Time Warner has released its third-quarter earnings, and according to Video Business the company is “upbeat. . .  noting improved studio performance plus stabilization of the overall DVD market.”  Time Warner also appears confident that continued growth in the rental, digital delivery and high-definition sectors will help keep home entertainment revenues in the black.
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The company’ theatrical/DVD division recorded $291 million in operating income for the the third-quarter of 2009, which is a 6% increase over the same period in 2008. Time Warner CEO Jeff Bewkes feels the home entertainment business has begun to steady itself after a period of decline:

“On the long-term home video outlook, the home entertainment environment is stabilizing and will continue to into next year. . . The retail environment is still challenging, with a little less shelf space for DVD. But we see pressure on physical sell-through moderate, and we do expect to see continued growth in rental, electronic sell-through and Blu-ray.”

As mentioned yesterday regarding Redbox earnings, the vital fourth-quarter will either confirm Bewkes’ assessment or demonstrate its fallacy. Do you think he’s right, Insiders?
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Is the pressure on DVD sell-through really “moderate”, and is the market finally finding its feet again?

[via Video Business]