Conglomeration changing the movie and television industry

In these economic times, the term ‘conglomerate’ spurs both positive and negative arguments in regards to the movie and television industry. Corporations with heavy capital, such as Viacom, have had the ability to acquire smaller companies with limited capital in an effort to increase profit margins and expand audiences around the world.

Conglomeration has allowed large companies such as Viacom to promote new television series such as ‘True Life’ through a movie showing that was produced by Paramount Pictures. Conglomeration has given large media companies the ability to target, diversify, and expand the way in which they promote their products through various outlets (i.e. television channels and movies). This technique, although cost effective for conglomerates, ultimately limits choice for the viewer.

From a business venture, conglomeration has allowed smaller companies to become subsidiaries of these larger corporations, increasing exposure, marketability, thus driving profits. In the most recent recession, many smaller companies who may have faced bankruptcy have had the opportunity to merge with larger corporations, continuing business operations while maintaining a portion of control.

These mergers and acquisitions can be looked upon as very profitable for conglomerates, but have the ability to silence smaller companies. Those who act independently, with limited capital, lack the ability to target large audiences and create mass appeal in both the movie and television industry. Conglomeration has the ability to both help and hinder the smaller company in either case.

-Patrick Morgan