Time Warner said its networks will be available as part of Hulu’s upcoming online TV service.
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For the three months June 30, Time Warner Inc. earned $952 million, or $1.20 per share.
That’s less than the stakes of Hulu’s current investors 21st Century Fox Inc, Walt Disney Co. and Comcast Corp’s NBCUniversal.
The company launched “HBO Now” past year, a standalone streaming service, where viewers can watch HBO programs at any time without a cable subscription.
Hulu’s original programming has been the subject of critical acclaim, with the program “Casual”, which debuted in 2015, receiving a Golden Globe nomination for best TV series – comedy or musical.
Time Warner announced today it was taking a 10 percent stake in Hulu, a streaming video provider that is ramping up as a competitor to sector leader Netflix.
“This investment from Time Warner marks a major step for Hulu as we continue to redefine television for both consumers and advertisers”, said Mike Hopkins, Hulu’s chief executive, in a statement.
“Turner has signed an affiliate agreement for its full suite of networks to be carried on Hulu’s live-streaming service slated for launch early next year”, the company said in its announcement press release. Hulu’s new service, confirmed in May, has threatened to further undercut traditional cable providers by competing with their affordable “skinny” TV bundles. At the same time, it says its portfolio of cable channels including CNN will be available live on Hulu’s live streaming service.
Second-quarter revenue fell 5.3 percent to $6.95 billion from $7.35 billion, mainly due to a decline for the Warner Bros studio. Its diluted earnings per share was $1.2 up from $1.16, beating analysts’ average estimate of $1.16 per share and reflecting $1.6 billion of 23 million shares repurchase year-to-date through July 29, 2016.
Time Warner completed a merger with Charter Communications earlier this year.
Time Warner Inc (NYSE:TWX) announced a strong Q2 print at market closing yesterday, following which the stock rallied in the pre-market.
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The company raised its 2016 earnings forecast by 5 cents a share to a range of $5.35 to $5.45.
