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Time Warner To Reduce Cable Holdings?

Execs at Time Warner are considering a substantial reduction in the company's extensive cable-TV holdings. It's been part of the company for decades and the single biggest contributor to the bottom line, but as online viewing grows, the future for cable grows unsure.

Some within Time Warner are thinking they might jettison cable and put more resources into the Web. But insiders say a total exit is unlikely. More probable is that the company will gradually reduce its 84% stake in Time Warner Cable. The risk: getting rid of a big chunk of its cable holdings would transform the nature of Time Warner, making it more reliant on its role as a provider of filmed entertainment and print and Web content.

As the Net increasingly serves as a home for TV and film offerings, content companies may feel they no longer need to control old-style distribution networks, such as cable or satellite TV.

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Read the whole story at The Wall Street Journal »

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