Time Warner is in close communication with YouTube so it...
Time Warner is in close communication with YouTube so it can better understand how to use that video sharing website to Time Warner’s advantage, CEO Jeff Bewkes said Wednesday. For now, Time Warner has viewed Google’s YouTube primarily as a…
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place to promote its other businesses, he said on the media company’s Q2 earnings webcast. “As YouTube shifts to offer more professionally-produced content, we'll look at that to support our networks, and possibly to launch some new businesses.” On Google’s fiber initiative in the Kansas City, Mo., area, Bewkes said he expects Time Warner’s networks to be available on that service soon. “We're in pretty good discussions with them, and we're pretty optimistic we'll be able to reach a deal,” he said. It’s important to understand the distinction between the facilities-based project Google has undertaken in Kansas and over-the-top video providers, Bewkes said. So-called virtual MSOs “don’t provide quality, they don’t provide infrastructure and they don’t improve the viewer experience,” Bewkes said. Google Fiber (CD July 27 p20) is different because it is investing in infrastructure, he said. Asked about how Time Warner views the potential for a partnership between its HBO unit and Netflix, don’t expect anything soon, Bewkes said. “There are not talks going on now between HBO and Netflix.” Those two companies are primarily competitors, he said. “Sometimes there are ways for other relationships to emerge over time,” he said. “Not now, but we'll see in the future.” Meanwhile, Time Warner still has no plans to sell its HBO Go online video service to U.S. customers without an HBO subscription through a traditional distributor, he said. “The whole idea that there are a lot of people out there that want to drop multichannel TV and just have a Netflix or an HBO, that’s not right,” he said. “Look for the data -- you won’t find them.” Time Warner Q2 sales fell 4 percent from a year earlier to $6.7 billion. Profit fell 32 percent from a year earlier to $429 million on lower sales.