Time Warner Plans to Capitalize on Digital Shift
NEW YORK (
) --
Time Warner
(TWX)
chairman and CEO Jeff Bewkes believes the shift from physical to digital media presents his company more opportunities than challenges.
In his presentation at the 38th annual UBS media conference today, Bewkes urged investors to have confidence in the company's digital distribution business model, explaining that the new digital world is allowing his company to take its "networks and magazines that are already very successful... and make them even more powerful and more usable."
Time Warner
reported a 21.1% drop in its third-quarter earnings
on Nov. 3. While Time Warner's share price is
up more than 5% over the past year
, it has fallen about 6.5% from its Nov. 3 high of $32.36.
Time Warner, which owns and operates a number of content distributors such as HBO, Turner Broadcasting System, Time magazine and Warner Bros. Entertainment, is finding that in the new media landscape, consumers desire to access content in myriad ways.
As the market sees a transformation in the way consumers obtain and view media content, Bewkes says that digital distribution offers a cheaper and more attractive business model.
After seeing a decline in its third-quarter earnings, the company declared its full-year guidance of growth in the high 20% area from a 2009 earnings per share base of $1.83.
Time Warner is up about 0.5% today to around $30.75.
-- Written by Theresa McCabe in Boston.
>To contact the writer of this article, click here:
Theresa McCabe
.
>To follow the writer on Twitter, go to
.
>To submit a news tip, send an email to:
.
RELATED STORIES:
>>Cable Companies Adapt to Keep 'Cutters'
>>Cavs-Heat Game Draws 7.1 Million Viewers
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.