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Why Time Warner’s Franchise-Focused Strategy Could Spell Success

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Aug. 1 2017, Updated 6:36 a.m. ET

Time Warner’s Wonder Woman

Time Warner’s (TWX) Wonder Woman has been a resounding success for the company. The movie has already made more than $380 million in the United States (SPY) and $764.9 million globally.

Last month, Barron’s predicted that the success of the movie could result in boosting Time Warner’s stock by 20% this year. The company will release 17 movies from its DC Universe, Lego, and World of Harry Potter franchises between 2016 and 2020.

Other media companies who are also following a franchise-focused strategy when it comes to the movie business include Comcast (CMCSA) and The Walt Disney Company (DIS).

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Console games and home entertainment business

The company is also concentrating on its console games business, and last month it announced that WB Games New York would provide “cloud-based infrastructure” to gaming developers. The company is also planning to release two console games from its franchises later this year. Time Warner also expects that its home entertainment and television licensing business will benefit this year as its popular movies become available for home viewing.

Warner Bros. had revenues of $3.4 billion in fiscal 1Q17, up 8% year-over-year and an adjusted operating income of $510 million.

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