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Time Warner Highlights: A Quarterly Overview of Key Developments at Time Warner and Its Businesses


October 28, 2005, As a complement to next week’s (November 2) announcement of our company’s quarterly financial results, we’re pleased to present this edition of Time Warner Highlights. Our goal with Highlights is to keep you informed of the significant accomplishments of our businesses and our progress in achieving our strategic goals. Online links to further information are included.

Time Warner Inc.
HBO demonstrated the quality and range of its original programming, collecting 27 Primetime Emmy awards, the most of any network (read more). The Life and Death of Peter Sellers captured nine awards – more than any other television show – while Deadwood and Warm Springs each garnered five Emmys. Cartoon Network won seven Emmy Awards for its animated series, including Star Wars: Clone Wars, Foster’s Home for Imaginary Friends, The Powerpuff Girls and Samurai Jack. Warner Bros. Television won three Emmys for George Lopez, Two and a Half Men and ER. Warner Bros. Technical Operations and The WB 100+ Station Group were also honored with the Technology and Engineering Emmy Award in recognition of their creation of a new, state-of-the-art television distribution technology.

CNN and Time Inc. announced that the business websites,, and will be merged and re-launched in January 2006 as a single website. The new website will retain the name and be available at The site will continue to feature daily business news, markets coverage, commentary and analysis produced by the site’s dedicated staff, while drawing on a rich array of content produced by the magazines Money, Fortune, Fortune Small Business and Business 2.0, as well as from CNN’s global staff. (read more)

Filmed Entertainment
Time Warner’s studios together ranked #1 in domestic theatrical box office for the year through October 2, capturing a 21.9% share, with three films – New Line Cinema’s Wedding Crashers and Warner Bros.’ Charlie and the Chocolate Factory and Batman Begins – each generating more than $200 million in domestic box-office receipts to date.

For 2005 through September 24, Warner Home Video garnered an industry-leading 19.1% share of home video sales and rentals in the U.S. and ranked #1 in DVD sales. Notable domestic home video releases in the third quarter included Warner Bros.’ Million Dollar Baby and Constantine, as well as New Line Cinema’s Monster-in-Law.

Time Warner Cable and NBC Universal Cable (NBCU) announced a renewal for USA Network, and a carriage agreement for Universal HD, mun2, Telemundo Puerto Rico and VOD (video on demand). Additionally, the agreement allows Time Warner Cable to include NBC and NBCU programming as part of its Start Over service. When launched later this year, Start Over will provide Time Warner Cable customers the ability to restart enabled television shows that are already in progress. Select programming from NBC’s broadcast network, USA, CNBC, MSNBC, Bravo, SCI FI and others will be Start Over-enabled. (read more)

Time Warner Cable expanded its interactive television (iTV) offering to its New York City customers with the launch of interactive polling on NY1 News, the company’s 24-hour local news network. Time Warner Cable’s Digital Cable customers were able to participate in live surveys during NY1’s coverage of the New York City Democratic mayoral primary, with results instantly displayed on screen. More than 20% of those viewing and able to interact participated during this initial launch of the polling service.

Time Warner Cable continued to rollout its increasingly popular, free Caller ID on TV service to customers across the country who subscribe to the company’s Digital Cable and Digital Phone services. Following previous launches in South Carolina and Rochester, NY, Time Warner Cable began to deliver Caller ID on TV to customers in its Texas divisions during the third quarter.

Video on demand, cable’s primary differentiator versus satellite providers, continued to grow in popularity with consumers. Today, Time Warner Cable digital customers view an average of 15 on-demand streams per month – a 50% increase in VOD views per digital subscriber versus last year. The benefit of increased views is significant as VOD usage drives digital cable retention.

Among advertising-supported cable networks, TNT finished the third quarter #1 in prime-time delivery of its key audiences – including new records for Persons 2+ and Households – and ranked #1 in total-day delivery among Adults 25-54, another new record (read more). TNT has had 21 consecutive quarters of year-over-year growth in total-day delivery among Adults 18-49. TBS aired ad-supported cable’s top four sitcoms for the quarter – Sex and the City, Everybody Loves Raymond, Seinfeld and Friends – in delivery of adults 18-49. Cartoon Network ranked #1 in prime-time delivery of Kids 2-11. Adult Swim ranked #1 in total-day delivery among Adults 18-34, setting a new record among ad-supported cable networks (read more). Led by its news coverage of Hurricane Katrina, CNN attracted more than 100 million viewers nationwide in September.

America Online
On the heels of its record-setting broadcasts of the Live 8 concerts, AOL announced Network Live, a groundbreaking joint venture that capitalizes on the huge potential of multi-platform live entertainment programming. Joining AOL in the venture are: AEG, a world-leading sports and entertainment presenter; XM Satellite Radio, the nation’s leading provider of satellite radio; and entertainment and technology veteran Kevin Wall. Since its launch, Network Live has produced two successful events – a Bon Jovi concert in New York and a Green Day concert in Los Angeles. (read more)

In early October, AOL began rolling out a new VoIP service, TotalTalk, which transforms any high-speed Internet connection into a quality phone service that is simple to use and affordable, with savings of up to 40% off monthly phone bills, compared to traditional landline service. TotalTalk is available to all Internet users. Current AOL Internet Phone subscribers will be upgraded to the TotalTalk service automatically. (read more)

AOL announced new features designed to deliver the best of the web’s podcasts to the more than 100 million unique visitors to AOL’s network of web properties. Listeners can easily discover, experience and download some of the web’s most popular podcasts. AOL’s first original podcast, Sports Bloggers Live, has been heard approximately 2 million times. Fans are also able to search for thousands of additional podcasts with the new version of AOL’s Winamp 5.1 media player. (read more)

In August, AOL acquired Xdrive, an online multimedia, centralized storage service that gives subscribers access to, and protection of, all their digital assets – regardless of location or device used to access the Internet (read more). Also in August, AOL announced it would increase its investment in the wireless services sector by acquiring Wildseed, a leading provider of advanced wireless technologies, and by forming an expanded AOL Wireless group (read more). In October, AOL announced its acquisition of Weblogs, Inc., one of the online medium’s leading blogging companies (read more).

Time Inc.’s People was named Advertising Age’s 2005 Magazine of the Year, with Real Simple ranked second.

Time Warner Book Group added 10 titles to the New York Times bestseller list during the third quarter. James Patterson’s Lifeguard, Joel Osteen’s Your Best Life Now and Elizabeth Kostova’s The Historian all ranked #1 during the quarter.


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