AT&T Time Warner merger could be huuuuge

Tom Dougherty, CEO – Stealing Share

8 December 2016

The AT&T Time Warner merger could change everything

The proposed AT&T Time Warner merger is now being considered by a Senate panel. And the companies’ CEOs were greeted with skepticism.

As they should be.

Anyone who truly believes this will be better for consumers, especially in terms of price, is plainly naïve. Mergers create semi-monopolies in which the newly formed company can raise prices without consequences.

The merger portends change

What makes this merger so interesting is that the industry of delivering content is undergoing enormous change. Be warned, this type of merger will become the norm. (Wait until we see what Verizon has in store.)

AT&T’s CEO, Randall Stephenson, said, “Together, AT&T and Time Warner will disrupt the entrenched pay-TV models giving consumers more options, creating more competition for cable TV providers, and accelerating deployment of 5G wireless broadband.”

“There can be a whole new, exciting brand. It should be nothing like the silly Spectrum, the result of the Time Warner Cable Comcast merger.”

 

AT&T Time Warner merger

The AT&T Time Warner merger is about more than technology.

What the AT&T Time Warner merger means

The AT&T Time Warner merger promises to widen the scope of the delivery systems for content, in theory. This is a direct response to the number of consumers who are cord cutting and looking for other options.

Companies like AT&T and Time Warner, which owns several TV networks, are taking advantage of this opportunity. The landscape has indeed changed and how we view content potentially opens up uncharted territory.

You will pay for these changes, mind you. But this is often how large companies react to market trends. They get bigger. Think of how airlines merged in response to industry pressures. (They also missed a huge opportunity.)

The AT&T Time Warner merger has massive opportunity

The opportunity from the AT&T Time Warner merger is gigantic. However, the worry, from a brand perspective, is that it will only result in bigger. In reality, there is an opportunity to completely revolutionize the entire category.

And I don’t mean just with technology. The outcome of this merger should form a new way to emotionally connect with audiences. That is, there can be a whole new, exciting brand. It should be nothing like the silly Spectrum, the result of the Time Warner Cable Comcast merger.

However, I’m not optimistic. Larger companies have a way of dumbing down messages and brand, missing the chance to be truly different and better. In fact, they only think of operations and cost, without having the vision to see a new Apple or Tesla.

If Congress accepts the merger, the CEOs should accept that their opportunity is greater than just completing it.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

The proposed AT&T Time Warner merger is now being considered by a Senate panel. And the companies’ CEOs were greeted with skepticism.

As they should be.

Anyone who truly believes this will be better for consumers, especially in terms of price, is plainly naïve. Mergers create semi-monopolies in which the newly formed company can raise prices without consequences.

What makes this merger so interesting is that the industry of delivering content is undergoing enormous change. Be warned, this type of merger will become the norm. (Wait until we see what Verizon has in store.)

AT&T’s CEO, Randall Stephenson, said, “Together, AT&T and Time Warner will disrupt the entrenched pay-TV models giving consumers more options, creating more competition for cable TV providers, and accelerating deployment of 5G wireless broadband.”

AT&T Time Warner merger

The AT&T Time Warner merger is about more than technology.

The AT&T Time Warner merger promises to widen the scope of the delivery systems for content, in theory. This is a direct response to the number of consumers who are cord cutting and looking for other options.

Companies like AT&T and Time Warner, which owns several TV networks, are taking advantage of this opportunity. The landscape has indeed changed and how we view content potentially opens up uncharted territory.

You will pay for these changes, mind you. But this is often how large companies react to market trends. They get bigger. Think of how airlines merged in response to industry pressures. (They also missed a huge opportunity.)

The AT&T Time Warner merger could change everything.

The opportunity from the AT&T Time Warner merger is gigantic. However, the worry, from a brand perspective, is that it will only result in bigger. In reality, there is an opportunity to completely revolutionize the entire category.

And I don’t mean just with technology. The outcome of this merger should form a new way to emotionally connect with audiences. That is, there can be a whole new, exciting brand. It should be nothing like the silly Spectrum, the result of the Time Warner Cable Comcast merger.

However, I’m not optimistic. Larger companies have a way of dumbing down messages and brand, missing the chance to be truly different and better. In fact, they only think of operations and cost, without having the vision to see a new Apple or Tesla.

If Congress accepts the merger, the CEOs should accept that their opportunity is greater than just completing it.

Share This