Time Magazine 2013 Annual Report Download - page 23

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CNN through joint ventures or contractual arrangements with local partners. In addition, CNN content is
distributed through CNN-IBN, a co-branded, 24-hour, English language general news and current affairs network
in India.
Home Box Office
Home Box Office’s businesses consist principally of premium pay television services domestically and
premium pay and basic tier television services internationally. The premium pay television services consist of the
multi-channel HBO and Cinemax premium pay television services operated by Home Box Office, Inc. (“Home
Box Office”). At December 31, 2013, Home Box Office had approximately 127 million worldwide subscribers,
which consisted of approximately 43 million domestic premium pay subscribers and approximately 84 million
international premium pay and basic tier television service subscribers, including subscribers through
unconsolidated international joint ventures. HBO- and Cinemax-branded premium pay and basic tier television
services are distributed in more than 60 countries in Latin America, Asia and Europe.
Home Box Office generates revenues principally from providing programming to domestic 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 who choose to subscribe to the premium pay television services. It also derives
subscription revenues from the distribution by international affiliates of country-specific premium pay and basic
tier television services to their local subscribers. In addition, Home Box Office generates 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.
HBO is the most widely distributed domestic multi-channel premium pay television service. Both HBO and
Cinemax are made available in high definition on a number of multiplex channels. Home Box Office also
distributes HBO On Demand and Cinemax On Demand as well as the HBO GO and MAX GO streaming
services, products that enable authenticated subscribers of its domestic affiliates to view programs at the time
they choose. The domestic HBO GO and MAX GO streaming services are distributed on various mobile devices
and other online platforms, and an authenticated HBO GO streaming service is available to international
premium pay television subscribers of HBO in a number of countries.
HBO is defined by its award-winning and critically acclaimed original dramatic and comedy series, such as
Game of Thrones,True Blood,Boardwalk Empire,The Newsroom,Girls and VEEP, as well as motion pictures,
mini-series, boxing matches and sports programs, comedy specials, family programming and documentaries.
Cinemax original primetime series include Strike Back and Banshee. Domestically, a major portion of the
programming on HBO and Cinemax consists of recently released, uncut and uncensored feature films. Home Box
Office enters into licensing agreements of varying duration with major film studios and independent producers
and distributors in order to ensure continued access to such feature films.
Home Box Office also generates revenues from the exploitation of its original programming through
multiple distribution outlets. A variety of HBO’s original programming is sold on DVD and Blu-ray Discs and
licensed to television networks in over 150 countries. In addition, Home Box Office content is distributed by
means of EST in the U.S. and various international regions via a wide variety of digital storefronts.
Warner Bros.
Warner Bros. businesses produce and distribute feature films, television programming, videogames and other
programming; distribute home video product; and license rights to the Company’s feature films, television
programming and characters. All of these businesses are principally conducted by various subsidiaries and
affiliates of Warner Bros. Entertainment Inc. (“Warner Bros.”).
Warner Bros.’ theatrical product revenues are generated principally from the theatrical exhibition of feature
films. In addition to the traditional 2D format, some of Warner Bros.’ theatrical releases are available in 3D and/
or formatted for viewing on IMAX screens, tickets for which are generally sold at premium prices. Warner Bros.
also generates theatrical product revenues from licensing fees received from the distribution of feature films on
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