Question

One or more statements below about Digital Convergence are not correct. Identify all the incorrect statements.

		On the Internet very many different kinds of content – video, audio, text, etc. - travel as packets of data using the Internet Protocol (IP).
		As a result of Digital Convergence, two kinds of costs – marginal cost of new content creation and the variable cost of content distribution – are converging and becoming equal.
		Companies that were seen as being in different (separate) industries such as Telecom and Cable TV firms are often competing in the same markets.
		As a result of Digital Convergence, a firm that can deliver an IP Stream to its customers over a network, may well be able to offer multiple kinds of content.
		When companies in different industries start competing in the same market(s), the marginal cost of content creation across these companies will also converge as a result of digital convergence. As a result all companies that use the same set of technologies will incur the same cost of creating content.

Answer 1

Answer)

Digital Convergence is defined to be an area where the information contents are merged like the voice telephony with the media, sound broadcasting etc as a single application or service.

With regards to digital convergence the following statements are incorrect:

3) Companies that were seen as being in different (separate) industries such as Telecom and Cable TV firms are often competing in the same markets.

Because having the same competition is not the idea of digital convergence but merging both the industries and services would result to a digital convergence.

5) When companies in different industries start competing in the same market(s), the marginal cost of content creation across these companies will also converge as a result of digital convergence. As a result all companies that use the same set of technologies will incur the same cost of creating content.

Because the marginal cost of the content creation might vary from one industry and company to the other depending on the content and the quality which is being used.

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