Time Magazine 2012 Annual Report Download - page 26

SVOD service following its initial broadcast or cable network window. As part of the transaction, Netflix also
acquired the exclusive subscription streaming rights to all seasons of Chuck and the non-exclusive subscription
streaming rights to all seasons of Fringe and The West Wing. Under the agreement, WBTVG has the right to sell
the programs into traditional syndication windows as well as via EST services.
WBTVG also licenses its U.S. original television series for exhibition in international territories, primarily
through long-term agreements with television networks, premium pay and basic tier television services and
SVOD services. During 2012, Warner Bros. International Television Distribution Inc. entered into significant
licensing agreements in a number of international territories, and several of these licensing agreements were
entered into with international SVOD services. Warner Bros. International Television Production also continues
to capitalize on growing demand for locally produced television programming in international territories by
opportunistically expanding local production capabilities in key territories.
WBTVG also manages various online destinations, including TMZ.com (one of the leading entertainment
news brands in the U.S. across online, TV and mobile platforms) and various websites for many of its syndicated
television properties, including The Ellen DeGeneres Show and Extra.
Warner Home Video (“WHV”), a division of Warner Bros. Home Entertainment Inc. (“WBHE”), distributes
DVDs and Blu-ray Discs containing filmed entertainment product and television programming produced or
otherwise acquired by the Company’s various content-producing subsidiaries and divisions. Significant WHV
releases of filmed entertainment product during 2012 included The Dark Knight Rises, Dark Shadows,Journey 2:
The Mysterious Island,Sherlock Holmes: A Game of Shadows and Wrath of the Titans. The DVDs and Blu-ray
Discs for new titles in the U.S. include an UltraViolet digital copy. WHV also distributes DVDs and Blu-ray
Discs containing films and television programs from Warner Bros.’ extensive library. In addition, WHV
distributes third party content on DVDs and Blu-ray Discs for the BBC and Sesame Street in the U.S. and has
similar distribution relationships with content producers outside the U.S. In 2012, Warner Bros. entered into a
three-year agreement with Paramount Home Media Distribution pursuant to which Warner Bros. was granted
exclusive rights commencing on January 1, 2013 to distribute DVDs and Blu-ray Discs (including UltraViolet
digital copies) for more than 600 catalog titles from the Paramount film library in the U.S. and Canada.
Paramount retains the right to distribute these titles in SVOD, VOD and EST.
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,
telecommunications companies, broadband services and mobile platforms for delivery to consumers worldwide.
WBDD also licenses catalog motion pictures to various domestic SVOD services, including Redbox Instant,
Comcast’s Streampix service, Amazon and Netflix. WBDD distributes its motion pictures via VOD and/or EST
in the U.S. and 106 international territories. WBDD also makes UltraViolet digital copies of motion pictures and
television programs available to consumers who purchase Warner Bros.’ DVDs and Blu-ray Discs.
WBDD participated in several digital ownership initiatives in 2012, including (1) support of UltraViolet by
licensing UltraViolet EST rights to digital retailers such as Walmart’s Vudu subsidiary, Best Buy’s CinemaNow
service, Barnes & Noble’s Nook, and Flixster; (2) the expansion of Flixster, a social media discovery interface to
allow consumers to purchase UltraViolet film and television content and manage their digital collections; and
(3) the launch of Disc to Digital, which allows consumers to obtain digital copies of their physical DVD and Blu-
ray collections.
Warner Bros. Interactive Entertainment (“WBIE”), a division of WBHE, is a developer, publisher and
distributor 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. In 2012, WBIE’s significant releases for
traditional handheld, console and PC/Mac platforms included LEGO Batman 2: DC Super Heroes and LEGO The
Lord of the Rings, and WBIE’s significant releases for mobile apps platforms in 2012 included The Hobbit:
Kingdom of Middle Earth. In addition, in 2012 Turbine released the Riders of Rohan expansion pack to its
massively multiplayer online role-playing game Lord of the Rings Online. WBIE also licenses Warner Bros. and
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