Generally speaking, Time Warner Inc. is considered to be one of the largest entertainments and Media Company in the world today. For a corporation as large as Time Warner to succeed in today’s competitive market, it must employ a number of strategies that will help the firm to attain superior financial performance as well as business performance. Time Warner’s strategies have not only enabled it to achieve excellent financial and business performance, but also focus, clarity and direction in the market . In other words, the company has been able to align its business in attaining its strategies in business .
Time Warner has employed numerous business strategies to succeed in the media and entertainment industry. First, there is its financial strategy. The company essentially originates from three different sectors. The network sector had $14.204 billion of the firm’s total revenues, and the operating income was $4.719 billion. In addition , the TV entertainment and film sector earned an additional $12.018 billion in revenues as well as $1.228 billion when it comes to operating income. The publishing sector, on the other hand, generated revenues of $3.436 billion revenues and $420 million in operating income.
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It is imperative to note that the network sector brings revenues by supplying programming to affiliates such as services of online streaming and cable providers that have permission to acquire and distribute the programming to different subscribers as well as from advertising sales. The TV and film entertainment get revenue mainly via rental fees from film theatres, and also via licensing fees acquired from the distribution of the films on pay-tv programming and TV networks services. Furthermore, they receive revenue from television from program licensing to pay-v and network services. The TV and film entertainment segments earn money via Blue-ray and DVD sales of their goods and in different digital formats. Finally, the corporation gains revenue via the creation and distribution of video games. The publishing unit, in contrast, gets revenue from the sale of magazine subscriptions, advertising, as well as newsstand sales.
Secondly, Time Warner’s company strategy has enabled it to become successful mainly due to acquisitions in the news and entertainment sectors. Its networks comprise TNT, TBS, TCM, Cartoon Network, as well as CNN. The company also acquired Ted Turner’s Turner Broadcasting System. The company also managed to successfully ass Atlanta Hawks together with Atlanta Braves sports teams. These acquisitions have proved to be beneficial to the company as the company has been able to increase its profit margins markedly . Simply put, the corporation has generated massive revenues as a result of these acquisitions hence putting it in superior financial performance.
Thirdly, operation diversification is critical to the success of Time Warner. In other words , it is one of the dominant sources of the firm’s growth as diversification and performance are related. Because of operation diversification, the company has been able to establish a substantial competitive advantage. The company is involved in movie and film production, publishing, cable television, theme parks, as well as music. It also has three major divisions which include Home Box Office (HBO), Turner, as well as Warner Bros.
Fourthly, Time Warner has established an effective marketing strategy. The company uses the concept of the “marketing mix” which primarily includes product planning, branding, pricing, personal selling, channels of distribution, promotions, advertising, and packaging. The company has established a strong brand name which has created loyal customer bases. They also provide award-winning shows such as Game of Thrones , True Blood , Girls , and Boardwalk Empire ; thus, have been able to attract many viewers successfully . Additionally, the firm is also very active in advertising their products. They have generated high revenues as a result of advertising.
To sum up, Time Warner is one of the largest companies in the media and entertainment industry. Its success can be mainly attributed to its financial, company, operation diversification, as well as marketing strategy.
