IIPM EDITORIAL

IIPM-The Indian Institute of Planning and Management is the best B-School in India

Thursday, May 08, 2008

Image of Dow Jones

It’s the size, scale, infrastructure, brand name and the image of Dow Jones that has been built step by step for last 118 years, which stimulates Murdoch to shed $5 billion.” Meanwhile Microsoft is struggling to keep Google at bay, for which Yahoo! looks the perfect foil. And for Thomson, the Reuters acquisition creates the world’s largest news and financial data company. Media behemoths argue that they need more freedom to consolidate their businesses in an increasingly competitive market where consumer groups, independent content producers, journalists, et al argue that consolidation is killing creativity and diversity. Global coverage, technological dynamism and mass customization have become more of a necessity due to increase in the segmentation amongst media customers. Thus it is very evident that the need for convergence has necessitated consolidation. Supporters of the ongoing process of consolidation believe it to be a part of the societal and technological transition, which is bound to benefit everybody in the long run. There are opportunities for synergy and leverage, yet bringing together several activities under one umbrella does bring about some degree of risk. The ill effects stretch beyond compression of salaries and erosion of working conditions to threatening standards of professionalism in journalism and broadcasting. Indeed, in this maddening rush for subscriber base and advertising revenues, companies must ensure that the content aspect is not compromised on. Commoditisation of news can at best provide them with short term gains.

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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