BUSINESSWEEK ONLINE : JANUARY 15, 2001 ISSUE
COVER STORY Can These Two Make the Marriage Work? CO-CHIEF OPERATING OFFICER BOB PITTMAN'S PORTFOLIO: Estimated 2001 revenues: $30.2 billion AMERICA ONLINE INC. With 29 million subscribers, AOL dominates the consumer online access market. Now it's migrating the AOL service beyond the PC to TVs, cell phones, and mobile devices. It also aims to make AOL a top brand for interactive television. Estimated 2001 revenues: $10.3 billion TIME WARNER CABLE The second-largest U.S. cable operator is pushing digital services and broadband Web access to the 21% of U.S. households reached by its network. The plan is to offer interactive shopping and entertainment. AOL's own branded interactive-TV package will be pushed via cable. Estimated 2001 revenues: $6.9 billion TIME INC. The publisher of 40 magazines has enjoyed 28 straight quarters of operating profit growth, fueled by the success of Time, Sports Illustrated, People, and Fortune. With the merger, it is promoting magazine subscriptions heavily on AOL. Estimated 2001 revenues: $5 billion HOME BOX OFFICE The largest premium cable network, with 37 million subscribers, keeps raking in Emmy nominations for high-quality productions, such as The Sopranos and Sex in the City--and rolling in the dough. Estimated 2001 revenues: $2.4 billion TURNER BROADCASTING SYSTEM, INC. With some of cable TV's top networks, such as CNN, TBS, and TNT, the Turner properties contribute significant ad revenues--though the slowing economy may dent that. Synergies already are at play here: CNN has a spot on AOL's high-traffic Netscape Web site. Estimated 2001 revenues: $5.1 billion WB TELEVISION NETWORK. Ratings were down 23% last year, but the six-year-old network is now rebounding, led by a 14% increase in popularity among 18- to 49-year-olds. The network targets young viewers with hits such as Felicity. Estimated 2001 revenues: $495 million CO-CHIEF OPERATING OFFICER DICK PARSONS' PORTFOLIO: Estimated 2001 revenues: $13.4 billion WARNER BROS. Despite this summer's hit The Perfect Storm, it ranks third among movie studios with a 12% share and U.S. movie theater revenues of more than $420 million last year. Ultimately, movies will be delivered on demand through cable TV and over the Web. Estimated 2001 revenues: $7.1 billion NEW LINE CINEMA The No. 9-ranked studio was once a maker of slasher movies but now produces more mainstream fare such as Austin Powers. Box-office flop Little Nicky, however, contributed to Time Warner's slower-than-expected fourth-quarter growth. Estimated 2001 revenues: $1.6 billion WARNER MUSIC GROUP After calling off its merger with London-based EMI Music because of regulatory pressures, Warner must now find ways to grow its business solo. The AOL deal should speed up digital distribution of its music via the Net. Estimated 2001 revenues: $4.4 billion TIME WARNER TRADE PUBLISHING The parent company of Warner Books and Little Brown has launched iPublish, an online publisher dedicated to e-books. In December, Warner Books released Brad Meltzer's First Council to Gemstar-TV Guide International for its e-book reader--a month ahead of the hardcover release. Estimated 2001 revenues: $300 million Note: First Union estimates total revenues of $42 billion in 2001. These business-unit estimates include internal transactions. DATA: BUSINESS WEEK, FIRST UNION SECURITIES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Show Time for AOL Time Warner COVER IMAGE: Show Time! TABLE: Can These Two Make the Marriage Work? TABLE: Pittman's Highest Hurdles TABLE: What They're Saying about Pittman RESUME: Robert Warren Pittman The Man Who Made Levin Look Good TABLE: Pittman's Co-Pilot AOL Abroad: Miles to Go (int'l edition) TABLE: A Global Report Card INTERACT E-Mail to Business Week Online

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