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Here is the explanation straight from the Encyclopedia Britannica:

Media convergence, iPhone [Credit: Courtesy of Apple] is the phenomenon involving the interlocking of computing and information technology companies, telecommunications networks, and content providers from the publishing worlds of newspapers, magazines, music, radio, television, films, and entertainment software. Media convergence brings together the “three Cs”—computing, communications, and content.

Convergence has occurred at two primary levels:

1) Technologies—creative content has been converted into industry-standard digital forms for delivery through broadband or wireless networks for display on various computer or computer-like devices, from cellular telephones to personal digital assistants (PDAs) to digital video recorders (DVRs) hooked up to televisions.
2) Industries—companies across the business spectrum from media to telecommunications to technology have merged or formed strategic alliances in order to develop new business models that can profit from the growing consumer expectation for “on-demand” content.