Convergence in Media Industries

A convergence trend continues to propel the transformation of conventional media to digital forms . . . although the forces behind this trend are shifting (Media Now 7). The early 1990’s was a prime time for convergence. One prime example is the when Time Warner merged with AOL (America Online). At the time Time Warner was a publishing and cable television giant; AOL was the largest internet provider. Other convergences include the time News Corporation, the owner of Fox News, bought networking site MySpace.com. Former enemies in the media industry National Amusements (owner of Viacom cable networks and CBS), Disney Corporation and NBC Universal made, distributed and exhibited content across the internet; as well as by print, radio, recorded music, television and film.

Later on, new media companies took over. Apple iTunes became the most powerful player in the recorded music industry. Google became the largest advertising medium. TiVo revolutionized the way people watched television.

During the crisis in 2007, media stocks began to crumble. This was due to a general economic downturn. The hardest hit industry was newspapers. The number of two city newspapers began to decrease. Some cities faced the idea of having no news paper at all. The damage of the crisis was not limited to print media.

Charter Communications, one of the largest cable companies in the US, filed for bankruptcy. The owner of CBS television and Viacom, was for to sell video game maker Midway Games at a huge loss.

“Now, strategic sales of media properties are the centerpiece of corporate strategies” (Media Now 8).