The media giant is taking a 10 percent stake in the video streaming company, Hulu. As Fred Katayama reports, it also raised its profit forecast for the full year.
Time Warner is buying a 10 percent stake in Hulu. It's joining forces with rivals Walt Disney, Comcast and 21st Century Fox as a shareholder in the video streaming company. Hulu will stream TNT, CNN, Cartoon Network and other Turner networks on-demand and live on its new live-streaming service that's set to launch next year. The move comes as Time Warner and other cable companies lose young viewers who cut the cord and opt to stream movies from the likes of Netflix and Amazon Prime. Time Warner itself launched a standalone streaming service last year, HBO Now. The media giant also released its quarterly results. It suffered a drop in profit and revenue. Lower demand for videogames, home entertainment and TV licensing pushed revenue down at its Warner Brothers unit by 19 percent. Evercore ISI analyst Vijay Jayant said, "The quarter was seasonally light on revenue and heavy on programming expenses, but the company is well-positioned moving into the back half of the year due to... advertising spending and theatrical releases." Time Warner's earnings beat analysts' estimates, and the company raised its profit forecast for the full year. Shares rose in early trading.