Free

America Online and Time Warner - Case Study Example

Comments (0) Cite this document
Summary
Being a powerful Internet Service Provider (ISP) in the US, the company thought that they could buy and then handle a huge media corporation like Time Warner…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful
America Online and Time Warner
Read TextPreview

Extract of sample "America Online and Time Warner"

Assignment America Online and Time Warner Introduction America Online or AOL purchased TimeWarner in 2000 and embarked on a new era of Internet synchronized content delivery. Being a powerful Internet Service Provider (ISP) in the US, the company thought that they could buy and then handle a huge media corporation like Time Warner because the AOL management was optimist about the future of the Internet technologies. However, the merger turned out to be a blunder by the year 2003, when the new company (that came into being after the merger) AOL Time Warner declared that they had incurred huge losses amounting to 99 billion US dollars (Gershon, 262). Since then, this merger has been regarded as one of the biggest corporate mismanagement examples in the realm of managing telecommunication network and media companies. The case study unveils a number of issues that are big threats to the telecom sector and media companies globally.
Discussion
In 2010, media analyst Tim Arango of the New York Times attempted to throw some light on the merger between AOL and Time Warner that took place a decade ago from then. In analyzing the reason behind the merger, Arango remarks that at the wake of the 21st century, experts in telecomm and media industries were expected Internet was going to become the main medium of content delivery and entertainment all over the world, replacing and/or amalgamating the various traditional media and content delivery systems of that time. However, this was the main issue with the decision makers at both AOL and Time Warner. AOL’s business outreach and technological equipment and expertise were not as robust as to handle the huge industrial momentum of Time Warner. Probably, AOL managers were thinking well ahead of their time. A scrutiny of scientific literature suggests that Internet technologies were not as advanced at that time as to facilitate all the services needed for international distribution of various types of contents. Even in the middle of the first decade of the new millennium, scientists were striving to establish a sufficiently powerful architecture for the purpose of “pervasive content delivery” (Su and Chi, 82). Clearly, Internet technologies had limited strength during the merger between AOL and Time Warner. The case study thus helps us to understand that we need a really powerful and futuristic computing system to ensure Internet based content delivery of all kinds of information ranging from news to cinemas, weather forecasting to cartoons, and so on.
Conclusion
As shown by the case study discussed, technological barriers remain a prominent issue in the way of international distribution of diverse contents since a projected pervasive Internet based content delivery system will take time to come into existence. This problem attracts attention to another big issue relevant in dealing with global media and management. This big issue is the fact is that there are huge disparities in the IT infrastructure situations in the different countries of the world; in other words, IT infrastructure in underdeveloped countries is not as advanced as that in the developed ones (Palvia and Palvia, 151-180). But even the countries which do not have a well developed IT infrastructure may harbor a huge media market with ample demand for news, entertainment, and other information. Thus, at the next level of this complex corporate debacle, regulations become important. Without proper regulations, proper policies cannot be implemented and hence technical and managerial inequities existing in the different countries world wide will continue to hamper the ambition of global content delivery and distribution. Furthermore, threat of oligopoly is also prominent due to the contradictory behaviors of deregulated market environments that are creating adversaries for the emerging media houses (Gershon).
Works Cited
Arango, Tim. "In Retrospect - Executives on How the AOL-Time Warner Merger Went So Wrong - NYTimes.com." The New York Times - Breaking News, World News & Multimedia. The New York Times., 1 Jan. 2010. Web. 29 Mar. 2013. .
Chi, Chi-Hung, and Michael Su. "Application networking - An architecture for pervasive content delivery." Web Content Caching and Distribution: 9th International Workshop, WCW 2004, Beijing, China, October 18-20, 2004, Proceedings. New York and Heidelberg: Springer, 2004. 82-93. Print.
Gershon, Richard A.. Telecommunications and Business Strategy. New York: Routledge, 2009. Print.
Palvia, Prashant C., and Shailendra C. Palvia. "Information systems plans in context: A global perspective: Understanding global the global information technology environment." Strategic Information Management: Challenges and Strategies in Managing Information Systems. New York: Routledge, 2012. 151-180. Print. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“America Online and Time Warner Case Study Example | Topics and Well Written Essays - 500 words”, n.d.)
America Online and Time Warner Case Study Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/journalism-communication/1619009-america-online-and-time-warner
(America Online and Time Warner Case Study Example | Topics and Well Written Essays - 500 Words)
America Online and Time Warner Case Study Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/journalism-communication/1619009-america-online-and-time-warner.
“America Online and Time Warner Case Study Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/journalism-communication/1619009-america-online-and-time-warner.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF America Online and Time Warner

Warner Bros

...Warner Bros. Warner Bros happens to be one of the esteemed companies that are successful in applying management theory and practice in the running of the company. Warner Bros., a segment of Time Warner Company, happen to be a global leader in all kinds of entertainment, as well as their related businesses all over current and up and coming media and platforms. Warner Bros stands at the front of every facet of the industry ranging from feature film, Bluray, television and home entertainment production, along with worldwide distribution to DVD, digital distribution, animation, product and brand licensing, comic books, international...
5 Pages(1250 words)Research Paper

Time Warner Case Study

...? Time Warner: Case Study From the assignment we identified that a merger is the one and only option for the expansion of Time Warner. However, the industry is heavily confronted with government regulations that oversee the merger. While analyzing the current global market economy, it is clear that government intervention is necessary to ensure a sustainable market place. Government regulations on mergers are essential to maintain the balance of market environment since mergers between corporate giants often raise potential challenges to small-scale players and, thereby, they are eventually thrown out of the market. Such a situation may progressively lead to market...
4 Pages(1000 words)Research Paper

Aol Time Warner Merger By Nina Munk

...Aol Time Warner Merger By Nina Munk The 2000 merger between America Online (AOL) and Time-Warner - itself the product of the merger between the Time-Life publishing group and the Warner music, film, publishing and theme parks conglomerate - was praised by some analysts as an ideal marriage of content with carriage. Others were been less enthusiastic, noting that the conglomerate had a market value of US$300 billion in January 2000 but had slumped to US$105 billion two years later. In September 2003 that dissatisfaction was manifested through the Board's decision to remove 'AOL' from the AOL...
5 Pages(1250 words)Essay

The Time-Warner merger

...The Time-Warner merger Warner was the best Company for Time to merge with and the Company made the right choice. The reasons are that when long term objectives are concerned, Time needed to decide what would be the primary focus of its future business and this was media related. Time’s position was that it was strong on the publishing field but needed to supplement its diminishing magazine market with increased revenues in its cable market through its HBO cable channel. Its goals were primarily media related, its requirement for enhancement existed in procurement of films, distribution networks and primarily cable content and business in...
2 Pages(500 words)Essay

TIME WARNER CASE

...market are in a growing phase. The cable penetration is almost touching 0.7 per one household as per the statistics of 2003. The broadband subscribers have increased by 44.78% in 2003 in respect to 2001. Considering this statistics and the household base of Kansas City to be 321,000 we can expect the business to grow. With a 50% market share we can expect the gross profit to be around $70, 45,950. It will important for us to know the pricing of Everest on a time to time basis, so that we can evaluate our pricing accordingly. At the same time we need to expand our base to the wider section of the metropolitan, which will provide us more coverage and market share than Everest. I consider...
1 Pages(250 words)Case Study

Time Warner and Comcast Merger

...Time Warner and Comcast Merger Comcast’s intention of acquiring Time Warner is just an indication of is ambitious expansion and diversification plan. According to the CEOs of the two companies, the main intent of Comcast is to establish a good environment for the clients of Time Warner Cable as well as Comcast firms. This merger is different in that it will establish a firm that offers total value for the investors, huge opportunities for the staffs and a better experience for the clients. It appears that consumers can anticipate cutting down on costs while gaining from a high speed internet and an upgraded video experience (Knee,...
4 Pages(1000 words)Essay

Corporate Crisis: CBS & Time Warner

...emerged nasty probably due to overcharging of transmission fees. The tussle between Times Warner and CBS proves that negotiations between cable companies and content owners are escalating into serious fights against television and web convergence. The reason proves that these two players are in constant shift of power. While the content owners have gained ground since they have access to broadband connections from the comfort of their homes, cable owners have the cachet and audiences with advertisers. Thesis Statement: The tussle between Times Warner and CBS proves that negotiations between cable companies and content owners are escalating into serious fights against...
2 Pages(500 words)Thesis

Time Warner Cable / CBS Crisis Management

...Time Warner Cable CBS Crisis Management Table of Contents Table of Contents 2 Background 3 Crisis and Crisis Management 4 Mission of the Company 5 Thesis Statement 6 Financial Analysis 6 SWOT Analysis 7 Leadership 9 Conflict analysis 10 Leadership of the company 10 Financial adversity for the company 11 Time management a weakness 11 Corporate politics 12 Positive policies or innovations 12 Social Responsibility 12 Ethical considerations 12 Code of conduct 13 Role of court 13 Role of government 13 Conclusion 13 Work Cited 15 Name of the Student: Name of the Professor: Course Number: Date: Background Repercussions of the conflict between Time Warner Inc...
20 Pages(5000 words)Research Paper

Online game Parents should control their children's online time

... Parents should control their children’s online time Introduction Children become addicted as they spend most their time playing online game. Studies show that children spend about 15 hours in a week playing online games (The Economist 1). Addiction is a brain condition that makes it difficult to control what one does or uses. Parents are responsible for controlling the amount of time children spend playing online games in order to prevent addiction. It is crucial to note that addiction to online games has similar effects as other addictions such as drug addiction. Over the past decades, online games have changed due to technological advancements. The games are currently more entertaining due to advanced features added in them... . This...
7 Pages(1750 words)Research Paper

Media Economics and Research: Time Warner Case Study

...either sold to other investors or they became independent corporations between 2003 and 2014 (Time Warner Case Study). History It was the year 1923, which marked the debut of Time Magazine, as the very first weekly magazine of America. It was just 4 years after the launch of Times Magazine that first feature-length of talking picture named The Jazz Singer was released by Warner Bros in the year 1963. The recommendation made by the Time Incorporation on delivering the magazine directed the introduction of the Zip Codes by the American Post Office. The non-entertainment assets of the Kinney National Company spun off by...
7 Pages(1750 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic America Online and Time Warner for FREE!

Contact Us