Convergence & Disintermediation

Convergence

The convergence defines as the process of coming together or uniting in a common interest or focus.  The biggest example of corporate convergence was the 2001 merger of "new media" AOL with "old media" lime Warner. The convergence enthusiasts envisioned a future in which each household would have a high-speed broadband connection to the Internet that provided interactive TV. movies on demand, online magazines, e-mail, and Web surfing.

Operational Convergence

Another type of convergence is operational convergence. This occurs when owners of several media properties in one market combine their separate opera­tions into a single effort. For example, The advantages of this type of convergence are obvious. It saves money because rather than hiring a separate news staff for each medium, an operation can have the same reporters produce stories for the paper, Website, and TV operation. In addition, each medium can promote its partners. The TV newscast can encourage readers to visit the website or the print newspaper.Although operational convergence may be good for the media companies, it may not be good for con­sumers. In any case, the jury is still out on the merits of operational convergence.

Device Convergence, combining the functions of two or three devices into one mechanism. Examples of this trend are ;   Many Personal Digital Assistants are combination com­puters and cell phones. Some cell phones incorporate digital video cameras.  addition, if convergence results in a piece of equipment that is too complex to operate, not much is gained.

 Disintermediation

This word refers to the process whereby access to a product or a service is given directly to the consumer, thus eliminating the intermediary, or "middleman," who might typically supply the product or service. 

The Internet and the World Wide Web have created a ubiquitous and easily acces­sible network over which buyers and sellers make direct contact. The Internet has already provided several examples of disintermediation. Travelers bypass travel agents and book airline tickets directly online; traders bypass brokers and pur­chase stocks directly online; consumers bypass salespeople and buy insurance online. (Some businesses have more to fear from disintermediation than others. 

Disintermediation is of obvious concern to mass media organizations. Those media that can easily be distributed over the Internet are the first to feel its effects. lake sound recording, for example:  An author can put a book directly on a website for readers to download, thereby bypassing publishing companies and bookstores altogether.