Time Warner Inc.
) recently announced its entry into a partnership with China's
leading media and entertainment investment fund, China Media
Time Warner has been benefiting from its significant
international presence as it helped the company broaden its
client base and product portfolio. The company operates in the
United Kingdom, Germany, Canada, France, Japan and other
countries besides the United States.
The move is a perfect fit for Time Warner as it has been
looking to expand its presence in the Chinese entertainment
market. Moreover, Time Warner with its strong content and
industry leading portfolio of renowned brands is likely to
benefit from the largest and fastest growing Chinese media
In recent years, China has emerged as an important market for
media and entertainment companies. Another media and
The Walt Disney Company
), is also augmenting its presence in China.
As per the company, the Chinese box office receipts are
expected to reach $4.4 billion in 2013, which has been growing at
an estimated CAGR of 45% between 2009 and 2013. Further,
animation revenues are projected to remain strong and reach $7.1
billion, reflecting a CAGR of 27% over the same period. As for
online video, revenue is forecasted to reach $2 billion,
reflecting a CAGR 64%.
These factors collectively provide enough room for development
for both the parties with promising opportunities to enhance
Apart from this strategic alliance, Time Warner is
concentrating on solidifying its footprint in existing
territories through investments in local production and gaining
distribution right for new networks. It is also augmenting its
operations in Western Europe.
Alongside, Time Warner has been enhancing its digital
presence, enabling consumers to enjoy its content through
numerous platforms and devices. It has entered into several
content distribution deals with
Time Warner Cable Inc
), which strengthen its multichannel subscription model by adding
more platforms to deliver its content.
Currently, Time Warner holds a Zacks Rank #3 (Hold).
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