International Journal of Innovative Studies in Sociology and Humanities
(IJISSH)
ISSN 2456-4931 (Online) www.ijissh.org Volume: 4 Issue: 3 | March 2019
The Dimensions of Convergence in the Media Industry
Arif Hussain Nadaf
Assistant Professor, Department of Mass Communication, School of Art, Design and Media Studies, Sharda University,
Greater Noida
Abstract: The media convergence is an ever-evolving phenomenon that involves assimilation and the merger of old
and new media forms which is fundamentally facilitated by economic interests and the advancing digital technologies.
The re is reasonable scholarly disagreement in the field of media studies regarding the definition and the subsequent
explanation of the concept of media convergence. The generally agreed conceptualization of media convergence
explicates it as an interconnection of information and communication technologies, digital networks and the media
content. The media convergence can’t be simply justified by the notion that it is a mere replacement of old media with
new media rathe r it is an evolving interaction between various existing and emerging media forms and formats. Media
convergence has been largely attributed to the revolution in digital technology which led to the merger of otherwise
diverse media forms. So, the digitization of media content and advancement in internet technology can be considered
as the main facilitators for the ongoing media convergence in developing as well as the developed nations. Media
convergence has transformed the commercial as well as technological dynamics in the media industry and has enabled
entirely new forms of media content to emerge across newly evolved multimedia platforms. This paper discusses how
the technological transformation and the economic equations in the existing media business have emerged as the two
main factors responsible for the convergence in the contemporary media industry.
Keywords: Media convergence, digital media, media industry, corporatization, media ownership
1. INTRODUCTION
The digital advancement that led to the transformation in information and communication technologies, has
revolutionised the media industry in the last two decades. The convergence in media industry relates to the
assimilation and the merger of old and new forms of media. This convergence involves the interconnection of
information and communication technologies, advanced internet networks and the digitized media content. The
media industry itself has undergone a massive transformation due to the convergence of media technology and the
content. Jenkins (2006) defined media convergence as the merger of different tools and equipment for the
production and distribution of the media content. He argues that since the media audience today have become the
content producers and distributors, the refore, the media convergence must be understood from the perspective of
social as well as technological transformations within the human society. The interconnection of various media
formats is the essential and fundamental characteristics of the media convergence. Deuze (2008) argues that the
media convergence is the ‘cooperation and collaboration’ between diverse media forms which were previously
unconnected (p. 5). Media convergence has blurred the boundaries between various media forms and assimilated
the m is distinctive digital forms that are universally accessible to all the existing types of audience. Burnett and
Marshal (2008) have defined media convergence as the blending of the media, telecommunications and computer
industries (p.5). Under the rapid convergence which is happening in the contemporary media industry, various
media formats- television, print, radio, and online media sources, facilitated by portable and interactive digital
technologies. The scholars in the field of media studies have tried to develop a the oretical understanding of the
concept of media convergence. The noted journalist and academic, Mike Gasher (2014) explained the two dominant
perspectives of the media convergence; technological and economic media convergence. Media convergence is a
product of advanced media technology and the digital revolution that has led to the merger of various media forms.
Besides this, from the economic perspective, the change in ownership patterns, the evolution of corporate
collaboration and cross-ownership in the context of rapid digitization in the media industry has facilitated the
media convergence.
2. TECHNOLOGICAL CONVERGENCE IN MEDIA
The advancement in media technologies and the sophisticated waysin which the news information is transmitted
across communication networks has been one of the most powerful driving forces behind the convergence in the
© 2019, IJISSH Page 27
International Journal of Innovative Studies in Sociology and Humanities
(IJISSH)
ISSN 2456-4931 (Online) www.ijissh.org Volume: 4 Issue: 3 | March 2019
media industry. The proliferation of advanced internet networks and digital devices like smart phones, tablets and
smart televisions, the media consumers today access the media content in a rapidly hybridizing media environment.
The specificity of one media form is no more identified with a particular media category like a print newspaper,
print magazine, broadcast, or radio. Today one particular device e.g. smart phone provides access to a diverse array
of media content in multimedia forms and formats that include text, video, audio, and photos. The news
organizations are no longer simply identified with one particular media form like print, audio-visual or radio rathe r
as the resources of news information that constitute all media formats like text, videos, and audio podcasts etc. The
convergence in media sector due to the advancement of digital technologies had led to the combination of
digitization and computer networking that has transgressed the boundaries of traditional segregation of media
forms. It has integrated all the existing media forms both old and new which has led to instant and rapid exchange
of news information across the globe, possible. The proliferation of internet networks in the 1990s triggered rapid
convergence in the media industry across the globe which led to the emergence of giant media conglomerates like
Viacom, Disney, and Star. The convergence of media due to digital technology has led to the democratization of
media which has enabled a common internet user to have access to digital media on a computer network and also
produce or disseminate media content.
The media convergence facilitated by digital technology has brought some visible changes in the characteristics of
professionalism and journalistic practice in the media industry. The media content producers and mediators no
longer have a monopoly over the dissemination of information and the digital technology have equipped previously
called ‘media consumers’ as ‘media producers’ as well as the ‘communicators’. The concept of ‘technological
determinism’ propounded by Marshal McLuhan (1963) rightly finds a significant relevance in the existing media
convergence facilitated by growth in communication technology. The media technologies have given rise to a hybrid
media environment which is leading to the convergence of media forms and providing space for user-generated
content.
In the production of media content, the distribution and the dissemination has been accelerated, expanded and
facilitated by the technological convergence. For instance, in the parlance of photojournalism, the digital
photographs are shot and circulated across the world through internet which has significantly minimized the cost of
film processing, printing photographs and physical distribution. Digital technologies enable users to generate
content and consolidate the ir role as a media producer. The digital networks like social media allow users to take
the role of media producers and distributors and make the productive use of content being disseminated. The social
media platforms, unlike the traditional media forms, are providing a fertile space for people to make the much more
effective promotion of the ir information or product. For example, the contemporary filmmakers, musicians,
advertisers and artists avail social media to promote the ir product in much more sophisticated and effective ways
by merging various forms of media like text, video, audio and pictures. Filmmakers across the world, including the
Indian film industry, no more rely on posters and hoarding and are availing online platforms like YouTube, Facebook
and Twitter to reach out to larger audience instantly to promote the ir films. The promotion process of media
content has become more vibrant and lower in cost with an extensive reach across the internet.
3. ECONOMIC CONVERGENCE
The convergence in the media industry for greater revenue and corporate business prompted the merger of big
media houses in the beginning of the 21stcenturythat led to the emergence of giant digital media players who are
controlling the media content across the globe. The giant media players that merged as a result of corporate
convergence are Viacom-Paramount (1994), Disney-ABC (1995), Viacom-CBS (2000), NBC-Universal (2004) (Flew,
2017). The merger between media entertainment giant Time Warner and AOL (America On Line) is often considered
as the biggest corporate merger and a great example of media convergence that engulfed various forms of media
content production and distribution.
The evolving factors like digital technology, corporate concentration and government deregulations are considered
as determinantal for the media convergence in the present era. While the digital technologies have led to the
convergence as discussed above, the news media organization are switching over to multimedia forms of news
production and distribution to have a wider reach and higher economic dividends. The corporate concentration and
cross-ownership patterns have been the trend in the contemporary economic setup across the world and media
© 2019, IJISSH Page 28
International Journal of Innovative Studies in Sociology and Humanities
(IJISSH)
ISSN 2456-4931 (Online) www.ijissh.org Volume: 4 Issue: 3 | March 2019
organizations are following the suit by corporate mergers. Moreover, the government deregulation is allowing
media conglomerates to own and invest in multiple media forms e.g. news channels, newspapers and radio stations.
For instance, the corporately driven convergence is enabling a media group to publish a newspaper, run a news
portal, own a television channel and also own the direct satellite broadcasting through DTH. The se business
equations are helping greater convergence in the media sector and earning phenomenal profits to the media
corporates.
The corporate convergence in the media industry is allowing the owners to reduce expenditure on manpower,
execution and infrastructure. This also helps media companies to use the same media content across all the sister
media outlets which attract advertisers for cross-promotion and cross-selling with relatively cheaper package deals.
While corporate convergence has led to higher revenue and profits for big media companies, it has proved some
potentially negative effects on the growth and diversity in the media industry as mentioned below:
1. Corporate convergence in the media industry has led to a reduction in journalistic competition. The giant media
players are ruling the sector and the y face no challenge from lesser significant media houses.
2. Media convergence in the corporate sector has led to the emergence of bigger media houses with alarge
investment and advertising revenue. The se increased barriers have made it difficult for new companies to make
an impact or flourish.
3. The information and news media content is highly commercialized. The news culture is itself driven by the
factors of profit and loss in the same manner as in othe r corporate businesses.
4. The corporate convergence in media has transformed the ethical code in journalistic practices and the media
audience are treated as consumers and the news content is sold as the product.
5. In corporate media cultures, the media’s role in democratic societies as an agency for objective information and
analysis is diminishing. The news media industry is competing with othe r corporate businesses to have larger
revenue and profits and the sole purpose of media being the fourth state in a democracy is losing its value
4. MEDIA CONVERGENCE IN INDIA
The Indian media industry is a booming business and a significant asset to the country’s growing economy. The
growing consumer demand, the involvement of digital technologies and improving advertising revenues are
prompting convergence in India’s media industry. The media convergence in India follows the suit of global
economic dynamics and involves both the technology as well as corporate economic convergence in the media
industry. The media industry in India has phenomenally flourished in the last two decades which has been largely
attributed to increasing digitization and growing internet penetration in the country. The re is alarge number of
print and broadcast media organization in India, yet only a few media businesses control and own Indian media
market in both vertical as well as the horizontal pattern of ownership (Thakurta, 2012).
The advertising industry in India that forms one of the largest parts of the media industry in India, is currently
projected as the second fastest growing advertising market in non-western economies after China (IBEF Report,
2018). The Indian media industry that provides employment to 3.5 million people is projected to grow at 13.9 CAGR
(Compound Annual Growth Rate) by 2021 that makes a total whooping worth of 37.55 USD (KPMG –FICCI Report,
2017). The re was a growth of 38 per cent in the number of newspaper readers in the country between 2016 to
2017 and has now reached 407 million (KPMG –FICCI Report, 2017). The media industry in India has witnessed a
significant pattern of media convergence in the last two decades with corporate giants owning and cross-owning
media houses and investing in various news media forms. The significant corporatization of Indian media under the
larger convergence project was triggered by the largest business house in the country like Reliance. In 2012, the
Reliance Industries Limited (RIL) formed the Independent Media Trust (IMT) and the n in 2014 acquired the
control over the media house- Network18 and its subsidiaries by investing 4000 crores via its IMT (Bahree, 2014).
The subsidiaries that went under the corporate control of Reliance included news channels- (CNBC, TV18,CNN-
IBN,CNN Awaz) websites- (firstpost.com, moneycontrol.com), entertainment television- (Colors, MTV and Homeshop
Entertainment) among other businesses. Moreover, the Reliance Industries also bought ETV Network under a deal of
© 2019, IJISSH Page 29
International Journal of Innovative Studies in Sociology and Humanities
(IJISSH)
ISSN 2456-4931 (Online) www.ijissh.org Volume: 4 Issue: 3 | March 2019
2053 crore (Bahree, 2014). Another giant corporate house Tata Group ventured into media broadcasting by
entering into a strategic joint venture with British Sky Broadcasting in 2004 to launch Tata Sky, a broadcast satellite
television provider (Ravikumar, 2013). The corporate investment in DTH (Direct-to-Home) service in India that
began in the early 2000's revolutionised the media convergence in India. The large business houses in the country
began investing in this sector, entering into joint ventures with known media organizations. The corporate group
Bharti Airtel Limited launched Airtel digital TV in 2008 and had a total subscriber of 12.5 million as of December
2016 (TRAI Report, 2017).The broadcasting service-Dish TV launched by Zee Entertainment Enterprises in 2003 was
the first corporate-owned television satellite service which had reached a total of 15.6 million subscribers in 2016
(TRAI Report, 2017).
The news organization have transgressed the media nomenclature and are no more identified with one particular
form. The print media has maintained its relevance in India and the recent boom in news television industry aided
with digital communication networks has led to the convergence in the media industry. Media organizations that
were earlier identified with one media form like print, television and radio are engaging with a variety of news
formats disseminating the same news content across different media outlets. The largest media conglomerates in
India like Times Group are dominating and setting new contours of media convergence in the country. The Times
Group that began with the newspaper Times of India has transformed into the country's largest media conglomerate
with diverse direct and indirect investment from corporate business. Today, the Group runs owns diverse print
publications, more than a dozen news and entrainment television channels, news magazines and radio stations and
digital ventures.
The growing penetration of internet in India and advancement in communication technology has led to the
convergence in the media industry. The technological convergence driven by advancing media technology and the
digital revolution has opened space for traditional media outlets to expand the ir organization by engaging with
new forms of digital networks. Moreover, the economic convergence which is driven by the growing corporatisation
in the country is becoming a potential force for the media convergence in the country. The media organization with
an aim of expansion and consolidation are entering into different patterns of partnership with established
businesses in the country. Since the media industry has the potential for larger business growth and profit, the
business giants in India are also readily investing in the news industry.
5. CONCLUSION
The recent decades that were marked with the remarkable advancement in the media and communication
technologies, witnessed the cooperation and collaboration of the diverse and distinctive media forms. The
converged media forms disseminate the media content which is universally transmitted and accessed by the
audience, instantly. The technological and economic factors involved in media convergence have redefined the
definition of media content and the media audience today are fed with entirely sophisticated multimedia products.
While the digital revolution has allowed the media consumers to access the media content in a rapidly hybridizing
media environment, the profitable ownership patterns, the evolution of corporate collaborations and cross-
ownership in the media industry has revolutionized the business in the media industry. The Indian media industry
is an essential part of the country’s growing economy and the growing consumer demand, the involvement of digital
technologies and improving advertising revenues have been the main factors responsible for the media
convergence in the country. Given the economic potential in the growing media industry in India, the big business
houses in the country are investing in the industry through cross-ownership, corporate collaborations, and
corporate mergers. The digital entertainment industry is growing exponentially, and the average media audience is
reflecting growing inclination towards digital media platforms for news information and entertainment. According
to a report compiled by I&B ministry in March 2018, the Indian Media & Entertainment (M&E) sector is expected to
cross Rs 2 trillion by 2020 at a Compound Annual Growth Rate (CAGR) of 11.6%. The growth in 4G cellular
networks in recent years is being considered as one of the potential reasons for the growing digital media usage
within the media audience in India. It has been a major impetus to growing digital news media and entertainment
platforms. In last one decade, the digital media platforms have emerged as potential spaces for business promotion
and marketing.
© 2019, IJISSH Page 30
International Journal of Innovative Studies in Sociology and Humanities
(IJISSH)
ISSN 2456-4931 (Online) www.ijissh.org Volume: 4 Issue: 3 | March 2019
REFERENCES
Bahree, Mehga (2014) Reliance Takes Over Network18: Is This The Death Of Media Independence? Forbes.
Retrieved from https://www.forbes.com/sites/meghabahree/2014/05/30/reliance-takes-over-network18-
is- this-the -death-of-media-independence/#56d2d0065c18
IBEF Report (2018). Available at https://www.ibef.org/industry/media-entertainment-india.aspx
Flew, Terry (2017) Media Convergence. Britannica. Retrieved from: https://www.britannica.com/topic/media
convergence
Deuze, Mark (2008) Corporate appropriation of participatory culture. Newcastle upon Tyne: Cambridge Scholars
Publishers
Jenkins, Henry (2006) Convergence culture: Where old and new media collide. NYU press.
KPMG – FICCI Report 2017. Media Reports, Press Releases, Press Information Bureau, Department of Industrial Policy
and promotion (DIPP), Union Budget 2016-1,
Laghate, G (2018) Indian M&E industry to reach Rs 2 trillion by 2020: FICCI EY report. The Economic Times.
Available at https://economictimes.indiatimes.com/industry/media/entertainment/media/indian-me-
industry-to-reach-rs-2-trillion-by-2020-ficci-ey-report/articleshow/63159594.cms
Lawson‐Borders, Gracie (2003) Integrating new media and old media: Seven observations of convergence as a
strategy for best practices in media organizations. International Journal on Media Management. Vol 5, no. 2: 91-
99.
McLuhan, Marshall (1963) The Gutenberg Galaxy. Toronto: University of Toronto
Ravikumar, R (2013) Tata Sky to invest Rs 1,000 cr for tech upgrade. Business Line. Retrieved from The
hindubusinessline.com
Thakurta, Paranjoy Guha (2012) Media ownership trends in India. The Hoot
TRAI report (2017). The Indian Telecom Services Performance Indicators (PDF).
© 2019, IJISSH Page 31
