The document discusses concepts related to media convergence and synergy. It provides definitions and examples of new media technologies, convergence, and synergy. Students are assigned roles to research these terms and examples are given of how convergence has unified platforms and changed consumer behavior. Both vertical and horizontal integration are explained and examples are given of each. Potential advantages and disadvantages of horizontal integration are also listed.

1. Convergence
and Synergy
How...? What...? When...? Where...?
Which…? Who...? Why...?

2. Research Task
In [table] groups…
- Using the laptops and / or textbooks, you have five
minutes to find a definition for one of these key
terms…
i) New media technology(ies)  team one
ii) Convergence  team two
iii) Synergy  teams three and four
- Each team member must be assigned a role. These
roles
are
director,
researcher(s),
scribe
and
spokesperson.

3. New Media Technologies
Understanding NMTs…
- New media technology is a term used to describe the
emergence of digital technologies.
- These technologies are used as a means of digital
communication, interaction, entertainment and/or
information.
- The emergence of new media technologies has
prompted a convergence within the media industries.
* Identify (note down) examples of NMTs.
* If and when you have completed this, identify
the uses of these NMTs.

4. NMTs

5. NMT Examples

6. Convergence
What is convergence…?
- The unification of different platforms or groups that
were originally separate.
- Convergence is defined by Watson and Hill (2003) in
the following way…
“Convergence has operated at the technical and operational level and
at the level of ownership and control. Just as individual items of
hardware and software have been centralised into one multi-media
outfit, so media production has been centralised into fewer corporate
hands, most of these transnational.”
- Due to organisational convergence, media industries are no
longer understandable in terms of the media they produce
because they are operating across platforms and boundaries.

7. Convergence
Technological convergence…
- Print + video + audio + photo + internet =
converged communication

8. Convergence
Effects…
- Due to media convergence, consumer
behaviour is changing, therefore, so must the
way in which marketers reach their audience.
- Marketers are searching for innovative ways in
which to not only reach their customers, but to
understand them.

9. Convergence
Exercise...
- Which platform do you think has helped in
accelerating media convergence…?
- Why…?
- Do you think new media technologies have an
effect on the media institutions…?
- Which institutions…? How…? Why…?

10. Media Synergy
What is it…?
- In media economics, synergy is the creation, promotion
and sale of a product or brand across different platforms.
* Can you think of any examples…?
- Books
- Comics
- Films
- Music
- Television programmes
- Theatre productions
- Theme park rides
- Video games
- Webisodes

11. Media Synergy
Example…
- Walt Disney pioneered synergistic marketing
techniques in the 1930s by granting dozens of firms
the right to use his Mickey Mouse character in
products and other adverts.
- These products can help advertise Disney, as well
as the other brands.

12. Integration
Horizontal Integration
Vertical Integration
When companies from
different umbrellas work
together.
When companies work
within
their
own
umbrella.
Disney
Marvel
Disney
Marvel
News
Corp.
20th
Century
Fox
Pixar
The
Sun
Sony
Columbia
Pictures
McDonald’s

13. Examples of Integration
Vertical or horizontal…?
Car & Film
Answer = Horizontal (different companies working
together to promote separate items)
* Peugeot 5008, owned by Peugeot Motor Company
PLC.
* Toy Story 3, produced by the Walt Disney
Company Ltd and Pixar Animation Studios.

14. Examples of Integration
Vertical or horizontal…?
Film & Soundtrack
Answer = Vertical (companies owned by same
‘mother’ company working to promote own brands)
* The Lord of the Rings, produced by New Line
Cinema (owned by Time Warner).
* The Lord of the Rings soundtrack, produced by
Warner Music Group (owned by Time Warner).

15. Examples of Integration
Vertical or horizontal…?
TV Series & Food Company
Film & Food Company
Answer = Horizontal (different companies working
together to promote separate items)
* The Simpsons, produced by Fox Broadcasting
(owned by News Corporation).
* Burger King (owned by ermmm… The Burger
King Company).

16. Evaluation of Horizontal Integration
Advantages…
Disadvantages…
- Reduction in risk.
- Sharing of risks.
- Promotion of own
companies and brands.
- Different companies may
have different ideas.
- Dominate certain
markets.
- Smaller companies that
specialise in one area may
suffer.
- Enhance company
image.
- Loss in jobs.
- Reach new audiences.
- Leads to oligopolies…?
(control over the supply of a product
or service is in the hands of a small
number of producers).

17. Web Sites
The Economist – Media Convergence Facts
CBS – Media Convergence
Tech News World - Convergence

18. Web Sites
Web and TV Convergence
BCG – Vertical Better Than Horizontal?