Time Warner Inc. (NYSE: TWX) announced on Wednesday that Time Warner will become a 10% owner of Hulu LLC, a provider of streaming and video on demand services with nearly 12 million subscribers and over 400 content partners. The Walt Disney Company, 21st Century Fox, and Comcast are existing owners of the joint venture.
Jeff Bewkes, Chairman and CEO of Time Warner said, “Our investment in Hulu underscores Time Warner’s commitment to supporting and developing new platforms for the delivery of high-quality content and great consumer experiences to audiences around the globe.”
As more families and individuals are running away from cable TV, Time Warner is finding its way to online video services led by Netflix and Amazon. According to eMarketer’s estimate, approximately 23% of U.S. households won’t pay for traditional TV by 2019.
Time Warner on the same day released its second quarter financial reports. Its 2Q revenue decreased 5.39% to $6.952 billion from $7.348 billion in the second quarter of 2015, as revenue increase in Turner segment was offset by the weak performance of Warner Bros segment. 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. The media and entertainment giant now expects its 2016 full-year adjusted EPS from continuing operations to be in the range of $5.35 to $5.45.