Convergence

Digital technology has already changed the world. These electronic mass media bring people closer together and the world becomes "smaller", turning into a global village - as predicted by media researcher Marshall McLuhan some 40 years ago. However, this famous concept needs to be given a tighter definition. Digitalization means that media systems and content - that traditionally had the appearance of being separate - will merge. This process of convergence has been driven more strongly by broadband Internet than any other technology. What is now becoming clear is that not only content and media forms are subject to convergence, but also entire industries and sectors. This signifies that the telecommunications industry, the Internet as a commercial sector, the consumer electronics and media industries will increasingly converge and slowly fuse to form an overall market.

This convergence is becoming visible to consumers in many ways: TV on mobile phones, telephoning via the Internet, or Internet TV. The development cannot be rolled back. It will have a major impact on competition among the industries concerned, as well as on the resulting integrated products and services.

• Convergence of industrial sectors will mean a significant increase in the level of competition, especially between network providers.
• Integrated media formats will grow out of the process of convergence - these will open up new opportunities in online advertising, allowing increased user involvement.
• The convergence process will have the strongest impact on telecommunications providers.
• Internet companies have the best competitive position in the sector convergence process.
• Conventional media companies are currently still inadequately prepared for sector convergence - this applies in particular to organizational and editorial structures.
• The phenomenon of provider and technology convergence is most pronounced in the triad regions (Europe, US, and Asia).