Cable network revenue jumps 7% at Time Warner
Turner Broadcasting and HBO parent Time Warner Inc. (NYSE: TWX) saw third-quarter revenue at its networks division jump 7 percent to $3.2 billion, thanks to increased subscription and advertising fees.
The media giant said the monthly subscription fees it collects from cable and satellite affiliates increased by 6 percent, or $112 million during the quarter. Ad revenue increased by 9 percent, or $74 million. Time Warner said international subscriber growth also contributed to increased subscription revenue.
Time Warner didn't detail in its quarterly earnings reports the subscriber count for HBO, the premium network that is finding it challenging to grow its subscriber base as many consumers look to cut costs. HBO, which lost 17,000 subscribers during the second quarter, counts 28.3 million subscribers, according to SNL Kagan data.
Time Warner noted Wednesday that its HBO Go TV Everywhere service will gain distribution during the fourth quarter through Roku's over-the-top streaming video player and through Microsoft's (Nasdaq: MSFT) Xbox 360. While major distributors such as Comcast (Nasdaq: CMCSA) and Verizon (NYSE: VZ) offer their subscribers HBO Go, Time Warner lacks deals with Cablevision (NYSE: CVC) and former corporate sibling Time Warner Cable (NYSE: TWC).
- see Time Warner's Q3 earnings release
Special report: Sizing up the cable industry in Q3 2011