In media convergence, the strategy involves three elements. corporate concentration, digitization and government deregulation. This strategy allows companies to cut labour cost by transmitting the same media content over the other media outlets. The purpose of this would be attracting increased advertisement simply by providing better package for advertisers. For the company, material and administrative costs are reduced since they transmit similar things in many media station the company owns. It also helps in increasing brand recognition and brand royalty. Furthermore, it also raises the barriers for new customers seeking a chance to enter the media markets hence limiting advancing competition from other companies (Jorda 2008).
An example of media convergence could be could be the merger between Warner Brothers and Time Inc in 1989 in order to create the world’s largest media house. The merger also had businesses in the entertainment sector, magazine publishing, film production, music recording and distribution. In 2001, AOL bought Time Warner in an attempt to expand the merger to accommodate the internet (Jorda 2008).
Another example of media convergence is BCE Inc, a telephone company that expanded into the television industry, purchased the national CTV network, expanded to publishing newspapers, acquired The Globe and Mail: plus a new media together with a family of websites.