Trefis has just launched coverage of Time Warner which owns TV channels like TNT, TBS, CNN, HBO, magazines like Fortune, People, Time, the movie studio Warner Brothers, and the internet portal AOL.com. For Time Warner, TNT, TBS & CNN constitute 23% of the $29.31 Trefis price estimate while HBO alone constitutes 19%.
At $7 per subscriber per month, HBO has the highest subscriber fee of any Time Warner channel. TNT, TBS & CNN combined make less than $2 per subscriber per month; however, their US TV household penetration levels are 2x that of HBO (82% vs. 39%). In addition, TNT, TBS & CNN make nearly as much money from advertising sales as subscription fees. Since HBO is a premium channel that subscribers pay directly for, it does not feature significant advertising.
Within the HBO segment of Time Warner’s content you can see how the company’s stock price is impacted by changes in the Fee per HBO Subscriber. Within the TNT, TBS & CNN segment of Time Warner’s content you can see how the company’s stock price is impacted by TNT Ad Pricing and CNN Ad Pricing.
