Time Magazine 2013 Annual Report Download - page 19

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 four reportable segments:
• Turner, consisting principally of cable networks and digital media properties;
• Home Box Office, consisting principally of premium pay television services domestically and premium
pay and basic tier television services internationally;
• Warner Bros., consisting principally of feature film, television, home video and videogame production
and distribution; and
• Time Inc., consisting principally of magazine publishing and related websites and operations.
For more information about the Company’s reportable segments, see “Management’s Discussion and
Analysis of Results of Operations and Financial Condition — Overview.”
At December 31, 2013, the Company had a total of approximately 34,000 employees.
BUSINESSES
Turner
Turner’s businesses consist principally of the domestic and international cable networks owned by Turner
Broadcasting System, Inc. (“Turner”) and digital media properties (primarily websites) that are managed and/or
operated by Turner. Turner also owns free-to-air networks in international regions. Turner generates revenues
principally from providing programming to cable system operators, satellite service distributors, telephone
companies and other distributors (known as affiliates) under long-term agreements that provide for annual
service fee increases and have fees generally related to the number of the affiliate’s subscribers and from the sale
of advertising. Turner’s advertising revenues consist of consumer advertising, which is sold 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 other companies generate revenues principally from the
sale of advertising and sponsorships.
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 is also focused on broadening and deepening its
relationships with its audiences through the expansion of its networks to digital platforms, including its own
digital properties. In addition, Turner has been pursuing international expansion in select regions, and the
Company anticipates that international expansion will continue to be an area of focus at Turner for the
foreseeable future.
Turner’s networks in the U.S. consist of entertainment and news networks that deliver programming that is
available for viewing live on television, through DVR and VOD service offerings provided by affiliates and
through digital platforms. Providing consumers with on-demand access to Turner’s programming so that
consumers can watch the programming when and where they want is an important part of Turner’s strategy.
Turner’s entertainment networks, TBS, TNT, Cartoon Network, Adult Swim, truTV, Turner Classic Movies
and Boomerang collectively provide a blend of premiere sports, original series, popular licensed series and
movies, classic film and reality programming. Turner produces its own programs, obtains programming from the
Company’s feature film, made-for-television and animation libraries or acquires rights from third-parties to air
programs on its networks. Turner is focused on optimizing the mix of original, sports and acquired programming
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