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Time-Warner: A Case Study

Time-Warner: A Case Study. SPCM 2360 Fall 2005 Evan McLeod Megan Miller Anna Katherine Moody. Time-Warner.

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Time-Warner: A Case Study

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  1. Time-Warner:A Case Study SPCM 2360 Fall 2005 Evan McLeod Megan Miller Anna Katherine Moody

  2. Time-Warner In January 2000, the largest merger in history took place, uniting AOL with Time-Warner as one powerful conglomerate. It is through this union that abstract terms such as superbrand and synergy are concretely exemplified time and time again, exposing how one company can virtually dominate the pop culture market.

  3. Time-Warner: A History Antecedents: • 1903- the four Warner Brothers launch Nickelodeon • 1907- Warner Bros. establish film distribution business • 1917- First film success with My Four Year in Germany • 1918- The first West Coast studio on Sunset Boulevard opens

  4. Time-Warner: A History Beginnings • 1923- Time is launched by Henry Luce and Britton Hadden • 1923- Warner Brothers incorporated • 1930- Luce’s Fortune magazine launched • 1935- Porky Pig introduced from WB animation department • 1936- Life magazine created • 1937- Detective Comics (DC) founded

  5. Time-Warner: A History Twilight of the American Century • 1947- Atlantic Records founded • 1954- Sports Illustrated launched • 1957- Time-Life buys Indianapolis television stations • 1958- Warner Bros. Records founded • 1963- Warners closes animation unit

  6. Time-Warner: A History Conglomerates • 1967- Jack Warner sells his stake to Seven Arts for $32 million. Seven Arts merges with WB as Warner-Seven Arts • 1967- Atlantic Records bought by Warner-Seven Arts • 1967- New Line Cinema founded • 1969- Warner-Seven Arts acquired by Kinney National to become Warner Communications • 1970- Warner Comm. Buys Elecktra Records • 1972- Time buys out Charles Dolan from HBO cable tv network, Dolan establishes Cablevision • 1972- Money launched • 1972- Life ceases

  7. Time-Warner: A History • 1974- People Launched • 1976- Turner buys the Atlanta Braves • 1977- Turner buys the Atlanta Hawks • 1978- Time buys cable operator American Televisions and Communications • 1979- American Express buys half of Warner Communications cable subsidiary Warner Cable for $175 million, forming Warner-Amex Cable Communications • 1979- Turner Communications Group becomes Turner Broadcasting System • 1980- CNN, the world’s first 24-hour all-news network starts • 1982- Tri-Star Pictures is formed by CBS, HBO, and Columbia Pictures • 1985- Quantum Computer Services formed, later renamed AOL • 1985- Warner pays $450 million for American Express stake in Warner-Amex cable operations

  8. Time-Warner: A History The Turner Syndrome • 1986- Turner buys rights to MGM film library • 1989- Time Warner created with Time’s acquisition of Warner Communications • 1989- Quantum renamed America OnLine • 1990- Entertainment Weekly launched

  9. Time-Warner: A History Life Online 1994- TBS, Castle Rock and New Line Cinemas merge 1994- AOL reaches 1 million subscribers 1996- Time Warner takes over Turner Broadcasting System 1996- AOL launched in UK, Canada and France

  10. Time-Warner: A History AOL Time-Warner Merger 2000- AOL merges with Time-Warner 2000- Frankel releases Gnutella 2002- AT&T sells stake in Time Warner Cable 2002- AOLTW buys 15.3% of VIVA Media from EMI 2003- AOL dropped from AOL Time-Warner corporate name

  11. Time-Warner: Companies TIME WARNER CABLE • A pioneer in the cable industry, Time Warner Cable owns or manages cable systems serving subscribers in 27 states • 10.9 million subscribers as of June 30, 2005 • 5.1 million digital subscribers as of June 30, 2005 • Time Warner continues is aggressive rollout of Digital Video, High Definition TV (HDTV), Digital Video Recorders (DVR), Video on Demand (VOD) and wireless home networking

  12. Time-Warner: Companies HOME BOX OFFICE • HBO– with its two 24-hour premium television services, HBO and Cinemax– is America’s most successful premium television network • Approximately 39 million HBO and Cinemax subscribers as of Dec. 31, 2004 • HBO is the most watched pay service in the US– offering original series, HBO film presentations, Hollywood blockbusters, documentaries, concerts and championship boxing

  13. Time-Warner: Companies TURNER BROADCASTING • Turner Broadcasting is a global portfolio of focused entertainment, animation and news businesses and brands that are leaders in their segments • Approximately 90 million US households watch TBS, as of Sept. 2005 • 9 million videos are served on CNN.com on Aug. 29, 2005 • Brands owned by Turner include: Atlanta Braves, Cartoon Network, CNN, TBS, PGA.com, TNT, Turner Classic Movies, NASCAR.com and Turner South, NBC/Turner

  14. Time-Warner: Companies NEW LINE CINEMA • New Line Cinemas is the most successful independent film company in the world. Its mission is to produce innovative, popular and profitable entertainment • It rang up $2.9 billion dollars at the box office for the Lord of the Rings Trilogy • It recently produced hits like Elf, The Notebook, Wedding Crashers and Monster-in-Law • In 2005, New Line and HBO formed Picturehouse, a new film distribution company dedicated to the production and distribution of quality specialized films.

  15. Time-Warner: Companies WARNER BROS. ENTERTAINMENT • Warner Bros. has a stronghold in the entertainment business, with a grasp on feature films, television, home video/DVD, animation, comic books, interactive games, product and brand licensing and international cinemas and broadcasting • Warner Bros. Pictures earned $3.41 billion at the box office in 2004 • Warner Bros. Pictures earned nine Academy Awards in 2005 • WB TV was the leading supplier of primetime programming for the 2004-2005 season • WB TV reaches 92% of all US households. Its core demographic is 12-34 year olds, targeting first-time buyers in order to create brand loyalty

  16. Time-Warner: Companies TIME, INC. • Time owns 155 consumer magazines around the world, representing all different interests– news, sports, fashion, business, entertainment and regional • Time, Inc. generated $5.565 billion in revenues in 2004 • Brands include: Elle, Entertainment Weekly, Fortune, In Style, Life, Southern Living, Sports Illustrated, Teen People, People, Time, Southern Accents, Essence, Coastal Living and Little, Brown and Company

  17. Time-Warner: Companies AMERICA ONLINE • AOL had approximately 20 million users as of June 2005, making it the US’s leading internet service provider • Each day, over 2.5 billion instant messages are sent over AOL’s messaging networks • AOL is the second largest online network, operating Web brands such as AIM, MapQuest, Moviefone and Netscape

  18. Time-Warner: Branding Time-Warner is responsible for hundreds of brands. Each brand and company has a different function in the conglomerate, therefore a different brand image. Branding is an on going process with this many companies. Many have achieved a sort of fetishism of commodities; however, others are still trying to gain mainstream recognition, and every once in a while, the well-established brands have to revamp their images.

  19. Time-Warner: Branding According to a Time-Warner press release regarding AOL: “Want a better Internet?” That’s the question America Online will be asking in a new brand campaign starting Thursday, October 7, 2004. The comprehensive new advertising campaign is intended to reposition America Online as the service that is truly on the side of the online consumer. It begins with print ads in leading newspapers that outline AOL’s commitments to its members. AOL also announced today the first redesign of its logo since 1991, which among other things gives the familiar triangle a more up-to-date look.

  20. Time-Warner: Synergy The $163 billion dollar merger combined one of the most successful brands of internet service provider with the world’s largest entertainment company, making AOL Time-Warner one of the most powerful conglomerates in the world. This merger was the first purchase of a major media company by an internet company. According to AOL CEO Steve Case, “No company will be better equipped to capitalize on the convergence of media, entertainment and communications.”

  21. Time-Warner: Synergy • “A really great example of synergy that I’ve been talking about is the WB magazine in front of you…This magazine will be a supplement in the Sept. 21st edition of the LA Times. This represents a real accomplishment– synergy you can actually hold in your hands. Produced in-house, promoted on-air at KTLA and distributed by the LA Times, this will go out to almost a million and a half homes. From putting program promotion in the hands of viewers to driving younger readers to the newspaper, this is something the company is very excited about.” -Pat Mullen President/Tribune Broadcasting

  22. Time-Warner: Synergy Headline from CNET New.com Nov. 13, 2005 “AOL says ‘Welcome Back’ to old TV shows” America Online early next year will begin offering free access to popular vintage television shows through video-on-demand under an agreement with Warner Bros., another division of Time-Warner.

  23. Time-Warner: Synergy According to Robert McChesney, author of Rich Media, Poor Democracy: Communication Politics and Dubious Times, after the AOL Time-Warner merger “it is now clear that the Internet will probably not spawn any new commercially viable media entities; the media giants will rule the roost. Indeed, the Internet is encouraging even greater media concentration, not to mention convergence.” The merger between the two companies just ensured greater saturation of their brands and products in every media facet, allowing them to plug different brands through one another creating total market domination.

  24. Time-Warner: Links • Time Warner - Newsroom – Branding • Robert McChesney • Companies • Timeline of Time-Warner • Synergy • Synergy

  25. Time-Warner: Sources • Kupta.net, (n.d.). Kupta.net media profiles: time warner. Retrieved Dec. 07, 2005, from http://www.ketupa.net/time3.htm. • McChesney, R. (2000). The titanic sails on. Retrieved Dec. 01, 2005, from http://www.fair.org/extra/0003/aol-mcchesney.html. • Mills, E. (2005). Aol says 'welcome back' to old tv shows. Retrieved Dec. 01, 2005, from News.com Web site: http://news.com.com/AOL+says+Welcome+back+to+old+TV+shows/2100-1026_3-5950149.html. • Sarfaty, R. (2004). America onlime launches new branding campaign. Retrieved Dec. 07, 2005, from TimeWarner Web site: http://www.timewarner.com/corp/print/0,20858,710804,00.html. • Time-Warner, (n.d.). Retrieved Dec. 04, 2005, from TimeWarner Businesses Web site: http://www.timewarner.com/corp/businesses/detail/. • Tribune Company, (2003). Merrill lynch media & entertainment conference. Retrieved Dec. 01, 2005, from http://www.tribune.com/investors/transcripts/merrilllynch_03.html.

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