An AOL / Time Warner Merger Will Harm Competition in Internet Online Services
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AOL & Time Warner: How the “Deal of a Century” Was Over in a Decade
AOL & Time Warner: How the “Deal of a Century” Was Over in a Decade A Thesis Submitted to the Faculty of Drexel University by Roberta W. Harrington in partial fulfillment of the requirements for the degree of Masters of Science in Television Management May 2013 i © Copyright 2013 Roberta W. Harrington. All Rights Reserved ii ACKNOWLEDGEMENTS I would like to thank my advisor for the Television Management program, Mr. Al Tedesco for teaching me to literally think outside the “box” when it comes to the television industry. I’d also like to thank my thesis advisor Mr. Phil Salas, as well as my classmates for keeping me on my toes, and for pushing me to do my very best throughout my time at Drexel. And to my Dad, who thought my quitting a triple “A” company like Bloomberg to work in the television industry was a crazy idea, but now admits that that was a good decision for me…I love you and thank you for your support! iii Table of Contents ABSTRACT………………………………………………………………………… iv 1. INTRODUCTION………………………………………………………................6 1.1 Statement of the Problem…………………………………………………………7 1.2 Explanation of the Importance of the Problem……………………………………9 1.3 Purpose of the Study………………………………………………………………10 1.4 Research Questions……………………………………………………….............10 1.5 Significance to the Field………………………………………………….............11 1.6 Definitions………………………………………………………………………..11 1.7 Limitations………………………………………………………………………..12 1.8 Ethical Considerations……………………………………………………………12 2. REVIEW OF THE LITERATURE………………………………………………..14 2.1 Making Sense of the Information Superhighway…………………………………14 2.2 Case Strikes……………………………………………………………………….18 2.3 The Whirlwind Begins…………………………………………………………....22 2.4 Word on the Street………………………………………………………………..25 2.5 The Announcement…………………………………………………………….....26 2.6 Gaining Regulatory Approval………………………………………………….....28 2.7 Mixing Oil with Water……………………………………………………………29 2.8 The Architects………………………………………………………………….....36 2.9 The Break-up and Aftermath……………………………………………………..46 3. -
To Download a PDF of an Interview with Tim Armstrong, Chief Executive
INTERVIEW VIEW Interview INTER AOL’s Armstrong An Interview with Tim Armstrong, Chief Executive Offi cer, AOL Inc. One of the things I’ve learned over the What is driving growth? course of my career so far is that opportunities AOL is a classic turnaround story. We had are only opportunities when other people don’t a declining historic business and a fairly short see them. list of very focused activities we thought would AOL seemed like an incredible opportu- grow the company in the future. nity – it was a global brand, hundreds of mil- From the turnaround standpoint, one of Tim Armstrong lions of people use different AOL properties, the most helpful things we did was to set a and the Internet is the most important trend in timeline right when we took over – we said we EDITORS’ NOTE Prior to joining AOL, Tim our lifetime. What everybody else saw as a re- were going to give ourselves three years or less Armstrong spent almost a decade at Google, ally damaged and declining company, I saw as to get back to revenue and profi t growth. where he served as President of Google’s the start of a long race that could be very suc- We put that date out there without know- Americas Operations and Senior Vice President cessful over time. That is what got me out of my ing exactly how we would get there but it gave of Google Inc., as well as serving on the compa- chair at Google and over to AOL. us a timeframe to focus on, and we ended up ny’s global operating committee. -
If You Let Your Customers Deploy Netscape Navigator, You Will Loose [Sic] Leadership on the Desktop.”
told them that “if you let your customers deploy Netscape Navigator, you will loose [sic] leadership on the desktop.” F. Excluding Navigator from Important Distribution Channels 143. Decision-makers at Microsoft worried that simply developing its own attractive browser product, pricing it at zero, and promoting it vigorously would not divert enough browser usage from Navigator to neutralize it as a platform. They believed that a comparable browser product offered at no charge would still not be compelling enough to consumers to detract substantially from Navigator’s existing share of browser usage. This belief was due, at least in part, to the fact that Navigator already enjoyed a very large installed base and had become nearly synonymous with the Web in the public’s consciousness. If Microsoft was going to raise Internet Explorer’s share of browser usage and lower Navigator’s share, executives at Microsoft believed they needed to constrict Netscape’s access to the distribution channels that led most efficiently to browser usage. 1. The Importance of the OEM and IAP Channels 144. Very soon after it recognized the need to gain browser usage share at Navigator’s expense, Microsoft identified pre-installation by OEMs and bundling with the proprietary client software of IAPs as the two distribution channels that lead most efficiently to browser usage. Two main reasons explain why these channels are so efficient. First, users must acquire a computer and connect to the Internet before they can browse the Web. Thus, the OEM and IAP channels lead directly to virtually every user of browsing software. -
Cruising the Information Highway: Online Services and Electronic Mail for Physicians and Families John G
Technology Review Cruising the Information Highway: Online Services and Electronic Mail for Physicians and Families John G. Faughnan, MD; David J. Doukas, MD; Mark H. Ebell, MD; and Gary N. Fox, MD Minneapolis, Minnesota; Ann Arbor and Detroit, Michigan; and Toledo, Ohio Commercial online service providers, bulletin board ser indirectly through America Online or directly through vices, and the Internet make up the rapidly expanding specialized access providers. Today’s online services are “information highway.” Physicians and their families destined to evolve into a National Information Infra can use these services for professional and personal com structure that will change the way we work and play. munication, for recreation and commerce, and to obtain Key words. Computers; education; information services; reference information and computer software. Com m er communication; online systems; Internet. cial providers include America Online, CompuServe, GEnie, and MCIMail. Internet access can be obtained ( JFam Pract 1994; 39:365-371) During past year, there has been a deluge of articles information), computer-based communications, and en about the “information highway.” Although they have tertainment. Visionaries imagine this collection becoming included a great deal of exaggeration, there are some the marketplace and the workplace of the nation. In this services of real interest to physicians and their families. article we focus on the latter interpretation of the infor This paper, which is based on the personal experience mation highway. of clinicians who have played and worked with com There are practical medical and nonmedical reasons puter communications for the past several years, pre to explore the online world. America Online (AOL) is one sents the services of current interest, indicates where of the services described in detail. -