COMPANY PROFILE -Time Warner Inc.
Business Sector :Mass Media
Operating Geography :United States, North America, Global
About Time Warner Inc. :Time Warner Inc., renamed in 1990, is an American multinational mass media conglomerate headquartered in New York. The organization operates in almost every field of mass media – movie production, cable television, publishing, music, theme parks etc. The company has three major divisions – Turner, Home Box Office (HBO) and Warner Bros. As of March 2017, AT&T has acquired the company pending approval from regulatory authorities. The company has 25,000 employees.
Time Warner Inc. Revenue :$ 29.318 Billion for fiscal year 2016
Competitive Analysis of Time Warner Inc.
|1. Growing Profit Margins and EPS|
2. Diversified Revenue Sources
3. Powerful Brand Portfolio
4. Loyal Consumer Base
|1. Higher reliance on an unreliable revenue source
2. Cross brand cannibalism
3. Dependence on a dying industry (DVD/Blu Ray)
|1. Increasing demand for OTT services|
2. Acquisition AT&T to reach new audiences
3. Increasing popularity of American content on a global scale
|1. Competition from low-cost substitutes
2. Piracy of content
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Detailed SWOT Analysis of Time Warner Inc.
1. Growing Profit Margins and EPS: TIME Warner Inc. has been riding on increasing operating profit margins, reflected in an upward trend in the stock prices over the last one year. The EPS has been steadily increasing YoY (EPS is 1.8 for first quarter of 2017 compared to 1.51 for first quarter of 2016)
2. Diversified Revenue Sources: The company has a diversified revenue stream with Warner Bros. contributing 42% of total companywide revenues, HBO contributing 20% and Turner contributing 38% of companywide revenues of $29.318 billion for the financial year of 2016. Each business operates in a different segment of mass media and very well dilutes risks faced by the company. The conglomerate is third in terms of revenue size behind only The Walt Disney Company and Comcast.
3. Powerful Brand Portfolio: It has an arsenal of powerful names and brands like Turner, Warner Bros. and HBO. Under each division there are brands with a global presence and recognition across generations of consumers.
4. Loyal Consumer Base: TIME Warner has a loyal consumer base which follows the brands under its umbrella – HBO has more than 100 million subscribers worldwide.
1. Higher reliance on an unreliable revenue source: The conglomerate relies upon its Warner Bros. division to a greater extent for its annual revenue. This division focuses on big banner projects distributed exclusively through cinemas. As more and more movie goers continue to find alternatives to watching films in theatres, the division will suffer.
2. Cross brand cannibalism: The results of the last year releases in the DC Entertainment section – ‘Batman Vs Superman’ and ‘Suicide Squad’ were mixed as they could not deliver the unanimous impact as delivered by the superhero franchise of Marvel Comics. However, the next films in the series hope to redeem their value and make sure those theatres stay full.
3. Dependence on a dying industry (DVD/Blu Ray): The Warner Bros. division is still dependent upon DVD/ Blu-ray discs for distribution of media to audiences at home, which is a dying business due to the advent of OTT services such as Netflix, Comcast etc.Time Warner SWOT analysis has been conducted by Abhinay Pednekar and reviewed by senior analysts from Barakaat Consulting.
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Time Warner SWOT & PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2020). Time Warner SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/time-warner/ [Accessed 11 Jul, 2020].
In-text: (SWOT & PESTLE.com, 2020)