The product diversity of Time Warner gives them protection against a weakness in any one division and the potential for revenue growth if they are able to get their different divisions to work with each other. For example, in Q4 2008, revenues in declined about 3% mainly because of drops in the Filmed Entertainment, AOL and Publishing Segments. However, strong performances in the Cable and Network partially offset the declines in the other segments, mitigating the company's poor performance in other sectors.
Not waiting to get clobbered in this area by Apple, Time Warner recently announced that it will introduce a new wireless modem that will allow users to connect to the network anywhere in the house. This means that downloaded and streaming videos from the internet can be easily viewed on the TV screen. As the internet continues to boom, expect this new advancement to be a substantial reason for continued growth.
AOL hopes to increase advertising revenue with the increase of subscribers to its free internet services. Through September 2008, it has posted 20 consecutive months of growth in unique visitors. Monthly page views more than doubled in September 2008 compared with September 2007, and time spent increased 33% over the same period. Its new business model has been a success, and if trends continue Time Warner will reap the benefits of increasing revenues and profits.