Recently, AOL has launched an interactive TV service on Sky Digital. Customers can access this through their sky remote and get instant messaging, email, headline news, sport and the weather via AOL on Sky Active.
One of Warners Hollywood High Concept films was Harry Potter. With the launch of the film came many elements of synergy. Merchandise was released along with toys, and the computer game. Ofcourse the books were the first items to be launched. The films alliance with Aol has assisted its success. This is because of the promotion for the film. They used their media services to promote and advertise the Harry Potter film worldwide. Thanks to Time Warner providing Aol with a faster dial up speed it means they can inform and entertain people everywhere. The author of Harry Potter is J.K Rowling. Her first book was published in June 1997.It was called Harry Potter and the Philosophers Stone, The film was released last year. The second film was Harry Potter and the Chamber of secrets; this is due out on video and DVD this year. Rowlings third book, Harry potter and the order of the phoenix will be published on 21st of June. The film version is currently scheduled for release 2004
The positive implications for the audience of the AOL Time-Warner merger are that British consumers will be able to take advantage of bigger range of Time Warner content services through AOL Europe. They will be able to get up to date information from about news, films and entertainment from the Internet service provider. Access to the Internet will be at high speeds via cable modem, wireless or satellite. Aol members will get exclusive special offers including discounts on magazines subscriptions. AOL Time Warner believes that its Internet service is uniquely positioned to benefit consumers worldwide. One negative implication to the merger may be that the service will become quite expensive to join because it is such a large well-known media organisation. The consumer will obviously have to pay a certain amount a month to get the up to date information on films or news and exclusive special offers.
Some arguments may be raised about the way AOL and Time Warner may work together. Warner employees may resent working with AOL workers who are made rich by their Internet stock options. Secondly, the company might find it difficult because they will be forcing two giant companies together because of contrasting cultures, personalities and locations. Time Warner is based in New York and AOL in Virginia. They will be split between offices.
Two years ago, America Online had been predicted to be an engine of growth for Time Warner. However, things changed when online advertising collapsed and subscriber’s growth slowed down. The deal has increasingly been regarded as a hi-jacking of the Time Warner business at a time when America Online shares were hyped up to unrealistic levels. Now, its share prices have fallen by more than 70% since the merger.
Steve Case, the America Online chief who engineered the merger with Time Warner has stepped down from chief executive of the company. This now means that none of the original architects of the merger are still in place after two years. Ted Turner, the billionaire founder of CNN news network was the latest in a growing line of top line executives to quit from his job as vice-chairman. The Internet service provider is a shadow of the business that acquired Time Warner two years ago. Turner launched CNN in 1980 and changed television news for the better. He went on to create cartoon network, and hundreds of MGM films, which he showed on another channel, Turner Classic Movies. His company then merged with Time Warner.
Aol and Time Warner represented a link between new media (AOL as an internet provider) and the old media (Time Warner, a traditional media group from films to publishing.) It was important, at an organisational level because it represented the principle of convergence.
Overall, after looking at all this information I think that the AOL Time Warner started out two years ago as a great success and it had a great future ahead of it. However, during the past two years I think the company has lacked leadership, therefore resulting in a decline of subscribers and a loss of money. It may still be the largest media company but it certainly is not as successful as you may think.