1105705--2/19/2010--TIME_WARNER

related topics

{capital, credit, financial}

{product, market, service}

{regulation, change, law}

{property, intellectual, protect}

{system, service, information}

{condition, economic, financial}

{competitive, industry, competition}

{cost, operation, labor}

The Company has been, and may continue to be, adversely affected by weak economic and market conditions. Time Warner is exposed to risks associated with disruption in the financial markets. Time Warner faces risks relating to doing business internationally that could adversely affect its business and operating results. The Company s businesses operate in highly competitive industries. The Company faces risks relating to competition for the leisure and entertainment time of consumers, which has intensified in part due to advances in technology and changes in consumer behavior. The popularity of the Company s content and other factors are difficult to predict and could lead to fluctuations in the Company s revenues, and low public acceptance of the Company s content may adversely affect its results of operations. Sales of DVDs have been declining, which may adversely affect the Company s growth prospects and results of operations. Piracy of the Company s content may decrease the revenues received from the exploitation of its content and adversely affect its business and profitability. Time Warner s businesses may suffer if it cannot continue to license or enforce the intellectual property rights on which its businesses depend. The Company has been, and may be in the future, subject to claims of intellectual property infringement, which could have an adverse impact on the Company s businesses or operating results due to a disruption in its business operations, the incurrence of significant costs and other factors. The Company s businesses are subject to labor interruption. The Company s businesses rely heavily on network and information systems or other technology, and a disruption or failure of such networks, systems or technology as a result of computer viruses, misappropriation of data or other malfeasance, as well as outages, natural disasters, accidental releases of information or similar events, may disrupt the Company s businesses and damage its reputation. If the AOL Separation or the TWC Separation is determined to be taxable for income tax purposes, Time Warner and/or Time Warner s stockholders who received shares of AOL or TWC in connection with the spin-offs could incur significant income tax liabilities. The Company s businesses are subject to regulation in the U.S. and internationally, which could cause the Company to incur additional costs or liabilities or disrupt its business practices. RISKS RELATING TO TIME WARNER S NETWORKS BUSINESS The loss of affiliation agreements, or renewal on less favorable terms, could cause the revenues of the Networks segment to decline in any given period, and further consolidation of multichannel video programming distributors could adversely affect the segment. The inability of the Networks segment to license rights to popular programming could adversely affect the segment s revenues. Increases in the costs of programming licenses and other significant costs may adversely affect the gross margins of the Networks segment. The maturity of the U.S. video services business, together with rising retail rates, distributors focus on selling alternative products and other factors, could adversely affect the future revenue growth of the Networks segment. RISKS RELATING TO TIME WARNER S FILMED ENTERTAINMENT BUSINESS A decrease in demand for television product could adversely affect Warner Bros. revenues. If the costs of producing and marketing feature films increase in the future, it may be more difficult for a film to generate a profit. Changes in estimates of future revenues from feature films could result in the write-off or the acceleration of the amortization of film production costs. RISKS RELATING TO TIME WARNER S PUBLISHING BUSINESS The Publishing segment could face increased costs and business disruption resulting from instability in the wholesaler distribution channel.

Full 10-K form ▸

1105705--2/19/2010--TIME_WARNER_INC.