De-convergence: A Shifting Business Trend in the U.S. Digital Media Industries

Abstract

Since the early 21st century, several media companies, including Time-Warner, Viacom, Walt Disney, and Vivendi, have utilized deconvergence as a new business model. The emergence of de-convergence in the communication industry has raised a fundamental question, that being whether de-convergence will become one of the major business models in changing the ownership structure and system. This paper investigates this shifting trend and applies it in relation to digital media, including Internet, mobile, cable, and television. It analyzes why and how communication giants in Western countries, particularly the U.S. broadcasting industries, have pursued de-convergence in recent years. The paper first examines the background and practice of convergence between the early 1990s and 2007. Then, it maps out how media companies have pursued de-convergence through split-off and spin-off strategies as their new business model. Finally, the paper articulates whether the de-convergence trend has consequently contributed to the enhancement of the policy goals of competition, diversity, and promotion of democratic discourse that are embedded in antitrust laws and regulations relevant to mass media.