Time Magazine 2012 Annual Report Download - page 14

winning Election Night and beginning 2013 with an energized CNN
under new leadership that is committed to the network’s resurgence.
In film and TV entertainment, Warner Bros. had another year of
achievement as the studio marked its 90th anniversary. For the 2012-
2013 season, Warner Bros. Television accounts for one-third of the top
shows on broadcast TV, including hits like The Big Bang Theory, 2 Broke
Girls, The Following, Person of Interest, Two and a Half Men, The Voice
and Revolution. In film, Warner Bros. exemplified our passion for stories
with global appeal with such hits in 2012 as The Hobbit: An Unexpected
Journey and The Dark Knight Rises, each of which brought in more than
$1 billion at the worldwide box office. And of course we are extremely
proud of Argo, which was a box office hit and won the Academy Award
for Best Picture (as well as two other Oscars and many other awards),
the fourth Time Warner release to receive the Best Picture honor in
the past decade.
Time Inc. also continued to distinguish itself in 2012, despite the
challenging magazine publishing environment. It increased its leading
share of domestic advertising to its highest level in a decade, while
gaining accolades such as TIME being named Magazine of the Year at
the National Magazine Awards and FORTUNE and InStyle being named
to the AdAge A-List.
One of the hallmarks of Time Warner is that we don’t just embrace
technological change, we lead it. Many of our digital efforts are aligned
with the common principles of Content Everywhere. The idea is to give
consumers new ways to access our TV shows, movies and journalism –
on new platforms, on new devices, when and where they want – with
attractive economics for both audiences and us.
This is why Turner Broadcasting has positioned itself at the forefront
of TV Everywhere, making more than 1,000 hours of on-demand content
and live streams of CNN, HLN and Cartoon Network available to more
than 80 million subscribers at the end of 2012. And HBO GO is the gold
standard of TV Everywhere products, offering subscribers more than 1,700 hours of HBO
programming across a wide range of devices and platforms. HBO GO had 6.7 million
registered domestic users as of February 2013, and both usage and consumer satisfaction
have exceeded our expectations.
In home entertainment, Warner Bros. has been leading the charge on a series of
initiatives designed to make it easier for consumers to own and manage digital libraries
across multiple platforms and devices. UltraViolet, the industry-wide format for viewing
movies consumers own across devices, is still fairly new, but as of March 2013 it had over
9,000 titles available from most of the major film studios, including ours, and has grown
to more than 11 million registered users. Warner Bros.-owned Flixster has been leading
the way with UltraViolet, and this year is launching an in-home Disc-2-Digital service that
will allow consumers to get digital copies of their physical DVD collections from their
home computers.
Additionally, we are taking advantage of our deep library of films and television shows
by licensing our Warner Bros. and Turner Broadcasting television content to subscription
video-on-demand services like Amazon and Netflix, creating an attractive new revenue
stream. And we are expanding our presence in next-generation digital media products,
including hit video games from Warner Bros. Interactive Entertainment such as LEGO
Batman 2: DC Super Heroes and The Hobbit: Kingdoms of Middle-earth and the acquisition last
year by Turner Broadcasting of the popular digital sports news service, Bleacher Report.
In 2012, Time Inc. made important progress in building on its industry-leading digital
presence, including launching subscriptions for its tablet editions on Apple, Amazon and
Google platforms, and creating a new digital video unit.
Whether it’s investing in quality programming, leading digitally or expanding internationally,
we bring financial discipline and focus to everything we do. For example, we are focused on
consolidating certain business functions over the next few years, including real estate and
information technology, which we expect to ultimately yield several hundred million dollars
in annual savings.
12 Time Warner