Implications of the AOL-Time Warner Merger :: Television Media TV Essays

Implications of the AOL- eon Warner MergerOn January 11, 2001, the States Online and period Warner completedtheir historic conjugation shortly after the federal official Communications Commission approved the carry off with conditions that affect flashing pass on and Net cable access. This one hundred and nine billion dollar bill merger of America Online and Time Warner is one of the largest deals in corporate history. The deal combines the worlds largest Internet Service Provider with the worlds largest media company. AOL has about twenty-six million subscribers and excessively runs instant messaging run and Netscape Netcenter. Time Warners cable ne twork reaches twenty percent of cable homes in the United States, and also has its own scud and music studios, cable and TV broadcasting properties such as HBO and CNN, and publishes Time and People magazines.Steve Case, chairman of the combined company, said that AOL Time Warner will preface the convergence of the media, e ntertainment,communications and Internet industries and provide wide ranging,innovative benefits for consumers. Millions of great deal already takeadvantage of the brands, run, and technologies that AOL offers, and by integrating these two companies these services will be a part ofpeoples daily lives even more. The cheering of this merger came withthree key restrictions beyond those already required by the Federal Trade Commission, said William Kennard, FCC Chairman. The new conditions put on the AOL-Time Warner merger are designed to protect the Internet and its competitiveness. The conditions apply to three limited areas, which include Internet access over high-speed cable lines, instant messaging via cable lines, and ownership issues between AT&T and Time Warner.The initial concern of the Federal Trade Commission was that themerger of these two powerful companies would deny competitors access tonew broadband technology. Therefore, the restrictions enforced by the FTC ar e to ensure that a full range of mountains of surfeit and services by non-affiliated Internet Service Providers is gettable to subscribers, to prevent discrimination by AOL-Time Warner to other non-affiliated Internet Service providers, to provide a full range of content and services and to lessen competition in the market for broadband Internet Service Provider service. The FTC restrictions state that first AOL-Time Warner must lead at least one non-affiliated cable broadband service available on Time Warners cable systems before AOL itself begins offering its service. Second, AOL-Time Warner cannot interfere with content that it has restricted to deliver to subscribers of its cable