SEC Filings

10-Q
TIME WARNER INC. filed this Form 10-Q on 10/26/2017
Entire Document
 


Table of Contents

TIME WARNER INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)

 

Revenues primarily relate to theatrical product (which is content made available for initial exhibition in theaters) and television product (which is content made available for initial airing on television or OTT services). The components of Revenues for the three and nine months ended September 30, 2017 and 2016 are as follows (millions):

 

                                                                                                                                                                 
     Three Months Ended September 30,    Nine Months Ended September 30,
     2017      2016      % Change    2017      2016      % Change

Theatrical product:

                 

Film rentals

   $ 772       $ 794       (3)%    $ 1,759       $ 1,603       10%

Home video and
electronic delivery

     424         368       15%      1,135         910       25%

Television licensing

     427         369       16%      1,315         1,207       9%

Consumer products
and other

     74         74       —%      216         206       5%
  

 

 

    

 

 

       

 

 

    

 

 

    

Total theatrical product

   $ 1,697       $ 1,605       6%    $ 4,425       $ 3,926       13%
  

 

 

    

 

 

       

 

 

    

 

 

    

Television product:

                 

Television licensing

     1,111         1,200       (7)%      3,578         3,451       4%

Home video and
electronic delivery

     98         134       (27)%      263         313       (16)%

Consumer products
and other

     99         96       3%      293         294       —%
  

 

 

    

 

 

       

 

 

    

 

 

    

Total television product

   $ 1,308       $ 1,430       (9)%    $ 4,134       $ 4,058       2%
  

 

 

    

 

 

       

 

 

    

 

 

    

The Warner Bros. segment had the following number of theatrical film, theatrical product home video and electronic delivery and videogame releases during the three and nine months ended September 30, 2017 and 2016:

 

                                                                       
                   Three Months Ended September 30,      Nine Months Ended September 30,  
                   2017      2016      2017      2016  

Theatrical film releases

                         14         15   

Theatrical product home video and electronic delivery releases

                         13         16   

Videogame releases

                                 

Theatrical product revenue from film rentals decreased for the three months ended September 30, 2017, reflecting lower revenues of $47 million from theatrical films released during the third quarter of 2017 compared to the third quarter of 2016, partially offset by higher carryover revenues of $25 million from prior period releases. Theatrical product revenue from film rentals increased for the nine months ended September 30, 2017, primarily reflecting higher revenues from theatrical films released during the first nine months of 2017 compared to the first nine months of 2016.

For the three months ended September 30, 2017, theatrical product revenues from home video and electronic delivery increased primarily due to higher revenues from prior period releases, including catalog titles, during the third quarter of 2017 compared to the third quarter of 2016. For the nine months ended September 30, 2017, theatrical product revenues from home video and electronic delivery increased due to higher revenues of $189 million from releases during the first nine months of 2017 compared to the first nine months of 2016 and higher revenues of $36 million from prior period releases, including catalog titles, during the first nine months of 2017 compared to the first nine months of 2016.

The increase in theatrical product revenues from television licensing for the three and nine months ended September 30, 2017 was primarily due to the timing and mix of availabilities.

The decrease in television product revenues from television licensing for the three months ended September 30, 2017 was primarily due to lower initial telecast revenues. The increase in television product revenues from television licensing for the nine

 

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