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Essay on Disney v Time Warner | ||
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This is the first 1,000 characters of 1994 words (7.98 pages) in the essay titled Disney v Time Warner A little over one week ago, on May 1, 2000, millions of Time Warner Cable customers – 3.5 million to be exact – woke up without the American Broadcast Company (ABC) on their TV dial. While these 3.5 million, which pondering the coming of the Apocalypse without Regis, Kathy Lee or Susan Lucci for a day, news spread across the country about the reality of the situation.After the two companies failed to reach an agreement on a transmission deal, after five months of negotiating, ABC service was cut off for Time Warner customers in seven cities – including households in New York; portions of the Los Angeles area; Houston; Flint, Michigan; Philadelphia; Raleigh-Durham, North Carolina; Fresno, California; and Toledo, Ohio. The dispute arose as the two media giants were sparring over how much money Time Warner most compensate The Walt Disney Company, ABC’s corporate parent, for the right to carry some of its cable channels – those of Disney-ABC’s other television properties (i.e., ESPN, Lifetime, The Disney Channel). While Disney says that the price it is asking for its cable channels is fair since Time Warner gets ABC for free, Time Warner disagrees and wants a lower price. A May 5, 2000 editorial in the New York Times suggests that the Time Warner dispute with Disney “could enter the annals of business history as a famous strategic blunder.” In fact, the display of corporate chess played between Disney and Time Warner could foretell much about the future of the corpor... |
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Keywords: time warner cable, disney channel, espn, media conglomeration, walt disney company, abc service, company abc, new york times, cable channels, abcs, blackout, 5 million, cable customers, strategic blunder, susan lucci, negotiation tactics, media giants, broadcast company, political consequences, technological business