Technology, System Integration And Efficiency: China's Media Reform In The Context Of "medium"

The emergence of the Internet gives rise to a worldwide craze for the Media Convergence; however, it has much unique value and significance to China which is on the road of media reforming. The Internet provides a totally new incremental space for the traditional media who are looking for its breakthroughs over the edge, but in reality where the traditional media are all making use of the Internet, the efficiency is far away from expectations. All of these cause us to think of the reasons behind.This paper sets the Newspaper-Internet Interaction as the research objective and makes a study of the reactions Chinese newspapers takes when confronted with the internet and the dynamic mechanism behind them.Specifically, the paper expounds the transition path of the Newspaper-Internet Interaction at first, and then compare the models between China and the Western, getting a fully cognition of Newspaper-Internet Interaction in China. On the basis, the paper uses the theory of the New Institutional Economics to analyze the Newspaper-Internet Interaction with the related frames, including the trading model, the property rights model and the institution supply and demand model.According to the analysis, the essence of the Newspaper- Internet Interaction is the Newspaper-Internet Transaction. The effort to reduce the transaction cost arouses the initial model of the Newspaper- Internet Interaction. And the main direction of model transition is to find the model which has lower transaction cost. Due to the difficulty in concretely defining the transaction cost, the paper further points out that the clarity of ownership structure determines the differences of the transaction cost, and seeing from the efficiency performance it also determines the differences of the efficiency between these models. Such analysis agrees with the observation we take in history and reality that the transition of the Newspaper- Internet Interaction model is a process where the ownership institution becomes more clear, the transaction cost becomes lower and the market efficiency becomes higher.However, the existence of the Multi to One Interaction model makes it hard to explain the whole path of Newspaper- Internet Interaction transition, so the paper brings in the institution supply and demand model to analyze the dynamic mechanism behind the transition. As a result, preference and relative price form the impulse on transition and this sort of impulse will go through the game between institution providers and demanders. On the basis of the reality from the state-run traditional media, the institution providers decide on the specific transition path to a large extent and the Multi to One Interaction model deviates from the transition path which aims to look for the lowest transaction cost and highest market efficiency model. At the same time, the paper specially points out that since 1996, the newspaper groups appear as a subordinated institution provider. They help the Newspaper- Internet Interaction go back to the market-oriented track.Finally, the paper sets the Newspaper-Internet Interaction to be an action sample for the use that the traditional media make of the Internet joining in the Media Convergence process. This paper argues that the unique background of Chinese media reforming puts the Institution part into the chain of Technology-Efficiency of the Media Convergence, forming a new structure of Technology-Institution-Efficiency. Only when the identical preference and reasonable institution both come into being, the Internet will truly increase the efficiency for the traditional media. On the other hand, the paper warns that when the Internet offers a technology reference and an increment space to the traditional media, the commercial sites are acting as the outside institution providers which are treated as the examples of the efficiency. Whether the traditional media follow commercial sites'institution or graft it through cooperation, there may be huge risks of being incorporated. So, as the chain of Technology-Institution-Efficiency becomes much clearer, how to get rid of monopoly which may be brought out by efficiency is a question to the institution provider of the Media Convergence on a higher level.