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Synergy revision


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  • 1. Convergence Industry What is a convergence industry? How can Sony by classified as a convergence industry?
  • 2. Convergence Industry Diagram SONY Film Production Sony PicturesTV hardware Bravia Film Consumption HDTV Blu-ray Music Production Music Consumption Music Distribution Gaming Acid Music Studio 7 Jive Records In your notes you should have a completed copy of this diagram
  • 3. Synergy What is Synergy? - Read through Case Study 2: Sony Synergy handout. - Read through Music and the entertainment industry handout. Highlight the advantages and disadvantages of Synergy.
  • 4. How are these film examples of Synergy?
  • 5. Sony Synergy - Spider-Man Film - Sony Pictures Soundtrack - Sony Music Entertainment Game - Playstation2, PSP DVD - Blu-ray - Joint Venture with Marvel Comics - Other Merchandise - toys, clothes, posters all promote the film and benefit Sony financially.
  • 6. Sony Synergy - Casino Royal Institutional Involvement Produced by MGM and Columbia Picture (Sony Subsidaries) DVD distribution by Sony Pictures Available on Sony blu-ray Soundtrack on Sony Classical Product Placement Sony Ericsson Phone Sony Cyber Shot Camera Sony Vaio notebook / laptop
  • 7. Evaluation of Synergy What are advantages and disadvantages of synergy?
  • 8. Advantages of Synergy Companies like Sony can spread their commercial interests. Diversification means a reduction in risk. Increase profit of each separate medium. Enhances company’s image. Can reach shrinking audiences with diverse tastes. Influence public opinion. Dominant a variety of markets. Sharing skills between two companies and exploiting strengths (Sony and Marvel, Sony and Ericsson, Sony and 3 Mobile).
  • 9. Problems with Synergy Easier in theory than in practice. Different companies may have different ideas. Can lead to loss in jobs. Sony laid off 19,500 workers last year. Merging together to exploit strengths or sharing risk? Smaller companies who only specialise in one medium struggle to compete. Leads to oligopolies - uneven distribution of power.
  • 10. Essay Question Discuss the importance of cross media convergence and synergy in an industry you have studied. Write a plan for this essay question. Include the key points of each paragraph. Include what key terminology / examples you are going to include.