Time Magazine 2012 Annual Report Download - page 13

The driving force behind Time Warner is our passion for sharing
stories from the most talented and creative voices in our industries.
Several years ago, we refocused our company on that core mission
of creating and distributing great stories to audiences around the globe.
We streamlined our portfolio of businesses, increased our investment
in producing and acquiring content, launched new industry-wide
initiatives to make our content available to consumers on new
platforms, and expanded our presence in faster-growing territories
worldwide. This strategy is based on the belief that compelling
content – especially television programming – will continue to be not
only a highly attractive growth business but one that creates enduring
value. I’m pleased to tell you that the success of our strategy is
reflected in our company’s financial results – with adjusted earnings per share
growing by 13% in 2012 and by more than 130% over the last four years –
positioning us for continued growth in 2013 and beyond.
As the next step in our company’s evolution, we announced in March
2013 that we plan to spin off Time Inc. into an independent, publicly traded
company by the end of the year. After the separation, more than half of our
revenues will come from our television networks at Turner Broadcasting
and HBO, and the rest from our leading television and film production
businesses at Warner Bros. Entertainment. We will continue to invest
in compelling, branded content, which has made Time Warner a leader
in each of its industries.
For example, when it comes to premium pay television, HBO has no peer.
In the past year, HBO again won more Golden Globes and Primetime Emmys
than any other network on television, thanks in part to hits such as Girls,
The Newsroom and VEEP, alongside returning blockbusters like Game of
Thrones, True Blood and Boardwalk Empire. Those shows, combined with its
rich lineup of original films, documentaries and acquired Hollywood hits, and
the growth of sister channel Cinemax, contributed to HBO having its biggest
increase in domestic subscribers in a decade last year. HBO continues to take
advantage of international opportunities as well, with 114 million worldwide
subscribers, making it larger than any competitor.
In the past year, Turner Broadcasting’s portfolio of global branded
networks also showed the benefits of the investments we’ve been making
in programming. For example, TBS was the #1 ad-supported cable network
in primetime among 18-34 year olds in 2012, strengthened by its lineup of
acquired programming such as The Big Bang Theory, stalwarts like CONAN,
and new originals like Men at Work. TNT counted five of the top 10 original
programs on ad-supported cable: Rizzoli & Isles, The Closer, Major Crimes,
Perception and Dallas, as well as the top three new originals of the year. In
addition, Turner Broadcasting extended its relationship with Major League
Baseball, securing rights to regular season and postseason games well into
the next decade. Given Turner Broadcasting’s long-term deals with the NCAA,
NBA and MLB, we have assembled one of the strongest lineups of national
sports rights of any cable network group. In 2012, truTV, Cartoon Network
and Adult Swim also extended their leadership positions with the young
audiences that are sought by advertisers. And CNN maintained its stature
as the go-to place for breaking news, ending the year on a high note by
A Message from the Chairman and CEO
2012 Annual Report 11