Time Magazine 2010 Annual Report Download - page 15

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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, 2010, the Company had a total of approximately 32,000 employees.
Businesses
Networks
The Company’s Networks businesses consist principally of domestic and international networks and premium
pay television 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 services consist of the multi-
channel HBO and Cinemax pay television services (collectively, the “Home Box Office Services”) operated by
Home Box Office, Inc. (“Home Box Office”).
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). Turner sells advertising primarily on a
national basis in the U.S. and on a pan-regional or local-language feed basis outside the U.S. Turner also operates
various websites, including CNN.com,NASCAR.com,CartoonNetwork.com,SI.com and Golf.com that generate
revenues principally from the sale of advertising. Home Box Office generates revenues principally from providing
programming to cable, satellite and telephone company affiliates that have contracted to receive and distribute such
programming to their customers who choose to subscribe to the Home Box Office Services (“Subscribers”). 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 in syndication and to basic cable channels.
Key contributors to Turner’s success are its strong brands and continued investments in high quality popular
programming focused on sports, original and syndicated series, news, network movie premieres and animation to
drive audience delivery and revenue growth. Turner’s networks in the U.S. consist of entertainment and news
networks. Turner’s entertainment networks include TBS, TNT, Cartoon Network, truTV, Turner Classic Movies and
Boomerang. Programming for these 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 and also
includes sports programming and other licensed programming, including syndicated television series and network
movie premieres. Turner’s news networks include CNN and HLN. The domestic television household numbers
(“U.S. television households”) provided below are as reported by Nielsen Media Research as of December 2010.
TBS reached approximately 101.0 million U.S. television households as of December 2010. TBS is television’s
“very funny” network and shows contemporary comedies such as the syndicated series Family Guy and The Office
and late night talk shows Conan and Lopez Tonight. TBS is also the home of a growing roster of original series,
including Tyler Perry’s Meet the Browns,Glory Daze and Are We There Yet? for the 2010-2011 season. TBS has the
right to produce and telecast a certain number of Major League Baseball regular season and playoff games through
the 2013 season. Under an agreement among Turner, CBS Broadcasting, Inc. and The National Collegiate Athletic
Association (the “NCAA”), starting in 2011 through 2024, the NCAA Division I Men’s Basketball Championship
tournament games will be telecast on Turner’s TBS, TNT and truTV networks and on the CBS network.
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