StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Principles of Macroeconomics of the Time Warner - Case Study Example

Comments (0) Cite this document
Summary
The author of this paper states that the case involves a simple question of whether lowering the price of the subscription, as a promotional campaign would boost or would further dampen the revenue. Currently, the company receives monthly revenue of $ 8946 per month, a very small amount compared to its subscription revenue…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.8% of users find it useful
Principles of Macroeconomics of the Time Warner
Read TextPreview

Extract of sample "Principles of Macroeconomics of the Time Warner"

Given that the promotional decline in price is only given to STARZ's current and future subscribers, and would not affect its big network businesses such as HBO and Showtime, it will be worthwhile to lower the price for the purpose of attracting subscribers. The decline in revenue from existing subscribers is deemed smaller than the potential revenue, given the larger market that it has to cater. Also, the popularity of STARZ, as it would be well advertised given the promotion is also worth the price. Since the current revenue of STARZ is just .5% of the total revenue from the subscription (excluding advertisements and content), meaning there is a lot of room to grow in the current market, revenue can double or triple with the promotions.

For Memo #4
The revenue growth rate figure for News Corp's Fox News is really admirable, standing at 67.8%, compared to last year. This is superior to CNN's 12.5%. However, the question is, 'is it enough to be a basis for Time Warner's acquisition of Fox News News Corp's revenue in 2002 was negative, although it was able to resurrect in 20003. However, its 2003 net income figure remains to be the second-lowest among its competitors, only higher than Sony's $521 million dollars. These figures indicate the weak capability of News Corp to boast about their performance, thereby making acquisition prices limited at conservative prices. This means that in the case of Time Warner Inc decides to acquire the company, it might not have much difficulty with the price. Given that the revenue trend of Fox News is increasing, Time Warner Inc will do well by doing the acquisition as soon as possible, especially before the network gets to its peak when it will be much difficult for the company to acquire it.

Memo #5
The 2003 Time Warner Inc's Consolidated Statement of Operations reveals that subscription continues to the largest part of the business, and its revenue percentage is increasing, from 47% in 2001 to 50% in 2002 to almost 52% in 2003. These figures are derived from simply dividing the yearly revenue of subscription by the total revenue. The revenue from content is also increasing, from 25% in 2001 to almost 29% in 2003. On the other hand, revenue from advertising is declining. This trend suggests that businesses that generate subscription and content revenues are the one that should be focused on and improved. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Principles of Macroeconomics of the Time Warner Case Study, n.d.)
Principles of Macroeconomics of the Time Warner Case Study. Retrieved from https://studentshare.org/macro-microeconomics/1525633-case-study-of-time-warner-located-near-end-of-text-book
(Principles of Macroeconomics of the Time Warner Case Study)
Principles of Macroeconomics of the Time Warner Case Study. https://studentshare.org/macro-microeconomics/1525633-case-study-of-time-warner-located-near-end-of-text-book.
“Principles of Macroeconomics of the Time Warner Case Study”, n.d. https://studentshare.org/macro-microeconomics/1525633-case-study-of-time-warner-located-near-end-of-text-book.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Principles of Macroeconomics of the Time Warner

Micro and macro economics

...in the shareholders’ dividends. The board of directors of each of the two combining companies was expected to vote equally on all business decisions of the combined company (Hoskisson, 2005). Question 2 Both companies had similar motives for ensuring the success of the merger. Time Warner entered the merger in order to enhance its benefits from both the supply equation and demand equation (Microeconomics). Similarly, America Online entered the merger in order to enhance its present benefits from both the supply equation and demand equation (Hirschey, 2005). Additionally, Time Warner joined the merger to enhance the company’s macroeconomic environment....
10 Pages(2500 words)Essay

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

.... But this story isn't just about AOL Time Warner but about corporate America in general, about how merger mania and golden parachuted moguls can play fast and loose with our money, our livelihood, our country, and our future. It's about the collateral damage, the megalomania, the broken hearts and the evaporated portfolios. It's about the mentality of corporate CEOs like Levin who as he turned sixty wanted to be remembered for something other than the bottom line, "for integrity...high moral principles; and wisdom." (p. 133) Ah, yes, a lifetime of chasing money and power and now True Religion. One is reminded of Bill Gates with the very demanding problem of how to distribute all that...
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

Principles of Macroeconomics

... = 50 + 6Q 100 – 4Q = 50 + 6Q = -10Q = 50 -100 10Q = 50, Q = 5 100 – 4Q = P P = 100 – 4(5) , P = 100 -20 P = 80 Area = ½ * 5 * 50 = 125 3) a) microeconomics b) Macroeconomics c) Microeconomics d) Microeconomics e) Macroeconomics 4) a) Positive b) Positive c) Normative d) positive 5) X Y b) The boundary of the curve is the line that is drawn and any point outside that boundary is said to be unachievable in the current scenario. For example, the point labeled X...
4 Pages(1000 words)Speech or Presentation

Macroeconomics Principles and Policy

...the CPI is 1996. The prices of the ingredients for chili are determined by an extensive nationwide survey. The current and 1996 prices for the ingredients are: Hamburger: $1.20 per pound in 1996; $1.15 per pound currently Tomatoes: $1.550 per pound in 1996; $1.75 per pound currently Onions: $.20 per pound in 1996; $.30 per pound currently. Calculate the cost of a batch of chili in 1996 and currently, and express the current price as a price index with 1996 as the base year Cost of a batch of Chili in 1996= 1.20 * 3 = 3.6 1.550 * 2 = 3.1 0.20 * 0.5 = 0.10 Total = 6.8 Cost of a batch of Chili currently= 1.15 * 3 = 3.45 1.75 * 2 = 3.5 0.30 * 0.5 = 0.15 Total = 7.1 The price index will be 7.1/ 6.8 =...
1 Pages(250 words)Assignment

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...
2 Pages(500 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

Principles of Macroeconomics

...Qatar College of Business and Economics Principles of Macroeconomics (ECON 112) 1st Assignment (Wednesday 4th of November Total Marks 4 Student Name: ID: 1) Fill in the missing values in the following hypothetical table. The working-age population, employment, unemployment, and labor force are measured in thousands. Show your work. Working-Age Population 201661 Employment 127817 Unemployment 7296 Unemployment Rate 5.4% Labor Force 135,113 Labor Force Participation Rate 67.0% Calculation steps: Working age population = labor force/labor participation rate = 135113 x 100/67 = 201661.19 Consequently the working age population is approximately 201661 Unemployment rate...
1 Pages(250 words)Assignment
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 Principles of Macroeconomics of the Time Warner for FREE!

Contact Us