AOB 5: Distribution & Ownership

AOL

• In 1991, America Online became one of America's major Internet Service Providers (ISP's), combining internet experience with a clear business plan and aggressive marketing.
• AOL's success was momentous, to the point that the service almost crashed from being swamped with customers.
• In the early 1990s. AOL was the target of several big information technology companies, including Microsoft, but AOL's chief executive refused to become subsidiary to a larger company, and AOL expanded into Europe and the U.K.
• The company became powerful enough to buy out rival ISP Compuserve in 1995, and later the browser Netscape.
• Software development companies became targets as AOL looked to create an Instant Messaging Server.
• Companies like Dell computers and General Motors have placed AOL in an unchallenged position within the industry, and the company now provide service to roughly 35 million subscribers, 10 million of which are in Europe and the U.K
• AOL's merge with Time Warner in 2000 was seen by many as the ideal mix of technology and contents.

Time Warner

• Warner Brothers was originally one of the big five major film companies which dominated Hollywood in the 1930s.
• As the film industry began to collapse during the 1940s, Warner expanded into music and television, leading to a corporation called Warner Communications.
• The company took off, growing to own a considerable fiber-optic cable network throughout the U.S.A, and launching new channels such as HBO.
• Warner communications merged with several companies in the 80s and 90s, including Time Incorporated and Turner Broadcasting.
• Warner's synchronized sound system, introduced in 1927's The Jazz Singer, led Hollywood films into the sound era, and in 1975, Warner was the pioneer of satellite broadcasting in the USA, introducing several new satellite channels.
• Despite massive investments in the technology and its promotion, Time Warner were unable to build up sufficient usage for its internet service to be made worthwhile.
• By merging with AOL, Time Warner were finally able to get their products sold and consumed by the next generation of media audiences.