Time Magazine 2009 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2009 Time Magazine annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

COMPANY DESCRIPTION
Overview
Time Warner Inc. (the “Company” or “Time Warner”), a Delaware corporation, is a leading media and
entertainment company. The Company classifies its businesses into the following 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.
At December 31, 2009, the Company had a total of approximately 31,000 employees.
On March 12, 2009, the Company completed the legal and structural separation of Time Warner Cable Inc.
(“TWC”) from the Company (the “TWC Separation”), and, on December 9, 2009, the Company completed the
legal and structural separation of AOL Inc. (“AOL”) from the Company (the “AOL Separation”). With the
completion of these separations, the Company disposed of its former Cable and AOL segments in their entirety.
Businesses
Networks
The Company’s Networks business consists principally of domestic and international networks and premium
pay television programming services. The networks owned by Turner Broadcasting System, Inc. (“Turner”), which
are described below, are collectively referred to as the “Turner Networks.” Premium pay television programming
consists of the multi channel HBO and Cinemax pay television programming services (collectively, the “Home Box
Office Services”) operated by Home Box Office, Inc. (“Home Box Office”). The programming of the Turner
Networks and the Home Box Office Services (collectively, the “Networks”) 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 (known as affiliates) that have contracted to
receive and distribute this programming and from the sale of advertising (other than Turner Classic Movies and
Boomerang, which sell advertising only in certain international markets). Home Box Office generates revenues
principally from providing programming to affiliates that have contracted to receive and distribute such
programming to subscribers who are generally free to cancel their subscriptions at any time. Home Box Office
also derives revenues from its original films, mini-series and series through the sale of DVDs and Blu-ray Discs, as
well as from the licensing of original programming, such as Sex in the City and Curb Your Enthusiasm in
syndication and to basic cable channels.
Turner’s networks in the U.S. consist of entertainment and news networks. Turner’s entertainment networks
include TBS, which reached approximately 100.1 million U.S. television households as reported by Nielsen Media
Research (“U.S. television households”) as of December 2009; TNT, which reached approximately 99.1 million
U.S. television households as of December 2009; Cartoon Network (including adult swim, its overnight block of
contemporary animation aimed at young adults), which reached approximately 98.3 million U.S. television
households as of December 2009; truTV, which reached approximately 92.2 million U.S. television households
as of December 2009; Turner Classic Movies, a commercial-free network; and Boomerang. Turner’s CNN and HLN
networks, 24-hour per day cable television news services, reached approximately 100.2 million and 99.3 million
U.S. television households, respectively, as of December 2009.
Programming for the entertainment networks is derived, in part, from the Company’s film, made-for-television
and animation libraries to which Turner or other divisions of the Company own the copyrights, sports programming
and other licensed programming, including syndicated television series and network movie premieres. For its sports
programming, Turner has a programming rights agreement with the National Basketball Association (“NBA”) to
produce and telecast a certain number of regular season and playoff games on TNT through the 2015-16 season and
3