TIME WARNER INC.

TIME WARNER INC.

Previous company name
AOL TIME WARNER INC.
Name change date
10/16/2003
Company Overview
Time Warner Inc. is an American-based media and entertainment company involved in interactive services, cable systems, filmed entertainment, television networks and publishing. The company was established in the year 1990 through the merger of Time Inc. and Warner Communications. Its registered head office is located in New York, the largest city of the United States of America. The company’s stock is traded on the New York Stock Exchange.
Time Warner is the world’s leading media and entertainment conglomerate. The company is also active in the countries of Germany, France, and the United Kingdom.
The company has several divisions which include Time Warner Cable Inc. and Home Box Office Inc. Time Warner Cable Inc. ranks as the second-largest cable operators in the United States of America which deals in the development and launching of video, high-speed data and voice services. Home Box Office Inc. is an American private company engaged in cable and other pay television services.
Business Summary
Time Warner Inc. (Time Warner) is a media and entertainment company. The Company has three reporting segments: Networks, consisting principally of cable television networks that provide programming; Filmed Entertainment, consisting principally of feature film, television and home video production and distribution, and Publishing, consisting principally of magazine publishing. The Company’s Networks business consists principally of domestic and international networks and premium pay television programming services. Premium pay television programming consists of the multi channel HBO (Home Box Office) and Cinemax pay television programming services. On March 12, 2009, the Company completed separation of Time Warner Cable Inc. (TWC) and on December 9, 2009, it completed separation of AOL Inc. (AOL).
Description and history
Time Warner Inc. (Time Warner) is a media and entertainment company. The Company has three reporting segments: Networks, consisting principally of cable television networks that provide programming; Filmed Entertainment, consisting principally of feature film, television and home video production and distribution, and Publishing, consisting principally of magazine publishing. The Company’s Networks business consists principally of domestic and international networks and premium pay television programming services. Premium pay television programming consists of the multi channel HBO (Home Box Office) and Cinemax pay television programming services. On March 12, 2009, the Company completed separation of Time Warner Cable Inc. (TWC) and on December 9, 2009, it completed separation of AOL Inc. (AOL).

Networks

The Company’s Networks business consists principally of domestic and international networks and premium pay television programming services. The networks is owned by Turner Broadcasting System, Inc. (Turner). Premium pay television programming consists of the multi channel HBO and Cinemax pay television programming services operated by Home Box Office, Inc. (Home Box Office). The programming of the Turner Networks and the Home Box Office Services is distributed via cable systems, satellite distribution systems, telephone companies and other distribution technologies. Turner generates revenues principally from providing programming to cable system operators, satellite distribution services, telephone companies and other distributors (affiliates). Home Box Office generates revenues principally from providing programming to affiliates that have contracted to receive and distribute such programming to subscribers.

Turner’s entertainment and news networks are distributed to multiple distribution platforms, such as cable and Internet Protocol Television (IPTV) systems, satellite platforms, mobile operators and broadcasters for delivery to households, hotels and other viewers around the world. Turner distributes approximately 87 region-specific versions and local-language feeds of Cartoon Network, Boomerang, Turner Classic Movies, The News Tribune (TNT) and other entertainment networks in approximately 180 countries around the world. Turner distributes Space, Infinito, I-Sat, Fashion television (TV), Harlech Television (HTV) and Much Music primarily in Latin America. These entertainment networks air movies and series, documentaries, fashion and lifestyle content and music videos.

In January 2009, Turner launched TNT Serie, a German language version of TNT, in Germany. In March 2009, Turner, together with Warner Bros., launched WB, an English language entertainment channel in India. In April 2009, Turner launched truTV in Latin America as an English language channel with Spanish and Portuguese subtitles. In September 2009, a local language truTV branded block was launched with an Italian broadcaster.

Turner has launched local-language versions of its channels through joint ventures with local partners in a number of regions. These include CNN+, a Spanish language news network distributed in Spain; CNN Turk, a Turkish language news network available in Turkey and the Netherlands; Cartoon Network Turkey and TNT Turkey, both Turkish language channels distributed in Turkey; CNN Chile, a Spanish language news network distributed in Chile; CNNj, an English-with-Japanese-translation news service in Japan; Cartoon Network Korea, a local-language channel for kids; and BOING, an Italian language kids animation network.

HBO and Cinemax had approximately 41 million domestic subscriptions as of December 31, 2009. Home Box Office also offers HBO and Cinemax On Demand, subscription products that enable digital cable and telephone company customers who subscribe to the HBO and Cinemax services to view programs. It also generates revenues from the exploitation of its original programming through multiple distribution outlets. HBO Home Entertainment markets a variety of HBO’s original programming on digital versatile disc (DVD) and Blu-ray Discs. In addition, HBO-branded services are distributed in more than 50 countries in Latin America, Asia and Central Europe, primarily through various pay television joint ventures. In January 2010, Home Box Office purchased the remainder of its partners’ interests in HBO Central Europe.

The CW broadcast network is a 50-50 joint venture between Warner Bros. and CBS Corporation (CBS). The CW’s schedule includes, among other things, a five night-10 hour primetime lineup with programming, such as Gossip Girl, 90210, Melrose Place, One Tree Hill, Life Unexpected, America’s Next Top Model, Vampire Diaries, Smallville and Supernatural, as well as a five-hour block of animated children’s programming. During the year ended December 31, 2009, the Company acquired an approximately 31% interest in Central Media Enterprises Ltd., a broadcasting company that operates networks in seven Central and Eastern European countries.

Filmed Entertainment

The Company’s Filmed Entertainment businesses produce and distribute theatrical motion pictures, television shows, animation and other programming and videogames, distribute home video product, and license rights to the Company’s feature films, television programming and characters. Warner Bros. produces feature films both wholly on its own and under co-financing arrangements with others, and also distributes its films and completed films produced by others. Warner Bros.’ feature films are produced under the Warner Bros. Pictures and Castle Rock banners. During 2009, Warner Bros. released 18 original motion pictures for worldwide theatrical exhibition, including Harry Potter and the Half-Blood Prince, The Hangover, Sherlock Holmes, The Blind Side and Invictus. Warner Bros. distributes feature films for theatrical exhibition to more than 125 international territories. During 2009, Warner Bros. released internationally 11 English-language motion pictures and 33 local-language films.

New Line Cinema LLC (New Line) produces feature films, which are distributed by Warner Bros. New Line’s strategy, like Warner Bros.’, focuses on offering a varied slate of films. During 2009, New Line released eight films, including He’s Just Not That Into You, The Final Destination, Friday the 13 and Ghosts of Girlfriends Past.

Warner Home Video (WHV), a division of Warner Bros. Home Entertainment Inc. (WBHE), distributes DVDs and Blu-ray Discs containing filmed entertainment product. During 2009, its releases included Harry Potter and the Half-Blood Prince, The Hangover and Gran Torino. WHV produces and distributes DVDs and Blu-ray Discs from new content generated by the Company, as well as from the Company’s filmed entertainment library of thousands of feature films, television titles and animated titles.

Warner Bros. Television Group (WBTVG) is a supplier of television programming, distributing programming in the United States, as well as in more than 200 international territories and in more than 45 languages. WBTVG both develops and produces new television series, made-for-television movies, reality-based entertainment shows and animation programs, and also licenses programming from the Warner Bros. library for exhibition on media. WBTVG programming is primarily produced by Warner Bros. Television (WBTV), a division of WB Studio Enterprises Inc. that produces primetime dramatic and comedy programming for the broadcast networks and for cable networks. WBTV also produces original series for cable networks, including The Closer and Nip/Tuck.

Warner Bros. Animation Inc. (WBAI) creates, develops and produces contemporary animated television programming and original made-for-DVD releases, including the Scooby-Doo series. WBAI also oversees the creative use of, and production of animated programming based on, classic animated characters from Warner Bros., including Looney Tunes, and from the Hanna-Barbera and DC Comics libraries.

Warner Bros. Interactive Entertainment (WBIE), a division of WBHE, develops, publishes and licenses interactive videogames for a variety of platforms based on Warner Bros. and DC Comics properties, as well as original game properties. WBIE also co-published or distributed a number of additional third-party videogame titles primarily in North America, including Batman: Arkham Asylum.

Warner Bros. Digital Distribution (WBDD), a division of WBHE, is engaged in the distribution of Warner Bros.’ film and television content and acquired content through both video on demand (VOD) and/or electronic sell-through (EST) transactions via cable, Internet protocol television (IPTV) systems, satellite and online services for delivery to households, hotels and other viewers worldwide. WBDD licenses film and television content for both VOD and EST to cable, satellite and telephone company partners such as Comcast, Time Warner Cable, DirecTV, DISH Network and Verizon, as well as broadband customers including Apple’s iTunes, Amazon’s Video on Demand, Microsoft’s Xbox 360, Sony’s Playstation 3 and Blockbuster.

Publishing

The Company’s publishing business is conducted primarily by Time Inc., a wholly owned subsidiary of the Company, either directly or through its subsidiaries. Time Inc. is the magazine publisher in the United States. In addition to publishing magazines, Time Inc. also operates a number of Websites, as well as certain direct-marketing businesses.

As of December 31, 2009, Time Inc. published 21 magazines in the United States, including People, Sports Illustrated, Time, InStyle, Real Simple, Southern Living, Entertainment Weekly and Fortune, and over 90 magazines outside the United States, primarily through IPC Media (IPC) in the United Kingdom and Grupo Editorial Expansion (GEE) in Mexico. Time Inc.’s magazines and companion Websites are classified into three business units: Style and Entertainment, News and Lifestyle.

Style and Entertainment includes People, a weekly magazine that reports on celebrities and other individuals. The People franchise also includes: People StyleWatch, which is a monthly magazine in the United States, People en Espanol, which is a monthly Spanish-language magazine focused on United States Hispanic readers, People.com, which is a Website for celebrity news, photos and entertainment coverage, and PeopleEnEspanol.com, which is a bilingual Website focused primarily at the United States Hispanic audience.

InStyle, a monthly magazine, and InStyle.com, a related Website, focus on celebrity, lifestyle, beauty and fashion. Time Inc. also publishes InStyle in the United Kingdom through IPC and in Mexico through GEE. Entertainment Weekly, a weekly magazine, and EW.com, a related entertainment news Website, feature reviews and reports on movies, DVDs, video, television, music and books. Essence Communications Inc. (ECI) publishes Essence,which is a lifestyle magazine for African-American women in the United States, and Essence.com, a related Website, and also produces the annual Essence Music Festival.

Sports Illustrated is a weekly magazine that covers sports. Sports Illustrated for Kids is a monthly sports magazine intended primarily for pre-teenagers. SI.com is a sports news Website that provides scores and sports news, as well as statistics and analysis of domestic and international professional sports and college and high school sports. Time is a weekly newsmagazine that summarizes the news and interprets the week’s events, both national and international. Time also has three weekly English-language editions that circulate outside the United States. Fortune is a magazine published 18 times per year that reports on worldwide economic and business developments. Life.com, launched in March 2009, is a joint venture between Time Inc. and Getty Images, Inc. It is a collection of professional photography online with over seven million photos.

Established through the merger of Time Inc. and Warner Communications

Business Line
Involved in interactive services, cable systems, filmed entertainment, television networks and publishing
Subsidiary
“ZILPZALP” VERMЦGENSVERWALTUNG GMBH C/O OLSWANG
Advisor
ERNST & YOUNG LLP
IPO date
3/1992
US SIC Code
4841
Company Address
1, Time Warner Center

City province or state postal code
10019, NEW YORK, NY
Phone: +1 212 484 8000
Fax: +1 212 489 6183
Country address: UNITED STATES OF AMERICA
Website url: www.timewarner.com