HOME MEDIA SPIKE CAN’T OFFSET WARNER’S MOVIE DIVE

Consumers appeared to be enjoying more movies at home during the third quarter rather than going to theaters to see them, if Time Warner’s latest revenue results for the quarter are any indication. According to the company Warner Home Video’s revenue from movies rose 5 percent in the quarter to $1.3 billion. On the other hand Warner Bros. Studios reported that its operating income in the quarter fell 23 percent to $237 million from $307 million during the same quarter a year ago. The company attributed the decline to the industry-wide decline in ticket sales during the summer. Meanwhile, Time Warner’s HBO, which has been spending more for original movies and TV series, reported a 25 percent drop in operating income to $380 million, largely as a result of its increased costs to produce and acquire original content.