Convergence Industry

What is a convergence industry?

How can Sony by classified as a convergence industry?

Convergence Industry Diagram

SONY

Film Production Sony PicturesTV hardware

Bravia

Film Consumption

HDTV

Blu-rayMusic Production

Music Consumption

Music Distribution

Gaming

Acid Music Studio 7

Jive Records

In your notes you should have a completed copy of this diagram

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.

How are these film examples of Synergy?

Sony Synergy - Spider-Man

Film - Sony PicturesSoundtrack - Sony Music EntertainmentGame - Playstation2, PSPDVD - Blu-ray- Joint Venture with Marvel Comics- Other Merchandise - toys, clothes,posters all promote the film and benefit Sony financially.

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

Evaluation of Synergy

What are advantages and disadvantages of synergy?

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).

Problems with Synergy

Easier in theory than in practice. Different companiesmay 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 mediumstruggle to compete. Leads to oligopolies - uneven distribution of power.

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.