SONY AND SYNERGY

By Daniel Keenan

WHAT IS A CONGLOMERATE?

A media conglomerate, media group or media institution is a company that owns large numbers of companies in various mass media such as television, radio, publishing, movies, and the Internet. Media conglomerates strive for policies that facilitate their control of the markets around the world.

SUBSIDIARIES OF SONY

Sony Electronics Inc.

Sony Entertainment Inc.

Sony Computer Entertainment America LLC.

Sony Network Entertainment International LLC.

Sony Digital Audio Disc Corporation and Sony Entertainment Distribution.

Sony Mobile Communications Inc.

SONY PRODUCTS AND SERVICES

WHAT IS SYNERGY?

Synergy (from the Greek syn-ergos , meaning working together) is the term used to describe a situation where different entities cooperate advantageously for a final outcome. Simply defined, it means that the whole is greater than the sum of its parts.

WHAT IS HORIZONTAL INTEGRATION

In the media industry, horizontal integration is a strategy where a company creates or acquires production units for outputs which are alike - either complementary or competitive. One example would be when a company acquires competitors in the same industry doing the same stage of production for the creation of a monopoly.

SONY ARTIST USING SYNERGY WITHIN THE COMPANY:

Sony uses horizontal integration to cross promote their products by having TV competitions like X Factor and having an artist performed that are also signed by Sony. For example Beyoncé going on X Factor singing a duet which Alexandra Burke her single ‘Listen’, which is managed by Sony and she is signed by Sony so she is using her record label to promote herself. Also the prize for X Factor is that the winning artist would be signed by Sony. This would be advantageous for Sony because the winner would already be known the public, so it would not be hard to promote them.

SONY AND UNIVERSAL SYNERGY

Sony music has synergized with social networks sites such as Facebook and Twitter to help promote their artist and also to help promote the websites.  They also synergize with other major record labels because on X Factors they have performances by other artist like Jessie J who is signed by Universal but being on X Factors she will be promoting herself.

APPEALING TO A WIDER AUDIENCE

By using synergy and horizontal integration it allows for Sony to use icons/artists of different genres to combine together to bring together different audiences to create one significantly larger fan base. This will not necessarily grow Sony's fan base on a whole, but it will cause for audiences of different artists to start following other genres which will grow the audience of both artists.