Overview
Upgrading the Media from 7.x-1.x from 7.x-2-x is a convoluted process especially if you use modules such as Views and Features, as the change to the field type have knock-on effects on them.
Steps to do:
1. Download and replace media 7.x-1.x to 7.x-2.x
Update module normally by dowload latest version of media module from Drupal and repleace current version at sites/all/modules folder.
If you has Drush installed, you can run command:
drush up media -y
2. Install file_entity module
In Media 7.x-1.x version, file_entity is a submodule include in Media module, but in 2.x version, it has sperated to new module. Just download it and install normally.
Drush command:
dursh en file_entity
3. Run update script
Run update script to update file entity properties. http://yoursite.com/update.php or use drush command:
dursh updatedb
That all. Enjoy with Media 2.x