Time Magazine 2010 Annual Report Download - page 8

in a new Golden Age. To capitalize on these strengths
and opportunities, last year we debuted breakout
shows like Boardwalk Empire on HBO, Conan on TBS,
Rizzoli & Isles on TNT, and the Warner Bros.-produced
hit comedy Mike & Molly. Turner reached a 14-year
arrangement with CBS and the NCAA to broadcast the
Division I Men’s Basketball Championship Tournament,
among the most-watched sporting events in the United
States, through 2024.
In lm, Warner Bros. led all studios in both domestic
and international box ofce share for 2010 with such
hits as Harry Potter and the Deathly Hallows: Part 1
and Christopher Nolan’s Inception, recipient of four
Academy Awards. Warner Home Video held the #1
position in domestic sales in its physical and digital
businesses, and Warner Bros. Television was the larg-
est provider of network TV programming for the 19th
time in 24 years.
Time Inc.’s exceptional journalism brought the world
to millions of readers in magazine and digital form,
while leading the industry in domestic advertising
share in 2010. CNN’s global leadership has been
demonstrated during major news events like the
Deepwater Horizon oil rig disaster, the unrest in the
Middle East and, more recently, the earthquake, tsu-
nami and their aftermath in Japan; and CNN remained
the #1 destination for online and mobile news.
Business model innovation is a hallmark of our com-
pany, and our scale advantage positions us to lead
the digital evolution of our industries. In June 2009,
we unveiled the TV Everywhere (TVE) initiative as a
way for consumers to best take advantage of new
forms of distribution and mobile devices. The simple
premise of TVE is that if you already subscribe to a
television network, you should be able to access that
network’s shows on any broadband device, any-
where and anytime, at no additional cost. TVE enjoys
broad industry support, including from every major
distributor, and by the middle of 2011 we expect it
to be available in some form in close to 70 million
homes. One of the best examples of TVE is HBO
GO, which we plan to roll out to almost our entire
subscriber base this year. And we’ve extended our
Content Everywhere concept to our lm and publish-
ing businesses. For instance, last year we launched
digital tablet versions of Time Inc.’s major magazine
titles, and we’ll offer consumers a range of options,
including digital-only subscriptions and dual print and
digital subscriptions, as the tablet market takes off.
Warner Bros. is making great progress on similar
initiatives designed to accelerate the digital transition
in home video – an area of our business that’s going
through great change right now. For example, in March
2011 Warner Bros. was the rst studio to offer down-
loaded movies for rent via Facebook, and the studio
is actively working on more ways to allow people to
watch our lms in their homes and on the go more
conveniently and sooner than ever before. As another
example of our Content Everywhere approach, this
year we’ll start shipping DVDs that are compliant with
the UltraViolet industry standard – which will enable
consumers to buy movies once and then access
them anywhere, across a wide range of devices, at
no extra charge.
At the same time, we’re increasing the international
reach of our TV networks and businesses. In the past
two years, most of our acquisitions have been in
international television networks, with an emphasis
on territories that have attractive growth proles and
in which we can achieve scale. Between HBO and
Turner, we expect our combined international network
businesses (including majority-owned unconsolidated
joint ventures) to double operating prots over the next
few years. On the production side, last year Warner
Bros. acquired a majority interest in Shed Media, a
leading independent production company in the UK,
and we’re looking for more ways to expand our global
production capabilities.
We are optimistic about the businesses we are in
and the consumer trends underlying them, and we
have great condence in the nancial strength and
exceptional talent that resides within our company. In
the digital world, as platforms and devices proliferate
and commoditize, we believe that our brands and our
compelling content will only become more valuable.
Time Warner also benets from its distinct culture:
one that stays true to the traditions and qualities that
have made us a market leader while at the same time
delivering value to shareholders today and innovating
to ensure our continued success into the future.