Tag: Home Box Office

  • Time Warner revenues, net income up in first quarter

    BENGALURU: Time Warner Inc., (Time Warner) reported growth in revenue across all its segments – Turner, Home Box Office (HBO) and Warner Bros in the quarter ended 31 March 2017 (Q1-17, current quarter) as compared to the corresponding year ago quarter (y-o-y). Reported total revenue in Q1-17 was $ 7,735 million 5,8 percent more than  in Q1-16, at $7,308 million. Net Income attributable to Time Warner shareholders increased 17.3 percent y-o-y to $1,424 million in the current quarter from $1,214 million in Q1-16.

    Time Warner chairman and CEO Jeff Bewkes said: “We’re off to a strong start to 2017, as we continue to benefit from the investments we’re making in the best content while also developing new revenue streams that will drive growth and meet consumer demand for great experiences built around their favorite programming and brands. Warner Bros. delighted audiences in both film and television, with global hits in Kong: Skull Island and The LEGO Batman Movie and more series across broadcast for the current season than any other studio. Turner had another successful airing of the NCAA Division I Men’s Basketball Tournament across platforms, while CNN grew its total day ratings by 21 percent among adults 25-54, and remained the leader in digital news. Together, Turner and Warner Bros. also launched our new Boomerang-branded SVOD service, adding to our growing portfolio of products that are reaching consumers directly.”

    “Home Box Office shined in the quarter highlighted by our limited series Big Little Lies, which was both a critical and cultural breakout. Last Week Tonight with John Oliver is having its most-watched season to date, and we recently had the much anticipated returns of Silicon Valley and Veep. Looking ahead, we remain on track, pending completion of regulatory reviews and receipt of consents, to close our merger with AT&T Inc. before the end of 2017. We remain excited about the potential for this combination to accelerate the pace of innovation in our businesses,” Bewkes continued.

    Turner

    Revenues increased 6.3 percent ($182 million) to $3,088 million, due to increases of 12 percent ($175 million) in Subscription revenues and 16 percent ($29 million) in Content and other revenues, partially offset by a decline of 2 percent ($22 million) in Advertising revenues. The company says that Subscription revenues benefited from higher domestic rates and growth at Turner’s international networks, partially offset by lower domestic subscribers. Content and other revenues increased due to higher domestic licensing revenues. The decline in Advertising revenues was primarily due to lower delivery at certain domestic networks, partially offset by increases at Turner’s sports and news businesses and growth at Turner’s international networks.

    Operating Income decreased 5.6 percent ($69 million) to $1,170 million. The growth in revenues was more than offset by higher expenses mainly due to increased programming costs. Programming expenses increased 17 percent primarily due to higher sports costs related to the first year of Turner’s new agreement with the NBA and higher original programming costs.

    HBO

    HBO revenues increased 4 percent ($62 million) to $1.6 billion, due to an increase of 5 percent ($66 million) in Subscription revenues, partially offset by a decline of 1 percent ($4 million) in Content and other revenues. Subscription revenues increased due to higher domestic rates and subscribers and international growth. The decrease in Content and other revenues was primarily due to lower home entertainment revenues, partially offset by higher licensing revenues.

    Operating Income increased 22 percent ($106 million) to $583 million, reflecting the growth in revenues and lower selling, general and administrative, programming and distribution expenses says that company. Programming costs decreased 2 percent, reflecting lower original programming expenses related to a reduction in amortization resulting from using a longer estimated utilization period for original programming beginning in the second quarter of 2016, partially offset by higher acquired theatrical programming expenses.

    Warner Bros

    Revenues increased 8.2 percent ($256 million) to $3.4 billion, primarily due to higher television and theatrical revenues partially offset by lower videogames revenues. Television revenues increased primarily due to higher domestic licensing revenues related to certain library series. Theatrical revenues grew due to an increased number and the mix of box office releases, which included Kong: Skull Island and The LEGO Batman Movie, as well as higher home entertainment revenues primarily related to the release of Fantastic Beasts and Where to Find Them and higher carryover revenue. Videogames revenues declined due to a fewer number and the mix of releases in the current year period and lower carryover revenue.

    Operating Income increased 15.1 percent ($64 million) to $488 million, due to the increase in revenues, partially offset by higher associated theatrical and television costs of revenues and print and advertising expenses.

  • Time Warner FY-16 and fourth quarter numbers up

    Time Warner FY-16 and fourth quarter numbers up

    BENGALURU: Time Warner Inc. (Time Warner) reported higher numbers across all divisions and important parameters for the year (FY-16, current quarter) and the quarter (Q4-16, current quarter) ended 31 December 2016 as compared to the corresponding year ago periods.  Warner Bros, Turner and Home Box Office (HBO) all reported increase in revenues and operating incomes. The two major blips were a 1.6 percent (US19 million) decline in advertising revenue in Q4-16 to $1,187 million from$1,206 million in Q4-15; reduction in Warner Bros Videogames and other revenues for both FY-16 and Q4-16.

    Time Warner’s total revenues in FY-16 increased 4.3 percent to $29,318 million from $28,118 million reported for FY-15, while Q4-16 revenues increased 11.5 percent to $7,891 million from $7,079 million. Time Warner’s total operating income in FY-16 increased 9.9 percent to $7,547 million from $6,865 million in QFY-15. The company’s total operating for Q4-16 increased 22 percent to $1,691 million as compared to $1,386 million in Q4-15.

    Time Warner’s total adjusted operating income in FY-16 increased 9.8 percent to $7,601 million from $6,923 million in QFY-15. The company’s total operating for Q4-16 increased 25.2 percent to $1,759 million as compared to $1,405 million in Q4-15.

    Time Warner chairman and CEO Jeff Bewkes said, “We had another very successful year in 2016, demonstrating once more Time Warner’s ability to deliver strong financial performance alongside creative and programming excellence. All our operating divisions increased revenue and profits while also making investments to capitalize on the growing demand for the very best video content and new ways to deliver it to audiences around the world. Warner Bros. is once again the #1 supplier of television shows for the broadcast networks, and had its second-best year ever at the global box office, nearing $5 billion in receipts with such hits as Batman v. Superman: Dawn of Justice, Suicide Squad and Fantastic Beasts and Where to Find Them.”

    Bewkes continued, “Home Box Office again stood apart with its combination of the biggest Hollywood hit movies and best original programming — receiving more primetime Emmy Awards in 2016 than any other network for the 15th consecutive year and launching Westworld, which is produced by Warner Bros. and is the most-watched new series in HBO’s history. We’re also really pleased with the growth of HBO’s domestic OTT product, and we expanded HBO’s international OTT footprint with launches in Spain, Brazil and Argentina in 2016. Turner continued to strengthen its leadership with TBS, TNT and Adult Swim all ranking among ad-supported cable’s top five networks in primetime among adults 18-49 for the year. TBS was the #1 ad-supported entertainment cable network on the strength of great sports and a bold new lineup of originals, including Full Frontal with Samantha Bee, and CNN was the #1 news network among adults 18-49 in primetime and the #1 digital news destination in 2016. The deal to be acquired by AT&T Inc., which we announced in October 2016, will accelerate our efforts to spur innovation in the media industry and further strengthen our businesses. We remain on track to close the transaction later this year.”

    Warner Bros

    Warner Bros revenues for FY-16 were essentially flat at $13,037 million (12,992 million in FY-15). The company says that this reflects higher theatrical and television revenues offset by lower videogames revenues and the impact of foreign exchange rates. Theatrical revenues increased primarily due to the box office releases of Batman v. Superman: Dawn of Justice, Suicide Squad and Fantastic Beasts and Where to Find Them. Television revenues grew primarily due to increased production. Videogames revenues declined as the prior year benefited from the releases of Mortal Kombat X and Batman: Arkham Knight.

    Warner Bros Operating Income in FY-16 increased 22 percent ($318 million) to $1,734 million from $1,416 million in FY-15 as increased theatrical contributions and a $90 million gain on the April 2016 sale of Flixster more than offset the impact from lower videogames revenues.

    Warner Bros Revenues increased 17 percent ($563 million) to $3,868 million from $3,305 million in Q4-15 which Time Warner says was mainly due to higher theatrical revenues, which benefited from the releases of Fantastic Beasts and Where to Find Them and The Accountant, and higher television revenues, primarily due to higher licensing revenues and increased production.

    Warner Bros operating Income increased 57 percent ($208 million) to $574 million in Q4-16 from $366 million in Q4-15 primarily due to the increase in revenues, partially offset by higher associated costs of revenues.

    Turner

    Turner revenues in FY-16 increased 7 percent ($768 million) to $11,364 million from $10,596 million in FY-15, benefiting from increases of 12 percent ($630 million) in Subscription revenues and 3 percent ($126 million) in Advertising revenues.

    The company says that the increase in Subscription revenues was due to higher domestic rates and growth at Turner’s international networks, partially offset by the impact of lower domestic subscribers and foreign exchange rates. Advertising revenues benefited from domestic growth and local currency growth at Turner’s international networks, partially offset by the impact of foreign exchange rates. Domestic advertising revenues grew primarily due to Turner’s news business and sports business, including the 2016 NCAA Division I Men’s Basketball National Championship game, partially offset by lower delivery at certain entertainment networks.

    Turner Operating Income increased 7 percent ($285 million) to $4,372 million in FY-16 from $4,087 million in Fy-15 due to the increase in revenues partially offset by higher expenses, including increased programming and marketing costs. Programming costs grew 5 percent primarily due to higher sports costs and increases at Turner’s news business related to its coverage of the 2016 US Presidential election. The increase in marketing costs was primarily associated with new original series related to the TBS and TNT rebrands.

    Turner’s revenues in Q4-16 increased 6.7 percent ($177 million) to $2,838 million from $2,661 million in Q4-15, due to an increase of 14 percent ($182 million) in Subscription revenues and 9 percent ($14 million) in Content and other revenues, partially offset by a decrease of 2 percent ($19 million) in Advertising revenues.

    The company says that Subscription revenues benefited from higher domestic rates and growth at Turner’s international networks, partially offset by the impact of lower domestic subscribers. Content and other revenues increased primarily due to higher licensing revenues. Advertising revenues decreased due to declines at Turner’s international networks, partially due to foreign exchange rates. Domestic advertising was flat with growth at Turner’s news business offset by lower delivery at certain entertainment networks and lower revenues associated with the MLB postseason games.

    Turners Operating Income in Q4-16 increased 8.2 percent ($64 million) to $841 million from $777 million in Q4-15, reflecting revenue growth partially offset by higher expenses, including increased marketing costs primarily due to new original series. Programming expenses were essentially flat.

    Home Box Office (HBO)

    HBO revenues in FY-16 increased 5 percent ($275 million) to $5,890 million from $5,615 million in FY-15, due to increases of 5 percent ($255 million) in Subscription revenues and 2 percent ($20 million) in Content and other revenues. Subscription revenues grew primarily due to higher domestic rates and international growth. The increase in Content and other revenues primarily reflects higher international licensing revenues, partially offset by lower domestic licensing revenues.

    Operating Income in FY-16 increased 2.1 percent ($39 million) to $1,917 million from $1,878 million, reflecting higher revenues partially offset by increased expenses, including higher programming and restructuring and severance costs. Programming costs grew 7 percent, primarily reflecting increased original programming costs, partially offset by a reduction in amortization resulting from a longer estimated utilization period for original programming.

    HBO Revenues increased 5.6 percent ($79 million) to $1,491 million in Q4-16 from $1,412 million, due to increases of 5 percent ($64 million) in Subscription revenues and 7 percent ($15 million) in Content and other revenues. The company says that Subscription revenues increased due to higher domestic rates and international growth. The increase in Content and other revenues primarily reflects higher home entertainment revenues, partially offset by lower international licensing revenues.

    Operating Income increased 9.2 percent ($36 million) to $429 million in Q4-16 from $393 million in Q4-15, due to the increase in revenues partially offset by higher expenses, including increased distribution expenses related to the timing of home video releases. Programming expenses decreased 2 percent mainly due to lower programming charges, partially offset by increased original programming costs.

  • Q3-16: Time Warner revenue up 9.2 percent

    Q3-16: Time Warner revenue up 9.2 percent

    BENGALURU: Time Warner Inc., (Time Warner) reported 9.2 percent year-over-year (y-o-y) growth in revenue for the third quarter ended 30 September 2016 (Q3-16, current quarter).

    Time Warner reported total revenue of $7,167 million for the current quarter versus $6,564 million in the corresponding year ago quarter. Among its three divisions – Turner, Home Box Office, and Warner Bros, Turner reported 8.8 percent y-o-y increase in revenue of $2,610 million in Q3-16 vis-à-vis $2,398 million in Q3-15. HBO revenue grew 4.3 percent y-o-y in the current quarter to $1,426 million from$1,367 million, while Warner Bros revenue increased 6.6 percent y-o-y to $3,402 million from $3,190 million.

    Operating Income increased 9.8 percent y-o-y to $2,014 million in Q3-16 from $1,834 million. Adjusted Operating Income increased 12.4 to $2,070 million from $1,842 million, which the company says was due to increases at all operating divisions and lower intercompany eliminations. Revenues included the unfavourable impact of foreign exchange rates of approximately $55 million in the quarter.

    Breakup of numbers

    Turner

    A 12.4 percent y-o-y) increase in subscription revenue helped boost Turner revenue, while Advertising (ad) revenue increased 1.2 percent y-o-y during the current quarter.  Time Warner’s Subscription revenue in Q3-16 was $1,480 million as against $1,317 million in the corresponding year ago quarter. The division’s ad revenue in the current quarter was $996 million, while it was $980 million in Q3-15.

    Turner’s operating income increased 8.4 percent y-o-y in Q3-16 to $1,612 million from $1,072 million in Q3-15.

    Time Warner says that Subscription revenues increased due to higher domestic rates and growth at Turner’s international networks, partially offset by the impact of lower domestic subscribers and foreign exchange rates. Advertising revenues benefited from growth at Turner’s domestic news business, partially offset by lower delivery at certain domestic entertainment networks. International advertising was essentially flat with local currency growth offset by the impact of foreign exchange rates. Content and other revenues increased due to higher international licensing revenues.

    HBO

    HBO revenues increased on account of a 5.2 percent y-o-y increase in subscription revenue in Q3-16 to $1,262 million from $1,200 million. Content and other revenue declined 1.8 percent y-o-y in the current quarter to $164 million from $167 million.

    HBO’s operating income in Q3-16 increased 2.1 percent y-o-y to $530 million from $519 million.

    The company says that Subscription revenues increased due to higher domestic rates and international growth. The decrease in Content and other revenues was due to lower domestic licensing revenues, partially offset by higher international licensing revenues.

    Warner Bros

    Warner Bros revenues increased due to a 44.9 percent y-o-y gain in its Theatrical product to $1,605 million in Q3-16 from $1,108 million. This gain was offset by a 2.1 percent y-o-y decline in Warner’s Television product to $1,430 million from #1,460 million and a 41 percent decline in its ‘Videogames and other’ revenue to $367 million from$672 million.

    The company says that Theatrical revenues increased due to the box office releases of Suicide SquadThe Legend of TarzanSully and Lights Out. Videogames revenues declined due to the comparison to the launch ofLEGO Dimensions and carryover revenues from Mortal Kombat X in the prior year quarter.

    Warner Operating Income increased 11.2 percent ($43 million) y-o-y in the current quarter to $428 million from $385 million, due to the increase in revenues, partially offset by higher costs of revenues associated with the mix of film releases.

    Company speak

    Time Warner chairman and CEO Jeff Bewkes said, “We had a strong third quarter, which keeps us on track to exceed our original 2016 outlook and underscores our leadership in creating and distributing the very best content. In television, HBO took home more Primetime Emmy Awards than any other network for the 15th consecutive year and Time Warner’s divisions won a total of 40 Emmys, more than any other company. CNN’s standout election coverage made it the #1 news network in primetime among adults 18-49 for the fourth consecutive quarter and Turner’s momentum doesn’t stop there. Year-to-date, TBS, TNT and Adult Swim are three of the top five ad-supported cable networks in primetime among adults 18-49. In film, Warner Bros. had a strong quarter led by Suicide Squad and has the #1 release of the fall in Sully, while anticipation is off the charts for J.K. Rowling’s Fantastic Beasts and Where to Find Them, which hits the big screen on November 18.”

    Bewkes continued, “The agreement we announced on October 22 to be acquired by AT&T Inc. represents a great outcome for our shareholders and an excellent opportunity to drive long-term value well into the future. Combining with AT&T is the natural next step in the evolution of our business and allows us to significantly accelerate our most important strategies.”

  • Q3-16: Time Warner revenue up 9.2 percent

    Q3-16: Time Warner revenue up 9.2 percent

    BENGALURU: Time Warner Inc., (Time Warner) reported 9.2 percent year-over-year (y-o-y) growth in revenue for the third quarter ended 30 September 2016 (Q3-16, current quarter).

    Time Warner reported total revenue of $7,167 million for the current quarter versus $6,564 million in the corresponding year ago quarter. Among its three divisions – Turner, Home Box Office, and Warner Bros, Turner reported 8.8 percent y-o-y increase in revenue of $2,610 million in Q3-16 vis-à-vis $2,398 million in Q3-15. HBO revenue grew 4.3 percent y-o-y in the current quarter to $1,426 million from$1,367 million, while Warner Bros revenue increased 6.6 percent y-o-y to $3,402 million from $3,190 million.

    Operating Income increased 9.8 percent y-o-y to $2,014 million in Q3-16 from $1,834 million. Adjusted Operating Income increased 12.4 to $2,070 million from $1,842 million, which the company says was due to increases at all operating divisions and lower intercompany eliminations. Revenues included the unfavourable impact of foreign exchange rates of approximately $55 million in the quarter.

    Breakup of numbers

    Turner

    A 12.4 percent y-o-y) increase in subscription revenue helped boost Turner revenue, while Advertising (ad) revenue increased 1.2 percent y-o-y during the current quarter.  Time Warner’s Subscription revenue in Q3-16 was $1,480 million as against $1,317 million in the corresponding year ago quarter. The division’s ad revenue in the current quarter was $996 million, while it was $980 million in Q3-15.

    Turner’s operating income increased 8.4 percent y-o-y in Q3-16 to $1,612 million from $1,072 million in Q3-15.

    Time Warner says that Subscription revenues increased due to higher domestic rates and growth at Turner’s international networks, partially offset by the impact of lower domestic subscribers and foreign exchange rates. Advertising revenues benefited from growth at Turner’s domestic news business, partially offset by lower delivery at certain domestic entertainment networks. International advertising was essentially flat with local currency growth offset by the impact of foreign exchange rates. Content and other revenues increased due to higher international licensing revenues.

    HBO

    HBO revenues increased on account of a 5.2 percent y-o-y increase in subscription revenue in Q3-16 to $1,262 million from $1,200 million. Content and other revenue declined 1.8 percent y-o-y in the current quarter to $164 million from $167 million.

    HBO’s operating income in Q3-16 increased 2.1 percent y-o-y to $530 million from $519 million.

    The company says that Subscription revenues increased due to higher domestic rates and international growth. The decrease in Content and other revenues was due to lower domestic licensing revenues, partially offset by higher international licensing revenues.

    Warner Bros

    Warner Bros revenues increased due to a 44.9 percent y-o-y gain in its Theatrical product to $1,605 million in Q3-16 from $1,108 million. This gain was offset by a 2.1 percent y-o-y decline in Warner’s Television product to $1,430 million from #1,460 million and a 41 percent decline in its ‘Videogames and other’ revenue to $367 million from$672 million.

    The company says that Theatrical revenues increased due to the box office releases of Suicide SquadThe Legend of TarzanSully and Lights Out. Videogames revenues declined due to the comparison to the launch ofLEGO Dimensions and carryover revenues from Mortal Kombat X in the prior year quarter.

    Warner Operating Income increased 11.2 percent ($43 million) y-o-y in the current quarter to $428 million from $385 million, due to the increase in revenues, partially offset by higher costs of revenues associated with the mix of film releases.

    Company speak

    Time Warner chairman and CEO Jeff Bewkes said, “We had a strong third quarter, which keeps us on track to exceed our original 2016 outlook and underscores our leadership in creating and distributing the very best content. In television, HBO took home more Primetime Emmy Awards than any other network for the 15th consecutive year and Time Warner’s divisions won a total of 40 Emmys, more than any other company. CNN’s standout election coverage made it the #1 news network in primetime among adults 18-49 for the fourth consecutive quarter and Turner’s momentum doesn’t stop there. Year-to-date, TBS, TNT and Adult Swim are three of the top five ad-supported cable networks in primetime among adults 18-49. In film, Warner Bros. had a strong quarter led by Suicide Squad and has the #1 release of the fall in Sully, while anticipation is off the charts for J.K. Rowling’s Fantastic Beasts and Where to Find Them, which hits the big screen on November 18.”

    Bewkes continued, “The agreement we announced on October 22 to be acquired by AT&T Inc. represents a great outcome for our shareholders and an excellent opportunity to drive long-term value well into the future. Combining with AT&T is the natural next step in the evolution of our business and allows us to significantly accelerate our most important strategies.”

  • Q2-16: Warner Bros pulls down Time Warner revenue 5.4 percent

    Q2-16: Warner Bros pulls down Time Warner revenue 5.4 percent

    BENGALURU: Lower videogames, home entertainment and television licensing revenues pulled down Warner Bros revenue by 19.4 percent year-over-year (y-o-y) and operating income by 9.4 percent y-o-y for the quarter ended 30 June 2016 (Q2-16, current quarter). Warner Bros contributed 38.2 percent to Time Warner Inc. (Time Warner) in Q2-16, and hence pulled down its parent’s consolidated revenue by 5.4 percent y-o-y to $6,952 million from $7,348 million in the corresponding year ago quarter.

    Time Warner operating income was almost flat y-o-y (declined 0.7 percent) in the current quarter at $1,846 million as compared to $1,849 million in Q2-15. Adjusted operating income in Q2-16 declined 5.5 percent y-o-y to $1,760 million from $1,862 million in Q2-15.

    Company speak

    Time Warner chairman and CEO Jeff Bewkes said, “We had a strong first half of 2016, which puts us ahead of our original goals for the year. Our performance reflects the creative excellence resulting from investments we’ve been making in the very best content. At the same time, we’re capitalizing on new distribution opportunities to take advantage of the growing demand for high-quality video content around the world. As an example of our creative excellence, Time Warner received 148 Primetime Emmy nominations – more than any other company – with HBO’s 94 again setting the pace for the industry. In the second quarter, TNT and TBS finished as the two highest rated ad-supported cable networks in primetime among adults 18-49, and Warner Bros. once again came out of the upfront as the leading supplier to broadcast television. Warner Bros. also gained momentum in film with recent successes, such as Central Intelligence and The Conjuring 2, and anticipation is running high for Suicide Squad, which debuts this week.”

    Bewkes continued, “Today, we also announced our 10 percent investment in Hulu LLC and that Turner has separately signed an affiliate agreement for its full suite of networks to be carried on Hulu’s live-streaming service slated for launch early next year. These are just the latest examples of our commitment to supporting innovative digital services that allow consumers to access high-quality content however they want it across a variety of platforms. We’re confident the multiple investments we’re making in these types of services position the Company to benefit from growing global demand for the strongest network brands and very best video content.”

    Segment numbers

    Time Warner has three segments – Turner – which contributed the most to revenue (43.3 percent in Q2-16), Home Box Office – the smallest segment in terms of revenue contribution (21.1 percent in Q2-16) and Warner Bros which contributed 38.2 percent to Time Warner’s revenue Q2-16.

    Turner

    Turner reported 6.5 percent y-o-y increase in revenue in Q2-16 at $3,010 million as compared to $2,827 million in Q2-15. Revenues due to increases of 11 percent ($142 million) in Subscription revenue and 6 percent ($73 million) in Advertising revenue, partially offset by a decline of 15 percent ($32 million) in Content and other revenue says the company.

    Turner’s operating income in Q2-16 was flat y-o-y at $1,130 million, while adjusted operating income increased marginally y-o-y (0.3 percent) to $1,133 million from $1,130 million. The company says that operating income was flat as the growth in revenues was offset by higher expenses, including increased programming and marketing costs.

    Home Box Office (HBO)

    HBO revenue in the current quarter increased 2 percent y-o-y to $1,467million from $1,438 million in Q2-15. Time Warner says that HBO revenue increased due to an increase of 6 percent ($72 million) in Subscription revenues partially offset by a decline of 17 percent ($43 million) in Content and other revenues.

    The segment reported 5.3 percent y-o-y decline in operating income and adjusted operating income in the current quarter to $481 million from $508 million in Q2-15. Operating income declined because the growth in revenues was more than offset by higher expenses, including increased programming and restructuring and severance costs says the company.

    Warner Bros

    As mentioned above, Warner Bros declined 19.4 percent y-o-y to $2,658 million from $3,298 due to lower videogames, home entertainment and television licensing revenues.

    The segment reported 9.7 percent y-o-y decline in operating income in Q2-16 to $308 million from $341 million.  Adjusted operating income in the current quarter declined 36.9 percent to $217 million from $344 million in Q2-15. Time Warner says that operating income declined due to the decline in revenues, partially offset by lower associated costs of revenues due to the number and mix of film and videogames releases, a $90 million gain on the April 2016 sale of Flixster and lower film valuation adjustments.

  • Q2-16: Warner Bros pulls down Time Warner revenue 5.4 percent

    Q2-16: Warner Bros pulls down Time Warner revenue 5.4 percent

    BENGALURU: Lower videogames, home entertainment and television licensing revenues pulled down Warner Bros revenue by 19.4 percent year-over-year (y-o-y) and operating income by 9.4 percent y-o-y for the quarter ended 30 June 2016 (Q2-16, current quarter). Warner Bros contributed 38.2 percent to Time Warner Inc. (Time Warner) in Q2-16, and hence pulled down its parent’s consolidated revenue by 5.4 percent y-o-y to $6,952 million from $7,348 million in the corresponding year ago quarter.

    Time Warner operating income was almost flat y-o-y (declined 0.7 percent) in the current quarter at $1,846 million as compared to $1,849 million in Q2-15. Adjusted operating income in Q2-16 declined 5.5 percent y-o-y to $1,760 million from $1,862 million in Q2-15.

    Company speak

    Time Warner chairman and CEO Jeff Bewkes said, “We had a strong first half of 2016, which puts us ahead of our original goals for the year. Our performance reflects the creative excellence resulting from investments we’ve been making in the very best content. At the same time, we’re capitalizing on new distribution opportunities to take advantage of the growing demand for high-quality video content around the world. As an example of our creative excellence, Time Warner received 148 Primetime Emmy nominations – more than any other company – with HBO’s 94 again setting the pace for the industry. In the second quarter, TNT and TBS finished as the two highest rated ad-supported cable networks in primetime among adults 18-49, and Warner Bros. once again came out of the upfront as the leading supplier to broadcast television. Warner Bros. also gained momentum in film with recent successes, such as Central Intelligence and The Conjuring 2, and anticipation is running high for Suicide Squad, which debuts this week.”

    Bewkes continued, “Today, we also announced our 10 percent investment in Hulu LLC and that Turner has separately signed an affiliate agreement for its full suite of networks to be carried on Hulu’s live-streaming service slated for launch early next year. These are just the latest examples of our commitment to supporting innovative digital services that allow consumers to access high-quality content however they want it across a variety of platforms. We’re confident the multiple investments we’re making in these types of services position the Company to benefit from growing global demand for the strongest network brands and very best video content.”

    Segment numbers

    Time Warner has three segments – Turner – which contributed the most to revenue (43.3 percent in Q2-16), Home Box Office – the smallest segment in terms of revenue contribution (21.1 percent in Q2-16) and Warner Bros which contributed 38.2 percent to Time Warner’s revenue Q2-16.

    Turner

    Turner reported 6.5 percent y-o-y increase in revenue in Q2-16 at $3,010 million as compared to $2,827 million in Q2-15. Revenues due to increases of 11 percent ($142 million) in Subscription revenue and 6 percent ($73 million) in Advertising revenue, partially offset by a decline of 15 percent ($32 million) in Content and other revenue says the company.

    Turner’s operating income in Q2-16 was flat y-o-y at $1,130 million, while adjusted operating income increased marginally y-o-y (0.3 percent) to $1,133 million from $1,130 million. The company says that operating income was flat as the growth in revenues was offset by higher expenses, including increased programming and marketing costs.

    Home Box Office (HBO)

    HBO revenue in the current quarter increased 2 percent y-o-y to $1,467million from $1,438 million in Q2-15. Time Warner says that HBO revenue increased due to an increase of 6 percent ($72 million) in Subscription revenues partially offset by a decline of 17 percent ($43 million) in Content and other revenues.

    The segment reported 5.3 percent y-o-y decline in operating income and adjusted operating income in the current quarter to $481 million from $508 million in Q2-15. Operating income declined because the growth in revenues was more than offset by higher expenses, including increased programming and restructuring and severance costs says the company.

    Warner Bros

    As mentioned above, Warner Bros declined 19.4 percent y-o-y to $2,658 million from $3,298 due to lower videogames, home entertainment and television licensing revenues.

    The segment reported 9.7 percent y-o-y decline in operating income in Q2-16 to $308 million from $341 million.  Adjusted operating income in the current quarter declined 36.9 percent to $217 million from $344 million in Q2-15. Time Warner says that operating income declined due to the decline in revenues, partially offset by lower associated costs of revenues due to the number and mix of film and videogames releases, a $90 million gain on the April 2016 sale of Flixster and lower film valuation adjustments.

  • Q1-16: Turner, HBO push Time Warner revenues up 2.5 percent

    Q1-16: Turner, HBO push Time Warner revenues up 2.5 percent

    BENGALURU: Time Warner Inc., (Time Warner) reported 2.5 percent growth in revenues for the quarter ended 31 March 2016 (current quarter, Q1-16) at $7,308 million as compared to the $7,127 million in Q1-15. Revenues increased due to growth at Turner and Home Box Office, partially offset by a decline at Warner Bros.

    Total Operating Income increased 11.8 percent year-on-year in the current quarter to $1,996 million as compared to $1,786 million in the corresponding quarter of the previous year.

    Time Warner chairman and chief executive officer Jeff Bewkes said, ““We’re off to a terrific start to 2016, as we benefit from the investments we’ve been making in great content and new capabilities in order to take advantage of the growing demand for high-quality video content around the world. Revenues increased 3 percent and Adjusted Operating Income grew 11 percent to a quarterly record of $2 billion due to strong growth across all our operating divisions. In the past several weeks, we’ve seen Warner Bros. release its latest global hit in Batman v Superman: Dawn of Justice, setting the stage for what we expect to be a big year in film, with upcoming releases including Suicide Squad and Fantastic Beasts and Where to Find Them. In television, Warner Bros. continued to show its strength with three of the top five new shows on broadcast television this season among adults 18-49 and a record 21 renewals ahead of the upfront this year.”

    Bewkes continued, “Turner aired cable’s first ever NCAA Men’s Division I Basketball Championship game, and Turner and CBS entered into an agreement with the NCAA to extend their television, digital and marketing rights to the NCAA tournament through 2032. TBS ended the quarter as the #1 ad-supported cable network in primetime among adults 18-49 and its repositioning as cable’s premier network for young, fresh comedy is underway with the introduction of new programming including Angie Tribeca, Full Frontal with Samantha Bee and The Detour, the biggest new comedy on cable this year. With its must-watch coverage of the US presidential campaign, CNN continued to build on its success by more than doubling its primetime audience in the quarter. Meanwhile, HBO continued to make strides both inside and outside the traditional TV ecosystem, including expanding its OTT reach to new platforms and new international territories. And, more recently, HBO’s epic series Game of Thrones returned to record premiere night viewership. Further demonstrating our commitment to shareholder returns, we returned close to $1.3 billion to our shareholders through share repurchases and dividends year-to-date.”

    Turner

    Turner reported 7.2 percent YoY growth in revenues in the current quarter at $2,906 million as compared to $2,710 million. The segment reported 11.8 percent YoY increase in operating to $1,239 million from $1,108 million. 

    Revenues increased due to increases of 11 percent ($143 million) in subscription revenues and 5 percent ($56 million) in advertising revenues. Turner says subscription revenues increased due to higher domestic rates and local currency growth at Turner’s international networks, partially offset by the impact of foreign exchange rates and lower domestic subscribers. Advertising revenues benefited from domestic growth, primarily due to Turner’s news business, and local currency growth at Turner’s international networks, partially offset by the impact of foreign exchange rates.

    Home Box Office

    HBO reported YoY increase in revenues to $1,506 million in Q1-16 from $1,398 million in Q1-15. HBO operating income increased 4.1 percent to $477 million in the current quarter from $458 million in the corresponding year ago quarter.

    Revenues increased due to increases of 5 percent ($57 million) in subscription revenues and 23 percent ($51 million) in content and other revenues. Subscription revenues grew primarily due to higher domestic rates and subscribers. The increase in content and other revenues primarily reflected higher international licensing revenues, partially offset by lower home entertainment revenues.

    Warner Bros,

    Warner Bros. reported 2.8 percent YoY decline in revenues Q1-16 to $3,109 million from $3,199 million in Q1-15. Despite drop in revenue, Operating Income from the segment increased 30.9 percent in Q1-16 to $424 million from $324 million in the corresponding year ago quarter.

    Revenues decreased mainly due to lower theatrical revenues, partially offset by higher television and videogames revenues. Theatrical revenues declined as the prior year quarter included revenues from American Sniper and The Hobbit: The Battle of the Five Armies compared to the release of Batman v Superman: Dawn of Justice late in the current year quarter. Television revenues increased primarily due to higher international licensing revenues and higher initial telecast revenues. The increase in videogames was mainly due to Warner Bros. LEGO and Mortal Kombat franchises.

     

  • Q1-16: Turner, HBO push Time Warner revenues up 2.5 percent

    Q1-16: Turner, HBO push Time Warner revenues up 2.5 percent

    BENGALURU: Time Warner Inc., (Time Warner) reported 2.5 percent growth in revenues for the quarter ended 31 March 2016 (current quarter, Q1-16) at $7,308 million as compared to the $7,127 million in Q1-15. Revenues increased due to growth at Turner and Home Box Office, partially offset by a decline at Warner Bros.

    Total Operating Income increased 11.8 percent year-on-year in the current quarter to $1,996 million as compared to $1,786 million in the corresponding quarter of the previous year.

    Time Warner chairman and chief executive officer Jeff Bewkes said, ““We’re off to a terrific start to 2016, as we benefit from the investments we’ve been making in great content and new capabilities in order to take advantage of the growing demand for high-quality video content around the world. Revenues increased 3 percent and Adjusted Operating Income grew 11 percent to a quarterly record of $2 billion due to strong growth across all our operating divisions. In the past several weeks, we’ve seen Warner Bros. release its latest global hit in Batman v Superman: Dawn of Justice, setting the stage for what we expect to be a big year in film, with upcoming releases including Suicide Squad and Fantastic Beasts and Where to Find Them. In television, Warner Bros. continued to show its strength with three of the top five new shows on broadcast television this season among adults 18-49 and a record 21 renewals ahead of the upfront this year.”

    Bewkes continued, “Turner aired cable’s first ever NCAA Men’s Division I Basketball Championship game, and Turner and CBS entered into an agreement with the NCAA to extend their television, digital and marketing rights to the NCAA tournament through 2032. TBS ended the quarter as the #1 ad-supported cable network in primetime among adults 18-49 and its repositioning as cable’s premier network for young, fresh comedy is underway with the introduction of new programming including Angie Tribeca, Full Frontal with Samantha Bee and The Detour, the biggest new comedy on cable this year. With its must-watch coverage of the US presidential campaign, CNN continued to build on its success by more than doubling its primetime audience in the quarter. Meanwhile, HBO continued to make strides both inside and outside the traditional TV ecosystem, including expanding its OTT reach to new platforms and new international territories. And, more recently, HBO’s epic series Game of Thrones returned to record premiere night viewership. Further demonstrating our commitment to shareholder returns, we returned close to $1.3 billion to our shareholders through share repurchases and dividends year-to-date.”

    Turner

    Turner reported 7.2 percent YoY growth in revenues in the current quarter at $2,906 million as compared to $2,710 million. The segment reported 11.8 percent YoY increase in operating to $1,239 million from $1,108 million. 

    Revenues increased due to increases of 11 percent ($143 million) in subscription revenues and 5 percent ($56 million) in advertising revenues. Turner says subscription revenues increased due to higher domestic rates and local currency growth at Turner’s international networks, partially offset by the impact of foreign exchange rates and lower domestic subscribers. Advertising revenues benefited from domestic growth, primarily due to Turner’s news business, and local currency growth at Turner’s international networks, partially offset by the impact of foreign exchange rates.

    Home Box Office

    HBO reported YoY increase in revenues to $1,506 million in Q1-16 from $1,398 million in Q1-15. HBO operating income increased 4.1 percent to $477 million in the current quarter from $458 million in the corresponding year ago quarter.

    Revenues increased due to increases of 5 percent ($57 million) in subscription revenues and 23 percent ($51 million) in content and other revenues. Subscription revenues grew primarily due to higher domestic rates and subscribers. The increase in content and other revenues primarily reflected higher international licensing revenues, partially offset by lower home entertainment revenues.

    Warner Bros,

    Warner Bros. reported 2.8 percent YoY decline in revenues Q1-16 to $3,109 million from $3,199 million in Q1-15. Despite drop in revenue, Operating Income from the segment increased 30.9 percent in Q1-16 to $424 million from $324 million in the corresponding year ago quarter.

    Revenues decreased mainly due to lower theatrical revenues, partially offset by higher television and videogames revenues. Theatrical revenues declined as the prior year quarter included revenues from American Sniper and The Hobbit: The Battle of the Five Armies compared to the release of Batman v Superman: Dawn of Justice late in the current year quarter. Television revenues increased primarily due to higher international licensing revenues and higher initial telecast revenues. The increase in videogames was mainly due to Warner Bros. LEGO and Mortal Kombat franchises.

     

  • “Viewers are no more mere viewers they are our consumers”: Rohit Bhandari

    “Viewers are no more mere viewers they are our consumers”: Rohit Bhandari

    MUMBAI: A pioneer of innovation which has revolutionized world television with shows like Game of Thrones, Last Week Tonight with John Oliver, Entourage and many more, HBO (Home Box Office) competes with Hollywood through their diverse range of content on board. The network recently partnered with Star India for an exclusive programming agreement through which Hotstar and the network’s other channels will have access to HBO’s original content.

    With a brand new red and blue washed look, HBO will also launch an application. Rebranded by Turner  International from Turner Studios Atlanta, and the broadcaster is all geared up to invade the entertainment space with its popular content programming appealing to a larger and younger audience. The movie destination already has titles like Mission Impossible, Transformers Genesis, etc under them.

    Speaking to Indiantelevision.com’s Megha Parmar, Turner International English entertainment Senior Director and Network head Rohit Bhandari sheds some light on his journey with the network so far, the English entertainment space, what attracts the advertisers to the genre, BARC rolling out their rural data, and the way ahead for the channel.

    Excerpts are:

    How has been the journey so far with HBO?

    It has been good as I joined at the time when HBO came into the network and it was quite new for everyone. From the WB channel, which is typically a library service to launching a channel where you have all the premieres, movies and good deals in place, the journey has been exciting. In the initial year, I had to understand what content we have and what content we can expect working with our content partners; understanding the way it’s going to take us in the next few years and what benefits it can do us. I think that was an exciting part in the first year.

    In the second year, we saw a transition from TAM to BARC that shook up everyone. We are trying to understanding the BARC audience as BARC is yet to settle down. It was going through various phases – household data, individual data and then rural got added to it, but this has not changed our lives. We are still looking at the changes that will affect the system. And I think, once the TAM meters come in the panel, it is going to expand further and how does that help us is what we are waiting for. Once all this happens, we can say that BARC has settled down and that’s when everyone will know where they stand from a genre consumption point of view or an individual channel’s point of view.

    Out of the eight movie channels in India, we manage two – that is 25 per cent of the share. We want to understand the consumers better by knowing their motivations, what do they enjoy doing and how does he engage with you and as the consumers have evolved in such a connected world from an alphanumeric phone to a smartphone. This forms a great engagement as well as great distraction. We did our survey and based on the feedback we decided to do a revamp of both our channels. We decided to do something new and give something fresh to our consumers.

    What gives the channels under you an edge above the competition?

    There is no real edge at this point of time. The entertainment space is extremely competitive. Look at the overall situation right now, with only 5 to 6 big studios delivering big films. Some are real blockbusters films and some are the second grader films that come out. To settle in this big English movie space, you need a fair mix of both. At this time, we have a good mix coming from Warner and Paramount, our first pay partners, which we play on HBO and we plan to buy content from more studios so that we can have a complete offering and make up a number for our consumers. Our bit right now is to understand our consumers better, engaging with them and to build the gap from what they expect from us as a movie channel and what we eventually deliver to them, that is where we stand.

    How was year 2015 for the English movie channels? Are there any bench marks or highlights of the year that you would like to mention?

    I think it was a year of a lot of adjustments. We at HBO want to understand our brand better and are adjusting to what it stands for. Everyday is a new day for us where we improve ourselves from the previous day. It’s a process of continuous improvements that we are working on right now. We are happy as well as unhappy and want to develop more. That word ‘more’ is what we are striving for.

    How much does viewership impact advertisers and agencies when it comes to English movie channels?

    It does impact the advertisers. Typically, a lot of the sponsorship only comes on big titles. Hence, it is important to have a right mix of both of performance and a big title. Everyone is trying to achieve that and so are we. 

    Did the genre grow in terms of ad revenues from the previous years? Do you see a further increase this year?

    Yes. There has been an increase from the previous years. I don’t think there will be any drastic change this year. I expect it to be at the same range.

    Do you see an increase in the subscription revenue with digitization?

    The subscription numbers are growing up slowly. Compared to the increase that we saw in DAS I and II, DAS III has been a bit slow but as the year rolls out with big ticket events coming up, we are expecting the roll-out to be a bit more aggressive.

    Movies Now, Star Movies, Zee Studio are often seen fighting for the top three ranks in the BARC data. How do you plan to invade the space?

    As I mentioned earlier, there are only 5 to 7 studios sharing content across channels. Everyday the idea is to increase the ratings and that is what we are trying to do. We are trying to change at three levels. First, we are structuring our titles in a better way. Second, we are going to launch an app soon. The idea behind launching an app is to provide information. It is actually an engagement tool. The mobile phone has become a competitor to TV and especially when our core focus is in the age group of 16 to 30, we need to have that type of content. As you grow, your choice of a handset also grows – that is, your functionality improves and hence you start spending more time on it. The entire idea is to use a medium which the youth follows and is active on. The consumers should know what the brand has and what it is doing for them.

    Lastly, we need to understand from them what their expectations are and bridge the gap of meeting it with what we are providing. That’s a challenge. We are doing something like Batman versus Superman where we are trying to create unique experience for our viewers. We are trying to do that on the app itself. These are the things through which we are trying to reward the viewers for being loyal to us and also for engaging with us on the app. We are trying to have a slightly deeper connection with our viewers. 

    What is key for the genre to garner advertisers’ attention?

    Advertisers want a brand that talks to aspirational India. Within Indian space, English is considered as a minority language. From that perspective, advertisers look for a brand that delivers to this set of audience and continues to hold that edge in continuing to deliver the promise and that’s what HBO has always done.

    BARC had sometime back come out with rural data. Did that have an impact on the content strategy that was followed?

    We look at the data from two perspectives. One, how does the advertisers view us and how the consumers view us. English entertainment initially used to be a four metro base than it became six metro base and then it became eight metro base and then became a 1mn plus based. BARC initially was concerned with urban India, a mix of upper and middle ‘Bharat’ of India. Rural as a metric is being recorded and reported to us for the first time in India. One would expect a number from the council. It has changed the dynamics of the game, but it still needs some time to stabilize its data collection and assimilation process. But as a core offering, I would not focus more on rural. From an English point of view, we will focus on our target group that lies ex-rural irrespective of BARC data. That is the market we will focus on and even our advertisers focus on. Rural is important for everyone but for our genre rural will not be so important.

    BARC and TAM have collaborated. What do you have to say about that?

    It’s a good move. All the meters that TAM had are going to get added to the BARC panel. Whether it gets added uniformly across or whether they expand the panel completely is what we are waiting to hear. Eventually there is only one currency and that actually clears the air on everything

    How is HBO attempting to redefine the movie viewing experience for the viewers?

    The new consumers that we are speaking with, preference is to watch a lot of action content. Based on our research, a couple of key points that came out were that people watch TV because they want to reduce their stress, which is why most of us watch TV. At the second level, they watch English movies as a base to learn English language and hence subtitling becomes important. At the third level, it gives them an opportunity to explore a different culture. Lastly, with the special effects, audio effects or graphics that we use in award winning movies, the viewers want to watch something slicker slightly larger than life and have that entire feeling of grandeur. And that grandier-massier feeling is what we are looking for. There are two levels in which we operate; one is to provide content that your audience wants to watch and also provide content which educates them further about the entire genre.

    Do you think the availability of movies and shows on digital platforms will take away the traditional tv viewing experience?

    At this time I don’t see it as a threat for at least the next few years. On TV the audience is growing on an ongoing basis with digitization and DAS III, and the base is only going to increase. On a larger level, the consumers have to mature to a certain level and understand the difference between TV and what the digital platforms are offering. At least for the next few years, I see TV dominating the space. 

    In an era where people download content globally and the rate of download is very aggressive, is piracy a major teething issue for Hollywood movies?

    This is a bigger question for theatrical guys. What happens is there is a window between theatrical and TV. Earlier it was 12 months and now it has come down to 9 months or 6 months at some places. That is a critical question for theatrical as they are the first ones on the receiving end. Piracy is when theatres get affected by the number of people walking in to watch the movie. I don’t see it as a threat for HBO as a brand.

    Will we see a change in marketing with more experimental initiatives?

    We work closely with our partners. We try to take ownership of the film right from theatrical to the time it premieres on the channel. It is typical consumer behaviour. Today, Batman vs Superman are blockbuster movies which you would definitely want to watch. Once you watch it, there is a certain experience that you derive from the film and that is the same experience that we want to give our consumers when you watch it on HBO. Hence we try to keep the connection alive with them. Hence it is association with a movie at the theatrical level itself. 

    What is the way ahead for the channel?

    We are two brands. Our aim is to keep increasing our viewership share in the overall entertainment space. So currently we have 23 per cent of viewership. We are trying to push ourselves hard to be at number one. That is what I and my team is geared up for. Our aim is to push the envelope by doing new different things to expect a different result at the end of the day. We want to continue surprising our viewers every day. Viewers are no more mere viewers they are our consumers; they come up religiously every day to check what’s happening on the channel like a consumer but also want them to treat HBO as a brand and what we try to do is brand HBO trying to surprise them by trying to do something different.

  • “Viewers are no more mere viewers they are our consumers”: Rohit Bhandari

    “Viewers are no more mere viewers they are our consumers”: Rohit Bhandari

    MUMBAI: A pioneer of innovation which has revolutionized world television with shows like Game of Thrones, Last Week Tonight with John Oliver, Entourage and many more, HBO (Home Box Office) competes with Hollywood through their diverse range of content on board. The network recently partnered with Star India for an exclusive programming agreement through which Hotstar and the network’s other channels will have access to HBO’s original content.

    With a brand new red and blue washed look, HBO will also launch an application. Rebranded by Turner  International from Turner Studios Atlanta, and the broadcaster is all geared up to invade the entertainment space with its popular content programming appealing to a larger and younger audience. The movie destination already has titles like Mission Impossible, Transformers Genesis, etc under them.

    Speaking to Indiantelevision.com’s Megha Parmar, Turner International English entertainment Senior Director and Network head Rohit Bhandari sheds some light on his journey with the network so far, the English entertainment space, what attracts the advertisers to the genre, BARC rolling out their rural data, and the way ahead for the channel.

    Excerpts are:

    How has been the journey so far with HBO?

    It has been good as I joined at the time when HBO came into the network and it was quite new for everyone. From the WB channel, which is typically a library service to launching a channel where you have all the premieres, movies and good deals in place, the journey has been exciting. In the initial year, I had to understand what content we have and what content we can expect working with our content partners; understanding the way it’s going to take us in the next few years and what benefits it can do us. I think that was an exciting part in the first year.

    In the second year, we saw a transition from TAM to BARC that shook up everyone. We are trying to understanding the BARC audience as BARC is yet to settle down. It was going through various phases – household data, individual data and then rural got added to it, but this has not changed our lives. We are still looking at the changes that will affect the system. And I think, once the TAM meters come in the panel, it is going to expand further and how does that help us is what we are waiting for. Once all this happens, we can say that BARC has settled down and that’s when everyone will know where they stand from a genre consumption point of view or an individual channel’s point of view.

    Out of the eight movie channels in India, we manage two – that is 25 per cent of the share. We want to understand the consumers better by knowing their motivations, what do they enjoy doing and how does he engage with you and as the consumers have evolved in such a connected world from an alphanumeric phone to a smartphone. This forms a great engagement as well as great distraction. We did our survey and based on the feedback we decided to do a revamp of both our channels. We decided to do something new and give something fresh to our consumers.

    What gives the channels under you an edge above the competition?

    There is no real edge at this point of time. The entertainment space is extremely competitive. Look at the overall situation right now, with only 5 to 6 big studios delivering big films. Some are real blockbusters films and some are the second grader films that come out. To settle in this big English movie space, you need a fair mix of both. At this time, we have a good mix coming from Warner and Paramount, our first pay partners, which we play on HBO and we plan to buy content from more studios so that we can have a complete offering and make up a number for our consumers. Our bit right now is to understand our consumers better, engaging with them and to build the gap from what they expect from us as a movie channel and what we eventually deliver to them, that is where we stand.

    How was year 2015 for the English movie channels? Are there any bench marks or highlights of the year that you would like to mention?

    I think it was a year of a lot of adjustments. We at HBO want to understand our brand better and are adjusting to what it stands for. Everyday is a new day for us where we improve ourselves from the previous day. It’s a process of continuous improvements that we are working on right now. We are happy as well as unhappy and want to develop more. That word ‘more’ is what we are striving for.

    How much does viewership impact advertisers and agencies when it comes to English movie channels?

    It does impact the advertisers. Typically, a lot of the sponsorship only comes on big titles. Hence, it is important to have a right mix of both of performance and a big title. Everyone is trying to achieve that and so are we. 

    Did the genre grow in terms of ad revenues from the previous years? Do you see a further increase this year?

    Yes. There has been an increase from the previous years. I don’t think there will be any drastic change this year. I expect it to be at the same range.

    Do you see an increase in the subscription revenue with digitization?

    The subscription numbers are growing up slowly. Compared to the increase that we saw in DAS I and II, DAS III has been a bit slow but as the year rolls out with big ticket events coming up, we are expecting the roll-out to be a bit more aggressive.

    Movies Now, Star Movies, Zee Studio are often seen fighting for the top three ranks in the BARC data. How do you plan to invade the space?

    As I mentioned earlier, there are only 5 to 7 studios sharing content across channels. Everyday the idea is to increase the ratings and that is what we are trying to do. We are trying to change at three levels. First, we are structuring our titles in a better way. Second, we are going to launch an app soon. The idea behind launching an app is to provide information. It is actually an engagement tool. The mobile phone has become a competitor to TV and especially when our core focus is in the age group of 16 to 30, we need to have that type of content. As you grow, your choice of a handset also grows – that is, your functionality improves and hence you start spending more time on it. The entire idea is to use a medium which the youth follows and is active on. The consumers should know what the brand has and what it is doing for them.

    Lastly, we need to understand from them what their expectations are and bridge the gap of meeting it with what we are providing. That’s a challenge. We are doing something like Batman versus Superman where we are trying to create unique experience for our viewers. We are trying to do that on the app itself. These are the things through which we are trying to reward the viewers for being loyal to us and also for engaging with us on the app. We are trying to have a slightly deeper connection with our viewers. 

    What is key for the genre to garner advertisers’ attention?

    Advertisers want a brand that talks to aspirational India. Within Indian space, English is considered as a minority language. From that perspective, advertisers look for a brand that delivers to this set of audience and continues to hold that edge in continuing to deliver the promise and that’s what HBO has always done.

    BARC had sometime back come out with rural data. Did that have an impact on the content strategy that was followed?

    We look at the data from two perspectives. One, how does the advertisers view us and how the consumers view us. English entertainment initially used to be a four metro base than it became six metro base and then it became eight metro base and then became a 1mn plus based. BARC initially was concerned with urban India, a mix of upper and middle ‘Bharat’ of India. Rural as a metric is being recorded and reported to us for the first time in India. One would expect a number from the council. It has changed the dynamics of the game, but it still needs some time to stabilize its data collection and assimilation process. But as a core offering, I would not focus more on rural. From an English point of view, we will focus on our target group that lies ex-rural irrespective of BARC data. That is the market we will focus on and even our advertisers focus on. Rural is important for everyone but for our genre rural will not be so important.

    BARC and TAM have collaborated. What do you have to say about that?

    It’s a good move. All the meters that TAM had are going to get added to the BARC panel. Whether it gets added uniformly across or whether they expand the panel completely is what we are waiting to hear. Eventually there is only one currency and that actually clears the air on everything

    How is HBO attempting to redefine the movie viewing experience for the viewers?

    The new consumers that we are speaking with, preference is to watch a lot of action content. Based on our research, a couple of key points that came out were that people watch TV because they want to reduce their stress, which is why most of us watch TV. At the second level, they watch English movies as a base to learn English language and hence subtitling becomes important. At the third level, it gives them an opportunity to explore a different culture. Lastly, with the special effects, audio effects or graphics that we use in award winning movies, the viewers want to watch something slicker slightly larger than life and have that entire feeling of grandeur. And that grandier-massier feeling is what we are looking for. There are two levels in which we operate; one is to provide content that your audience wants to watch and also provide content which educates them further about the entire genre.

    Do you think the availability of movies and shows on digital platforms will take away the traditional tv viewing experience?

    At this time I don’t see it as a threat for at least the next few years. On TV the audience is growing on an ongoing basis with digitization and DAS III, and the base is only going to increase. On a larger level, the consumers have to mature to a certain level and understand the difference between TV and what the digital platforms are offering. At least for the next few years, I see TV dominating the space. 

    In an era where people download content globally and the rate of download is very aggressive, is piracy a major teething issue for Hollywood movies?

    This is a bigger question for theatrical guys. What happens is there is a window between theatrical and TV. Earlier it was 12 months and now it has come down to 9 months or 6 months at some places. That is a critical question for theatrical as they are the first ones on the receiving end. Piracy is when theatres get affected by the number of people walking in to watch the movie. I don’t see it as a threat for HBO as a brand.

    Will we see a change in marketing with more experimental initiatives?

    We work closely with our partners. We try to take ownership of the film right from theatrical to the time it premieres on the channel. It is typical consumer behaviour. Today, Batman vs Superman are blockbuster movies which you would definitely want to watch. Once you watch it, there is a certain experience that you derive from the film and that is the same experience that we want to give our consumers when you watch it on HBO. Hence we try to keep the connection alive with them. Hence it is association with a movie at the theatrical level itself. 

    What is the way ahead for the channel?

    We are two brands. Our aim is to keep increasing our viewership share in the overall entertainment space. So currently we have 23 per cent of viewership. We are trying to push ourselves hard to be at number one. That is what I and my team is geared up for. Our aim is to push the envelope by doing new different things to expect a different result at the end of the day. We want to continue surprising our viewers every day. Viewers are no more mere viewers they are our consumers; they come up religiously every day to check what’s happening on the channel like a consumer but also want them to treat HBO as a brand and what we try to do is brand HBO trying to surprise them by trying to do something different.