A GLOBAL ANALSIS...

By Hemant VyasMBA @Chitkara Business School.Mentor: Proff. Shantanu Gosh.

“TIME WARNER INC.”ABOUT CO.

• The world's second largest entertainment conglomerate in terms of revenue (behind Disney).

• Businesses in television networks, filmed entertainment,marketing, distribution and publishing in over 200 countries and above 45 languages.

• H.Q. :- Time Warner CentreMidtown Manhattan, New York City, U.S.

• Warner Brothers, Time Inc, Turner Broadcasting System along with HBO form the current Time Warner.

Subsidiaries and Brands.

Warner Bros.

• Started by four brothers Harry, Albert , Sam and Jack in 1903.

• Produces and distributes a wide-ranging slate of some 18-22 films per year globally.

• Operating offices in more than 30 countries and releasing films in over 120 international territories.

• Employees ranging from 7,000 to 15,000(USA) and about 2,000 employees overseas.• In 2009, Warner Bros. had a record-breaking worldwide

box office of $4.01 billion.

Famous Productions

• Tom and Jerry, Hanna Barbara, Superman, Batman.

• Harry Potter film series• The Matrix Series• Sherlock Holmes, • The Lord of the Rings film trilogy, • Rush Hour,• The Mask, etc.

Some famous titles

Warner Bros.

Business activities in: • Motion picture- “WB picture group”• Television- “WB television group”• Home entertainment/DVD- “Warner home video”• Animation- “DC entertainment inc.”• Multiplexes- “WB International Cinemas”• Live theaters- “WB Theater Ventures”• Online Media library (largest in the world) with

more than 6,650 feature films, 40,000 television titles and 14,000 animated title.

Revenues

• In 2009, Time Warner Inc.’s revenue grew 1 percent, to $46.9 billion, over 2008.

(source:http://www.wikinvest.com/stock/Time_Warner_(TWX)

Comparative revenues(FY2009)

Company Revenue(USD million)

Net income(USD mn)

1 yr revenue growth

Time Warner 48,482 145 6.39%

Walt Disney company

34,285 5477 7%

News corp 25,327 4,405 6%

Viacom 13,423 1,838 17.06%

Source: www.wikinvest.com

Country wise analysis

1. USA: Top 5 leading competitors of Warner bros. pictures

are major production houses viz.

• Paramount• 20th century fox• Buena vista• Sony/ Columbia• Universal

Competitors in USA Market Share(FY2010)

Rank Distributer Market share Total gross income

1 Warner bros. 18.5% $1,795.7

2 Paramount 16.4% $1,587

3 20th century fox 13.9% $1,350

4 Buena vista 12.9% $1,251

5 Sony/ Columbia 12.3% $1,191.7

6 Universal 8.2% $795

7 Summit entertainment 5.3% $517

8 Lionsgate 5.3% $509.5

9 Fox searchlight 1.1% $106

10 Overture films 0.8% $81.7

Source:http://boxofficemojo.com/studio/

Competitors in Asia

India:• The Walt Disney India pvt. ltd.• Sony pictures India ltd.• Eros international• Universal studio• UTV motion pictures

Competitors in Asia

• Honkong:• Golden harvest• Sundream motion pictures• JCE movies ltd• Media Asia.• China Star Entertainment Group films• Ocean Shores Video (Hong Kong) Co Ltd.

AUSTRALIA

• Palace films and cinema• Night stars films• Snow guns films• Cinesound production• FSM-Frame, Set & Match production.

European challengers

• UK:• Dianamo production.• United International Pictures• Burn Hand Film Productions.• Creative Film Productions.• Holyrood Recording & Film Production

European challengers

• France• EuropaCorp• Gaumont• Studio Canal• Pathe’• Wild Bunch

Middle-east competition

• Sunny land Films(Cairo, Egypt)• Misr International Films (Cairo, Egypt)• Gate Media Films (Dubai) • Rotana group.(Riyadh, Saudi Arabia)• Fox Lorber (Cyprus)

South-African

• Moonlighting Filmmakers(Johannesburg)• Big world cinema• VideoVision Entertainment(Durban)• Reeleyes Film Production• Ma-Afrika Films Ltd .

Latin America

Mexico:

• Argos Comunicación• Cha Cha Cha Films• Eon Films• Esperanto Films• Oscuro Deseo Producciones

Latin America

Argentina

• Patagonik Film Group• Aleph Producciones.• Argentina Sono Film S.A.C.I.• BD Cine• INCAA

Source:www.the-numbers.com/market/Distributors/WarnerBros.php

Positioning Strategy• Franchising of films using fully digital supply chain i.e.

Digital End-to-End (DETE) (provided by MARS digital inc.)• Own T.V. channels like HBO, NDTV,CNN, etc.• Online movie/music/video buying option.• Promotional Web sites: www.warnerbros.com,

http://www.facebook.com/warnerbrosent, http://twitter.com/Warnerbrosent, http://www.youtube.com/user/WarnerBrosOnline . etc

• Home videos- CD/DVD/Blu-ray.• Video games/comics of famous movie characters like-

superman, batman, harry porter.• E-mail updates and blogs.

E-Business strategy

“On demand” service

Promotional strategy: social networking

Online promotional channel:

BLOGS FOR COMMERCIAL PROMO

Techie ahead: blue-ray

WB on Mobile TV(

Market share by 2015

• As per simple regression(based on the trend 2002 -2007,source:http://eprints.qut.edu.au/35696/1/c35696.pdf) suggests that the global box office to $34 billion by 2015.

• Also, trend lines of Warner Bros. (based on %market share,source: www.the-numbers.com/market/Distributors/WarnerBros.php ) its global market share to be around 15% (or $5.1Bn)

• Some more details:http://www.timewarner.com/corp/aboutus/fact_sheet.page/2010_Company_Profile.pdf.