Between fiscal 2016 and fiscal 2020, Time Warner (TWX) expects to release about 17 movies from its DC, Lego, and World of Harry Potter franchises. At a Deutsche Bank (DB) investor conference last year, Time Warner stated that a core part of its Warner Bros. strategy is to leverage its intellectual property and monetize it effectively.
The company is also targeting 450 hours of television programming from Warner Bros. this year for Turner’s Cartoon Network and Boomerang. Time Warner believes that some of its television programming centered on franchises could result in increased sales for its Consumer Products business or higher sales of video games.
As the above chart shows, Warner Bros. was a core revenue growth driver for Time Warner in fiscal 3Q16 with its revenues comprising 46% of the company’s total revenues of $7.2 billion.
Disney’s success at the box office likely to continue
Walt Disney (DIS) is another company whose success streak in its Studio Entertainment segment is likely to continue at the box office this year. The company expects to release two other movies from the Star Wars franchise in 2017 and 2018.
The company continues to expect its Studio Entertainment business to be a strong growth driver in fiscal 2018 due to a robust movie slate. However, it expects Studio Entertainment’s fiscal performance in fiscal 2017 to face a difficult comparison with fiscal 2016 due to the strong performance of Star Wars: The Force Awakens.