How will HBO, Political Ad Spending and Box Office Collection Affect Time Warner Inc’s Q1 Revenue?

Time Warner Inc. (NASDAQ: TWX) will report its earnings on May 4th, 2016. There has been lot of buzz regarding the boost in TV revenues due to political advertising in the U.S, but we believe that neither political advertising nor Warner Brother Movie business have played a major role in influencing Time Warner’s Q1 revenues.  In fact, we believe HBO continues to be a strong driver for the performance of the company.

[1] Morgan Stanley Technology, Media & Telecom Conference, March 2,2016

[2] Can You Guess What HBO Subscribers Spend Most of Their Time Watching?, Fool, March 22,2016

[3] Morgan Stanley Technology, Media & Telecom Conference, March 2,2016

[4] HBO vs. Hulu vs. Netflix: Here’s Who’s Winning in Streaming Subscribers – By a Lot, The Wrap, February 10,2016

[5]Spending on Political Ads Soars, and Cable TV Rakes In the Cash, The Fiscal Times, March 01,2016

[6] Estimated, BoxOfficeMojo, April 30,2016

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for Time Warner Inc.