The Motion Picture Business, Mobile Devices and Big Data: Or Why Time Warner Just Allowed Itself To Be Sold To AT&T


Why did Time Warner agree to AT&T's blockbuster $84.5 billion takeover?

Time Warner (which had spun off their own cable system in 2009 and now includes prized content-creators HBO; Warner Bros. movie studios; and cable channels like CNN, TNT, Turner Sports and TBS) could have resisted the offer from AT&T. 

But it seems that Time Warner's CEO Jeff Bewkes recognized that access to consumers - and, more specifically, access to the data about consumers - really really really matters.

The stuff our smartphones know about us is what allows 21st century media companies ("the disruptors?") to provide customized and personalized experiences while improving their ability to market all sorts of things to us on our mobile devices. 

HBO and Warners are great brands - rich in must-see content. But, going forward, traditional subscription TV and movies for theaters - may not be enough. The bedrock of motion picture industry success in the coming years is not (it seems) simply built on years of experience making great content. Instead the AT&T Time Warner deal now suggests that the 21st century motion picture business rests on the ability to get motion pictures in front of exactly the people who want to see it exactly when they want to see it.

And cable TV channels (even including forays into online delivery like HBO NOW) are just not big enough on their own to compete with companies like AT&T or even Netflix.

In other words, legacy media companies that don't have a massive two-way pipeline to capture information about users on mobile platforms and vast amounts of specialized content to serve them are facing a real competitive disadvantage. 

There are many reasons why a legacy movie company and subscription TV powerhouse are being swallowed by a phone company right now - but "big data" may be one key reason that the paradigm for the "distribution" of motion pictures (including legacy film and TV) is changing.

I suspect that's why Jeff Bewkes and his team acted now. 

They agreed to sell their gem of a company because that sale right now made the most sense for shareholder value.

The alternatives?

Going on as before without a strong mobile platform of their own?

Or waiting for a better offer?

But with only 800,000 subscribers (as reported by Forbes in early 2016), HBO NOW couldn't keep up with Netflix

Could Time Warner ever attract a better price? 

Perhaps?

But realistically, how much more would HBO or Warner Brothers be worth next year? 

Don't get me wrong. Must-see content will remain at the center of any motion picture company. But the precious data - about what the consumers want and when they want it - is increasingly important.

Here's how the Time Warner AT&T deal looks from AT&T's side, as explained by Richard Greenfield in an Oct 22nd, 2016 post to btigresearch.com: "AT&T is buying Time Warner to get at its content creation engines Warner Bros and HBO, with HBO one of the only legacy media assets to establish a direct-to-consumer business (HBO Now).  Time Warner refused to separate Turner from HBO and Warner Bros (link), and they appear to have found a buyer in AT&T who is willing to buy the whole thing to get at what they really want (HBO/Warner Bros) and use Turner as a cash machine (akin to their acquisition of DirecTV)... If Time Warner and its management team were confident in the future of the media sector, particularly the cable network industry, they would not be selling now. The harsh reality is that the legacy cable network business has been overearning for decades with an unvirtuous circle of pain about to begin..."

16 comments:

Unknown said...

Looking really very informative blog impressed with the article just keep do sharing on...
Comptia Network+ Certification Courses in Chennai | Best N+ Courses in Tambaram

Unknown said...

Excellent post which helps me to get the in-depth knowledge about the technology....
Android Certifications Exam Center in Chennai | Best Android Exam in Mandaveli

vensi said...

Superb i got some valuable tips from here. Really its a amazing article i had ever read. I hope it will help a lot for all....
CorelDraw Graphics Suite Certifications Center in Chennai | No.1 CorelDraw Courses in Saidapet

Unknown said...

very useful information. i am expecting more posts like this please keep updating us... Python Certifications Exam Cost in Chennai | NO.1 Python Coaching in Adyar

Unknown said...

Excellent post and very useful for everyone...keep updating
No.1 ISTQB Certifications Exam Course in Chennai | Testing in Thiruvanmiyur

Ed Sheeran said...

I really enjoyed your post..Very nice...
Adobe InDesign Certification Courses in Chennai | No.1 InDesign Training in Adambakkam

pavithra dass said...

The post you wrote which is full of informative content. I Like it very much. Keep on posting!!
German Classes in Chennai
German Language Classes in Chennai
Angularjs Training in Chennai
Selenium Training in Chennai
Software Testing Training in Chennai
German classes in Anna Nagar
German classes in Velachery

Rathinam said...


Nice post...! I really helpful for developing my knowledge and I learn more different details. Keep it up...!

Tableau Training in Chennai
Tableau Certification
Oracle DBA Training in Chennai
Linux Training in Chennai
Social Media Marketing Courses in Chennai
Corporate Training in Chennai
Unix Training in Chennai
Power BI Training in Chennai
Oracle Training in Chennai
Excel Training in Chennai

divya said...

Great info. The content you wrote is very interesting to read. This will loved by all age groups. lovely page
Ai & Artificial Intelligence Course in Chennai
PHP Training in Chennai
Ethical Hacking Course in Chennai Blue Prism Training in Chennai
UiPath Training in Chennai

Janu said...

Good job in presenting the correct content with the clear explanation. The content looks real with valid information. Good Work





Dot Net Training in Chennai | Dot Net Training in anna nagar | Dot Net Training in omr | Dot Net Training in porur | Dot Net Training in tambaram | Dot Net Training in velachery





Babu said...


This is such an excellent article, I am very clarified with your content.
devops roles and responsibilities
7 habits of successful people
mobile automation testing tools
benefits of web designing
advanced excel interview questions and answers

aivivubooking1 said...

Đặt vé máy bay tại Aivivu, tham khảo

mua ve may bay di my

vé máy bay từ thanh hóa đến sài gòn

giá vé máy bay đi hà nội vietjet

vé máy bay giá rẻ đi Huế

vé máy bay đi quy nhơn

taxi ở sân bay nội bài

combo sài gòn phú quốc

Hi Every One said...

It is optional towards connect/promotion Windows 7 your existing type of Spaces successively. You hunger a fresh connection of Gaps scheduled a laptop, you necessity towards set-up the solid ambition and reinstall the spaces using it’s invention significant. Windows 7 Ultimate Product Key

raju said...

Need professional WordPress Web Design Services? We're experts in developing attractive mobile-friendly WordPress websites for businesses. Contact us today! https://just99marketing.com/wordpress-web-design

Let2know said...

Reimage Pc Repair Crack is a program that solves hardware problems like low memory, low disk speed, temperature, and even CPU power. Reimage Pc Repair Online License Key Free

haseeb said...

Motivational Quotes Good Morning Status Image. Truly Inspirational Good Morning Messages and Quotes for FREE.Wishing someone good morning with a beautiful quote .Good Morning Wishes Text

Randy Finch's Film Blog:

Thoughts from a film producer about making and distributing films.