Time Warner has picked up a 10-percent stakes in Hulu, the announcement of which coincided with the release of its quarterly financial results.
Time Warner joins The Walt Disney Company, 21st Century Fox, and Comcast in the joint venture. Turner’s entertainment, sports, news and kids’ networks—including TNT, TBS, CNN, Cartoon Network, Adult Swim, truTV, Boomerang and Turner Classic Movies—will be available live and on-demand on Hulu’s new live-streaming service, which is slated to launch early next year.
Time Warner also revealed the results for its second quarter ended 30th June. Revenues were down 5 percent to $7 billion, with a decline at Warner Bros. partially offset by growth at Turner and HBO. Revenues included the unfavorable impact of foreign exchange rates of around $60 million in the quarter. Operating Income decreased 1 percent to $1.8 billion, due to decreases at Warner Bros. and HBO, partially offset by a swing in intersegment eliminations. Adjusted operating income dipped 5 percent to $1.8 billion.
Jeff Bewkes, Time Warner’s chairman and CEO, said: “Today, we announced our 10 percent investment in Hulu and that Turner has separately signed an affiliate agreement for its full suite of networks to be carried on Hulu’s live-streaming service slated for launch early next year. These are just the latest examples of our commitment to supporting innovative digital services that allow consumers to access high-quality content however they want it across a variety of platforms. We’re confident the multiple investments we’re making in these types of services position the company to benefit from growing global demand for the strongest network brands and very best video content.”
He added: “Our investment in Hulu underscores Time Warner’s commitment to supporting and developing new platforms for the delivery of high-quality content and great consumer experiences to audiences around the globe.
“We’re also excited to join Hulu’s other owners in launching a new consumer-friendly package featuring leading networks that will deliver more value to audiences and complement Hulu’s core SVOD offerings. The inclusion of Turner’s networks in Hulu’s new streaming service furthers our efforts to allow consumers to engage with and enjoy our brands across a wide range of platforms and services.”
Mike Hopkins, CEO of Hulu, said: “This investment from Time Warner marks a major step for Hulu as we continue to redefine television for both consumers and advertisers. Our two companies have long enjoyed a productive relationship—which includes the availability of past seasons of popular Turner shows on our current SVOD offerings—and we are very proud that Turner’s networks will be included in our planned live-streaming service.”