Synergetic Practices (Extended Deadline--due by Section meeting 11/20)
What is synergy? How does it operate within a contemporary media environment primarily run by large conglomorates? Give one example of synergy (you can use an example from the present if you wish).
Synergy is the use of multiple subsidiaries in conjunction in order to produce better results than they would on their own. The basic idea of synergy is that multiple entities can cooperate in order to have a better combined bottom line than they would if one were to sum their individual bottom lines. As much of the current media system exists within a few very large conglomerates, there are many modern examples of synergy to be found. One of the more common is cross promotion, where one subsidiary network would promote the content on another subsidiary network because it would be cheaper than advertising on a different corporation's station. One modern example of such a synergy is between Warner Brothers' Films, The CW, and DC Comics. As these companies are all subsidiaries of Time Warner, they can advertise within each others' media more effectively. For example, there are frequently advertisements for programs on The CW, such as Arrow, within the pages of DC Comics, such as Batman. Similarly, in the summer of 2012, the majority of DC's comics had advertisements for The Dark Knight Rises on their covers. Were this advertising spot to be sold to a third party, they would likely be very expensive, yet they could easily be provided to other subsidiaries at a discount in order to cross-promote.
ReplyDeleteSynergy is the process by which parts of the conglomerate act to promote something and sell different aspects of it. This occurs when a company wants to control markets, production, distribution, etc. by horizontal and vertical integration. Horizontal integration includes buying or merging with firms at the same stage of production. An example is when a beverage company buys out smaller beverage companies to incorporate them into production. Vertical integration occurs when companies buy/merge at a different stage of production. An example of this is when a beverage company buys raw resources and ingredients manufacturing, advertising firms and other phases of production to sell their product. These large conglomerates often times aim to operate across national boundaries and across media sectors. Media conglomerates aim to control all aspects of production, recruiting talents, marketing and other details that come into play when wanting to control all means of the media.
ReplyDeleteAn example of synergy seen today is by the Red Bull company. Red Bull is commonly known for its energy drinks along with the slogan “Red Bull gives you wings”. As they have a presence in advertising, they are also very well known for sponsorships. For example, sponsorships commonly litter extreme-sports cars, bikes, wake-boarding, motocross, and many more. They are even known to sponsor events such as breakdance competitions and even record-breaker Felix Baumgartner who jumped from space. The integration of the energy drink reaches beyond the beverage name to the notion of a sponsor for extreme sports and activities to daredevils and record-breakers.
The combined efforts of various organizations to create a product that could not be made individually. It sounds like the premise of Captain Planet and the Planeteers. But Captain Planet is beside the point. You have these individual television networks that cannot produce television all on their own; they depend on various other corporations to create entertainment. It’s corporation survival guide 101. Though they are at times in competition with each other, they need to work together, buy each other out, and share programming in order to survive.
ReplyDeletePersonally, I never did notice this synergy when watching television before. Now it makes sense as to why ABC constantly promotes Disney products on their programs and why Dancing with the Stars has so many Disney child stars competing. But how does all of this work? I probably don’t understand everything, but I believe I have a basic idea of it. Take Disney and ABC, they’ve been scratching each other’s backs since the 1950s. Disney created Disneyland for ABC and ABC allowed Disney to promote Disney to the audience. But this is not synergy; they were simply collaborating partners until the FCC began to loosen its grip and Disney buys ABC. ABC, though under Disney, continues to be ABC and do much of what it did beforehand, promote Disney World through America’s Funniest Home Videos.
Now Disney has various channels where they present their programming as well. Disney practically has a whole system to work with. Disney does not need to have its logo on the product in order to tell you it is Disney. Marvel is now under Disney control even if it doesn’t have the signature Cinderella Castle at the beginning of the film. Look at the new Agents of S.H.I.E.L.D program on ABC. It’s all Disney. It almost sounds like a horror story…
I recently took a course on New Line Cinema here at U of M and we spent a good block of the class discussing synergy. Synergy is when a company controls many facets of a conglomerate in order to maximize profits. For example how Disney produces movies and then toys of characters from these movies, as well as a theme park that mimics experiences within the movies. All of these separate mediums are ultimately controlled and produced by Disney, and all the profits go to the company as a whole.
ReplyDeleteA more specific example of synergy that we detailed in my class was the phenomenon that was Nightmare on Elm Street. This classic horror film became one of New Line Cinema’s largest sources of income in its time not only because of the film’s popularity but even more due to the company’s utilization of synergy. New Line saw the popularity of this film and decided to capitalize on it as much as possible. They produced Freddy action figures, Halloween costumes, he even had a short-lived spin off television show. All of these separate sources of income revolved around the film and all the profits went to New Line. This phenomenon gave the company the funds to become one of the largest production companies in the country.
I guess I have always noticed about synergy without actually learning the term. It seemed that each major broadcasting network had a proverbial "spin off" networks like how NBC and MSNBC are both from the same company. It astounds me, however, how closely tied every television station seems to be. Synergy is when companies combine to make a conglomerate and produce things with many aspects that they could not do on their own. Basically companies maximize profits by working together.
ReplyDeleteA great illustration of this can be found in the show "30 Rock". GE is a part of NBC. Often the character Jack who is head of GE tries to get NBC shows to center around GE products like having a character use a GE microwave for example. This shows that since GE and NBC are businesses that work together, GE would get free advertising during the NBC show and the show is able to air with GE's support. GE and NBC help each other out and can pool their profits without costs of advertising. Its genius on the business front.
This clip from 30 Rock pokes fun at how connected companies are and shows how relevant synergy is to the television business. http://www.youtube.com/watch?v=Q3-5ozVcHhk
Synergy, according to Hilmes, “literally describes the working together of two or more components so that they produce an effect greater than either could alone” (OC, 325). It is used mostly when referring to vertical and horizontal integration of companies through mergers, acquisitions, or expansions (OC, 325). Basically synergy was used to cross-promote, create greater profits, and keep those profits in house (OC, 326). In modern times, there are many examples of synergy due to the few large conglomerates that control most of the media. On such example is synergy between The Walt Disney Company, ABC, and Marvel Studios. One of Marvel Studios current projects is the new TV show Marvel: Agents of S.H.I.E.L.D. This show airs on ABC network, which in turn, is controlled by The Walt Disney Company. Through the use of synergy, The Walt Disney Company can cross-promote by advertising its other projects or advertisements on commercials during Marvel: Agents of S.H.I.E.L.D. on the ABC channel. It also owns many other channels and studios, including Disney Channel, ESPN, A+E Networks, Walt Disney Studios, etc. that generate mass amounts of income for the company. In addition, all of the profits stemming from these channels, studios, and shows are made and kept within the greater The Walt Disney Company. It is through cross-promotion as well as the maximization and collection of all of profits made under ones parent company that synergy is used by many large conglomerates within the contemporary media environment.
ReplyDeleteSynergy just seems like a part of our everyday life nowadays. It seems like just about every big budget film or television show makes the effort to bridge the gaps between all markets in order to better sell all of the products, including toys, books, comics, make-up, food, etc. This combined-effort for a conglomeration, using both horizontal and vertical integration, helps all of the products succeed while promoting the brand. I have to admit that I am very prone to taking part in this practice as a consumer as am sure the rest of you are. TM Warners Bro and J.K. Rowling. , for example, have made an unfathomable amount of money off of me because of the Harry Potter series. I have bought multiple editions of all the books, special editions of all the films, themed candies like Bertie Botts Every Flavor Beans, Gryffindor robes, Hogwarts crest necklace, posters, t-shirts, and even more which I will not bore you with. I am even planning a trip to their amusement park where I will spend even more of my hard-earned cash. I mean, I even have a Harry Potter tattoo, though that money did not make it back to them. What example of synergy have you spent the most time and money on throughout the years?
ReplyDeleteSynergy is “the working together of two or more components so that they produce an effect greater than either could alone” (Hilmes 325). Through vertical and horizontal integration, the media industry of the eighties and nineties used synergy to increase control and profits. For example, the merger of Disney Studios and ABC in 1995 explains why ABC Family’s 25 Days of Christmas features films completely unrelated to Christmas, such as Disney’s The Little Mermaid and Disney Pixar’s Toy Story.
ReplyDeleteAs a business major and screen arts and culture minor, I’m also enrolled in a management class this semester. About three weeks ago, we learned about synergy in my management class. In the context of management, synergy is defined as an emergent property in which the attributes of a group are greater than the aggregation of individual characteristics, as if 1+1=3. When comparing the definitions of synergy in my two classes, I found that the definition of synergy in the context of management is more romantic than the definition of synergy in the context of television history. Paradoxically, while synergy in management is more oriented toward people, synergy in television history is more oriented toward business.
Synergy is defined by Hilmes as “the working together of two or more components so that they produce an effect greater than either could alone” (325). Network companies work with other companies to promote themselves and build up a better following and better programming than they could do by themselves. Conglomerates operate with horizontal and vertical integration to gain control over various fields of media and get access to a multitude of revenue streams. By partnering with other firms to obtain control over every facet of production and advertisement and distribution, a conglomerate stands to take over its industry and seize great power in the world market.
ReplyDeleteA modern day example of synergy is the partnership seen between Microsoft Game Studios and Doritos/Mountain Dew. Whenever a big new Microsoft game product comes out, such as big name games (eg. Halo, Call of Duty) or the new Microsoft game system, Doritos and Mountain Dew products around the nation are peppered with advertisements for said products. In turn, Microsoft markets Mountain Dew and Doritos online and in TV advertisements, pushing sales of both products. The draw of bonus content and potential huge prizes draw people into buying Doritos and Mountain Dew products, and anybody who buys said products receive a huge advertisement to go seek out Microsoft's big new thing.
Synergy is the interaction of two or more agents, in this case subsidiaries of a much larger media empire, where there combined efforts lead to greater results than they could accomplish on their own. In effect, this makes television tie-ins and crossovers across individual programs, networks, and other properties under the control of a conglomerate.
ReplyDeleteMajor players in the media field make frequent use of synergy to capitalize on popular franchises. Warner Brothers, for example, commissioned a series of Harry Potter video games that released concurrently with the film series. Similarly, the large media corporation tends to emphasize the products of its comic book division, DC Comics, whenever it releases a film or, more recently, a television program based on one of its properties. Disney is more visibly found to indulge in the practice, with its cross promotion across ABC, ABC Family, ESPN, and other the other networks that fall under their banner. It’s tie in television series, Agents of SHIELD, to the Disney owned Marvel series of films, perhaps is the most recent example.
A more esoteric example would be a fictional crossover of the popular conspiracy thriller X-Files with the reality show Cops in the episode “X-Cops,” both of which were broadcast and produced by Fox.