In detailing what helped Time (NYSE: TWX) Warner’s return to profitability, CEO Jeff Bewkes started the Q4 call insisting that the company has completed many of the goals it laid out last year. In 2010, the company’s big plans rest on international expansion, adding more new programming for its cable networks Turner and HBO, and getting more out of technology, whether its the TV Everywhere system or new devices like Apple’s iPad, though Bewkes didn’t mention that product by name.
He also alluded to the introduction of Apple’s iPad, saying Time Warner is committed to develop new business models related to new technologies. Looking to cable TV, Bewkes promised to invest in new original cable programming at Turner, which will grow ad revenue even if ratings trends don’t turn around.
Despite weaker ratings than News Corp.‘s Fox News, Bewkes said CNN’s profits were up by double digits. Ratings has not been a problem for HBO, which managed to grow its subscriber base in the face of the recession. Both Turner and HBO will expand internationally. More importantly, both Turner and HBO will dive further into the on-demand TV Everywhere initiative, a project that is particularly dear to Bewkes’ heart.
On the film studio side, Warner Bros. will to shift more home video to digital viewing, which is lower cost. Apart from e-readers and tablets, games will take on greater importance this year as well, as gaming now generates more than $500 million in revenue, said CFO John Martin.
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