(including HBO and Cinemax), broadcast and basic cable networks (including Turner’s cable networks), and SVOD and other OTT services and, in most cases, other exhibitors such as airlines and hotels. Warner Bros. produces most of the films it releases in the U.S. under co-financing arrangements, which give Warner Bros. a greater ability to manage the financial risks of its film slate and offset some of the costs involved in the production, marketing and distribution of feature films, particularly event films. In most cases, Warner Bros. maintains worldwide distribution rights for the films it co-finances with others. Warner Bros. has co-financing arrangements with Village Roadshow Pictures and RatPac Dune Entertainment. Warner Bros. also monetizes its distribution and marketing operations by distributing films that other companies wholly finance and produce, and it has an exclusive distribution arrangement with Alcon Entertainment. Feature Film Business Revenues The revenues generated by Warner Bros.’ feature film business primarily consist of rental fees paid by theaters for the theatrical exhibition of feature films produced (or co-produced) and/or distributed by Warner Bros.; licensing fees paid by television networks, premium pay television services and SVOD and other OTT services for the exhibition of feature films produced or co-produced by Warner Bros.; and revenues from the distribution of Warner Bros.’ and other companies’ feature films in physical and digital formats. Home Entertainment Warner Bros. also generates revenues through the home entertainment distribution of its film and television content in physical and digital formats. Warner Bros.’s significant home entertainment releases during 2015 included American Sniper, The Hobbit: The Battle of the Five Armies, Get Hard, Interstellar, Mad Max: Fury Road and San Andreas. Warner Bros. licenses its newly released feature films as well as films from its library and its television content to EST and transactional VOD services for viewing online and on mobile platforms in the U.S. and internationally. In the U.S. and most major international markets, Warner Bros.’ theatrical releases are generally released for sale via EST at least two weeks before their release in physical formats and transactional VOD. Videogames Warner Bros. develops, publishes and distributes videogames, including mobile and console games. Its videogames are based on intellectual property owned or licensed by Warner Bros. (including DC Entertainment properties, Harry Potter and Mortal Kombat). Warner Bros. is focused on increasing its monetization of its franchises in its videogames business in the future. In 2015, Warner Bros. released 14 videogames, including Batman: Arkham Knight, Mortal Kombat X, LEGO Jurassic World and Mad Max and the toys-to-life videogame LEGO: Dimensions, which includes LEGO Batman and many other DC characters among its cast of characters. Warner Bros. plans to release 14 videogames in 2016. Warner Bros. also licenses Warner Bros. and DC Entertainment properties for videogames to other companies. Warner Bros.’ videogames revenues consist of revenues from the development and distribution of the videogames of Warner Bros. and other companies. Other Television Network Assets The company also holds interests in companies that operate broadcast networks. Central European Media Enterprises Ltd. (CME) As of December 31, 2015, the company held an approximate 49.4% voting interest and an approximate 75.7% economic interest in the equity interests of CME, a publicly-traded broadcasting company that operates primary television networks in Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic, and Slovenia. The CW The CW is a 50-50 joint venture between Warner Bros. and CBS Corporation. The CW’s 2015-2016 schedule includes a 5-night, 10-hour primetime lineup of advertising-supported original programming, such as The 100, America’s Next Top Model, Arrow, Beauty and the Beast, Crazy Ex-Girlfriend, Containment, DC’s Legends of Tomorrow, The Flash, iZombie, Jane the Virgin, The Originals, Reign, Supernatural and The Vampire D
time warner inc
(TWX:New York Consolidated)
One Time Warner Center
New York, NY 10019
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