It all comes back to TV, an industry Mr Bewkes knows well. He earned his spurs running HBO, the pay channel that became the standard bearer for creative risk-taking, characterised by acclaimed shows such as The Sopranos. Television is a decidedly “old media” industry – one the AOL merger was supposed to revive and reinvent – yet it has endured and prospered over the past 13 years, while the internet companies of the dotcom bubble era have often struggled. “The new media have suffered far more adverse fates since 2000 than the old media,” he says. “New media has had a few tremendous, outstanding breakthroughs: Google, Facebook, Apple, Twitter and Amazon in retail. But if you’re not in one of those you’re in some difficulty.”
Time Warner’s increased focus on TV comes as the medium is enjoying a “golden age”, fuelled by high-quality writing and directing. HBO has epitomised this renaissance but rivals are offering competition, including basic cable channels such as AMC, home of Breaking Bad andMad Men in the US. There is also a new breed of competitor: Netflix, the streaming service, has taken steps into original drama with its remake of House of Cards.
Concentrating on TV is not without risk for Time Warner – particularly if there is a substantial decline in people willing to subscribe to cable or satellite TV. The pay TV industry has seen its subscriber numbers fall in five quarters since 2010, leading industry watchers to ask whether services such as YouTube and Netflix are prompting users to stop subscribing or “cut the cord”.
For now, though, the golden age shows no sign of waning. Mr Bewkes says the new distribution technology, such as online streaming, has only increased demand for Time Warner’s programming. “Television . . . is probably the healthiest consumer business in the world,” says Mr Bewkes. “You have more subscribers, more viewers watching for more hours a day than ever before.”
