Subscriptions boost growth at Time Warner

Subscriptions boost growth at Time Warner Time Warner, one of the world’s leading media and entertainment businesses, has reported better-than-expected results in the second quarter. The strong performance is led by a big surge in subscriptions across divisions. This is our main feature in this week’s subscription digest. In addition, we feature an interesting development in Facebook’s journalism project with publishers. Lastly, we feature News Corp’s efforts to adopt the subscription model through platforms such as Facebook and Google.
 

Time Warner beats growth estimates with a surge in subscriptions

Time Warner Inc has reported a good performance in its second quarter earnings release, with a revenue increase of 5% ($7.3 billion). This has beat the estimates by $30 million. The strong performance has come on the back of subscription revenue growth across its Turner and HBO divisions. Turner’s subscription revenue increased by 13% y-o-y whereas HBO’s revenues grew by 1% y-o-y for the quarter. This growth has offset some of the declines that occurred in advertising and content revenues. Time Warner expects that subscription revenues will continue to grow at as similar rate in the second half of 2017.

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Facebook will let publishers keep 100% of the subscription revenue

Facebook has been working on a feature where it will allow users to subscribe to news publishers directly from its Instant Articles Platform. However, division of subscription revenue and subscriber data has been a bone of contention between Facebook and publishers. This comes on the back of an increasing unrest among news and media outlets as platforms like Facebook and Google receive the lion’s share of digital advertising revenues. It seems Facebook has given in to the grumblings of these media outlets as the newest plan will allow them to keep 100 percent of the subscription revenues and not share user data with the social network.

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News Corp wants a pie of the subscriptions play

News Corp is in talks with Facebook and Google to explore new subscription models. Facebook is already in talks with publishers to promote subscriptions via its Instant Articles platform. Google also runs a First Click Free program for publishers. News Corp Australia has seen a 27 percent y-o-y growth in digital subscribers. The company’s revenue from subscriptions is already greater than its advertising revenue. Recently, even Bloomberg had adopted the subscription model.

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Also, read about Amazon’s first foray in Singapore.


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