Time Warner Takes Bigger Asian Steps

A combination of bold new moves and some usual small steps for Time Warner’s Asian subsidiaries should ensure that the global media major will have a growth oriented future in the region over the long-term.

That’s the conclusion of MPA analysts in a research note published in Media Route 26. According to MPA, there will be some hurdles to overcome in the short term with a new India business (NDTV Imagine) posing challenges with some risk, a Korean JV business getting off to an unexceptional start, and the tricky business of getting decent pricing power for the distribution of Turner’s and HBO’s new pay-TV channel offerings across Asia.

Turner’s global TV networks segment, including Turner and HBO, is expected to generate US$11.6 bil. in sales during 2009, out of which MPA estimates Asia Pacific contributes ~3% or US$0.32 bil., including 100% of Turner and 75% of HBO Asia. This number is likely to grow significantly to ~4% in 2010, according to MPA analysis, including revenues from new businesses in India and across Asia (i.e. Japan, regional channels).

More detailed analysis in Issue 106 of Media Route 26, out December 23.