Time Warner Argumentative Essay

Last October, one of the largest multiple system operators (MSO), Time Warner, was purchased by the telecommunication company AT&T for $85.4 billion. Michael Merced, a contributor of The New York Times, writes about the continuing consolidation of media and its potential effects. In Merced’s article “AT&T Agrees to Buy Time Warner for $85.4 Billion,” he explains that this deal creates “a new colossus capable of both producing content and distributing it to millions with wireless phones, broadband subscriptions and satellite TV connections” (Merced, 2016, par. 3). This statement indicates to me that both companies are thinking toward the future. Both companies are trying to best prepare themselves for the continued erosion of the television audience due to the allure of the internet.

Additionally, Merced explains that this pressure from online streaming services comes from “anticipating drops in fees from cable service providers and declining revenue from advertisers” (Merced, 2016, par 8). This consolidation will benefit both companies because now Time Warner will have more means to get their programming out to an audience and AT&T now has more content to offer customers. Time Warner is now able to use the internet “to reach audiences that otherwise might be reached only through broadcast affiliates” (Medoff & Kaye, 2011, p. 189). Working together gives them the opportunity to reach consumers in new ways that the internet can only