HBO Now Is 'All Additive' So Far, HBO Says — No Cable Cannibalization
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Time Warner posted earnings that beat analysts’ estimates for a 25th straight quarter, driven by the broadcast of the NCAA basketball tournament and higher fees from pay-TV operators to carry channels like CNN and TNT.
The results validated CEO Jeff Bewkes’s strategy of charging higher distribution fees for its cable networks while cutting jobs to reduce costs. After Mr. Bewkes spun off assets in recent years, Time Warner shrunk down to its Turner cable channels, HBO and Warner Bros. He is also trying to keep the company expanding and the stock price rising after rejecting a $75 billion buyout offer last summer from Rupert Murdoch’s 21st Century Fox.
“The slimmed down Time Warner is all about the cable networks and the studio,” said Paul Sweeney, an analyst at Bloomberg Intelligence. “This quarter showed that these businesses are hitting on all cylinders.”
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