Time Magazine 2011 Annual Report Download - page 17

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 television networks and premium pay and basic tier television
services that provide programming;
• Filmed Entertainment, consisting principally of feature film, television, home video and videogame
production and distribution; and
• Publishing, consisting principally of magazine publishing.
At December 31, 2011, the Company had a total of approximately 34,000 employees.
Businesses
Networks
The Company’s Networks businesses consist principally of domestic and international networks, premium
pay and basic tier television services and digital media properties, which primarily consist of brand-aligned
websites. The networks owned by Turner Broadcasting System, Inc. (“Turner”) are collectively referred to as the
“Turner Networks.” Premium pay television services consist of the multi-channel HBO and Cinemax premium
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
service distributors, telephone companies and other distributors (known as affiliates) that have contracted to
receive and distribute this programming and from the sale of advertising. 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’s websites,
including cartoonnetwork.com and CNN.com, and the websites that Turner manages and operates for third
parties, including NASCAR.com and NCAA.com, generate revenues principally from the sale of advertising and
sponsorships.
Home Box Office generates revenues principally from providing programming to cable system operators,
satellite service distributors, telephone companies and other distributors 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 programming through the sale of
DVDs and Blu-ray Discs, as well as from the domestic and international licensing of original programming to
television networks and in syndication.
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, movies 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 movies. Turner’s news networks consist
of CNN and HLN. The domestic television household numbers (“U.S. television households”) provided below
are as reported by Nielsen Media Research as of December 2011.
In 2011, Turner continued to expand its online and mobile offerings for on demand viewing of programs
from its networks and live streaming from its CNN and HLN networks to authenticated subscribers. These
offerings are made available to customers of affiliates who have chosen to subscribe to packages that include the
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