1. 5 Developments that propelled it (Pg 99)
1.1. 1. Spread of digital media
1.1.1. Digital media: devices with computer processors that allow access to textual, audio, and/or visual. Among most popular type are mp3, music player, tablets smartphone etc. Key aspect of spread of these & other digital media is cause of the internet. If content placed on internet, becomes easy to use content on different devices
1.1.2. Additionally, competition between media materials distributors & producers will push exhibitors to shift. Before digital era, competition was limited e.g. one/two video store. Now, video stores compete directly with sites e.g. netflix/amazon/youtube etc
1.1.3. Low cost of digital distribution=lower entry barrier for publishing
1.2. 2. Importance of distribution windows (txbk pg 100)
1.2.1. Windows: Various exhibition points distributors use to create earnings for a product e.g. newspaper, cable network
1.2.1.1. E.g. pay premium to have early access to a movie/book
1.2.1.2. Concept already been used before rise of digital media. Companies have used the idea of windows in the analog (non digita) media world to bring in earning from different places for same materia
1.2.2. More windows=more opportunity to make $ since making $ from digital window not a sure thing. Hence, the rush is to use convergence of media by exhibiting through as many digital window as possible or be left out
1.2.3. Distributors' desire to have as many window as possible encouraged growth in convergence- which is movement of same content across digital media
1.3. 3. Audience fragmentation & Segmentation (txbk pg 100)
1.3.1. Audience segmentation: producers and distributors try to reach different type of people with content tailored specifically for them (pg 101)
1.3.1.1. Audience segmentation result of "Channel Fragmentation" (pg 100). Channel fragmentation refer to increase in number of mass media outlet taken place during past 2 decades. It alr started before the web
1.3.1.1.1. Channel fragmentation was accelerated by rise of internet. more clips avail on different places online. same for any medium that has digital competition
1.3.2. Growth of audience fragmentation and segmentation is something media producers, distributors & exhibitors need to deal with
1.3.3. Audience erosion however dd not start with the internet. Most important erosion of magazine & newspaper audience is due to intro to TV around 1940s. Erosion of AM radio audience is due to FM radio in 1960s. Since 1980s, Main cause of erosion is due to splintering of audience for broadcast TV.
1.3.4. Spread of digital media makes audience fragmentation bigger issue. Media exec today try to target specific audience to earn loyalty of specific portion of population while other company try to attract other group. Hence they engage in audience segmentation
1.3.4.1. Targeting: media organisations that aim at a particular demographic or social segment (study guide pg 15)
1.3.4.1.1. Decision to segment and target are based on biz consideration. Why & how exec engage in segmentation and targeting differs according to whether their media outlet is supported primarily by advertising funds. If marketer see particular segments are well off economically or more likely than other segment to purchase t products, marketer will target more lucrative segments than the others
1.4. 4.Globalisation (Txbk pg 102)
1.4.1. Globalisation: Movement of media content around the world.
1.4.2. Due to media fragmentation, audience erosion and need to move materials to more digital windows to increase revenue, may are looking towards the global platform to solve the issue. Digital media allows for it to happen more quickly and efficiently. Hence globalisation fuels convergence
1.4.3. Different media industries have different strategies. Films, for example, are increasingly finding a large portion of their revenues coming from international sales. Music, on the other hand, is often contingent upon local customs and tastes (Study guide pg 16)
1.4.4. Large firms use subsidiaries and coproduction deals to tailor media content to international markets, while still retaining corporate revenue streams.
1.4.4.1. Coproduction: a deal between two firms for the funding of media material
1.4.5. Convergence, again, becomes utmost important as digital production and distribution outlets open up opportunities to acquire new audiences and advertising revenue. (Study guide pg16)
1.5. 5.Conglomeration
1.5.1. Definition: Actives involved in becoming and acting like a company's becoming a mass media conglomerate (txbk page 103); *Study guide definition*: Conglomeration is the process by which many different media outlets are consolidated under one corporate umbrella.
1.5.2. Mass media conglomeration: A company that holds several mass media firms in different media industries under its corporate umbrella
1.5.3. conglomeration emerged as a business strategy to achieve synergy and take advantage of corporate integrations (Study guide pg 16)
1.5.3.1. Organisation believe that a company destiny in this new media world is determined by ability to own, alone or with others, the distribution and exhibition outlets that it needs to reach its audience.
1.5.3.1.1. VERTICAL INTEGRATION: used to describe an organisation control of a media product from the production of content through its distribution and exhibition. In cases that it was not legalised, companies have tried to grab control of 2 of the 3 stages -production&/or exhibition to reduce risk & increase earnings
1.5.3.1.2. HORIZONTAL INTEGRATION: ownership of production facilities, distribution channels, and/or exhibition outlets in a number of media industries and the integration of those elements so each can profit from the expertise of others (txbk pg 103)
1.5.4. Convergence is important in the context of conglomeration as the increasing size of media firms allows for more cost-intensive ventures, and potentially greater opportunities for production, distribution, and exhibition. (Study guide pg 16)
1.5.4.1. Joint ventures are another possibility if, usually for economic or political reasons, it is impossible for a media firm to undertake a project. Thus, two or more firms will share both resources and revenues. (Study guide pg 16)
1.6. Why such development important to understand changes happening in the industry
1.6.1. All have different histories
1.6.2. Importance of distribution windows, audience fragmentation & segmentation, globalisation and conglomeration came into being before spread of digital media
1.6.3. But Digital Media have encouraged and extended the process. Hence the process+spread of digital media encouraged convergence