Synergy And Convergence

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Synergy Synergy A Definition: Synergy Synergy (from the Greek (from the Greek syn-ergos syn-ergos , , συνεργός συνεργός meaning meaning working together) is the term used to describe a working together) is the term used to describe a situation where different entities cooperate situation where different entities cooperate advantageously for a final outcome. Simply advantageously for a final outcome. Simply defined, it means that the whole is greater than defined, it means that the whole is greater than the sum of its parts. the sum of its parts. It’s the ‘strategy of synchronising and actively It’s the ‘strategy of synchronising and actively forging connections between directly related areas forging connections between directly related areas of entertainment’. of entertainment’. New Technologies support this process – web, dvd, New Technologies support this process – web, dvd, downloading. Media institution exploit various downloading. Media institution exploit various platforms to sell various products related to one platforms to sell various products related to one film (e.g. film and soundtrack and video game). film (e.g. film and soundtrack and video game). Symbiosis is the linking up of various companies Symbiosis is the linking up of various companies to make profits from one product to make profits from one product

description

a presentation on the effect of synergy and convergence referring to working title

Transcript of Synergy And Convergence

Page 1: Synergy And Convergence

SynergySynergyA Definition:

SynergySynergy (from the Greek (from the Greek syn-ergossyn-ergos, , συνεργόςσυνεργός meaning meaning working together) is the term used to describe a situation working together) is the term used to describe a situation where different entities cooperate advantageously for a where different entities cooperate advantageously for a final outcome. Simply defined, it means that the whole is final outcome. Simply defined, it means that the whole is greater than the sum of its parts.greater than the sum of its parts.

It’s the ‘strategy of synchronising and actively forging It’s the ‘strategy of synchronising and actively forging connections between directly related areas of connections between directly related areas of entertainment’.entertainment’.

New Technologies support this process – web, dvd, New Technologies support this process – web, dvd, downloading. Media institution exploit various platforms to downloading. Media institution exploit various platforms to sell various products related to one film (e.g. film and sell various products related to one film (e.g. film and soundtrack and video game).soundtrack and video game).

Symbiosis is the linking up of various companies to make Symbiosis is the linking up of various companies to make profits from one product profits from one product

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An example of synergy from DisneyAn example of synergy from Disney

CD

Game

DVD

Outlets

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An example of synergy from Working Title Films….

DVD

Sound Track

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This is when different companies work together to promote This is when different companies work together to promote a range of related products. Eg High School Musical the film a range of related products. Eg High School Musical the film will enable spin-offs like Happy Meals, Easter Eggs, will enable spin-offs like Happy Meals, Easter Eggs, bedlinen, toy characters etc and the distributor will agree bedlinen, toy characters etc and the distributor will agree licensing deals for companies to make and sell this licensing deals for companies to make and sell this merchandising. A % of the profits will go back to the merchandising. A % of the profits will go back to the distributordistributor

Walt Disney pioneered symbiosis marketing techniques in Walt Disney pioneered symbiosis marketing techniques in the 1930s by granting dozens of firms the right to use his the 1930s by granting dozens of firms the right to use his Mickey Mouse character in products and ads, and continued Mickey Mouse character in products and ads, and continued to market Disney media through licensing arrangements.to market Disney media through licensing arrangements.

These products can help advertise the film itself and thus These products can help advertise the film itself and thus help to increase the film's sales. For example, the Spider-help to increase the film's sales. For example, the Spider-Man films had toys of ‘webshooters’ and figures of the Man films had toys of ‘webshooters’ and figures of the characters made, CD soundtracks, video games, DVD’s and characters made, CD soundtracks, video games, DVD’s and other merchandising.other merchandising.

SymbiosisSymbiosis

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ConvergenceConvergence Convergence is the process by which a range of media Convergence is the process by which a range of media

platforms are integrated within a single piece of media platforms are integrated within a single piece of media technology. technology.

For example the new X Box 360 is a games console, a DVD For example the new X Box 360 is a games console, a DVD player, an internet modem.player, an internet modem.

The iphone is a phone, a camera, a video camera, an mp3 The iphone is a phone, a camera, a video camera, an mp3 player, an FM radio, a games console, a web browser, a player, an FM radio, a games console, a web browser, a palmtop computer.palmtop computer.

This demonstrates ‘convergence’ of a wide range of This demonstrates ‘convergence’ of a wide range of technologies.technologies.

Media institutions recognise that audiences enjoy using Media institutions recognise that audiences enjoy using converged technology, want to consume media in a variety converged technology, want to consume media in a variety of different ways (including ‘on the go’) and provide short of different ways (including ‘on the go’) and provide short form content for downloading eg video clips, trailers, music form content for downloading eg video clips, trailers, music videos, jingles, wallpapers, music tracks etcvideos, jingles, wallpapers, music tracks etc

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Vivendi Universal Vivendi Universal Working Title films is owned by Universal filmsWorking Title films is owned by Universal films

Universal films is part of Vivendi UniversalUniversal films is part of Vivendi Universal

Vivendi Universal is a giant name in the world of Vivendi Universal is a giant name in the world of the privatised water industry all over the world, the privatised water industry all over the world, from Brazil to the UKfrom Brazil to the UK

It also owns major phone companies in many It also owns major phone companies in many countriescountries

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

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Vivendi Universal own Cineplex and Odeon Vivendi Universal own Cineplex and Odeon cinema chains- another distribution an marketing cinema chains- another distribution an marketing outletoutlet

Also owns MP3.com Also owns MP3.com

Also owns Canal+ (French TV subscription Also owns Canal+ (French TV subscription channel) which has 14 million subscribers in 11 channel) which has 14 million subscribers in 11 countries in Europe. Canal+ part finance countries in Europe. Canal+ part finance Working Title Films productions.Working Title Films productions.

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

Vivendi Universal Vivendi Universal

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Can produce their own tv shows and films at Can produce their own tv shows and films at Universal StudiosUniversal Studios

Have exclusive distribution rights of Working Title Have exclusive distribution rights of Working Title films and soundtracksfilms and soundtracks

Can distribute, market and exhibit films they own Can distribute, market and exhibit films they own through their own 13 cable channels, eg Chiller through their own 13 cable channels, eg Chiller channel for horror films, Movies 24 in UK and channel for horror films, Movies 24 in UK and Canal+ in EuropeCanal+ in Europe

Can market and exhibit content through their tv Can market and exhibit content through their tv channels and entertainment parkschannels and entertainment parks

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

Vivendi UniversalVivendi Universal

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MP3.comMP3.com Vivendi Universal own MP3.comVivendi Universal own MP3.com

They can use this as a platform to distribute They can use this as a platform to distribute Universal owned contentUniversal owned content

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

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

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As a company they have..As a company they have..

Have integrated film, music, web and distribution Have integrated film, music, web and distribution technology into the company, including owning technology into the company, including owning big stakes in cables and wires that deliver these big stakes in cables and wires that deliver these services.services.

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

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

Vivendi Universal Vivendi Universal

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Why is this important to Why is this important to Working Title Films?Working Title Films?

Points to think about…Points to think about… Production Production Distribution Distribution MarketingMarketing ExhibitionExhibition Merchandising – increase profitsMerchandising – increase profits