Game of Thrones retains its popularity among viewers
In the previous part of this series, we saw how Time Warner’s (TWX) HBO Now had a streaming outage during the streaming of an episode of its popular series Game of Thrones. In this part of the series, we’ll see how the season six finale of Game of Thrones was a huge success for the company.
On June 28, 2016, The Hollywood Reporter reported that HBO’s Game of Thrones season six finale drew 8.9 million viewers. About 23 million viewers streamed the episode. Adults aged 18–49 years gave the finale a high rating of 4.4, indicating the show’s enduring popularity.
Time Warner is seeing a rising demand for its programming. It’s been able to benefit from monetizing its original content effectively.
The company stated in its fiscal 1Q16 earnings call, “We are excited about our upcoming programming lineup. And with continued investments in the brand and product, we are in a great position to capitalize on the significant global opportunities for premium services.”
Time Warner also explained its rationale for how it measures a show’s success. It said it looks at whether the show resonated with the consumer, had good user engagement, and elevated the HBO brand.
In fiscal 1Q16, HBO had revenues of $1.5 billion in fiscal 1Q16, an 8% growth year-over-year. The popularity and increasing demand for its content can be gauged from HBO’s content licensing and other revenues increasing 23% year-over-year to $270 million in fiscal 1Q16. The rise in content licensing revenues was largely bolstered by the demand for its content in international markets.
Time Warner makes up 0.32% of the SPDR S&P 500 ETF (SPY). SPY has an exposure of 2.7% to the communications services sector. It also holds 0.22% of Netflix (NFLX), 0.18% of 21st Century Fox (FOXA), and 0.12% of CBS (CBS).