Washington, DC- The Time Warner and America Online merger announced today gives Time Warner, the leading provider of media content such as movies, music and magazines, offers huge access for reaching people online. This merger also provides AOL being the nation’s largest online company with some 20 million subscribers a tool for distributing its services: via access to Time Warner’s large cable network system.
States Ed Black, CEO/President of CCIA:
“In a way it’s a perfect marriage between the two companies. However, this doesn’t carry the magnitude that the AOL deal with Netscape and Sun of one year ago. This is far more of a sweeping and significant undertaking that more accurately predicts the strategic goals of AOL.
While they may partner with companies dealing with Internet technology their prime focus will be on media, content and broad interaction with the public.
This merger will accelerate delivery and availability of broadband, a major plus to consumers. Although this merger creates a large occurring powerful and capable company in major areas of the technology industry it is not that important to the infrastructure.
The intellectual property debate within the industry at large between companies distributing audio and video content approaches the debate in a new way. This debate now clearly takes place within this company. We are anxious to see what resolution evolves.
We are pleased with comments by the AOL/Time Warner executives about greater access for consumers but await the details in these proposals. This merger is pivotal in the Internet age where media and technology are trying to maximize each other. Internet and media companies are trying to offer what the other has so this may set a precedent for the industry.”
