Time Warner Inc. Q3 2009 Earnings Call Transcript

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2009-11-04 14:13:08.0

Tags: Time Warner Inc., Network, Turner Entertainment Networks Inc., Call Transcript, Earnings, Programming, Credit Suisse Group AG, Development Tools, Software Development, Software/Web Development, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Our first question comes from Spencer Wang - Credit Suisse.

Spencer Wang – Credit Suisse

I just have one question on the Turner Cable Networks that comes in two parts. I think it was John, you mentioned that some of the entertainment ratings are a little soft. So maybe, Jeff, could you talk a little bit about what the plans are to address the issues and maybe what the issues are specifically? And then the second part is you indicated that scatter pricing is up double digits versus the upfront. Could you just share with us what scatter pricing is doing on a year-over-year basis? Thank you.

Jeffrey L. Bewkes

At Turner Entertainment Networks, we have seen some rating softness in September and October and we're not happy with it. But let me give you the context for it because both those networks are having a very successful time, generally, and Turner's having a great year.

Ratings can vary over short periods of time, and we think that September and October were anomalies. We had different, basically different programming. And it amounts to different comparisons last year, in the sense that the programming lineup that was on TBS, TNT had fewer premieres of original episodes in September and October than it had last year.

We ended up with three fewer major league baseball playoff games in 2009 versus 2008. We had fewer new series on the key comedy launches at TBS this year and we didn't have at TBS any network premiere movies in October, whereas we had two the prior year. Now there is – so those are essentially scheduling that we'll move around and some will show up in the current month.

On acquired programming, we're watching that carefully because sometimes it takes a while for new acquired shows to find an audience and some of our newer acquired shows haven't had as much of an out-of-the-gate burst as previous year launches have.

And in addition to that, we're making some changes and expect some improvements in this. TNT, for example, just acquired Southland from Warner Brothers. And that is a pretty big statement that TNT can air a critically acclaimed show that broadcast networks dropping audiences and economic structures can't any longer support.

Lopez Tonight, George Lopez is launching next week on TBS, and we think that is going to be quite a big change in late night. And Ray Romano's Men of a Certain Age is premiering in December. We are also making some scheduling changes for our acquired series in terms of when they air.

 

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