Media
A silver lining to the AOL-Time Warner cloud
Media by Dan Kennedy
Within hours of Monday's announcement that America Online would acquire Time
Warner in a $165 billion stock swap, the Institute for Public Accuracy
blast-faxed out a compendium of gloom-and-doom quotes from progressive media
observers. From Robert McChesney, the author of Rich Media, Poor
Democracy: "It hammers the last nail in the coffin of those utopians who
regarded the Internet as providing the mechanism to radically change our media
culture for the better." From Jill Nelson, the author of Volunteer Slavery:
My Authentic Negro Experience: "This may be good for business, but it's bad
for people and the free flow of information. In our lust for profits, we have
forgotten democratic principles." From Ben Bagdikian, the author of The
Media Monopoly: "This acquisition is standard in the strategy of media
corporations that no significant media company in the country will remain
independent."
Now, I'm willing to believe that the AOL-Time Warner merger will somehow
be bad, and not just because the price of my AOL stock has plummeted this week.
And I certainly respect the views of McChesney, Nelson, and Bagdikian, all of
whom have important things to say about the increasing concentration and
corporatization of the media.
But this is not the Viacom-CBS merger, which brought disparate content
providers uneasily together under one roof. It's not even the "partnership"
between the Washington Post Company and NBC News, which could lead to a
diminution in the number of journalistic voices. Rather, this joins Time
Warner, the world's biggest media company, with what is essentially a
distribution system. And at least one of the outcomes may actually be for the
good.
AOL, for its own selfish reasons, has been a prime force in the "open access"
movement, aimed at requiring cable companies to open their high-speed systems
to all Internet service providers, just as the phone companies are required to
do (see "Net Loss," News and Features, January 7). AOL has been battling
AT&T, the cable giant that's trying to hog Internet-by-cable for itself.
Now, all of a sudden, AOL is a major cable company: it will control Time
Warner's cable systems, which serve 13 million customers in 33 states.
AOL impresario Steve Case and his new best friend, Time Warner chief executive
Gerald Levin, say they're both committed to open access -- and they've now got
the juice to pressure AT&T into following suit. Assuming Case and Levin are
not just posturing to placate antitrust regulators, that's actually a
significant victory for advocates of an open, democratic, high-speed
Internet.