Sunday, February 27, 2011

Conglomeration: affiliate or not?

“Conglomeration is the process of companies being brought into common ownership but remaining distinct entities.” (The Mass Media of Communication, John Vivian) In poor economic times like today, it is beneficial for the movie and television industry to be bought and run by conglomerates. Conglomerates allows movie and television companies that are in financial distress, flourish by merging them with the rest of their companies that are owned by that one conglomerate. Conglomeration is also a positive thing in the respects that they have more money to put into the movie and television industry, which in turn creates more revenue for the industry. Another positive aspect is that even though they are part of a conglomerate they can still maintain their autonomy. All of the big six movie studios minus Disney are a part of mega-conglomerates. For example Paramount Pictures is a part of Viacom, and Columbia Pictures is a part of Sony Pictures. The success of these conglomerations is due to the aggressiveness and the dire need for probability by its leadership. Also the shareholders drive the need, which puts more pressure on the conglomerates to succeed financially. The idea of a conglomerate is to make a profit and keep afloat.

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