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Time Warner Posts Record Profits

Things are looking up over at Time Warner, with the entertainment giant posting record profits for the last quarter. Income rose $725 million from Q1 in 2009, a full 10% increase.

According to the filing, most of the increase comes from their television networks, including CNN, TBS, TNT and others. They are also believed to see a continued boost due to Conan O’Brien coming to TBS this fall, as well as a new agreement for them to air NCAA March Madness for the next 14 years.


Warner also saw a nice boost from their Warner Bros division, with strong DVD sales for “Sherlock Holmes” and “The Blind Side”, and strong box office for “Valentine’s Day”. They also believe they will see increased revenue in this area as a result of their recent distribution deals with Blockbuster, Netflix and Redbox.

With these results – and those from News Corp yesterday – it is believed that the industry may be recovering from the recent downturn. Will this recovery come at the expense of consumers, or will everyone win as these companies alter their business to increase revenues and keep making entertainment?

[via CNN]

31 Responses to “Time Warner Posts Record Profits”

  1. Visitor [Join Now]
    John Small [visitor]

    Warner can’t force people to give them money Michael.

    • Administrator
      Michael [administrator]

      Well, technically, yes… but isn’t that what they REALLY are doing?

      They forced Redbox into an agreement that makes $1 rentals less desirable for some consumers by delaying availability. Now, of course, people can make a choice, but it is choice they didn’t have to make 6 months ago.

      • Visitor [Join Now]
        redrider [visitor]

        well technically, yes…. you are a dumbass!!!

      • Visitor [Join Now]
        John Small [visitor]

        Michael, you know that $1.00 rentals on New Releases was an unsustainable proposition for the studios.

        They make most of their money from DVD sales. Not just to customers but to rentailers as well.

        If Redbox had been willing to pay full price for their product, then maybe there could have been a deal.

        You are asking the studios to slit their own throats so that people can rent movies cheaply.

        Not really a fair proposition is it.

        • Administrator
          Michael [administrator]

          John,

          Redbox was likely a bit ahead of the curve on the $1 price point, but it is pretty clear that things are headed that direction and will continue to do so. I certainly do not “know” that it was unsustainable.

          I do not blame the studios for wanting to protect/increase their profits – like I said before, I would want to do the same. However, it is inevitable that the price will get there eventually, all the way across the board. Competition is getting fiercer all the time, and consumers are more and more choosing value over convenience.

          With economies of scale and easier distribution, costs of delivering content are plummeting. Granted, this could change if bandwidth becomes a major issue, but everyone is working on that problem right now, as well.

          Blu-ray and digital distribution will certainly give content-owners some comfort at higher prices for now, but it won’t last. Just like the music industry, everything will eventually move to non-physical media, and when that happens someone (Apple, YouTube?) will strike a deal that brings the price down to $1-2, where Redbox stands today.

          It is only a matter of time, and nothing you or any of the lame VBG shills (not putting you in the same boat as them) say or do will stop it. As in my other post today, Movie Gallery died – and Blockbuster is hurting – for the exact same reasons.

          Industry progression cannot be ignored or thrown into the closet, because eventually everyone built on the old structure will find themselves sitting on a house of cards, with nowhere to go but down.

          • Visitor [Join Now]
            Firstlawofnature [visitor]

            Un-sustainable pricing is such a crap term. If you must use the word realize it’s the first sale doctrine that makes the price un-sustainable, not Redbox.

            I disagree a bit about prices dropping for internet delivered video. Sure the costs are plummeting but it’s really about the dollars the studios can get from consumers. Since costs are already low for certain forms of distribution dropping the cost further won’t really do much to pad profits. Without the shackles of the first sale doctrine on the internet the studios can influence pricing in a much bigger way vs physical product. So I’d bet we don’t see $1 rentals on the net in a big way. Unless of course massive piracy forces things that way.

            I do agree with the truth teller there that someone has to pay for content. It’s not really Redbox’s issue though but I expect the studios will figure it out. TV evolves and adjusts with lower cost reality shows and in show placements that are difficult to skip. Movie studios will figure out how to do more with less. And even if everything does rent for $1, movies will still get made and one will win best picture each and every year. The world won’t end if the studios mint a little less coin.

          • Visitor [Join Now]
            John Small [visitor]

            How many Redboxes do you need to equal one BB in terms of pieces bought? Until Redbox can prove that they will buy more product for more money than BB did in the past (and they are still a long way away from that) then the studios will not want them cannibalizing the revenue stream.

            FLON, at least Michael was upfront about the fact that he makes money off of Redbox (not a lot but some). You posted for months before revealing you had a financial stake in the company.

            I respect Michael. I have no respect for you.

          • Visitor [Join Now]
            Firstlawofnature [visitor]

            You are so lame. You used to work in the industry and yet you didn’t reveal which companies you worked for in the past. I don’t really care if you did or didn’t because I can smell your bullsh*t from a mile away (others here having apparently have smelled it as well). Is it really necessary for every inside redbox participant to reveal if he or she owns shares, is a customer or works/worked in the industry somehow?

            – The pump & dumper

          • Visitor [Join Now]
            John Small [visitor]

            Dunno, why don’t you ask the SEC what they think FLON?

          • Visitor [Join Now]
            TrickyM [visitor]

            With all due respect FLON, because you personally take the time to state your opinion on everything here, often arguing many points brought up by others. Perhaps you wear your general feelings about the company on your sleeve. You noting your connections would help others understand why and how you feel the way you do.

            Again, I agree with many (the majority) of the things you say. I won’t say everything, but enough to where I respect your input on the industry itself.

          • Visitor [Join Now]
            redrider [visitor]

            apparently the only people required to identify themselves on this site are the people at vbg. i can only guess that is because of how outspoken they have been about redbox’s hurting this industry. obviously as long as you don’t work for them identity is not required. michael obviously has a crusade against them according to past post. anyways half of you guys who comment on here including michael are only trying to best serve your own best purposes and wallets by spreading as much bullshit as you can. flon, michael you two spread enough shit to plant crops. whatever, your onesided views are as plain as the noses on your faces. no matter how much michael wants to lie and say he has no monetary interest or flon likes to act like he’s not heavily investing monies in redboxes stocks (nice call on notifying the s.e.c.)

          • Visitor [Join Now]
            Firstlawofnature [visitor]

            @redrider,

            What specifically do you disagree with? What do you agree with? This site doesn’t work if no one has an opinion.

          • Visitor [Join Now]
            Firstlawofnature [visitor]

            @ TrickyM

            JS’s biases reveal themselves in the quality of what he/she posts. I obviously disagree with his opinions and that’s fine. However some of what he says is flat out incorrect and thus far his best response was to change the subject. I’d prefer to let the quality of what JS and I have to say float or sink on their own and not enter into a discussion about where we work/worked. I am a fan of redbox and I’m not retired yet. Not doing a lot of sipping wine either.

            Michael the administrator hasn’t called me out for unfair or deceptive posts but has done so for JS a few times. The fact that he gets attacked for providing a useful site that probably nets him only a few bucks tells you what we are dealing with here. Anyway if Michael had a problem with any of my posts I would try to address his concerns.

          • Visitor [Join Now]
            John Small [visitor]

            Michael hasn’t called you out FLON because you are posting mirror image posts as his.

            BTW FLON, do you disagree that the per machine profit has dropped in Q1? Because it has you know.

          • Visitor [Join Now]
            purplenurple [visitor]

            The motorator for this site only likes it when it is his B.S. that’s being spread. That and when he has people agreeing with him.

          • Visitor [Join Now]
            Joe Schmuck [visitor]

            Is a motorator anything like a moderator?

          • Visitor [Join Now]
            redrider [visitor]

            slow down Schmuck can’t keep up if there are spelling errors.

  2. Visitor [Join Now]
    Farva [visitor]

    Yes boo-hoo. Poor old Time Warner with their $725 million in Q1 was so struggling to makes ends meet that they had to strong-arm both Netflix and Redbox into unfair agreements.

    • Visitor [Join Now]
      redrider [visitor]

      yeah poor warner and fox. they restrict netflix and redbox and report record earnings. i’m sure that has nothing to do with increased revenue on sell thru. shame on them for trying to protect the sell thru and make a profit. they act like it’s a business or something.

  3. Visitor [Join Now]
    purplenurple [visitor]

    Evidence of Michaels close ties with Redbox…. Michael mentions on this site that redbox should take down the lame site “savelowcostdvds” and within 20minutes the website is redirected to redbox’s page. As much as Michael says he isn’t connected with them or doesn’t have a monetary interest he’s a liar. His crediability is about as good as Eric Wolds. They are both erand boys for redbox!!!!!!!

    • Administrator
      Michael [administrator]

      Wow, dude. Really?

      So, two weeks ago (4/23) I made a comment that had this at the end:
      “How long until Redbox takes down their “Save Low Cost DVDs” site”

      And today, you post that Redbox took it down 20 minutes later, and that somehow proves that I have “close ties” with them? Good luck selling that one…

      And, even if it was true, all that proves is that Redbox employees read this site. Shocker, right?

      The reality is, you are the liar here, and your only goal is to spread FUD about this site and Redbox because of YOUR interests. Why keep wasting your time? You only make yourself look like an idiot, no matter how many different screen names and computers you post your crap from. I’ve dealt with fools like you before, and I am sure you won’t be the last.

      Keep up the good work!

      • Visitor [Join Now]
        redrider [visitor]

        Wow!! tracking posters IP address’s a little underhanded but good to know.

        • Visitor [Join Now]
          rb [visitor]

          Just my 2 cents…redrider, sounds like you might be the one who is a little ‘underhanded’ or has something to hide if you think it’s “good to know” different posters’ blog names can be tracked to one IP address…Think this probably evolved/became necessary months ago when totally anti-Redbox VBG employees were caught assuming regular site bloggers’ names/identity, and making anti-redbox/contrary statements to the real bloggers’ beliefs….Which brings me to John Small :-) Maybe because my blog name/identity was one of the names/identities being falsely used, I followed things ‘closely’ at that time….Those ‘underhanded’ folks assuming regular bloggers’ identities were sooooooooooo aggressively anti-redbox/ negative that it became easy to spot when they were assuming and making statements under a regular/common/familiar bloggers’ name. Anyways, as soon as this was all outed, these “aggressive” and “underminded” anti-redbox VBG guys seemed to immediately disappear AND a “gentler” anti-Redbox blogger IMMEDIATELY entered the scene in their place: John Small!!! Since mystery/suspense is my favorite genre, I started to wonder/suspect, and have done so since , if John Small (if real name) realized that the “aggressive” approach with an agenda to try to turn people against Redbox on this site wasn’t working, so he would try a ‘gentler’ approach…even with a few words of kindness to others now and then==BUT STILL TOTALLY NEGATIVE, ANTI-REDBOX! So, if redrider’s IP address ends up the same as John Small’s!!!!!

          • Visitor [Join Now]
            John Small [visitor]

            Let’s be fair RB, I was posting on this site before Michael decided that it was his policy to out IP addresses.

            And you know full well that I am not 100% anti-Redbox. I support them when they make good decisions. I think raising their prices is a smart move. I think the lawsuit against them for the “No Late Fees” is ridiculous. I think that they will fill a good niche in the rentertainment industry.

            You seem to attribute negativity to everything that I say but it simply isn’t true. You need to take off those glasses and just read what I say.

            I’ll be waiting for that apology again (second time this week for you).

          • Visitor [Join Now]
            rb [visitor]

            Okay J.S…First, how do you know I wear glasses??? I don’t have time right now, BUT knowing myself I’ll go back to ‘research’ exactly when you , under the John Small name, appeared on this site and I’ll get back to you on that one….I also think the late fees lawsuit is ridiculous BUT having dealt with the courts 1x, I do know judges are ‘lazy’ in a way as they don’t take time to look at the ‘individual’ merits of a case and rely/rule almost exclusively on the judgment by other judges made on previous ‘similar’ cases….I think Redbox RENTAL terms and conditions for 25 days is concise and clear=NO LATE FEES…You either rent the dvd during the first 25 days or own it thereafter..BUT, I think the ‘lazy’ judge won’t take the time to look at the individual merits of this case sooooooo will probably either toss out the case or rule against Redbox based on a previous similar case…Not fair, but that’s life… Regarding what you considered an apology—You are assuming an apology was made in the first place based on the 1% chance I stated that you might not have a dog in the fight…I still ‘detect’ there’s a 99% chance you do . Since no one but you can ‘disclose’ the truth and I can’t prove the truth, then it’s a pretty unstable (1%) apology you’re grasping at…Which brings me to another point…We’re all bias one way or the other, so IT’S NOT A BAD THING if you do have a dog in the fight, it actually gives your opinions more credibility IF/WHEN you can back them up with tangible FACTS….It’s when one pretends to have no dog in the fight when they in fact do/assume a false identity (like the VBG guys did) to argue/spew their opinions that takes away all credibility–has the ‘yak’ factor for me…Which is why I give MORE credibility to FLON right now because he does back up his opinions with facts–even stating exact manuals/pages to find the facts :-) And another thing!!! When someone runs a site titled ‘InsideRedbox’ shouldn’t they be just a tiny bit ‘bias’ towards Redbox…It’s only ‘common sense’…And I really don’t understand what all the flack is about if or not Michael L. makes a little money off of running this site… I always thought people create certain websites based on their interests to do just that–make a little money!!! Can’t see a dad of a handful of kids just ‘volunteering’ his time to run this site because he enjoys us wackos –hopefully he’s making some money to feed those kids…And no, I don’t agree with Michael all the time–he thinks it would be good if Redbox charged $2 for new releases on day one and $1 thereafter… Okay, I’m willing to go $1.25 BUT THAT’S IT!!!

          • Administrator
            Michael [administrator]

            Just to be clear, John, I have never “outed” anyone’s IP address. I did call out those VBG employees who were pulling shenanigans around here and impersonating other users. That was not appropriate and did not actually add to any real discussion.

            I have said it before, and will say it again, I am find with anyone expressing their opinion on this site. I welcome VBG members and employees if they choose to express those opinions without ‘gaming’ the site.

            And, at this point I rarely look at IP addresses myself. Some of the recent comments by redrider and his other ‘personas’ have been very
            clear that they came from the same person. Plus, those little icons tell everyone if a user is the same, using a different name or IP address or not.

  4. Visitor [Join Now]
    redrider [visitor]

    your funny rb. yourself, michael, john small, and flon all have an agenda it’s not that hard to see just go back in the post. i’ll tell you what why don’t you suck my IP.

  5. Visitor [Join Now]
    redrider [visitor]

    what’s funny is not a one of you posters above me can say shit about my post. every single one of you has been using this site to spread your own personal agendas. that’s all this site has been for months. you 4 or 5 same guys saying the same shit. i’ll bet a couple of you work for redbox, michael gets paid off redbox, flon is an investor for redbox. you all scream back and forth about fud but that’s all any of you spread. they should call this site fudforredbox.

  6. Visitor [Join Now]
    redrider [visitor]

    nah firstlawofnature i like this site that way i can call you out for the rat you are.

    • Visitor [Join Now]
      Firstlawofnature [visitor]

      Yes I’m a rat and you are a high quality person. If you could call me out on a single item that actually required some thought I would be grateful to you.