Media Industry Case Project AssignmentTime Warner Inc.2/15/06Ashley LotitoDenise Winter

The Publishing Industry is a mixture of publishers and printers that produce books,newspapers, magazines, and many other items. This is a 1 trillion dollar industry thatbegan hundreds of years ago with Gutenberg and moveable type. Today companies viefor market shares and have sent acquisitions and mergers through the roof. Newtechnologies and trends are seen as new paths, and in some cases are before theirtime. When trends are not anticipated correctly sometimes companies, such as RandomHouse and Time Warner Book Group, are forced to close subsidiary that are centeredaround a mania, in this case it was the e book craze (Bills, Time).Time Warner Inc.Time Warner Inc. is a “leading global media and entertainment” firm with approximately85,000 employees (Time Warner). They are a publicly traded company on the New YorkStock Exchange, with the year’s highest selling share at 19.00. Time Warner describesthemselves as more than an “enterprise of great brands that are owned under one roof,but that they strive for a competitive edge from constructive collaboration.” And that theyare an “innovator of technology, products and services (Time Warner).”Time Warner bases their company upon their core values, which are as follows:“creativity, customer focus, agility, teamwork, integrity, diversity, and responsibility.” Theclosest thing to a mission and vision statement is “Creating and Innovating,” as well asthe above statement that Time Warner is an “innovator of technology, products andservices (Time Warner).” Time Warner is listed in the Fortune Magazine as #32 of theFortune 500 companies (Bills, Time).Time Warner was created in 1990 with the merger of Time Inc. and WarnerCommunications, which later grew in 1996 with the acquisition of the TurnerBroadcasting Company. The company was to be known later as AOL Time Warnerwhen AOL bought Time Warner (GNU). Today they have a Board of Directors made upof three committees, the Audit and Finance Committee, the Compensation and HumanDevelopment Committee, and the Nominating and Governance Committee, thatoversee the entire company.Markets ServedTime Warner Inc. is known as one of the world’s #1 media and entertainmentcompanies due to the markets it serves. Time Warner Inc.’s main markets include film,interactive services, television, cable, and publishing (Time Warner). They work with thefollowing businesses to provide the best service to their customers:

o America Online§ Helping to provide internet and interactive serviceso Time Inc.§ With over 150 magazines, Time Inc. and Time Warner Inc. teamedup to produce a readable product that will reach consumersworldwide.§ Also provides news, business, entertainment, sports, fashion andpersonal finance in one magazine.o Time Warner Cable§ Owns and manages cable systems throughout the U.S.§ Have local news channels in various parts of the U.S.o Home Box Office§ Provides at home television/movie services such as HBO andCinemaxo New Line Cinema§ Independent film company, now the most successful in the worlddue to Oscar –winning works such as The Lord of the Rings trilogyo Turner Broadcasting Systems§ A portfolio, which is view world wide, Turner Broadcasting focuseson animation, new brands and businesses and entertainmento Warner Brothers EntertainmentBroadcasts entertainment from various markets; anything fromtelevision programs to featured films, to animation and more (TimeWarner).Time Warner Inc. offers a number of products and services through the many parts ofthe company. A number of their products and services are listed below:² Broadband Internet access² Cable/Digital TV (Video On Demand, Digital Phone, Digital Video, Start Over)² Magazines² Broadcasting Entertainment² Video On Demand Provides accessto hundreds ofmovies Allows you tokeep a movie for24 hours Pause, fast forward or rewindas you watchwithout the

hassle of extra equipment. Provides access to television programs, featured films, animation, and interactiveentertainment and gamesIn 2005, Warner Brothers Pictures’ had a worldwide box office receipt of 3.27BillionNews Channels²²²²²²Capital News 9 (Albany, NY)Carolina News 14 (Charlotte and Raleigh, NC)News 8 Austin (Austin, TX)News 10 Now (Syracuse, NY)News 14 (Charlotte and Raleigh, NC)NY1 News (New York City)² R News (Rochester, NY) Local news station Rochester, NYAirs multiple times a dayBelow is a package/ ad for the famous Harry Potter and the Goblet of Fire DVDproduced by Warner Bros. Studios (Time Warner). This is just one of many multi mediaprojects that we see today. ClientsTime Warner’s key clients are not anywhere to be found. I searched a number of placesand did not find any inkling of their top clients. Any one person looking for a source ofmedia could find it in Time Warner.CompetitionTime Warner Inc.’s top three competitors are the CBS Corporation, Yahoo!, and theWalt Disney Company. The CBS Corporation, used to be a part of the Viacomconglomerate before it split, today owns a number of broadcasting networks as well asthe publishing house of Simon and Schuster. They are a 22 billion dollar company withover 38,000 employees, as of 2004 (Bills, CBS). The Walt Disney Company is the“second biggest media conglomerate, right behind Time Warner.” Disney owns anumber of television broadcast networks, radio stations, and motion picture companies,while employing approximately 133,000 employees (Yahoo, Walt). Yahoo! Inc. is a largeup and coming online information company. They provide access to “news,entertainment and online shopping to over 345 million people (Yahoo, yahoo).”

Financial InformationTime Warner is listed on the New York Stock Exchange under TWX, and in has aannual revenue of 43652.00 million. Their net income for 2005 was 2,905.0 milliondollars (Bills, Time). For 2005, the profit margin was 6.66% with a current ratio of 1.07,and an operating cash flow of 4.97 billion dollars (Yahoo, time).Success StoryIn 2001, AOL bought Time Warner to create a huge media conglomerate. There wasimmediate opposition to this merger for obvious reasons that it could create a monopolyon media. However, it was approved by the Federal Trade Commission and hashenceforth brought a large spectrum of internet users, unique online marketingpropositions and much more to the table. “In 2004, Time Warner’s market capitalizationin the US was 84 billion, with the AOL merger the combined market capitalization was 280 billion (GNU).”ConclusionTime Warner Inc. is the leading number one media company around the world. Byserving the television broadcasting, motion picture, publishing, and Internet marketsthey have been successful at serving millions of people. This is partly due to their drivefor new technology and their commitment to innovation. I believe that they will staynumber one for the time being because they work hard to be innovative and creative intechnology, as well as the products and services that they offer to their customers.Since the AOL merger in the early 2000s they have experienced big loses, especially inthe AOL sector, and there is talk of breaking the merger apart into two separate entitiesagain. However, I believe that they have the dedication and the commitment to providethe best media solutions possible to the world.

BibliographyAmazon (2006) Harry Potter. Retrieved February 14, 2006 from Web Site:, L. (2006) CBS Corporation. Hoovers Inc. Retrieved February 5, 2006 fromHoovers Inc.Bills, L. (2006) Time Warner Inc. Hoovers Inc. Retrieved February 5, 2006 from HooversInc.GNU Free Documentation License. (2006, January). Time Warner. RetrievedFebruary 12, 2006, from Wikipedia The Free Encyclopedia Web site: Warner.Time Warner Inc. (2006) About Us. Retrieved February 5, 2006 from Time Warner Website:! (2006) Time Warner Inc. Company Profile. Retrieved February 13, 2006 fromYahoo! Finance Web site: /ic/102/102518.html.Yahoo! (2006) The Walt Disney Company Company Profile. Retrieved February 13,2006 from Yahoo! Finance Web site:! (2006) Yahoo! Inc. Company Profile. Retrieved February 13, 2006 from Yahoo!Finance Web site:

the above statement that Time Warner is an "innovator of technology, products and services (Time Warner)." Time Warner is listed in the Fortune Magazine as #32 of the Fortune 500 companies (Bills, Time). Time Warner was created in 1990 with the merger of Time Inc. and Warner Communications, which later grew in 1996 with the acquisition of .