Synergy and Convergence

Media and Film

ConvergenceConvergence is the process by which a range of media platforms are integrated within a single piece of media technology. For example, the new X Box 360 is a games console, a DVD player, an internet modem. The iphone is a phone, a camera, a video camera, an mp3 player, an FM radio, a games console, a web browser, a palmtop computer. This demonstrates ‘convergence’ of a wide range of technologies. Media institutions recognise that audiences enjoy using converged technology, want to consume media in a variety of different ways (including ‘on the go’) and provide short form content for downloading eg video clips, trailers, music videos, jingles, wallpapers, music tracks etc

SynergyA Definition: Synergy (from the Greeksyn-ergos, ,συνεργ ός meaning working together) is theterm used to describe a situation where different entities cooperateadvantageously for a final outcome. Simply defined, it means that thewhole is greater than the sum of its parts. It’s the ‘strategy of synchronising and actively forging connectionsbetween directly related areas of entertainment’. New Technologies support this process – web, dvd, downloading. Mediainstitution exploit various platforms to sell various products related to onefilm (e.g. film and soundtrack and video game). Symbiosis is the linking up of various companies to make profits from oneproduct.

Symbiosis

This is when different companies work together to promote a range ofrelated products. E.g. High School Musical the film will enable spin-offslike Happy Meals, Easter Eggs, bed linen, toy characters etc and thedistributor will agree licensing deals for companies to make and sellthis merchandising. A percentage of the profits will go back to the distributor .Walt Disney pioneered symbiosis marketing techniques in the 1930s

bygranting dozens of firms the right to use his Mickey Mouse character in products and ads, and continued to marketDisney media through licensing arrangements. These products can help advertise the film itself and thus help toincrease the film's sales. For example, the Spider-Man films had toys of‘web shooters’ and figures of the characters made, CD soundtracks,video games, DVD’s and other merchandising.

Vivendi Universal

• Working Title films is owned by Universal films • Universal films is part of Vivendi Universal • Vivendi Universal is a giant name in the world of

the privatised water industry all over the world, from Brazil to the UK

• It also owns major phone companies in many countries

• It also owns 60 publishing houses selling 80 million books a year / 40 million CD-ROMs a year

Vivendi Universal • Vivendi Universal own Cineplex and Odeon

cinema chains- another distribution an marketing outlet .

• Also owns MP3.com • Also owns Canal+ (French TV subscription

channel) which has 14 million subscribers in 11 countries in Europe.

• Canal+ part finance Working Title Films productions.

• Owns Universal records. (22% share of global market across 63 countries)

Vivendi Universal • Can produce their own T.V. shows and films at

Universal Studios. • Have exclusive distribution rights of Working Title

films and soundtracks. • Can distribute, market and exhibit films they own

through their own 13 cable channels, eg Chiller channel for horror films, Movies 24 in UK and Canal+ in Europe.

• Can market and exhibit content through their tv channels and entertainment parks.

• They can distribute their content through their partnership with Apple via i-tunes.

MP3.com• Vivendi Universal own MP3.com They can use

this as a platform to distribute Universal owned content

• They can also use the MP3.com as a platform for advertising content and can sell advertising space to other related companies eg CBS have links to their film sites.

• Therefore the company benefit from audiences owning converged technology such as a video- ipod as this is where they will download and

exhibit their content

Vivendi Universal

As a company they have.. • integrated film, music, web and distribution

technology into the company,including owning big stakes in cables and wires that deliver these services.

• Therefore they are vertically integrated because they own all the different companies involved in film, from production to distribution to exhibition.

• They are also horizontally integrated because they have all the expertise for producing media content under one roof – films, tv, magazines, books, music, games thus being able to produce all the related media content for one film under the same roof (see synergy)

Why is this important to Working Title Films?

• Points to think about… • Production • Distribution • Marketing • Exhibition • Merchandising – increase profits