News Corporation

•      CEO: Rupert Murdoch

•      Country: Australia

•      Principal businesses

–  Film

–  TV

–  Cable

–  Print

–  Satellite

 

News Corporation Strategies

•      Exercising control over diverse global distribution channels

•      Using joint ventures on a global basis

•      Obtaining the rights to a range of world friendly programming

 

News Corporation Tactics

•      Turning Sky Global Networks into two way service

•      Using joint ventures to placate local governments

•      Valuing sports and news as content with global “legs”

 

Walt Disney Company

•      CEO: Michael Eisner

•      Country: USA

•      Principal businesses

–   Media networks (TV)

–   Studio entertainment (film)

–   Parks and resorts

–   Internet

–   Print

–   Retail (stores)

 

Walt Disney Company Strategies

•      Unlike News Corporation, Disney favors branding over distribution

•      Exploit synergy

•      Choosing new ventures based on synergy possibilities

•      Global marketing

 

Walt Disney Company Tactics

•      Its synergy uses very famous children-oriented brands (Mickey Mouse et al.)

•      Its overwhelming domestic revenues (USA) lessen its need for strong global distribution

 

AOL Time Warner

•      CEO: Richard Parsons
(formerly Gerald Levin)

•      Country: USA

•      Principal businesses

–   New media (AOL)

–   TV and cable

–   Print

–   Film

–   Music

 

AOL Time Warner Strategies

•      Combines Disney’s branding with News Corporation’s global distribution

•      Creating a range of world friendly brands (Bugs Bunny, Batman, etc.)

•      Synergy

•      Control of diverse global distribution channels

 

AOL Time Warner Tactics

•      Promises to compromise with European Union and U.S. Federal Trade Commission on the conditions of the merger between Time Warner and AOL

•      Makes a deal for the rights to the Harry Potter books in order to create a franchise across time and media

 

Drawbacks

•      News Corporation’s heavy debt

•      Walt Disney’s troubles with third place ABC

•      All three are so huge that they may limit the audience’s ability to get what it wants

•      For example, synergy works against edgy experimental cartoons in favor of retread cartoons

 

ASSIGNMENT LINK:      Ch. 6--What's in a Company Name?