Time Products Services Digital Cable example essay topic

Introduction Chairman Richard D. Parsons Became Chairman in May 2003 Driving Time Warner's growth Working on a range of strategic, financial and operational initiatives Supervising the interaction and coordination of the company's operating divisions Vice Chairman Kenneth J. Nov ack Became Vice Chairman in 1998 Provides strategic counsel and handles special assignments for the Chairman Assumes a leading role in major corporate transactions. AOL Time Warner The world's leading media & entertainment company, whose business include interactive service, cable system, filmed entertainment, television networks, music and publishing History Established in 1998 Headquartered at Dulles, VA Early technology-based companies Building industry-leading products & services Invested over $250 million Mission enrich people's lives & strengthen the communities in which it operation Actively monitor the market Work closely with the operating divisions Extract value from emerging companies Basic Principles World-Class Franchises Transparency & Integrity Fiscal Discipline Return on Investment & Free Cash Collaboration Continuous Innovation People Matter Most of All Values Creativity Customers focus Agility Teamwork Integrity Diversity Responsibility Board of Directors Workforce Attract world's best talent from different background Build up an inclusive workplace & corporate culture Build up reputation as an employer of choice Target market Non-profit Market Young people AOL Time Warner Value Cluster Market Evolvement 1985! | Founded as Quantum Computer Services, offering an online service called Q-Link for owners of Commodore 1986! | W-Link subscribers number 100,000 owing case's persistence in market 1987-88!

| Quantum allies with Apple. 1989! | Q-Link service is renamed America Online 1992! | Initial public offering in March raises $66 million AOL's 200,000 subscribers put it a distant third in popularity behind CompuServe and prodigy 1994!

| Buys Red gate Communications, gain 1 million subscriber 1995! | Teams up with German media firm Bertelsmann to offer online services in Europe 1996! | Reaches 5 million subscribers Case makes Business Week's cover, inside, AOL is termed the! SS most potent force in cyberspace!" 1997! | Surpasses 10 million subscribers 1998! | Buys CompuServe, a competing pioneering online service that once had 6 times as many subscribers as AOL Agrees to buy Netscape 1999!

| Buys Netscape Communications Corporation, whose Navigator browser popularized the World Wide Web Buys MovieFone Inc., the nation's largest movie listing guide and ticketing service 2000! | announces planned merger with The Warner Inc 2001! | the UK's largest magazine publisher 2002! | The AOL service added 851,000 international members in the quarter, for a total of 8.0 million Growth Rate Customer Benefits instant messaging chatting and shopping online in straightforward ease of use with user guideline thousands of hours of research and testing Existing and Non-existing Competitors Existing Bet. COM ~provide channel, music, e-mail and so on Non-existing Yahoo ~expend to entertainment Objective World-Class Franchises Transparency and Integrity Fiscal Discipline Return on Investment and Free Cash Collaboration Continuous Innovation People Matter Most of All AOL Time Warner Market Space Offering Cross-Category Dominance One of the most interesting developments in the online world is the extension of product offerings from a single category to additional product categories These services are: E-Mail Up to 20 stock portfolios, customizable on a single account New CompuServe Radio & 15 music channel 20 megabytes of storage space Personalized news, weather and city guides CompuServe Search Shop@CompuServe Over 25 great brand Channels such CNN, CNN SI, Fortune AOL America Online America Online has built the largest and most engaged audience in the online world, including more than 26 million AOL members in the US at year-end 2002. Including AOL Instant Messenger, Netscape. com, CompuServe, MapQuest, Aol Moviefone and Winamp Greater control, flexibility, privacy, security and convenience Nationwide to gain high-speed connection Parental Controls to protect children from inappropriate online content AOL's privacy policy protect personal information Easy-to-use tools can identify and control the web Warner Bros. Entertainment -- Filmed Entertainment -- Business at a glance Warner Bros. Pictures International Warner Home Video Warner Bros. International Television Distribution Warner Bros. Consumer Products Warner Bros. International Cinemas Warner Bros. Entertainment Global leader in creation, production, distribution, licensing and marketing all forms of entertainment Feature films, television, home video / DVD, animation, comic, interactive entertainment, brand licensing, international cinemas, broadcasting Group Strategy 2004 target: To produce / acquire up to 10 films per year for international release Production budgets up to $20 million Group Strategy (con! |t) 2004 target: Discovering and nurturing new talent (front of and behind the camera) Providing the widest breadth of creative opportunities to establish filmmakers Awards For 2003-04 season: Warner Bros. TV Production is the industry's No. 1 supplier of prime time programming National coverage reaching 92% of U.S. households (one of only 3 broadcast networks to be profitable in 2002) Awards (con! |t) Providing 27 series, to the six broadcast networks e.g. Friends, ER (most-Emmy nominated drama on TV) Awards (con! |t) Warner Home Video (WHO): Commands the largest distribution infrastructure in global video marketplace Owns the largest film library of any studio Domestic video industry's marketshare leader -- Commanding 21% of the U.S. market in 2002 Awards (con! |t) Spearheaded the development of the DVD Experts estimating DVD players to be in more than 40 million U.S. TV homes Warner Music Group (WMG) Chairman & CEO, Roger Ames Services Stream & download of music Provide a rich-array of options Create & deliver high quality programming Offer a sort of one-stop shopping Group Strategy Strengthening the local repertoire Reducing company's cost structure Generating revenue from new digital formats & license arrangement Working closely with various promotional outlets Awards WMG artists took home 21 awards at the 2003 Grammy Awards, including six awards for songwriters signed to Warner.

Time Warner Inc. Networks Networks Home Box Office Turner Broadcasting System, Inc. Market space Offering Category-Specific Dominance Both companies provide television network Network including various of choices: news, sports, cartoon, films, original programming and concert event. HBO's Information America's most successful premium television network serve approximately 39 million U.S. subscribers Outside the US, services are available in more than 50 countries and reach over 16 million subscribers HBO's Services 24-hours services Offering blockbuster movies, innovative original programming, provocative documentaries, concert events and championship boxing Turner's Information an Time Warner company a major producer of news and entertainment around the world the leading provider of programming for the basic cable industry Turner's Network CNN, one of the world's most respected and trusted sources for news and information entertainment networks: TBS Superstition, TNT, Cartoon Network, and Turner Classic Movies as well as specialized networks such as Turner South and Boomerang Time Warner Inc. Network in Hong Kong Hong Kong Cable Television Limited: Turner Classic Movies (TCM), Cartoon Network, CNN News Group, HBO and Cinemax Now Broadband TV: Turner Classic Movies (TCM) and Cartoon Network Services Improvement of HBO continues to produce some of the most widely acclaimed movies in the entertainment industry launched a theatrical distribution arm, entering into an innovative distribution agreement with New Line's Fine Line Features Services Improvement of Turner seeking to advance the interactive services transmitted its network in both analogue and digital format via cable and satellite selects Avalon Software (AVALON idm) for broadcast data storage management infrastructure Con! |t announced a strategic collaboration with the TOM Group (TOM. COM LIMITED, HKG EM stock code: 8001) related to China Entertainment Television Broadcast Ltd.

(C ETV), the 24-hour Mandarin-language television channel Time Warner Inc. -- - Product and Services Products & Services! SS With Time Warner Cable, now, anything is possible! !" Standard Cable Digital Cable iCONTROLSM HDTV Digital Video Recorder (DVR) Road Runner ISP Choice Local News Channels On-Time Customer Service Guarantee (OTG) Products & Services 1. (HDTV) HDTV! V High Definition Television Service Provides the ultimate home theater experience Delivers crystal-clear, wide-screen, digital pictures, CD-quality Dolby surround sound and a wide assortment of channels Programming is delivered through advanced fiber optic cable network No purchase of an HDTV capable set-top box Products & Services 2.

(DVR) DVR! V Digital Video Recorder Give customers control of their television by making possible for them to: Pause, stop and rewind live TV Digitally record hours of programming Let customers record 2 programs at the same time All without buying expensive equipment Products & Services 3. (Standard Cable) Fiber Optic Network! : more variety, value, choice and enhance picture Now offer approximately 75 channels Including: the most popular analog networks local broadcast signals a wide range of local origination programming public access channels Products & Services 4. (Digital Cable) live your life on your schedule, not ours ( = Time Warner Cable) Features: Crystal-clear digital picture and sound More and better programming (200 TV channels, 40 Music Stations, more of the premium channels you love) Exclusive new features! V including: iCONTROL Movies iCONTROL Premium iCONTROL Favorites Products & Services (Digital Cable! V Con! |t) What is iCONTROLSM?

Interactive technology Customers control how and when to watch movies With the power to start, stop, pause, fast-forward and rewind programme again through iCONTROLSM Products & Services (Digital Cable! V Con! |t) iCONTROL Movies (Movies-On-Demand) Hit movies and favourite classics when subscribers want to watch them With the power to pause, rewind, and fast forward the movie you select at any time Products & Services (Digital Cable! V Con! |t) iCONTROL Premiums (Subscription-Video-On-Demand [S VOD]) - Unlimited, on-demand access to the best of: (a) HBO (b) Showtime (c) Cinemax (d) The Movie Channel Customers, touch a button of remote with iCONTROLSM! : Pause, fast-forward, and rewind these channels Products & Services (Digital Cable! V Con! |t) iCONTROL Favourites (Favourites-On-Demand) customers can free to select and play their favorite channels, such as: CNN NBC Comedy Central Biography Food Channel Carton Network Golf Channel Products & Services 5. (High Speed Online) Features: Always on Connection Speed (search up to 50 times faster than dial-up service) Instant Downloads (no waiting) Easy to get, Easy to use (no long-term contract) Products & Services (High Speed Online!

V Con! |t) Choose ISP you favorite, including: AOL High-Speed EarthLink Road Runner Big Net Inter. Net! K! K Products & Services 6. (Home Networking) Features: Get high-speed Internet access on every computer in customers! | house (with a single connection) Save money! : separate connections for each computer in customers! | home Faster! V download more videos and more photos on every computer Products & Services (Home Networking!

V Con! |t) Customers! | existing wiring, have a quick, easy-up by professionally trained Time Warner Cable technicians Wireless options Advanced intelligent firewall built right into the network protects customers! | computers Rely on 24/7 customer service and support Products & Services 7. (Customer Care) Employees 30,000 professional, knowledgeable, responsible employees across the U.S. answer customers! | questions and make the system smoothly comprehensive training program for employees: - tools to solve problems - ensure employees! : always up-to-date on new product features and options Products & Services (Customer Care! V Con! |t) Flexible Service Scheduling a service appointment is never a hassle (i.e. work around customers! | schedule) Technicians! : provide added flexibility: work on weekends and evenings Products & Services (Customer Care! V Con! |t) 24-hour Solutions Customer service representatives available 24 hours a day, 365 days a year! : to answer customers! | cable questions and concerns Local systems! | website for customers! | service area Products & Services (Customer Care!

V Con! |t) On-Time Guarantee! SS Nothing is more frustrating than waiting around for an appointment!" [ On-Time Customer Service Guarantee (OTG) ] Technicians are guaranteed to show up on time for installation and service appointments Products & Services (Customer Care! V Con! |t) The success and popularity of Time Warner Cable's OTG program! : adoption by: the National Cable Telecommunications Association the trade association for the entire US cable industry Products & Services (Customer Care! V Con! |t) With the OTG, every Time Warner Cable system across the country pledges the following: On-time installation appointments, or the installation is free On-time service appointments, or the customer receives $20 Products & Services (Customer Care! V Con! |t) 30 Day Money-Back Guarantee If customers are not completely satisfied with cable system, simplify notify the company within 30 days Money will be refunded Equipment Repair and / or replace the equipment related to cable service at no charge Products & Services (Customer Care! V Con! |t) Local Knowledge Time Warner Cable is a leader in developing local programming All service and support employees are locally-based!

SS Adult at Home!" Policy Installers and technicians WILL NOT enter customers! | home to perform any work if a responsible adult is not present Aim! : protect both customers and employees AOL Time Warner -- Resource System -- Internal -- Merging of AOL Time Warner -- Focus on innovation and a commitment to developing the strengths and talents of their employees Take advantage of the unique opportunities for collaboration that exist among their diverse media brands Internal (con! |t) -- Merging of AOL Time Warner -- Diverse community of highly creative men and women drawn from different regions and cultures Thousands of workers! | day-to-day dedication, imagination and vision are the foundation for new partnerships and ventures in the century ahead Internal (con! |t) -- Merging of AOL Time Warner -- TW and AOL stock will be converted to AOLTW stock at fixed exchange ratios The merger will be effected on a tax-free basis to shareholders Internal (con! |t) -- Merging of AOL Time Warner -- The TW shareholders will receive 1.5 shares of AOLTW for each share of TW stock -- own 45% of AOLTW AOL shareholders will receive 1 share of AOLTW stock for each share of AOL stock -- own 55% of AOLTW External (con! |t) -- Merging of AOL Time Warner -- Providing a lot of services -- Interactive Services -- Cable Systems -- Filmed Entertainment -- Television Networks -- Music and Publishing External -- Merging of AOL Time Warner -- Global leader in media and communications Touches millions of readers, viewers, listeners, online members and subscribers each day Working with local talent and entrepreneurs to unleash the full creative power of the Asia Pacific region External (con! |t) -- Merging of AOL Time Warner -- Strategic merger: -- world's first fully integrated media and communications company for the Internet Century -- all-stock combination valued at $350 billion -- combined revenues of over $30 billion External (con! |t) -- Merging of AOL Time Warner -- Strategic merger: -- become the premier global company delivering branded information, entertainment and communications services -- The merger will combine with the world's premier consumer online brands! K! K External (con! |t) -- Merging of AOL Time Warner -- Strategic merger: -- Enable new company to enhance consumers' access to the broadest selection of high-quality content and interactive services -- Uniquely positioned to speed the development of the interactive medium and the growth Financial Position of AOL Time Warner Inc. The income statement Reasons for the loss Unreliable accounting systems Overstated its revenue Improperly booking revenue on advertising sales. e.g. Enron $54 billion write off Distribution of Net Income in 31-Dec-2001 Distribution of Net Income in 31-Dec-2002 Major Expenses of AOLTW Loan payments Loan interest Cumulative effect of accounting change Reasons for the success New management executives Keep the books record accuracy Enhance the company's transparent AOL's segments revenue The most profitable growth businesses Cable, File entertainment, Publishing. Revenue of business segments Reasons for the success Cable Great increase in subscription (16%) and advertising (21%) Film entertainment Large increase in content (17%) Upset the loss of others Reasons for the success (con! |t) Publishing Done well in overall segments Specially, Increase in others (29%) and subscriptions (23%) Stock price of AOLTW.