Time Magazine 2012 Annual Report Download - page 19

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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 cable television networks, premium pay and basic tier television
services and digital media properties;
• Film and TV Entertainment, consisting principally of feature film, television, home video and
videogame production and distribution; and
• Publishing, consisting principally of magazine publishing and related websites as well as book
publishing and marketing businesses.
At December 31, 2012, the Company had a total of approximately 34,000 employees.
Businesses
Networks
The Company’s Networks businesses consist principally of domestic and international cable 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 to subscribers 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 and the websites that Turner manages and/or operates for third parties generate revenues
principally from the sale of advertising and sponsorships.
Home Box Office generates revenues principally from providing programming to affiliates 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 the sale of its original
programming via DVDs, Blu-ray Discs and electronic sell-through (“EST”), and the licensing of its original
programming primarily to international television networks.
Turner. Key contributors to Turner’s success are its strong brands and its continued investments in high-
quality popular programming focused on sports, original and syndicated series, news, motion pictures 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
feature 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 motion pictures. 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 2012, and Internet user data is according to comScore Media Metrix.
In 2012, Turner continued to expand its online and mobile offerings for on demand viewing of programs
from its networks and live streaming from CNN, HLN and Cartoon Network. These offerings are made available
to customers of affiliates who have chosen to subscribe to packages that include the applicable Turner network
and who must authenticate their subscription in order to view the programming online or through a mobile
application. Authenticated on demand viewing of programs from TNT, TBS, Cartoon Network, Adult Swim and
truTV and live simulcast streaming from CNN and HLN was available to over 80 million U.S. households as of
December 31, 2012.
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