2. Synergy
• Synergy is when the interaction of two or
more forces working together creates a
greater effect than the sum of their individual
effort.
• Synergy works when different elements within
media conglomerate promote (e.g. film
studio).
3. Spiderman Synergy
• Film- Sony Pictures
• Soundtrack- Sony Music Entertainment
• First Spiderman film, all artists are Sony artists. Theme tune sung
by Chad Kroeger of Nickelback who are signed to Road Runner
Records which are owned by Sony.
• Game- PlayStation2, PSP,
• DVD- Blue-Ray
• Product Placement- Sony would have been paid to use a Carlsberg
van in the film.
Joint venture with Marvel Comics
Other merchandise- toys, clothes, posters all promote the film and
benefit Sony financially.
4. Advantages of Synergy
• Companies like Sony can spread their commercial interests.
• Diversification means a reduction risk.
• Increase profit of each separate medium.
• Enhances companies image.
• Can reach shrinking audience with diverse taste.
• Influence public opinion.
• Dominate a variety of markets.
• Sharing skills between two companies and exploiting
strengths (Sony and Marvel, Sony and Ericsson, Sony and
3Mobile).
5. Problems with Synergy
• Easier in theory than in practice. Different
companies may have different ideas.
• Can lead to loss of in jobs. Sony has laid off
19,500 workers this year.
• Merging together to exploit strengths or sharing
risk?
• Smaller companies who only specialise in one
medium struggle to compete.
• Leads to oligopolies – uneven distribution of
power.
6. Horizontal and Vertical Integration
• Often a single parent company will own multiple companies in
the film industry.
• Horizontal- The parent company owns multiple companies at
the same stage of the film industry. A smaller
company, owned by the parent is subsidiary.
• Vertical- The parent company owns multiple companies
across different stages of the film industry.
• Example Warner Bros owns-
Warner Bros Studios (production)
Warner Bros (distribution)
Used to own Warner Bros cinemas in the UK (exhibition)
8. Convergence
• It is quite literally the convergence of media or
in other words the confluence of different
media through the use of technology. An
example of this being that music player is a
medium for listening to music but the
convergence of media allows the same music
to be enjoyed using different media like the
mobile, internet, etc.
10. Viral Marketing
• Is a marketing strategy that focuses on
spreading information and opinions about a
product or service from person to
person, especially by using unconventional
means such as the Internet or e-mail.
11. Viral Marketing- Spiderman
• Since the release of a third theatrical trailer for the
Spider-Man reboot, additional images and TV spots
have flooded the ‘Net.
• Rumours that a fourth trailer will be attached to
prints of Men in Black 3 which was distributed by
Sony Columbia.
• Sony is also emulating The Dark Knight‘s approach to
success, with an elaborate Amazing Spider-Man viral
marketing campaign – including, fake Daily Bugle
news scoops and instructions on how to construct
artificial web-shooters.