The importance of cross media convergence and synergy in production,
distribution and marketing
What does this question mean Mr Sheriff?
This question is asking you to discuss the impact of new technology on the music
industry, through the terms ‘cross media convergence’ and ‘synergy,’ you will have to
link these two terms to the key terminology of production, distribution and marketing.
Ok, what knowledge do I need to know to get a decent grade then?

An explanation of what the term ‘cross media convergence’ means. (see
essay plan for explanation)

An explanation of what the term ‘synergy’ means and how Sony as a
conglomerate can use synergy to help promote its products (see essay plan
for explanation)

Knowledge of the terms production, distribution and marketing linked to the
modern music industry, with examples from case studies that you have done
in class. (Both from Sony’s point of view as well as an audience’s point of
view.)

Knowledge of the promotion of the last Final Fantasy computer game would
be an excellent way to answer this question
Plan of action for this answer
Part 1: Define what cross media convergence means and use the deal between The
X Factor and Syco TV to explain the process of what cross media convergence
means.
Part 2: Use the deal between A Wolf at your Door and Sony with regards to Deaf
Havana to explore how smaller companies also benefit from this process.
Part 3: Using Sony as your case study write down some more examples of synergy
and cross media convergence in your answer, I have used Leona Lewis/Final
Fantasy and Katy Perry’s website for cross media convergence and synergy; Acid
Pro 7 for production and Sony Playstation Music for distribution ( you could also write
about the recording contract you could win which was the result of Sony Music and
Sony Xperia) Lots of examples please
Part 4: Using you/bands/artists/prosumers write an example of how we can use
cross media convergence in today’s world because of the changes in the music
industry; I used Tyler Ward – you could use Brett Domino etc
Part 5 – Conclusion – the importance of cross media convergence summary and I
used Jay Z’s deal with Samsung to help emphasise the point in more detail.
How has cross-media convergence and synergy changed the music industry
for both producers of music and the consumer.
Cross Media Convergence is a term that has many meanings but an easy definition
for this concept is when two media companies from different media areas, say Syco
TV and Sony Music, come together to make a new product, in the case of the two
above named companies that product was The X Factor. The reason for this coming
together (convergence) is down to the fact that the music industry has gone through
radical changes over the last fifteen years, meaning a decline in traditional CD sales,
which in turn means a new strategy was required to enable Sony to continue making
money from their bands and singers. With a mainstream presence on television The
X Factor can be used to create new talent for Sony music, whilst Syco gets the
benefit of being able to use today’s top pop stars to guarantee huge ratings, which
for Syco means that they can charge more for advertising (up to £1 million for a 30
seconds slot in the final.) 70% of all the profits for Sony music UK come from this one
television show and it has just been renewed until 2016. The television show is also
just the start of the potential revenue streams from the franchise however. Sony can
spin off live shows, apps, compilation albums etc to make sure that they are
exploiting brand recognition in many different areas and in turn are using the concept
of cross media convergence to maintain profits.
Another example of cross media convergence can also be seen between large
conglomerates like Sony and smaller independent record companies like Wolf at
your Door. One of their bands Deaf Havana was recently signed to Sony but a deal
was struck that meant the smaller record company kept some of the profits from
merchandise and tour receipts enabling both companies to make money from the
deal (Sony get a hot new band and Wolf at Your Door benefit from the increased
marketing that the band will receive.) In a world where smaller companies struggle to
compete with large conglomerates this form of cross media co-operation is a good
way for companies to survive.
Sony are also a computer games manufacturer and can use Playstation 4 and Vita to
design their own music games; using Sony artists to promote music across the world.
Sound Shapes is one such example of a music app game where a simple jumping
and dodging platform game is supplemented with music contributions from
Deadmau5 and other. This is another example of cross media convergence and the
act of using a Sony music artist to support a Sony computer game means that each
product helps support the promotion of the other product, a process called synergy.
Apps are also an increasing area of profit for companies so the use of this part of
their company means that dwindling CD sales can be recouped from other areas of
the business, indeed music companies such as Sony licensing their music to game
developers is one area which has seen profits recently, another being live concerts.
Sony is a conglomerate and have many different companies working under the same
brand name. This means that one part of the company can support another part of
the company, again through the process of what is called synergy (where different
parts of the conglomerate can market the same product.) For example the Sony
funded film franchise of James Bond films uses this principle of synergy when the
lead characters uses a Sony laptop or phone. An artist’s website, for example Katy
Perry, has now developed to become an example of cross media convergence and
synergy in terms of the key word marketing because through the portal of a
homepage, an artist can sell tickets, stream music, interact with their fan base, sell
merchandise and generally offer a ‘one stop’ site where all of their music can be
promoted; it must also be remembered that artists such as Katy Perry will also do
deals with various clothing/make up/perfume companies to help sell their products;
itself a from of cross media convergence and such is the power of a pop star such as
Katy Perry it is easy to make the point that they have now become ‘mini
conglomerates’ themselves in today’s music world (Beyonce’s recent deal with Pepsi
Max being one obvious example.) These websites are updated every day to make
sure that fans are kept up to date with all of the information that the record company
want you to know about the artist. This is important in today’s music world because
an artist will receive most of their money through ventures outside of music itself, a
recent news-story on BuzzFeed highlighted how much money Taylor Swift makes
away from her actual music sales ($60 million for her last tour alone.)
Another good example of cross media convergence was when the latest Sony
computer game from the Final Fantasy came out, Leona Lewis (a Sony artist)
provided one of the songs (Hands) for the game and she was used to promote it.
This ‘cross media’ approach means that the company can use all aspects of its
company to market products because by promoting the computer game (a Sony
product) Leona Lewis is also promoting her song (another Sony product.) and this
again means they are using the principle of synergy.
In terms of production Sony use ACID Pro 7,a music production program which is
created by Sony Creative Software (A subsidiary of Sony focused on software
production) Another subsidiary of Sony is Sony DADC, who manufacture CDs, Blurays etc. These are forms of cross-media convergence of industries because
different branches of Sony are working together for the Music Industry in a way to cut
costs, illustrating how a conglomerate can use its various assets in a productive
manner.
In terms of distribution Sony music can also use its cross-media conglomerate might
to easily distribute its music. For example Sony recently did a deal with Spotify to
release Sony Music Playstation an online music-streaming service which allows for
music to be streamed to a variety of devices, such as BRAVIA televisions and
Playstation 4 consoles. Sony also use Vevo as a means to distribute and promote
music. Vevo host music videos on YouTube and use adverts at the start of each
video to produce revenue. This is good for the music companies as it allows them to
regulate the online distribution of their music videos and make money from it.
In terms of the key words production, distribution and marketing, the invention of the
internet, increased usage of popular software such as Garageband, which comes
bundled with a MacBook and the rise of popular tablet computers such as the iPad,
with their associated apps which can also be downloaded onto smart phones means
the actual process of producing music is now relatively straightforward and this has
created a new wave of pop stars called prosumers who have bypassed the
mainstream media and even record companies to achieve success, all from their
living rooms.
One example of this ‘new’ pop star is Tyler Ward, a 21 year old male solo singer who
tours the world, has millions subscribers to his YouTube channel and has grand
plans to launch his own entertainment network. After posting a video of himself and
other unknown artists singing We are the World in order to benefit victims of the Haiti
earthquake on YouTube, Tyler quickly gathered fans through his YouTube channel,
who then became fans of his original songs. He now has 1.5 million subscribers to
his channel and is able to tour the world as part of ‘Digitour’ ‘the world’s first
YouTube tour and music festival,’ with other YouTube artists such as Tiffany Alvord
and Dave Days, artists who have no connection to the mainstream media or record
companies because they have a direct relationship with their fans over the internet,
an achievement only possible through changes in technology (they record songs on
their own software, upload songs to their account on the same piece of technology
and can interact with their fans on the very same piece of technology equipment.)
meaning the process of production, distribution and marketing is an easy thing to do
in today’s more advanced world.
To conclude, the process of cross media convergence and synergy is a vital part of
today’s music industry. Since Napster invented peer to peer file sharing in 1999
conglomerates have had to face falling revenue from music sales and in the process
they have struck deals with other companies to enable that profits can still be made.
One of the most famous examples of this process is the deal signed between SyCo
TV and Sony Music which meant the introduction of a talent show to a huge TV
audience. This fresh idea has been replicated by a number of individuals who have
taken advantage of advances in technology to also use cross media convergence as
a means to secure promotion or money, one recent example of this is the deal that
was struck between Jay Z and Samsung where Jay’s latest album was given away
as part of a promotion for an app; again a process where both parties gain from this
cross media convergence. This new kind of deal can also be seen when Beyonce
marketed her last album through the use of a single Instagram post, a marketing ploy
that worked due to fan engagement with the post.