Time Warner Cable channels help report good third quarter profits. The CEO of Time Warner, Jeffrey Lawrence Bewkes, stated that due to HBO, the premium channel and programming on TNT, TBS, and CNN, revenues in the third quarter rose by 5 percent.
Time Warner, a media conglomerate, said Wednesday its third quarter net income rose 44% to $1.19 billion. The Time Warner Film and Entertainment division did not fare as well. Reports in the media have established that, instead of movies following Batman: Dark Knight Rising raking in the dough, television shows on TNT and TBS, plus news coverage on CNN that were the real moneymakers.
Profits fell 7 percent to $2.7 billion for Time Warner’s Film and TV Entertainment unit, which includes Warner Brothers. The blame was placed on a tough comparison to a year ago, when it benefited from the strong box office from the Batman movie The Dark Knight Rises.
The TV Network unit’s monies for ad sales and subscription revenues from Turner Broadcasting, HBO and CNN , increased by 5.4 percent to $3.52 billion, USA Today reported.
The new superheroes of Time Warner cable channels are shows like reruns of The Big Bang Theory on TBS and older episodes of Conan on the same channel. Profits from HBO are also on the rise. “A strong advertising demand environment has helped,” said Bernstein Research analyst Todd Juenger. “But the main story for the stock has been, and continues to be, anticipated acceleration of subscription fees.”
HBO is the top runner among pay channels, because its original series has earned 27 Primetime Emmy Awards this year. Those numbers outperformed any network for the twelfth year in a row, Time Warner noted.
Bewkes said a new HBO package “could be an effective way” for HBO to reach the 8 to 10 million homes that currently have Internet subscriptions, but no video service. This package includes HBO Go Online service, which is a scaled-down version of the premium channel.
Time Warner Cable channels have performed better than most cinema offerings. Bewkes is hoping The Conjuring and We’re the Millers, more recent movies, will take profits upward in the near future.
Time Warner cable channels can take a bow for this quarter’s results. Not only did reruns find their niche in the entertainment market, but they also held their own against the big entertainment network. Reruns that are accessed by streaming from services like HBO Go Online service, should do well.
The satisfaction that viewers find in having their favorite series on hand and on demand should have a positive affect on Time Warner cable channels profits in future quarter’s earnings. Time Warner cable channels and HBO premium channel are lifting up the Time Warner companies to a new height. Time Warner executives are surely taking note.
By Lisa M Pickering