Warner Brothers And Net Neutrality Essay Sample

Time Warner Takeover and Net Neutrality

Net neutrality, also referred to as net equality, is a principle which dictates that internet service providers, governments, and other regulating bodies shall not discriminate or assign charges to services offered differently based on content, data type, platform, or mode of data transfer. The term was conjured by Professor Tim Wu of Columbia University in 2003. 21st Century Fox has proposed to takeover Time Warner for a total cost of $80 billion. This has raised concerns of possible net neutrality violations by Fox in case of a successful takeover bid. This is a paper on net neutrality issues pertinent to the Fox takeover of Time Warner.
In the takeover deal, a number of players are involved. 21st Century Fox and Time Warner are the major players. To sweeten the deal, fox has offered up CNN, a major competitor of Fox news. Time Warner is a separate entity from Time Warner Cables which is basically an internet service provider. A successful takeover would therefore not affect Time Warner Cables. Time Warner is a media outlet which comprises of television, HBO, and Warner Bros Studios (Apex It Group, n.d.). Apart from the two companies directly involved in the deal, the other parties who would be of interest to the deal are the legislative organs which control fair business practices and Time Warner’s shareholders.
Net neutrality protects the final consumer of the final products against unlawful termination of services, favoritism, and overcharging. In the Fox Warner Times takeover scenario, the consumer of the latter’s products are likely to suffer. If Fox were to succeed, popular television shows from Warner Bros studios would have been discontinued and new ones introduced at the whims of the new management. Organizations which are in business contracts with Warner such as the NBA would have suffered losses and disappoint their followers as their air time would have been affected.
21st Century Fox has the ethical responsibility of not violating net neutrality in its bid to takeover Warner. The acquiring party has the upper hand in a takeover and might be tempted to overreach in the process of assimilating the acquired asset. In the implementation of change, Fox must ensure that it does not stifle ongoing Warner projects or act unprofessionally.
Ethical issues might arise at the management level in the eventuality that Fox takes over Warner. The new management might opt to discontinue shows popular with a certain segment of the population such as a given race in America. The fans of that particular show stand the risk of losing out on their favorite entertainment just because the new regulators might not be privy to how the old system works. Discontinuation of shows or change in airing times could affect ratings which could in turn lead to job losses.
The ethical issues in the takeover fall under the ethic of profession and the ethic of local community. Fox Company is obligated to act professionally if it takes over Warner and should not impose on the existing employees and viewers of Warner content. The ethic of local community might occur when consumers of Warner products who are used to the media company’s production methods, style, and content are forced to accept the acquiring company’s antics. These issues can be resolved through the principles of resolution such as direct communication. Effective communication and openness may alleviate suspicion as to the driving motives behind the takeover and implementation of later changes. The stalemate can also be resolved by declaring the interests that Fox has on Warner. If Fox clearly indicates why it wants to acquire Warner, economical or professional reasons, then the process can happen seamlessly without many mishaps.
21st Century Fox’s unprecedented bid for Times Warner is the first major case of its magnitude to stir the net neutrality debate. It is feared that Fox will manipulate Warner’s content for profits thereby violating net neutrality. Time Warner’s legacy will also be lost once the company loses its identity. For a takeover to occur without violating net neutrality, Time Warner should continue operating as an autonomous entity free from Fox’s interference.

Reference

Apex It Group. (n.d.). Not So Fast: Time Warner Declines 21st Century Fox’s Takeover Bid. Retrieved from http://www.apexitgroup.com/not-so-fast-time-warner-declines- 21st- century-foxs-takeover-bid/