The new millennium is poised to intensify competition as never before.

Question

The new millennium is poised to intensify competition as never before. The digital age is well and truly here. In the US, more than a third of consumers will be looking atsome form of digital appliances by the turn of the century. TV signals, superfast cable modems linked to computers are all contributing to this explosion. Intensifying competition will eat into the earnings of networks, cable operators, and Internet start-ups.

This explosion has made it attendant upon media companies to consolidate themselves. And small is no longer beautiful. General Electric’s NBC-TV network is reportedly a likely target. Time Warner Inc Vice-President Ted Turner has already evinced his interest in adding NBC to his company’s cable systems CNN and WB Television network. Barry Diller of USA Networks is also contemplating the merger of his shopping network’s 12 TV stations.

Ironically, the continued fragmentation of the media market will enable the broadcast networks to rake in the money despite their falling viewership. Though the beginning of the Millennium is going to see viewership of the four big networks plummet, network advertising is expected to increase over 1999 and the contribution to this will come from the Summer Olympics, media buying for political campaigns and so on.

The battle between cable TV and direct-broadcast is expected to be the deadliest. With restrictions removed on satellite operators beaming local channels to their customers, vast opportunities beckon satellite operators. And they will keep offering cut-rate equipment in an effort to gain market share – they could pull in 33% more subscribers. The competition with satellites will force cable to offer digital services, Internet access, and a larger number of cable channels. The number of people having access to two-way Internet service will close to double. This will enable cable operators to generate $33 billion in revenues, a robust hike of 12%. Adding to their coffers would be steep increases in pay-per-view revenues and Internet access fees.

With computer prices in the US dropping to under $600, nearly two-thirds of US customers will have on-line access in 2000. This would lead to advertising revenues of $4.7 billion for Net sites in 2000. After realizing the futility of trying to proscribe consumers from down-loading music, major music companies have decided to sell music down-loads of major artists. Universal Music, the world’s largest music company will begin selling downloads along with Bertelsmann and Sony Music.

As the convergence of TV and computer comes into its own, large media companies will have a tough job on their hands trying to prevent the loss of audiences to other on-line diversions. Hollywood studios will find their ability to produce content richly rewarded. DVD sales are expected to double in 2000. Studios can make a lot of money by repackaging movies already sold into the DVD format. Will the DVD boom undermine the movie boom being experienced by Hollywood? This is brushed aside with disdain by movie moguls.    1 
 1. Of the following, the most suitable title for the above passage would be

(A) The Era of Convergence
(B) Opportunities in the Media Business
(C) The Digital Explosion
(D) The Expanding TV Networks
(E) Competition in the New Millennium

2 
 2. The irony expressed at the beginning of Paragraph 3 is that

(A) as competition among media giants has increased, the viewing patterns across the US have fallen.
(B) the revenues of the media broadcasting corporations will continue to grow even though the industry is marked by mergers and acquisitions.
(C) even as the large TV networks attract lesser number of viewers than before, their advertising revenues will rise at a faster rate.
(D) as the digital age descends upon the media world, the smaller players are likely to become targets of acquisition by the larger players.
(E) the revenues generated by large corporations are on the increase even though the number of people watching their broadcasts is getting reduced.

3 
 3. Which of the following best describes the reaction of the music companies in the Internet age, as described in Paragraph 5?

(A) If you can’t beat them, join them.
(B) You cannot stop an idea whose time has come.
(C) Technology rules the world.
(D) Those who adapt, survive.
(E) The core of our defense is the faith we have in the institutions we defend.

4 
 4. The most logical continuation of the passage would be a discussion on

(A) why the magic of Hollywood movies will endure.
(B) how the convergence of the TV and the computer will affect the media market.
(C) what the future holds for the DVD market.
(D) how the DVD and the Hollywood business can co-exist and continue to flourish.
(E) why the movie moguls can afford to overlook the DVD rush.

RC Butler 2022  -  Practice Two RC Passages Everyday.   
Passage # 52 Date: 03-Feb-2022
 This question is a part of RC Butler 2022 .  Click here for Details

Source: Crack-GMAT

Ghostrider3147 · Answer

Sajjad1994  pls provide answer solution for all questions.
Thanks in advance.

Posted from my mobile device

VIGHNESHKAMATH · Answer

Passage is good, but question and answers are very poor. Not a GMAT standard.

Thank You
Vighnesh

Sajjad1994 · Answer

OE will be posted after some discussion, you can share your thoughts on each question.

Thank you!

harshgupta12 · Answer

plz explain qus no 3 and explain why other options can't be the answer

Sajjad1994 · Answer

Official Explanation

3. Which of the following best describes the reaction of the music companies in the Internet age, as described in Paragraph 5?

Explanation

The reaction of the music companies is described in the line, After realizing the futility of trying to proscribe consumers from down-loading music, major music companies have decided to sell music down-loads of major artists.

Options C,D,  and  E  are distractions, not really reflecting the above stated reaction.

Option A  appears to be correct, till you look at option B, which is a more suitable description because of the use of the word proscribe (meaning ‘to stop’) in the stated sentence. That a good idea cannot be stopped is the realization that the music companies have had, and so have decided to adopt the idea (selling music through the net). Hence  (B)  is the correct answer.

Answer: B

Akarshkhan86 · Answer

Hello  Sajjad1994  can you share the OE of Ques 2? Thanks

Sajjad1994 · Answer

Explanation

2. The irony expressed at the beginning of Paragraph 3 is that

Difficulty Level:   700

Explanation

The passage states that the viewership of the four big networks is expected to plummet with the onset of the new millennium. Despite this decline in viewership, the passage also mentions that network advertising is expected to increase over 1999. This means that the large TV networks will still generate higher revenues from advertising, even though the number of people watching their broadcasts is decreasing.

The passage highlights the irony of the situation by emphasizing that the large corporations are experiencing a paradoxical outcome. They are facing a reduction in viewership, which might be expected to lead to decreased revenues. However, the opposite occurs, with the revenues of these corporations increasing despite the decline in audience numbers.

Hence, the correct answer is (E) the revenues generated by large corporations are on the increase even though the number of people watching their broadcasts is getting reduced.

Answer: E

Prob2303 · Answer

Hello Sajjad,

Can I get a brief summary of the passage and the OE for Q1?

Sajjad1994 · Answer

Explanation       1. Of the following, the most suitable title for the above passage would be

Explanation

(A)  Partially Correct: This title could be suitable because the passage discusses the convergence of TV and computer, the intensification of competition in the digital age, and the challenges faced by large media companies as they try to prevent the loss of audiences to online diversions.

(B)  While the passage mentions opportunities in the media business, the focus is broader, encompassing the challenges and changes brought about by the digital explosion, cable TV competition, and the convergence of TV and computer.

(C)  This title seems the most suitable as the passage emphasizes the impact of the digital age, the proliferation of digital appliances, the battle between cable TV and direct-broadcast, the rise of online access, and the convergence of TV and computer.

(D)  While the passage mentions TV networks and their consolidation, the focus is not solely on their expansion but also on the challenges they face in the digital age, cable competition, and changing viewer habits.

(E)  Partially Correct: This title could be suitable as well since the passage discusses the intensification of competition in the new millennium, covering areas such as digital appliances, cable TV, satellite operators, and online access.

In summary, while multiple titles could be justified to some extent,  "The Digital Explosion" (Option C)  seems to capture the central theme of the passage, emphasizing the transformative impact of the digital age on the media landscape.

Answer: C

ss1997 · Answer

Hi Sajjad, how much time can one take to read and answer such a passage? What would be a good tactic to manage our time when it comes to big passages? Any advice is appreciated. Thank you.

Sajjad1994 · Answer

Always read the passage carefully so that you don't have to go forth and back to read the passage more than once for global questions. Read in such a way that you only go back to re-read a specific portion of the passage for specific detail questions. For such a passage, i think 4 minutes, or maximum of 4:30 minutes, are enough to read, and then an average of 60 to 70 seconds for every single question is enough.

Good luck!

The new millennium is poised to intensify competition as never before.

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The new millennium is poised to intensify competition as never before.

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615 to 715 in 15 Days (Ria's Strategies)

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