Time Magazine 2015 Annual Report Download - page 18

Turner’s programming is primarily distributed by cable system operators, satellite service distributors, telephone
companies and other distributors (known as affiliates) and is available to subscribers of the affiliates for viewing (i) on
television, (ii) via streaming online and on mobile devices through Turner’s digital properties and affiliates’ services and
(iii) on demand on television through Turner’s digital properties and affiliates’ digital VOD services. In addition to
distributing Turner’s programming as part of their traditional multichannel video service offerings, some affiliates are
distributing some of Turner’s programming as part of their offerings of smaller bundles of networks and streaming services.
Turner is also pursuing non-traditional distribution options for its programming and has made some of its programming
available through SVOD and other OTT services, including DISH’s Sling TV and Sony PlayStation. Turner generates
revenues principally from providing programming to affiliates that distribute the programming to subscribers, the sale of
advertising on its networks and the digital properties it owns or manages for other companies, and the license of its original
programming to SVOD and other OTT services and its brands and characters for consumer products.
Turner continues to strengthen the programming on its cable television networks by increasing its investment in high-
quality original programming, modifying the mix of programming on its networks to increase the amount of original
programming and re-positioning or re-branding some of its networks. Over the past several years, Turner has broadened the
scope of CNN’s programming to include compelling storytelling about important events, people and places through original
programming and long-form documentaries and it has strengthened the programming at truTV, where it has rebranded the
network to focus on light-hearted comedy aimed at adults. Turner plans to reposition TNT and TBS beginning in 2016 to
focus on distinctive original programming that is aimed at younger audiences. Turner also is continuing to expand the
amount of its programming available on demand to include complete current seasons of popular programming from Turner’s
networks, and is continuing to support the development of better user interfaces for on-demand viewing of programming
offered through affiliates. As part of its efforts to improve the consumer experience, Turner is also continuing to support
industry efforts to improve the measurement of viewing and audience engagement across all platforms. To further enhance
the viewing experience while delivering more value to advertisers, Turner plans to reduce the advertising load on primetime
original programs on truTV beginning in late 2016 and on select programming on its other networks in 2016.
Turner is also increasing its investments in new digital products and technology. For example, in August 2015, Turner
acquired a majority ownership interest in iStreamPlanet Co., LLC (“iStreamPlanet”), a provider of streaming and cloud-
based video and technology services, which is expected to improve Turner’s digital streaming capabilities. In addition,
Turner is focused on making its television advertising more attractive and valuable to advertisers by using data and analytics
to develop new advertising offerings that enable advertisers to better reach their target audiences and improve their ability to
measure the effectiveness of their advertisements. Turner is also developing content for distribution outside the traditional
television ecosystem. In 2015, Turner launched Super Deluxe, its digital production studio to develop original short form
digital content, and CNN launched Great Big Story, an independent news brand that distributes its content via digital
properties for mobile devices and social networks.
Turner is continuing to increase its scale and strengthen its competitive position internationally through strategic regional
channel launches, partnerships and acquisitions in key territories, and it is placing greater emphasis on creating local
programming to strengthen its brands internationally.
Turner’s digital properties consist of its own websites and websites Turner manages and/or operates for sports leagues
where Turner holds the related programming rights. Turner’s CNN digital network is a leading digital news destination, and
Turner’s bleacherreport.com is the number two digital sports destination, in each case, based on the number of average
monthly domestic multi-platform unique visitors for the year ended December 31, 2015. Turner’s bleacherreport.com offers
team-specific sports content and real-time event coverage and provides Turner with cross platform programming and
marketing opportunities. Turner’s other websites include tntdrama.com,TBS.com,adultswim.com and
cartoonnetwork.com. Digital properties Turner manages and/or operates for sports leagues include NBA.com, which provides
live streaming of games, NBA Mobile,NCAA.com,NCAA March Madness Live, which provides live and on-demand
streaming video of games, and PGA.com. Turner’s digital properties collectively averaged approximately 115 million
average monthly domestic multi-platform unique visitors during the year ended December 31, 2015.
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