The Dilemma of Convergence

If there were any doubts on convergence, the AOL-Time Warner merger should put them to rest. What would one call such coming together of media, which was traditionally either a newspaper or a magazine or radio or TV (and of late ISP)? Convergence, of course!

Clearly, this deal is a fusion of the old and new media; the fusion of content creators and those who can deliver it. It should not be surprising to see entertainment and Internet majors like Sony, Disney, Yahoo, Lycos, AT&T, CBS, NBC also trying to get into similar deals. Our country also saw something similar sometime back with the Satyam- Indiaworld merger.

Rumour mills are full of stories of Indian media giants and Internet players eyeing each other of late. 

The mega merger, however, comes with its own advantages and disadvantages–both for the consumer as well as the corporate. Doing a lot of things like buying CDs from a music shop, or ordering groceries from the store, or settling bills from the comforts of drawing room couch, could
totally revolutionize consumer habits, make life simpler, reduce time spent on daily chores, and enhance productivity. 

For the media and entertainment corporates, it brings deeper penetration and wider reach. It''s what all corporates are always aspiring for. AOL’s subscriber base, with this single move, shoots up to over 100 million. And from just ISP
services, it moves onto providing entertainment and news, thereby addressing a much wider and varied subscriber base. AOL, which was hitherto present in the US, now finds itself in hundreds of countries and economies. Overnight, it could be a major media force to reckon with, wiping out small media and information houses.

The flip side of the coin is that with the formation of such conglomerates, information might be monopolized. For instance, people might only have CNN to get their news and other information. Quality of decision making–not just individual but even organizational–might get jeopardized if there is only one source to choose from. Media monopoly is known to bring with it a lot of other ills. Information coming from such a source could be suspect in credibility, biased in interpretation, and monotonous and non-innovative in presentation. Nations like ours that have been trying to keep foreign media at bay for a variety of reasons might find that such a merger makes their task very tough. Cultural invasion might be impossible to control now. 

The fall-outs of the celebrated merger can have far reaching impact on our country. Extreme caution must be exercised before we start celebrating the onset of convergence.