|
I
have seen the future and I don’t like what I see.
It is
called mega-merger and resulted in the recent fight between a Mickey Mouse
organization, called Walt Disney Company and the Looney Tunes bunch at
AOL/Time Warner/Ted Turner, or whatever their name is this week.
Time
Warner had a dispute with Disney over programming issues so they decided to
even the score by pulling the plug on Disney’s ABC subsidiary in those areas
of the country served by their cable system. Fortunately, a temporary truce
was crafted and for the time being, customers can watch ABC on Time Warner
cable but this is not going to be the last fight between those who provide
programming and those who distribute it and there is nothing you and I can
do about it.
What
happened between these two behemoths ought to be of great concern to you.
I’m not just talking about missing, “Who Wants to Be a Millionaire.” I am
talking about information control. Your ability to get unfettered news from
unbiased sources is rapidly disappearing with the current media
mega-mergers. Disney owns ABC. Viacom owns CBS. General Electric owns
NBC. Time Warner owns Turner, CNN, and Time Magazine. These are
multibillion-dollar conglomerates in control of networks, programming,
movies, publishing. They control what you can see, hear and read. I also
am not comforted by the fact that the Chicago Tribune just bought the Los
Angeles Times and that the New York Times bought the Boston Globe. We are
on the way to a national monopoly on information.
It is not
just the media mergers that scare me. It is the whole trend toward
bigness. When divestiture of the Bell System occurred in 1984, there were
seven new companies created to compete in the telecommunications
marketplace. Today, there are four, going on three. Bell Atlantic bought
Nynex first and GTE next. Southwestern Bell, now SBC, swallowed up PacTel
and Ameritech. Somebody named Global Crossing is absorbing US West.
That leaves my alma mater, BellSouth, once the largest of the Baby Bells and
now a middleweight, except for its wireless operations which have just been
merged with SBC’s.
The same
thing is happening in the banking, insurance and automobile industries as
well. Everybody is saying they have to get bigger in order to compete in
the international marketplace.
Know
what happens when everybody gets bigger? You and I get smaller as a
priority. Anybody who thinks we are going to be better served by
mega-mergers is either naďve or is writing the conglomerate’s press
releases. When was the last time you called a large company and got a
human being on the other end? When was the last time you got called
back to see if your complaint had been handled to your satisfaction?
You and I are expensive to companies and wasting assets like people on us is
not a good use of their resources. As a matter of fact, people are a
tremendous cost to business and the less of them you have, the better.
If we need to talk to someone, we can just punch a bunch of numbers on the
telephone. That’s a lot better on the bottom line.
I called
an Atlanta-based organization last week and after banging numbers to get
where I thought I wanted to go and not getting there, I pushed “0” for the
operator. I waited through 27 rings. On the 28th, I was
answered and instructed to hold. I held for seven seconds short of four
minutes. Then I was transferred to my requested department and got another
recording! I’ve got to think that this outfit feels pretty good about the
money it is saving in personnel costs. Hopefully, they never have to call
themselves on the telephone.
Companies
wax eloquent that bigness means more customer choice. I don’t agree. It
means more choice from fewer sources. It reminds me of an old line from
Bell System monopoly days. You can have any choice of telephone color you
want – just as long as it is black. Looks like those days are coming back.
Two days
before the Disney Time-Warner fight, Steve Case, CEO of AOL, which has
bought Time-Warner, said, “Business development and social responsibility
must go hand-in-hand. Look beyond making money in order to build a
medium we can be proud of.” Then his cable company pulled the
plug on its customers.
In the
early 1900’s, robber baron Cornelius Vanderbilt said, “The public be
damned.” At least he was honest about it. |