Time Warner Inc (NYSE:TWX)’s Jeff Bewkes thinks on demand content is great but he still thinks everyone loves cable bundles.
The view of the Time Warner Inc (NYSE:TWX) top executive was made clear in an interview with David Faber on CNBC where Bewkes talked about how his company plans to double its earnings per share in a span of less than four years.
According to Bewkes, $8 per share earnings in 2018 is not that too far off. He noted that Time Warner Inc (NYSE:TWX) has actually been growing more than that and implied that if it continues its performance, it will surpass this goal.
When it comes to on demand, the Time Warner Inc (NYSE:TWX) CEO, one of the top paid chief executives this year, is positive. He said that more people around the world are watching content and they are loving the content more. The “big news” as he describes is that people can opt to get content on demand.
However, wouldn’t the rise of on demand content affect his company’s performance as it relies on channel bundles? Bewkes appears to see on demand and bundles working side by side.
“Bundle is basically the hundred plus channels of TV that everybody loves. Let’s not forget, this is one of the most successful products in history. 90% of the homes in America, they have that bundle. They’re watching it more and more and the big news is that your favorite channel is about to be on demand,” he said.
He said that on demand actually benefits everyone as it leads to more pressure for creators to produce better content. He said that competition between his company and the likes of Netflix, Inc. (NASDAQ:NFLX) will not end up raising costs for them. He said that Time Warner will take advantage of the rising demand given that they are one of the biggest producers of content.
Time Warner Inc (NYSE:TWX) shareholders includes Daniel S. Och’s Oz Management which reported owning about 4.95 million shares in the company by the end of the third quarter of the year.