“It seemed like a match made in media heaven. AT&T is a telecommunications giant
ID: 393736 • Letter: #
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“It seemed like a match made in media heaven. AT&T is a telecommunications giant whose reach stretches to millions of people all over the country, and Time Warner, the owner of CNN, HBO and Warner Bros., has content galore. Together, the two companies would create a colossus straddling the worlds of internet access, news and entertainment.” In July 2018, The Justice Department argued that the combined company would decrease competition and raise prices for consumers. 1. Do you agree or disagree that the AT&T - Time Warner was approved? Discuss. 2. Discuss the ethical issues facing AT&T and Time Warner and their respective industries. 3. How can they position themselves as socially responsible? “It seemed like a match made in media heaven. AT&T is a telecommunications giant whose reach stretches to millions of people all over the country, and Time Warner, the owner of CNN, HBO and Warner Bros., has content galore. Together, the two companies would create a colossus straddling the worlds of internet access, news and entertainment.” In July 2018, The Justice Department argued that the combined company would decrease competition and raise prices for consumers. 1. Do you agree or disagree that the AT&T - Time Warner was approved? Discuss. 2. Discuss the ethical issues facing AT&T and Time Warner and their respective industries. 3. How can they position themselves as socially responsible? “It seemed like a match made in media heaven. AT&T is a telecommunications giant whose reach stretches to millions of people all over the country, and Time Warner, the owner of CNN, HBO and Warner Bros., has content galore. Together, the two companies would create a colossus straddling the worlds of internet access, news and entertainment.” In July 2018, The Justice Department argued that the combined company would decrease competition and raise prices for consumers. 1. Do you agree or disagree that the AT&T - Time Warner was approved? Discuss. 2. Discuss the ethical issues facing AT&T and Time Warner and their respective industries. 3. How can they position themselves as socially responsible?Explanation / Answer
1)This deal is about the merger of the largest pay-TV company and a massive producer of entertainment content. This deals’ significance to Hollywood, the cable industry, the cellular industry and the broadband industry could not be overstated agree with this deal as in an era of rapid convergence now it is natural for the company to buy up content. And the race is on t0 acquire the best content and quickly when the network operators like Verizon and Comcast increasingly buying up content.
2)The ethical issue involved in this case is that AT&T would become so massive that it can use its power to abuse other Web companies, other cable companies, other content companies or even consumers to accept terms they otherwise would never agree to. AT&T might restrict the distribution of Time Warner's content. This merger may create monopoly that harms innovation and drives up prices for consumers.
3)They can position themselves as socially responsible if they make sure that it does not harm competition.AT&T should not try to disadvantage its competitors' own content on its platform
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