Time Magazine 2011 Annual Report Download - page 23

Warner Bros. Digital Distribution (“WBDD”), a division of WBHE, enters into domestic and international
licensing arrangements for the distribution of Warner Bros.’ film and television content as well as acquired third
party content through VOD and EST transactions via cable system operators, satellite distribution services,
telephone companies, online services and mobile platforms for delivery to consumers worldwide. WBDD also
licenses catalog movies, as well as a slate of catalog television shows, including Nip/Tuck and several television
series with a limited number of episodes, to various subscription on demand streaming services. In 2011, WBDD
continued its strategy of expanding the distribution of its films globally and as of December 31, 2011, was
distributing its films via VOD and/or EST in the U.S. and 65 international territories. WBDD also makes
UltraViolet-enabled digital copies of films available to consumers who purchase Warner Bros.’ DVDs and Blu-
ray Discs. Consumers can then download or stream a file containing the film to computers and a variety of
devices through Flixster, Inc., a social movie site that WBHE acquired in May 2011.
WBDD has also entered into content licensing deals for online and mobile videogames involving Warner
Bros. and DC Comics properties. In addition to its content licensing activities, WBDD publishes mobile
applications featuring Warner Bros.’ content, including “App Editions” of feature films, which enable consumers
to download the application and certain promotional content for free and then purchase the film and additional
content for downloading and streaming.
Warner Bros. Interactive Entertainment (“WBIE”), a division of WBHE, is a developer and publisher of
interactive entertainment, including videogames for console and handheld platforms, social networking games
and mobile games. In addition, WBIE develops, publishes and operates massively multiplayer online games
through Turbine Inc. (“Turbine”), a subsidiary of WBHE. WBIE’s videogames are based on newly created
intellectual property, as well as intellectual properties owned by Warner Bros., DC Comics and third party
licensors. In 2011, WBIE’s significant releases for traditional handheld, console and PC/Mac platforms included
Batman: Arkham City, Mortal Kombat, F.E.A.R. 3 and LEGO Harry Potter: Years 5-7, and WBIE’s significant
releases for mobile apps platforms in 2011 included Batman Arkham City Lockdown and Scribblenauts Remix.In
addition, in 2011 Turbine released the Rise of Isengard expansion pack to its massively multiplayer online role-
playing game Lord of the Rings Online. WBIE also licenses Warner Bros. and DC Comics properties for
videogames on various platforms to third party publishers, and WBIE publishes and distributes video game titles
owned by third parties.
Warner Bros. Consumer Products Inc. licenses rights to manufacturers, publishers, retailers, theme park
operators and other licensees both domestically and internationally to the names, likenesses, images, logos and
other representations of characters and copyrighted material from the films and television series produced or
distributed by Warner Bros., including Harry Potter, the superhero characters of DC Comics, Hanna-Barbera
characters, classic films and Looney Tunes.
DC Entertainment is responsible for bringing the DC Comics business, brand and characters from comics
into other content and distribution businesses, including feature films, television programming, videogames,
direct-to-consumer platforms, and consumer products. DC Comics published on average 86 comic books and
24 graphic novels per month in 2011, featuring such popular characters as Batman,Green Lantern,The
Sandman,Superman and Wonder Woman. In August 2011, DC Comics launched a renumbering of the entire DC
Universe line of comic books with 52 first issues, including titles such as Action Comics and Detective Comics,
which introduced Superman and Batman in the 1930s.
Publishing
The Company’s publishing business is conducted primarily by Time Inc. Time Inc. is the largest magazine
publisher in the U.S. based on advertising revenues, as measured by Publishers Information Bureau (“PIB”). In
addition to publishing magazines, Time Inc. also operates a number of websites, as well as book publishing
businesses, marketing services businesses and other marketing businesses.
As of December 31, 2011, Time Inc. published 21 magazines in print in the U.S. and over 70 magazines
outside the U.S., primarily through IPC Media (“IPC”) in the U.K. and Grupo Expansión (“GEX”) in Mexico.
Time Inc. also licenses over 55 editions of its magazines for print publication outside the U.S. to publishers in 25
countries and licenses digital content to digital and mobile platform operators in over 50 countries outside the
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