The profitability of Time Warner’s home video business has dropped...
The profitability of Time Warner’s home video business has dropped even though consumers are spending more time with its movies at home, CEO Jeff Bewkes said at a UBS investor conference Tuesday. “You're moving away from DVD, which was very…
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profitable,” he said. And with digital movies, viewers who pay for movies at home are increasingly opting for less profitable rentals than outright purchases, he said. Time Warner is trying to make that business more profitable by the windows it sells various products in “and by making ownership more easy and valuable,” through efforts such as UltraViolet, he said. “We haven’t yet succeeded in being able to do so,” he said. At its pay-TV networks, Bewkes said he’s confident Time Warner can continue increasing affiliate fees despite pushback from distributors over escalating programming costs. “The value of the package they're bringing [to consumers] is getting strong,” because of new technology such as TV Everywhere that allows broader access to programming, he said.