific media forms (like film or print) merge into large conglomerates. (Example: Disney owns film, TV networks, streaming platforms, and merchandise.)
• Cross-Media Ownership: This is the result of industrial convergence. It means one company or conglomerate owns subsidiary companies across different media forms.

2. The Syllabus Breakdown: Convergence of Providers

The syllabus highlights that media convergence involves the merging of three key types of providers. Understanding these three roles is vital for your industry analysis.

Provider Type 1: Content Providers

These are the companies that create the media product itself. They produce the actual films, TV shows, games, news articles, and songs.

• Examples: Marvel Studios (produces films), BBC Studios (produces TV), The New York Times (produces news).
• Goal: To make highly desirable content that audiences will pay to access, regardless of the platform.

Provider Type 2: Platform Providers

These are the companies that offer the gateway or device through which the content is consumed. The platform is the delivery system.

• Examples: Netflix, Amazon Prime Video, Spotify, PlayStation (consoles), or even the operating system (iOS/Android) on your phone.
• Goal: To control the access point for consumers.

Provider Type 3: Network Providers

These are the companies that provide the infrastructure (the wires, cables, and satellites) that allow platforms and content to reach the audience. They are often called Internet Service Providers (ISPs) or telecommunications companies.

• Examples: Broadband providers (like Comcast or BT), mobile phone networks (like Vodafone or T-Mobile).
• Goal: To control the flow and speed of data, charging users for connectivity.

Did You Know? The Power of Integration

When a single massive company manages to own all three—Content, Platform, AND Network—it achieves Vertical Integration driven by convergence. For instance, if a company owns the studio that makes the movie (Content), the streaming service that hosts it (Platform), and the internet cables that deliver it to your home (Network), they control the entire media ecosystem and maximise their profits at every stage.

3. The Mechanics of Convergence: Mergers, Demergers, Takeovers

Convergence is not just a theory; it’s a process driven by real-world financial moves. To achieve cross-media ownership, companies must restructure. The three main ways they do this are through Mergers, Takeovers, and occasionally, Demergers.

A. Mergers

A Merger occurs when two or more companies, often of roughly equal size, agree to combine their businesses to form one new, larger entity.

• Process: The two original companies cease to exist legally, and a new company is formed.
• Why they happen: To reduce competition, share resources, and create a company with a broader range of media assets (i.e., achieving convergence).
• Example: The merger of AOL and Time Warner in 2000 (though ultimately unsuccessful, it was a massive attempt at industrial convergence between a tech/network provider and a content provider).

B. Takeovers (or Acquisitions)

A Takeover (or acquisition) is when one larger company purchases a smaller company, effectively absorbing it into its existing corporate structure. The acquired company usually stops existing as an independent entity.

• Process: The buying company obtains a controlling stake in the target company. This is a common way for conglomerates to achieve rapid convergence and diversification.
• Why they happen: To gain new market access, eliminate a competitor, or acquire valuable intellectual property (like film franchises).
• Example: Disney's acquisition (takeover) of 21st Century Fox's assets in 2019. This allowed Disney to converge content (adding Fox's film library) and platform (gaining full control of Hulu).

C. Demergers

While convergence usually leads to bigger companies, sometimes companies decide to Demerge. This is the opposite process, where a large conglomerate sells off or spins out one of its divisions to become a separate, independent business.

• Process: The parent company splits itself to focus on its core profitable areas.
• Why they happen: If a division is underperforming or if the market believes the separate parts are worth more than the combined whole. It’s often a tactic to streamline operations.

4. Linking Convergence to Media Contexts

Remember, everything in Media Studies is connected! You must be able to link convergence to the four contexts (Economic, Technological, Cultural, Historical).

Technological Context

Digitalisation and the rise of the internet made convergence possible. Once all media could be turned into digital code (zeros and ones), it could be distributed through a single pipe (the internet) and consumed on a single screen (a phone or computer). This technological shift forced industries to converge their operations.

Economic Context

Convergence is purely an economic strategy. It allows companies to:

• Synergy: Promote the same product across different owned platforms (e.g., a movie promoted on the TV channel, streamed on the platform, and advertised on the magazine). This multiplies profit.
• Reduce Risk: If one media form fails (like print), the company is protected by its strong presence in another area (like video gaming). This is known as Diversification.

Cultural Context

The result of convergence is that a few huge global companies (conglomerates) control most of the content we see. This raises concerns about Cultural Imperialism (the dominance of Western, usually US, media values) and whether media represents a diversity of voices, or just the ideology of the powerful conglomerate.

You've made it through! Convergence is simply the process that creates the giant media empires we analyse. Keep practising your examples, and you'll be well-prepared for any exam question on Media Industries!