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Read: Time Warner, a media giant that dominates the world with sub-brands such as CNN, HBO, and Warner Bros., declined media tycoon Murdoch’s acquisition of 21 billion-year-old Fox’s total value of RMB 80 billion in 2014, and stands proudly in the world’s media. forest. In today's era of blending old and new media, Time Warner, which once won the pinnacle, still insists on high-quality content output, and sticks to the content high ground in the battle to integrate change.
At the peak of his time, Time Warner had spanned five major industries including broadcasting, television, film, publishing, and the Internet. He owned the leading ace of CNN, HBO, and Time magazine, as well as two channels, Time Warner Cable and American Online. In 2009, Time Warner made up its mind to return to professional operation, divested its cable TV companies and American online companies, bid farewell to the cable and Internet channel system, focused on the content industry, and laid a clear direction for future integration.
At present, Time Warner's three major companies include Turner Broadcasting, Home Theater Company (HBO) and Warner Bros. Entertainment Group. The time-honored Time Warner is not as good as the all-media business layout during the peak period, but today it still enjoys an unassailable position in the television network, film and television drama, games and other content areas.
From the perspective of Time Warner's revenue in recent years, TV subscription fees and content sections are still the main earnings growth point of Time Warner. With the expansion of TV network business to overseas markets and new media channels, Time Warner’s subscriber subscription revenue has been steadily increasing in recent years. As the traditional advantage of Time Warner, regardless of how the traditional media and new media are integrated in platforms or technologies, content is always the foundation of survival that must be adhered to.
Business development, after subdivided into the true
After years of business development, today’s Time Warner eliminated magazines and music sections, and only retained the three core business lines of television distribution networks, movies, and games. Time Warner declared to the world by its own actions that integration is not necessarily blindly making a large plate, and that there is a choice to abandon its ability to strive for excellence in areas of superiority.
1. TV network business: brand operation under international vision
Time Warner's television network business mainly includes Turner Broadcasting Network, paid channel HBO, and CW television network jointly funded by Warner Brothers and Columbia Broadcasting Corporation.
Based on traditional television channels, Time Warner's television broadcasting network will gradually expand its business scope to new media. Relying on its many brands, Turner Broadcasting has established digital websites such as CNN.com to provide on-demand services for users. According to incomplete statistics, in 2013, Turner Broadcast's digital website reached a monthly average of 77 million unique visitors in the United States. The huge user traffic brought by the new media business has also created considerable advertising revenue for Time Warner while consolidating brand loyalty.
TV network is the most traditional and vital business of Time Warner. It is relying on its strong network deployment, rich content resources and vast user base. Time Warner can extend the original business to achieve the purpose of integration.
2. Movie and TV drama business: Create high-quality content and consolidate dominance
Video production was once the main business of Time Warner. As the third-established movie company in the United States, the long history of Warner Bros. Studios for nearly a century has become a resounding gold medal.
In the early days, HBO, which was mainly channel-operating, faced the shortage of Hollywood films and competition from other channels, and also entered the film and television production business in the 1980s. Since its development, HBO's film and television drama has also become the winner of major television awards with its exquisite production and unique positioning. From the channel operator step by step to become a large film and television production, HBO also provided reference for TV channel operations.
With Warner Bros. and HBO making two generals, Time Warner firmly controls the upper reaches of the content industry in the film and television drama business, making it more comfortable in the integration road. Diversified channels are still inseparable from the support of high quality content and control the core of the video field. Time Warner is undoubtedly sitting on a good hand.
3, game business: "acquisition" security, "self-built" life
From the perspective of business development, Time Warner's game business itself is derived from its film and television business. Earlier Warner Bros.’s game business only granted Time Warner movies and comics copyrights to other game companies. Since 2004, Warner Bros. Entertainment has achieved business integration through continuous acquisition of game companies and has grown its own strength. In 2005, Warner Bros. Entertainment launched the independent brand “Warner Bros. Gamesâ€.
In the next ten years, Warner Bros. Entertainment still insists on the acquisition strategy and constantly replenish its fresh blood in the game field. In the later stages of development, Warner Bros. Games also began to collaborate with acquired game development companies to build their own projects for the distribution of games.
Although the game is a derivative business of Time Warner after the movie and comics business, Time Warner's strategy of capital integration has accumulated a great deal of successful experience in the early stage. The opening of the parent group's advantageous resources also makes it possible for future business growth. point.
Content and channels, the integration of the standard
Talking about media convergence, it is bound to bypass the two keywords: content and channel. Time Warner continues to self-regulate with a flexible and open mindset in a volatile media environment, focusing on content production, integration, distribution, and innovations in business, technology, and organizational management. empire.
1. Give full play to the content advantages and reflect the integrated thinking
Time Warner's breadth and diversity of perspectives in the content field rank among the best in the global media. In particular, news, movies, TV series and other sub-sectors, Time Warner has far-reaching influence. However, in the face of the impact of new media, Time Warner did not rest on its laurels, but made good use of converged thinking, exerted its advantages in traditional content, combined new means and new models in the new media environment, and radiated new vitality.
News, everyone is a reporter
As Time Warner's trump card in the press, facing the new media's irresistible development trend, CNN took the lead in embracing media convergence with a compatible and inclusive mindset. The use of "everyone reporter" has changed the production mode of news reports from the source.
In 2006, CNN launched an online independent service, iReport, to collect photographs or images of emergencies from people around the world.
CNNiReport has published 180,000 images and photos so far, about 10% of which have been adopted by CNN News and placed on the CNN website. The monthly citation rate of iReport is 2.3 million, and 85,000 people have registered as citizen reporters. CNN has established a set of evaluation system to evaluate the quality of citizen reports, and encourages 20% of its outstanding performers to be marked with superstar titles.
Video games, listening to the audience
Netflix is ​​relying on a "house of cards" to allow the world to see the enormous impact of big data on content production. Time Warner insisted on giving freedom to the director and screenwriter. However, as the God of content industry, the voice of users cannot be ignored. Time Warner also integrates new media channels in the production of film and television dramas to make the audience vocal.
In the autumn of 2008, HBO launched the new star "Star Partner". At the same time as the TV series was broadcast, HBO's "star partner" official website also went live. The webmaster encouraged the fans to virtualize one of the characters in the play and design the related story, and invited other fans to perform. According to feedback from the fans, HBO can better understand the preferences of the audience and adjust the content in a timely manner. Through this type of user participation in the production of the film, "Star Partners" has finally received acclaim from the audience.
Sports events, social age highlights UGC forces
The sports channel under the Turner Broadcasting Network is responsible for the broadcasting of NBA, professional baseball leagues, professional golf tournaments and other sports events. It has a large number of fans in the United States. In addition, Turner Sports is also responsible for the operation of digital assets such as websites and mobile applications for major tournament associations as an additional service for event reporting.
With official content dissemination channels, how to enhance interaction with users beyond the traditional competition reports, Turner Radio chose to integrate into the most popular social networks among young people today, allowing users to create content themselves.
In 2011, Turner Broadcasting acquired the sports blog BleacherReport to make up for the insufficiency of traditional sports reports with the UGC model. As a division of Turner Sports, BleacherReport can now provide coverage of professional teams and real-time events. Combining multiple channels of communication, including television, websites, and social media, Turner Sports has achieved deep coverage of users while making content production richer and more varied.
2. Multi-channel distribution, user-centric extension
With the rise of media technologies, the media usage habits of users in the fragmented era are becoming more and more dispersed. In order to reach more users, Time Warner has spared no effort to extend its channels, through the Internet or self-built platforms to multiple channels. Distribute high-quality content and achieve channel distribution in the media group's converged campaign.
Exploring network paths, multi-user coverage
Time Warner started out on traditional television broadcasting networks, covering nearly 200 countries around the world. The total number of cable television subscribers is over 100 million. In the era of multi-network integration, Time Warner naturally will not let off the path to the communications network and the Internet, reflecting the "three networks integration" of the overall thinking.
In the field of communications networks, CNN Mobile, a company owned by Turner Broadcasting Network, has established "CNNMobile", which provides news and information services to mobile devices throughout the world as early as 1992, and has set up information publishing points for Internet and mobile phone networks in various regions. , to achieve a variety of information transmission methods.
In terms of the Internet, although Time Warner Cable is the basic network, it still cooperates with multiple external websites to enhance the distribution of content. The video rookie Netflix signed a multi-year content agreement with Turner and Warner Bros. television. Amazon PrimeVideo, Tencent video and other websites have thrown olive branches to HBO's popular US dramas.
Platform Strategy to Promote Media Convergence
The concept of platform is an important strategy of Time Warner in the channel operation. It adopts the idea of ​​using multiple accounts for an account to allow users to watch “anytime, anywhereâ€. In today's competition for user portals, Time Warner's platform concept allows media integration to be truly grounded.
In terms of TV network business, Time Warner's platform concept is that TVVverywhere, Time Warner and operator Comcast, will unify online TV subscriptions and pay TV subscriptions so that they use the same TV cable, satellite line or telephone line.
"TV is everywhere," the implementation of this business model can be consistent with the user and increase the user stickiness, to prevent users from canceling the subscription. Its core is to provide existing video services to cable TV subscribers and provide them with video services without additional payment. If users have already paid cable TV fees through cable, satellite or telephone providers, they can access the platform through any device. On the video, such as tablets, smart phones, and Internet TV. Its purpose is to meet the user's demand for new media services, so as to keep the original users.
For traditional TV users, their demand for content is still very strong. In particular, the United States is the center of content production and production in the world. Here, a wide variety of content ranging from movies to TV dramas, cartoons, etc. is brought together. The content sources welcomed by overseas users have implemented the channel construction strategy of “cable television channel + multi-terminal service†for Time Warner’s HBO home theater, extending its reach to more countries and delivering rich content to all over the world. It also applies this platformed approach to its new platform service, HBOGO.
HBOGO's principles and TVEverywhere are exactly the same. It also allows users to access HBO's rich and original content through various terminals such as PCs, tablets, and mobile phones, and quickly access HBO's movies and TV series anywhere, anytime, totaling over 25 live channels and 80 on-demand programs. .
Technology and capital, two-wheel drive on the road
If content and channels are the media for the integration of the media, then technology and capital are the catalysts that drive the media groups to accelerate. With the help of technology and capital, it is necessary to promote the integration of media content, channels, and terminals in order to become a more integrated media.
1, technology first, connect the foundation of reality and the future
Change production mode
As early as 2005, Warner Bros. began to implement a digital business transformation plan and strived to digitize everything from film and television production to distribution sales. Recently, Warner Bros. Home Entertainment announced that it will use the new DolbyVision format to produce the first batch of 4K movies, including "The Edge of Tomorrow," "Fearless Storm," and "The Lego Movie."
Complementing HD and 4K, DolbyVision is a new imaging technology that enables content creators to deliver extremely different visual experiences - stunning brightness, unmatched contrast and attractive colors - through OTT Online streaming, broadcast, and gaming applications present lifelike entertainment experiences to the audience.
Optimize the integrated system
For Time Warner, a media giant with nearly a hundred years of development history, content resources have long been vast. Through digital transformation, Time Warner can better manage the use of these contents to provide raw materials for the new media integration.
In April 2014, Sony and IBM announced that they will use the new system to help CNN convert 115,000 hours of program tapes in the past 21 years, making it a computer database more convenient for news clips query and use. CNN has thus become the first media to establish a data news archive in the television industry. The support of this technology means that future users may be able to watch any news program previously compiled by CNN through the Internet and pay with each viewing.
2, capital for the media, to achieve a unified layout
To some extent, the integration process of media giant Time Warner is a history of mergers and acquisitions and sales history. At the beginning of its birth, business integration injected capital into its operations. Through the continuous expansion of mergers and acquisitions and the adjustment of its business structure, Time Warner has truly become a media empire operating across media. Capital created the once-wine glory of Time Warner, and also brought twists and turns to its development. But in any case, the power of capital cannot be ignored.
Mergers and acquisitions, the media empire is growing stronger <br> As the source of Time Warner's business, in the 1960s, Time Inc. seized a chance to purchase a 20% share of a New York cable TV company, followed by substantial additional investments to turn the company into an HBO. Television station. In the 1980s, the degree of cooperation between the cable TV industry and the film and television production industry gradually deepened. In the battle for content production assets upstream of Hollywood, Time Corporation purchased Warner Communications, one of the eight major production companies. After the merger in 1996, Time Warner once again merged with Turner Broadcasting Network.
After several critical mergers and acquisitions, Time Warner became the world's largest entertainment and communications group. It has three major industries: entertainment, news publishing, and communications. Obviously, the integration of media at the capital level has brought great success to Time Warner.
The merger and acquisition of "Waterloo" and the failure of "marriage" with AOL <br> When it comes to Time Warner's capital history, it cannot fail to mention the ups and downs with AOL. In 2000, AOL purchased Time Warner for US$181 billion and established AOL Time Warner Inc. This merger also became the largest M&A in US history.
AOL was the largest Internet service provider in the world at that time. Both parties hoped that Time Warner's content and broadband resources could complement the AOL online platform and users and create a synergy between marketing and advertising.
However, the good intentions of both parties did not yield ideal results. AOL is fast-occupied by the market and is good at expanding its scale in a short period of time to seize opportunities. Time Warner has always been based on the needs of users as a competitive weapon. The profit models of the two companies are different, but after the merger, “AOL Time Warner†did not integrate the profit models of the two and innovated to adapt to the new situation. In the end, AOL Time Warner, which was poorly run, was split into two.
The combination of Time Warner and AOL’s capital has consistently made the industry look to the convergence of old and new media, but the final failure has also sounded a wake-up call for media integration. If cross-industry mergers and acquisitions do not have business cooperation as the cornerstone, it will inevitably be parted ways.
Summary <br> After experiencing failures in mergers and acquisitions, Time Warner focused on becoming bigger and stronger content, and continued to spin off non-core sections, selling its music and book publishing businesses. At the same time, the cable TV operation, which is not related to the production and distribution of content, was divested and listed separately. In 2014, the dismantling of the Times Group was settled.
After the “downsizingâ€, Time Warner went light and went back to rationality in the operation of capital and successively carried out some small capital mergers and acquisitions in the area of ​​new media content. With the ever-increasing richness of the media in the future, Time Warner will be able to better expand its content territory in the emerging media space.
From the initial magazine media to today’s media giant, Time Warner has gone through stormy years. With the accumulation of the past and the steady progress of the present, we believe that in the future of the integration of the old Warner Warner will usher in the next glory.
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