AOL Time Warner Inc., formed by the merger of America Online, Inc. and Time Warner Inc., is a major media conglomerate that combines the power of the Internet with highly recognized information and entertainment brands. According to the combined companies' first annual report, released in early 2001, AOL Time Warner reached more than 130 million subscribers, 266 million Web users, 268 million magazine readers, 1.4 billion monthly prime-time television viewers, and 50 million monthly home video viewers. Altogether, AOL Time Warner estimated that it touched consumers more than 2.5 billion times each month.
When America Online, Inc. and Time Warner Inc. completed their merger on January 11, 2001, they created the first—and largest—Internet-powered media and communications company. Following the merger, America Online and Time Warner each became wholly-owned subsidiaries of AOL Time Warner. The firm's numerous businesses and brands were organized into seven fundamental areas:
AMERICA ONLINE.
The world's leader in consumer-oriented interactive services, Web brands, Internet technologies, and electronic commerce services, AOL's operations include the AOL service, which had more than 28 million members as of March 31, 2001, and the CompuServe service, which had about 3 million members. Also included among AOL's operations are Netscape; local brands such as Digital City, AOL Moviefone, and MapQuest; AOL messaging services, including AOL Instant Messenger; and AOL's music properties, such as Spinner.com, Winamp, and SHOUTcast.
Other AOL operations have been organized under "AOL Anywhere" services, including AOLTV, an interactive television service; the AOL Mobile Communicator service, which offered wireless access to e-mail and instant messaging using pager-sized two-way wireless devices; and the AOL-byPhone service. The company's "AOL Anywhere" strategy was designed to offer key features and content of the AOL service through multiple platforms and devices, including mobile phones, pagers, and other handheld devices.
Finally, through its strategic alliance with Sun Microsystems, Inc., AOL is involved with the development of electronic commerce and enterprise solutions under the brand iPlanet E-Commerce Solutions, developed and marketed through the Sun-Netscape alliance.
CABLE TV AND INTERNET ACCESS.
As of December 30, 2000, Time Warner Cable served some 12.8 million subscribers through cable systems that it either owned or managed. Approximately 92 percent of its cable systems had been upgraded to deliver more channels and provide two-way transmission capability, the key to offering high-speed Internet access and other interactive services via the cable line. These upgrades permit roll-out of such advanced services as digital and high-definition television (HDTV) programming, video-on-demand, telephony, and other services. As of March 31, 2001, Time Warner Cable had launched its high-speed Internet service, Road Runner, in 36 of its 39 field divisions.
FILMED ENTERTAINMENT.
The company's filmed entertainment businesses comprise several well-known brands, including Warner Bros. Pictures, New Line Cinema Corporation, Warner Home Video, and Warner Bros. Television. Also included with AOL Time Warner's film unit are the Turner classic film and animation libraries.
NETWORKS.
AOL Time Warner's networks include domestic and international basic cable networks, pay-television programming services, a broadcast television network, and sports franchises. The principal cable networks and sports franchises are owned by Turner Broadcasting System, Inc., a wholly-owned subsidiary of AOL Time Warner. They include TBS Superstation, TNT, Cartoon Network, Turner Classic Movies, and the CNN network. Turner Broadcasting also operates the CNN family of Internet destinations and other large advertiser-supported online sites. AOL Time Warner's pay television programming services include HBO and Cinemax. The WB Television Network is the company's sole broadcast television network. In sports, a source of programming and merchandising content for the firm, it owns professional teams in baseball (Atlanta Braves), basketball (Atlanta Hawks), and hockey (Atlanta Thrashers).
MUSIC.
AOL Time Warner's worldwide recorded music and music publishing businesses are conducted under the umbrella name Warner Music Group (WMG). Principal U.S.-based record labels include Warner Bros. Records Inc., Atlantic Recording Corporation, Elektra Entertainment Group Inc., and London-Sire Records Inc., and their affiliated labels, as well as WEA Inc. companies. WMG's music publishing companies, Warner/Chappell, own or control the rights to more than 1 million musical compositions.
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