Time Warner (NYSE:TWX) recently announced that it witnessed a weak Q4 of 2011 in terms of its home entertainment business which primarily consists of DVDs and Blu-Rays. The decline in DVD sales has been a primary culprit for a weak quarter and resulted from the consumer shift to Internet streaming as well as the growth of DVD and streaming rental companies such as Netflix (NASDAQ:NFLX) and Blockbuster, now owned by Dish Network (NASDAQ:DISH). As a result of the observed trends, Time Warner recently took some steps to address the situation.
Articles for Time Warner
Time Warner Updates: Weak DVD Sales Drag on Robust Outlook
Graph ItNEW!Wednesday, January 18th, 2012 by Trefis Team
CNN’s Digital Acquisitions Don’t Move the Needle for Time Warner Stock
Graph ItNEW!Monday, December 26th, 2011 by Trefis Team
Time Warner’s (NYSE:TWX) CNN is looking to make some digital acquisition in order to expand its programming reach to connected devices such as tablets and smartphones. The consumer shift to the internet is creating both opportunities and challenges for content owners and service providers. CNN, which was once the first news channel to provide 24-hour news coverage, is now struggling for viewership against its rivals such as Fox News of News Corp. (NASDAQ:NWS) and MSNBC of Comcast (NASDAQ:CMCSA). The company is looking to capitalize on distribution opportunity on the web and internet devices, to increase the viewer count and thus boost revenues. However the overall impact of this strategy could be minimal for Time Warner’s stock.
Time Warner Updates: Embraces Connected Devices, New Content Deals Support $39 Value
Graph ItNEW!Wednesday, November 30th, 2011 by Trefis Team
In last couple of weeks, the media company Time Warner (NYSE:TWX) has made some strides when it comes to leveraging new connected devices and bolstering content partnerships. Although the stock hasn’t done much justice to these moves. Similarly in early Nov. the company reported good quarterly results, but investors punished the stock perhaps because the results were influenced more by filmed entertainment rather than cable networks as the latter tends to be a more stable revenue stream. Below we take a brief look at recent developments. Time Warner competes with other media conglomerates like Disney (NYSE:DIS), Viacom (NYSE:VIA) and News Corp (NASDAQ:NWS).
Our price estimate for Time Warner stands at $38.84, implying a premium of about 15% to the market price.
HBO Go App Can Boost TWC’s Revenues, Netflix to See More Competition
Graph ItNEW!Friday, November 18th, 2011 by Trefis Team
Time Warner (NYSE:TWX) has made HBO available via multiple platforms through its video streaming application, HBO Go, which was introduced earlier this year. HBO subscribers can now watch their popular shows and movies on Web as well as mobile devices and tablets like the iPhone and iPad, in addition to traditional medium of TV through cable providers like Comcast (NASDAQ:CMCSA) and satellite providers like Dish Network (NASDAQ:DISH). This is a good move by Time Warner to leverage the premium content and healthy subscriber base of HBO. This move also spells more competition for Netflix (NASDAQ:NFLX) which is grappling with subscriber churn and seeking more licensing deals with content producers.
Time Warner Should Expand its Licensing Business Given Trove of Content
Graph ItNEW!Wednesday, September 14th, 2011 by Trefis Team
Time Warner (NYSE:TWX) competes with other media companies like Disney (NYSE:DIS), CBS (NYSE:CBS), News Corp (NASDAQ:NWS) and Viacom (NYSE:VIA). What differentiates the company is its focus on subscriptions, in large part due presence of HBO which is a premium subscription channel. While this provides the company some immunity in a potential recessionary environment, there is opportunity to further expand licensing which is currently a small portion of the stock. This will further make it immune to weak economy.
We estimate that TV licensing constitutes just about 6% to company’s stock and therefore there is scope of improvement. This could be improved by leveraging companies like Netflix (NASDAQ:NFLX). Netflix not just wants more content, it now “needs” it in order to sustain its expansion. This will give media companies pricing power, including Time Warner. Additionally, Time Warner can be aided by expansion of other players like Blockbuster under Dish Network (NASDAQ:DISH) and Amazon (NASDAQ:AMZN) expanding.
Our price estimate for Time Warner stands at $38.90, implying a premium of about 30% to the market price.
CNN Buys Zite in Hopes to get iPad Experience Right
Graph ItNEW!Friday, September 2nd, 2011 by Trefis Team
CNN is buying Zite – an iPad app that allows users to customize their news feed and create a personalized magazine experience. According to some reports, the deal could be valued between $20-25 million. CNN is owned by Time Warner (NYSE:TWX) and constitutes just under 7% to the company’s stock value according to our estimates. This amounts to a more than $2.5 billion value for CNN based on our $38.90 price estimate for Time Warner. While a $20 million acquisition for a $2.5+ billion business is no big deal for the company, it shows that Time Warner wants the right tools that will help deliver content to its customers and fend off other media companies like News Corp (NASDAQ:NWS), Viacom (NYSE:VIA) and CBS (NYSE:CBS).
Time Warner has mentioned that it will not clog the app with its own content, but we wouldn’t be surprised to see some preferential treatment. And with the amount of content skyrocketing, it will become essential to separate and prioritize what matters and then make then personalize this.
Our price estimate for Time Warner stands at $38.90, implying a premium of roughly 25% to the market price.
Time Warner’s Publishing Ad Sales Slow, But CEO Remains Positive
Graph ItNEW!Friday, August 26th, 2011 by Trefis Team
Time Warner’s (NYSE:TWX) CEO recently expressed his optimism regarding the magazine business despite the fact that ad sales growth has slowed due to recent economic concerns. Time Warner is a diversified media company that competes with other media conglomerates like Disney (NYSE:DIS), Viacom (NYSE:VIA) and News Corp (NASDAQ:NWS).
Filmed Entertainment Trends for Time Warner, Disney, News Corp and Comcast
Graph ItNEW!Tuesday, July 26th, 2011 by Trefis Team
Time Warner (NYSE:TWX), News Corp (NASDAQ:NWS) and Disney (NYSE:DIS) have one thing in common besides TV media, and that is filmed entertainment which includes the production and distribution of movies. Comcast (NASDAQ:CMCSA) with its acquisition of NBCUniversal has now joined this group. We estimate that the filmed entertainment business constitutes about 35% to Time Warner’s stock and about 20% each to News Corp and Disney’s stocks as per our estimates. Below we take a quick look at certain trends that will help filmed entertainment industry to continue to thrive despite some consumer preference shifts.
Time Warner Bolsters HBO’s Value with HBO Go App
Graph ItNEW!Tuesday, May 17th, 2011 by Trefis Team
HBO recently released its HBO Go app for mobile devices and reportedly had 1 million downloads in the first week of its launch. The app works both for Apple’s (NASDAQ:AAPL) devices as well as Android-based gadgets. This is yet another move by Time Warner (NYSE:TWX) aimed at preserving HBO’s value. Below we take a quick look at HBO’s value and how the app launch could affect the company’s outlook. Time Warner competes with other media companies like Disney (NYSE:DIS), News Corp (NASDAQ:NWS), CBS (NYSE:CBS) and Viacom (NYSE:VIA).
Will Netflix Enter the UK?
Graph ItNEW!Wednesday, May 4th, 2011 by Trefis Team
Netflix (NASDAQ:NFLX) is enjoying rapid expansion riding on the popularity of DVD-by-mail and online streaming. In March, we wrote Are Netflix’s International Ambitions Justified & Achievable? where we looked at whether market saturation was a significant risk for Netflix and if international expansion could help provide an additional source of subscriber growth. Netflix has signaled that it plans to expand abroad, and we believe that the UK could be high on the list of new markets in addition to Latin America.
We recently upgraded our price estimate to $153 as a result of continued subscriber growth momentum reported in Q1 2011; however, our estimate still stands around 30% below the market price. Netflix competes with Apple’s (NASDAQ:AAPL) iTunes and Hulu as well as video on demand (VoD) services from pay-TV providers like Comcast (NASDAQ:CMCSA), Time Warner Cable (NYSE:TWC) and others.
Time Warner : All Articles
- Week of 2012-01-15
- Week of 2011-12-25
- Week of 2011-11-27
- Week of 2011-11-13
- Week of 2011-09-11
- Week of 2011-08-28
- Week of 2011-08-21
- Week of 2011-07-24
- Week of 2011-05-15
- Week of 2011-05-01
- 05/04/11 Will Netflix Enter the UK?
- Week of 2011-04-03
- Week of 2011-03-27
- 03/31/11 What Harry Potter and the Deathly Hollows Part 2 Means to Time Warner
- 03/29/11 Why CBS Pulled Content from Netflix
- Week of 2011-03-06
- 03/10/11 HBO Needs to Restrategize as Competition for Movie Distribution Intensifies
- 03/09/11 Credit Facebook for New Time Warner Content Offering
- 03/07/11 CBS Acquires Clicker to Expand Digital Business and Tap Internet TV’s Growth
- Week of 2011-02-20
- Week of 2011-02-13
- Week of 2011-02-06
- 02/10/11 Viacom in Great Position to Benefit from Improving Cable Ad Market
- 02/09/11 AOL’s Huffington Post Acquisition Targets Greater Social Media Impact
- 02/08/11 News Corp Broadcasting Margins Improve, Supporting $23 Stock Value
- Week of 2011-01-30
- 02/04/11 Time Warner Will Revisit DVD Deals with Netflix and Redbox
- 02/02/11 The “Situation” for Viacom’s Stock From Jersey Shore’s Success
- Week of 2011-01-23
- 01/27/11 Are Social Networks Stepping on Media Conglomerates’ Turf?
- 01/25/11 Impact of Avatar Sequels on News Corp Stock
- Week of 2011-01-16
- 01/18/11 Disney Could Spark Recovery in Box Office Market Share with Pirates of the Caribbean Releases
- 01/18/11 Could Comcast-NBC End Up Like Time Warner?
- Week of 2011-01-09
- 01/14/11 Comcast-NBC Deal, What is Comcast’s End Game?
- 01/12/11 Viacom’s Home Entertainment Struggles May Be Temporary
- 01/11/11 $1 Billion MySpace Valuation Highlights Facebook’s Dominance, But News Corp Stock Still Cheap
- 01/11/11 Success of Project Devil Could Create 13% Upside to AOL Stock
- Week of 2011-01-02
- 01/06/11 Impact on CBS if Pandora Becomes the Biggest Threat to Radio
- 01/05/11 TV Everywhere – Time Warner Cable’s Solution to Cord Cutting?
- 01/02/11 Dissecting Disney’s Spend by Product Line
- Week of 2010-12-26
- 12/31/10 News Corp’s BSkyB Deal to Grow Satellite Operations, Small Impact on Stock
- 12/30/10 NFL Fuels Disney’s ESPN Engine
- 12/28/10 Google TV Could Threaten Key Revenue Streams for Broadcast Networks
- Week of 2010-12-19
- 12/23/10 WSJ Holds its Ground, Positions News Corp for Growth
- 12/20/10 Cable and Broadcast Networks Looking More Alike
- Week of 2010-12-12
- 12/15/10 Upside to CBS from Viewership Strength
- 12/14/10 How Much Can Disney Gain from Netflix Deal?
- Week of 2010-12-05
- 12/10/10 HBO, MTV, ESPN, TNT, Nickelodeon – Which TV Channel is the Most Valuable?
- 12/08/10 Impact of 2 Disney Movies Hitting $1 Billion in 2010
- 12/07/10 Costs for Disney’s Shanghai Park a Concern
- Week of 2010-11-28
- 12/03/10 CBS Network Gains From Better Ad Sales Pricing
- 12/02/10 Disney’s Full Tank of Gas with Upcoming Cars Release
- 12/01/10 CBS Publishing Unit: E-Books Are The Future
- 11/30/10 News Corp’s Fox Studios Signs Blockbuster Rental Deal
- Week of 2010-11-21
- Week of 2010-11-14
- 11/19/10 DirecTV’s Subscriber Gains Continue
- 11/18/10 Dish Network’s Margins Under Pressure From Competition
- 11/17/10 iPhone’s Standalone Business Worth More Than All But 8 Companies in the World
- Week of 2010-11-07
- 11/10/10 Disney Gains From ESPN Video and Digital Deals
- 11/08/10 Verizon’s Broadband Market Share Could Surprise
- Week of 2010-09-26
- Week of 2010-09-19
- Week of 2010-09-05
- Week of 2010-08-22
- 08/23/10 Slower Growth Expected for Disney Consumer Products Revenues
- 08/23/10 Disney Needs 30% Annual Revenue Growth from Playdom
- Week of 2010-08-15
- 08/20/10 Lower Fee per HBO Subscriber Expected for Time Warner
- 08/19/10 Film Business Could Lift News Corp Stock by 5%
- 08/18/10 Lower Viacom Share of DVDs Sold in US
- Week of 2010-08-01
- Week of 2010-07-25
- 07/27/10 ESPN Crucial for Disney’s Success
- Week of 2010-04-18
- Week of 2010-04-11
- 04/16/10 People Magazine Worth 5% of Time Warner’s Stock, 2x More than TIME Magazine
- 04/15/10 CBS Could See 8% Stock Upside If Radio Ad Market Improves in 2010
- 04/14/10 Time Warner’s Stock Depends on Modest Subscriber Fee Growth for TNT Channel
- 04/12/10 Disney’s CapEx Rivals that of Time Warner, News Corp and Viacom Combined
- Week of 2010-04-04
- Week of 2010-03-14
- 03/19/10 Rising CNN Viewership Helps Time Warner’s Stock
- 03/16/10 Time Warner’s Bet on 3D Movies: A Right Move?
- Week of 2010-03-07
- Week of 2010-01-10
- Week of 2009-11-15
- Week of 2009-09-20
- 09/22/09 Does the Box Office matter?
- Week of 2009-08-09
- Week of 2009-08-02