Mega merger heralds start of new media era

<p>America Online's (AOL) purchase of Time Warner marks the beginning </p><p>of a new era, but there are implications over whether new media is </p><p>taking over old media or traditional media is taking control of </p><p>cyberspace. </p><p><BR><BR> </p><p>With a stock value of US$350 billion, the merger is not just </p><p>about the numbers but it is also about the further development of media </p><p>and advertising. </p><p><BR><BR> </p><p>AOL and Time Warner by themselves have faced the dilemma of developing </p><p>the new media with attractive content and expanding traditional media's </p><p>distribution network. </p><p><BR><BR> </p><p>One concern for advertisers, however, is that penetration does not </p><p>necessarily equal expanding viewership as consumers installed with this </p><p>broadband media infrastructure may not always pay attention to it. </p><p><BR><BR> </p><p>MindShare interactive business director Andrew Morse said it will still </p><p>take some time for the merger to make an impact in Asia, which will see </p><p>more of this kind of marriage occurring in the region. </p><p><BR><BR> </p><p>The AOL Time Warner merger will give AOL a greater foothold in Asia, </p><p>with the support of Time Warner, noted Mr Morse. </p><p><BR><BR> </p><p>The cross media marriage will provide new broadband distribution </p><p>platform for AOL's interactive service and drive subscription through </p><p>cross marketing with Time Warner's pre-eminent brands. AOL Time Warner's </p><p>brands now include Time, CNN, Warner Brothers, HBO, TNT, Warner Music, </p><p>TBS and AOL MovieFone - all these media offer communications focal </p><p>points between consumers and the entertainment world. </p><p><BR><BR> </p><p>Given the mega communications platform, one concern for advertisers is </p><p>the issue of pricing as one media company now has a range of products </p><p>and services and the population reach as well. </p><p><BR><BR> </p><p>In that way, Grey Interactive managing director Vivian Lau said one </p><p>single media company can heavily influence the price in the </p><p>marketplace. </p><p><BR><BR> </p><p>But Carat Asia-Pacific regional director Alex Abplanalp said </p><p>consolidation in media does not necessarily bring up the bargaining </p><p>power of media owners. </p><p><BR><BR> </p><p>These kind of vertical mergers are prompted by the competition in the </p><p>online business, he said, adding that the most important implications </p><p>for advertisers is the bringing together of more value added media </p><p>packages to target audience more efficiently. As media communications </p><p>are becoming more complex, he media firms need to gear up to develop </p><p>specialised units in interactive business. </p><p><BR><BR> </p>