The proposed merger of AT&T with Time Warner has the potential to change a great deal regarding the way media gets consumed. Although the two companies have plans to become a nationwide wireless competitor with Comcast, the country’s largest cable provider, the goal of this vertical integration is about providing consumers with more options. Time Warner CEO Jeff Bewkes, “has long promoted ‘TV Everywhere’ an idea that people should be able to pay once for a cable bundle and then watch anywhere, anytime, on any device.” In addition, this acquisition will provide AT&T with, “HBO, CNN, Warner Bros. and Time Warner’s other assets” necessary to compete with Comcast.
This merger will also improve the way advertisers target audiences across various media platforms. Bewkes was a guest on CNN and offered this regarding the advertising changes may result, “The sharing of data between AT&T and Time Warner can result in ‘more effective advertising’ and therefore people are going to see that more of the cost of content can be borne by advertising, and the experience of television can be better.”
To learn more, read the CNN Money article here.