Convergence: An investment perspective

Conclusion  Convergence is a very exciting model and one that holds, unforeseen opportunities. However in the current economic environment, the investment community is hesitant to recommend that communications companies devote many resources in that area. The convergence mode must prove that it can generate revenue and profits. Yet, it is limited to an advertising-supported model—a part of the communications industry that has struggled during the past, year due to the recession. The increased advertising revenue that would be generated by the convergence model is tainted—most likely taking advertising share away from the traditional media segments that are supporting the model. Tied to the convergence model is a high dependency on the Internet. Internet advertising is not local. In addition, financial data clearly illustrates that the Internet has caused profit margins to decrease substantially, something that the traditional media company supporting the convergence model can not allow to happen. Finally, FCC deregulation with regards to television station cap restrictions, cable system operators owning broadcasters in the same market, and cross ownership of newspapers and television stations in the same market, will most likely have a negative impact on the convergence model. If a communications company should decide to go forward with convergence, there are five rules that should be followed:

Planning a new medical library: a personal perspective and review of the literature*

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