Time Warner Inc. (the “Company” or “Time Warner”), a Delaware corporation, is a leading media and entertainment company. The Company classifies its businesses into the following three reportable segments:

For more information about the Company’s reportable segments, see “Management’s Discussion and Analysis of Results of Operations and Financial Condition — Overview.”

At December 31, 2014, the Company had a total of approximately 25,600 employees.

For convenience, the terms the “Company,” “Time Warner” and the “Registrant” are used in this report to refer to both the parent company alone and collectively to the parent company and the subsidiaries through which its various businesses are conducted, unless the context requires otherwise. In addition, the term “Home Box Office” is used to refer to Home Box Office, Inc., a subsidiary of Time Warner, the term “Turner” is used to refer to Turner Broadcasting System, Inc., a subsidiary of Time Warner and the term “Warner Bros.” is used to refer to Warner Bros. Entertainment Inc., a subsidiary of Time Warner.

On June 6, 2014, the Company completed the legal and structural separation of Time Inc. from the Company (the “Time Separation”). With the completion of the Time Separation, the Company disposed of the Time Inc. segment in its entirety. See “Management’s Discussion and Analysis of Results of Operations and Financial Condition” for additional information.

Caution Concerning Forward-Looking Statements and Risk Factors

This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances, and the Company is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. Time Warner’s actual results may vary materially from those expressed or implied by the statements in this report due to changes in economic, business, competitive, technological, strategic and/or regulatory factors and other factors affecting the operation of Time Warner’s businesses. For more detailed information about these factors and risk factors with respect to the Company’s operations, see Item 1A, “Risk Factors,” and “Management’s Discussion and Analysis of Results of Operations and Financial Condition — Caution Concerning Forward-Looking Statements.”

Available Information and Website

The Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to such reports filed with or furnished to the Securities and Exchange Commission (the “SEC”) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are available free of charge on the Company’s website at www.timewarner.com as soon as reasonably practicable after such reports are electronically filed with or furnished to the SEC. The Company is providing the address to its website solely for the information of investors. The Company does not intend the address to be an active link or to incorporate any information included on or accessible through its website into this report.

TURNER

Turner owns and operates a leading portfolio of domestic and international cable television networks and related properties that offer entertainment, sports, kids and news programming on television and digital platforms for consumers

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around the world. Turner operates more than 165 channels globally. In the U.S., its networks and related properties include TNT, TBS, Adult Swim, truTV, Turner Classic Movies, Turner Sports, Cartoon Network, Boomerang, CNN and HLN. Outside the U.S., Turner’s broad portfolio of brands and digital businesses reaches consumers in more than 200 countries.

Turner’s programming is distributed by cable system operators, satellite service distributors, telephone companies and other distributors (known as affiliates) and is available to subscribers of the affiliates for viewing (i) on television, (ii) via streaming online and on mobile devices through Turner’s digital properties and services provided by affiliates and (iii) on demand on television through Turner’s digital properties and affiliates’ digital VOD services. Some of Turner’s programming is also available through SVOD services. Turner has been expanding the amount of programming available to subscribers on demand on television and digital properties to include complete current seasons of popular programming from Turner’s portfolio of networks. As of December 31, 2014, Turner’s programming was available on demand and for streaming to approximately 87 million U.S. television households that subscribed to multichannel video services (as reported by Nielsen Media Research).

Turner is continuing to increase its scale and strengthen its competitive position internationally through strategic regional channel launches, partnerships and acquisitions in key territories. In addition, Turner is placing greater emphasis on creating local programming to strengthen its brands internationally. Historically, Turner has managed its international entertainment and kids networks separately from its domestic networks, but it is transitioning its kids businesses to a more globally managed operation, similar to its news business.

Turner’s digital properties consist of its own websites and websites that Turner manages and/or operates for others. Turner’s CNN digital network is a leading digital news destination, and Turner’s bleacherreport.com is the number two digital sports destination, in each case, based on the number of average monthly domestic multi-platform unique visitors for the year ended December 31, 2014. Turner’s other websites include tntdrama.com , TBS.com , adultswim.com and cartoonnetwork.com . Digital properties that Turner manages and/or operates for others include NBA.com , NBA Mobile , NCAA.com and PGA.com . Turner’s digital properties collectively averaged approximately 124 million average monthly domestic multi-platform unique visitors (based on data sourced from comScore Media Metrix) during the year ended December 31, 2014.

Turner’s businesses consist of entertainment, sports, kids and news programming on television and digital platforms, which are described below.

Domestic Entertainment

Turner’s domestic entertainment networks collectively provide a blend of original series, acquired series and movies, sports, classic film and reality programming. For the year ended December 31, 2014, Turner’s TNT and TBS were two of the top five primetime advertising-supported cable networks among adults 18-49 in the U.S., and Adult Swim was the top total day advertising-supported cable network among adults 18-34 in the U.S. Turner is focused on optimizing the mix of original series and acquired programming on its domestic entertainment networks to strengthen its brands with its audiences, advertisers and affiliates. In addition, Turner is investing in distinctive original programming for its TNT, TBS and truTV networks that will appeal to younger audiences. Turner also plans to increase the amount of original programming on TNT and TBS over the next several years. Ownership of a larger portion of its content will enable Turner to take advantage of increasing licensing opportunities for that content and distribute the content across international territories. Turner’s digital properties in entertainment include tntdrama.com , TBS.com and adultswim.com .

TNT

TNT focuses on drama and is home to syndicated series and a growing roster of original series (including unscripted series), as well as sports and network premiere motion pictures. For the 2014-2015 season, TNT’s returning original series include Cold Justice , Falling Skies , Major Crimes and Rizzoli & Isles , and its new original series include The Last Ship , Legends , The Librarians , Murder in the First , On the Menu , Proof , Public Morals , Transporter: The Series and Wake Up Call . For the 2014-2015 season, TNT’s syndicated series include Bones , Castle and Grimm .

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TBS

TBS focuses on contemporary comedies, as well as a growing roster of original series, sports and acquired television series and motion pictures. For the 2014-2015 season, TBS’ returning original series include American Dad! , Deal With It and King of the Nerds , and its new original series include Angie Tribeca , Buzzy’s and Your Family or Mine . Syndicated series for the 2014-2015 season include The Big Bang Theory , Family Guy and The Office . TBS is also the home of the late night talk show Conan.

Adult Swim

Adult Swim is an evening and overnight block of programming airing on Turner’s Cartoon Network. Adult Swim targets young adults and offers original and syndicated animated and live-action comedy programming. For the 2014-2015 season, Adult Swim’s original series include Aqua Teen Hunger Force , Black Jesus , Childrens Hospital , The Eric Andre Show , The Jack and Triumph Show , Mike Tyson Mysteries , Rick & Morty and Squidbillies .

truTV

truTV focuses on series that feature real-life situations, in particular comedic reality programs. For the 2014-2015 season, truTV’s returning original series include Hardcore Pawn , Impractical Jokers , South Beach Tow and truTV Top Funniest , and its new original series include Barmageddon , The Carbonaro Effect , Fake Off , Friends of the People , Hack My Life , Hair Jacked and How to Be a Grown Up . During the fourth quarter of 2014, Turner launched a rebrand of truTV to focus on entertainment programming targeted to adults with the tag line “Way More Fun”.

Turner Classic Movies

Turner Classic Movies is a commercial-free network that presents classic films from some of the largest film libraries in the world. Turner Classic Movies also offers interviews, original documentaries, specials and regular programming events that include “The Essentials,” “31 Days of Oscar” and “Summer Under the Stars.”

International Entertainment

Outside the U.S., Turner owns and/or operates regional entertainment networks providing a variety of programming, such as motion pictures and series, documentaries, fashion and lifestyle content, music videos, sports and travel. In Latin America, Turner is the number one provider of multichannel television in the region, and it owns and operates regional entertainment networks, including Glitz*, HTV, I-Sat, Infinito, MuchMusic and Space. Turner also owns and operates Chilevisión, a free-to-air television broadcaster in Chile. In January 2015, Turner acquired the remaining shares in Esporte Interativo, a Brazilian television channel that airs sports programming, including programming from South American and European soccer leagues, so that it is now wholly owned by Turner. Turner also operates several regional entertainment networks in Europe and the Middle East, including TCM, TNT and TNT Glitz. In Asia, Turner operates several regional entertainment networks, including TCM, truTV, HBO Basic, WarnerTV and WB in India, Oh!K in Singapore, and MondoTV and Tabi Channel in Japan.

Sports

Turner Sports produces award-winning sports programming and content for Turner’s TNT, TBS and truTV networks and related digital properties. Turner’s sports programming helps drive value across its networks in the form of higher affiliate fees, ratings, advertising and promotional opportunities.

Turner’s sports programming features licensed programming from the National Basketball Association (“NBA”) through the 2024-2025 season, Major League Baseball (“MLB”) through 2021, The National Collegiate Athletic Association (the “NCAA”) for the Men’s Division I Basketball Tournament through 2024, and the Professional Golfers’ Association (“PGA”) through 2019. NBA games and PGA tournaments air on the TNT network, and MLB games air on the TBS network. Turner also operates NBA TV, an advertising-supported cable network owned by the NBA that features NBA exhibition, regular season and playoff games and related programming. The NCAA Men’s Division I Basketball Tournament games air on the TNT, TBS and truTV networks and on the CBS network under an agreement among Turner, CBS Broadcasting, Inc. and the

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NCAA. Turner’s networks will carry the NCAA Final Four semifinal games in 2015 and, in 2016, Turner’s networks will carry the NCAA Final Four semifinal games and championship game. After 2016, Turner’s networks and CBS will carry the NCAA Final Four semifinal games and championship game in alternate years.

Turner Sports operates bleacherreport.com , a leading online and mobile sports property that provides team-specific sports content and real-time event coverage and provides Turner with cross platform programming and marketing opportunities. For the year ended December 31, 2014, bleacherreport.com reached approximately 40 million average monthly domestic multi-platform unique visitors. Turner also manages and operates NCAA.com , NCAA March Madness Live , which provides live and on-demand streaming video of games, NBA.com , which provides live streaming of games, and PGA.com .

Kids

Cartoon Network and Boomerang offer original, acquired and classic animated and live-action entertainment targeted at kids in the U.S. and in international territories. Turner plans to significantly expand its global kids business, increase its collaboration with Warner Bros. on television programming that is based on Warner Bros.’ brands and characters (such as DC Entertainment and Looney Tunes) and grow its consumer products business. As part of that initiative, for the 2014-2015 season, Boomerang will offer both classic Warner Bros. animation programming and exclusive new original content.

Cartoon Network

Cartoon Network offers original and syndicated animated and live-action series and motion pictures for youth and families. For the 2014-2015 season, Cartoon Network’s original animated series include Adventure Time , The Amazing World of Gumball , Clarence , Steven Universe, Teen Titans Go! and Uncle Grandpa .

Boomerang

Boomerang offers classic animated entertainment from the Warner Bros., Hanna-Barbera, MGM and Cartoon Network libraries, such as The Flintstones , The Jetsons , Pink Panther , Tom and Jerry and Yogi Bear , and for the 2014-2015 season will offer exclusive new original series, such as Inspector Gadget and Mr. Bean . In 2014, Boomerang began airing advertising for the first time in the U.S. and some international territories, with plans to air advertising in its other international territories in 2015.

Turner’s kids business is a key part of its international operations, and Cartoon Network is the number one kids network in several territories outside the U.S. Turner’s kids networks outside the U.S. include Cartoon Network, Boomerang and Tooncast in Latin America; BOING, Boomerang, Cartoon Network and Cartoonito in Europe and the Middle East; and Boomerang, Cartoon Network, POGO and Toonami in Asia.

News

CNN

CNN is the original cable television news service. As of December 31, 2014, CNN managed 40 news bureaus and editorial operations, 31 of which are located outside the U.S. Turner is focused on maintaining CNN’s leadership in worldwide breaking-news and political coverage while broadening the scope of its programming to include compelling storytelling about important events, people and places through original programming and long-form documentaries. CNN’s original programming for the 2014-2015 season includes Anthony Bourdain: Parts Unknown ; Inside Man , hosted by documentary filmmaker Morgan Spurlock; Somebody’s Gotta Do It , hosted by Mike Rowe; and This is Life with Lisa Ling . CNN plans to increase the amount of original programming on CNN over time. For the 2014-2015 season, CNN’s other programs include Anderson Cooper 360 ^o ,  New Day , and  The Situation Room . For the year ended December 31, 2014, CNN.com had 39 million average monthly domestic unique visitors. In September 2014, CNN expanded its multi-platform capabilities with the nationwide rollout of CNNGo, which allows subscribers to watch CNN’s news and original programming live and on demand.

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Internationally, CNN is the most widely distributed news network reaching almost 300 million households outside the U.S. as of December 31, 2014. CNN Worldwide is a portfolio of more than 20 news and information services across cable, satellite, radio, wireless devices and the Internet in more than 200 countries as of December 31, 2014. CNN Worldwide’s networks and businesses include CNN U.S., CNN International, CNN en Español, CNNj, CNN.com, CNN Airport Network, CNN Radio, CNN Newsource and HLN.

HLN

HLN is a CNN Worldwide network that focuses on news, information, videos and other content curated from multiple social media platforms. For the 2014-2015 season, HLN’s programs include Dr. Drew On Call , Morning Express with Robin Meade and Nancy Grace .

How Turner Generates Revenues

Turner generates revenues principally from fees received from affiliates that distribute Turner’s programming to subscribers, the sale of advertising on its networks and the digital properties it owns or manages for other companies and the license of its original programming to SVOD services and its brands and characters for consumer products. Turner’s agreements with its affiliates are typically multi-year arrangements that provide for annual service fee increases and have fee arrangements that are generally related to the number of subscribers served by the affiliate, the package of programming provided to the affiliate by each network and the competitive environment. Turner’s advertising revenues are generated from a wide variety of advertiser categories, and the advertising arrangements for its networks generally have terms of one year or less. In the U.S., the advertising revenues generated by Turner are a function of the size and demographics of the audience delivered, the number of units of time sold and the price per unit. Turner sells some of its advertising inventory in the “upfront” market in advance each year and other inventory in the “scatter” market closer to the time a program airs. Outside the U.S., advertising is generally sold at a fixed rate for the unit of time sold, determined by the time of day and network.

HOME BOX OFFICE

Home Box Office owns and operates leading multichannel premium pay television services, HBO and Cinemax. Its businesses consist principally of premium pay television services domestically and premium pay and basic tier television services internationally, as well as home entertainment and content licensing. At December 31, 2014, Home Box Office had approximately 138 million worldwide subscribers, which consisted of approximately 46 million domestic premium pay subscribers and approximately 92 million international premium pay and basic tier television service subscribers, including subscribers through international unconsolidated joint ventures. Home Box Office provides HBO and Cinemax subscribers in the U.S. with subscription video-on-demand products, HBO On Demand and Cinemax On Demand as well as HBO GO and MAX GO. Home Box Office plans to launch a “stand-alone” streaming service in the U.S. in 2015. Home Box Office also sells its original programming via DVDs, Blu-ray Discs and electronic sell-through (“EST”). In 2014, Home Box Office also licensed for the first time some of its programming to an SVOD service in the U.S.

Internationally, Home Box Office tailors the distribution of its programming for each territory using one or more of the following distribution models: premium pay and basic tier television services licensing and/or sale of programming, and direct-to-consumer streaming services. HBO and Cinemax-branded premium pay and basic tier television services are distributed in over 60 countries in Latin America, Asia and Europe. Home Box Office’s original programming is also available to consumers in over 150 countries, both via licenses to international television networks and SVOD services and through sales of DVDs, Blu-ray Discs and EST. Home Box Office operates a direct-to-consumer streaming service in the Nordic region.

Home Box Office Programming

Domestic Original Programming

HBO’s original programming features award-winning and critically acclaimed dramatic and comedy series, such as Game of Thrones ,  Girls ,  The Leftovers , The Newsroom , Silicon Valley ,  True Blood , True Detective and  VEEP , as well as HBO films and mini-series, such as The Normal Heart and Olive Kitteridge , boxing matches and other sports programming, documentaries and comedy and music specials. The quality and diversity of HBO’s original programming differentiates

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HBO from other premium pay television services, basic television networks and SVOD services and enhances the value of the HBO brand both domestically and internationally. This programming also continues to build the value of Home Box Office’s content library while increasing the value of HBO across its businesses.

In 2014, HBO received 19 Primetime Emmy Awards, the most of any network for the 13th year in a row, with True Detective winning five awards. In 2014, HBO also won two Golden Globe Awards for Behind the Candelabra , and in January 2015, HBO won one Golden Globe Award for The Normal Heart . In addition, HBO won three George Foster Peabody Awards for documentaries and five Sports Emmy Awards in 2014.

Home Box Office continues to expand HBO’s roster of original series and to work closely with Warner Bros. on original programming. Home Box Office premiered new series True Detective in January 2014, Silicon Valley in April 2014 and The Leftovers (produced by Warner Bros.) in June 2014. Home Box Office premiered its new series Togetherness in January 2015 and plans to premiere three additional new series, Ballers , The Brink and Westworld (produced by Warner Bros.), later in 2015.

In recent years, Cinemax has begun investing in original programming to enhance its brand. Cinemax’s original primetime series in 2014 included Banshee and The Knick . In 2015 Cinemax will air new seasons of these shows and the final season of Strike Back .

Domestic Licensed Programming

Domestically, a significant portion of the programming on HBO and Cinemax consists of uncut and uncensored feature films, including recently-released feature films. Due to the importance of feature films to HBO and Cinemax subscribers, Home Box Office has long-term licensing agreements of varying duration with major film studios and independent producers and distributors. Home Box Office has agreements with Warner Bros., Twentieth Century Fox (“Fox”), Universal Pictures (“Universal”) and Summit Entertainment. The agreements provide Home Box Office the exclusive right to exhibit and distribute on its premium pay television services and digital platforms all of the feature films theatrically released in the U.S. each year by these studios during the applicable license period (other than certain animated films and other certain other specified films). More than half of the top 25 feature films theatrically released in 2014 (as determined based on domestic box office receipts) will be exhibited exclusively on the HBO and Cinemax premium pay television services during the applicable license periods. Home Box Office also has agreements to license older films with Fox, Universal, Warner Bros. and a number of other major studios and independent distributors. Expirations of these agreements are staggered, and Home Box Office’s rights to some of the films licensed under these agreements extend into the next decade.

International Programming

A substantial portion of the programming on Home Box Office’s international premium pay and basic tier television services consists of feature films licensed from major studios in the U.S. Home Box Office also has agreements to license older films from a number of major U.S. studios and other domestic and international independent distributors. In addition to films, the content offerings on these international programming services may feature licensed HBO- and Cinemax-branded television programming, local language original programming and/or U.S. television programming produced by other production studios. For example, in 2014, HBO Latin America (Home Box Office’s largest joint venture) exhibited and distributed recently-released feature films licensed from four major U.S. studios, HBO- and Cinemax-branded programming and over 100 hours of locally-produced Spanish and Portuguese language original programming.

Home Box Office’s Businesses and Revenues

Domestic Premium Pay Television Services

Home Box Office generates revenues principally from providing its programming to domestic affiliates. The HBO and Cinemax services are distributed by Home Box Office’s domestic affiliates that have contracted to receive and distribute Home Box Office’s programming to their customers who subscribe to the HBO and Cinemax services. At December 31, 2014, Home Box Office had approximately 46 million domestic subscribers and HBO was the most widely distributed domestic multi-channel premium pay television service. Home Box Office’s agreements with its domestic affiliates are

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typically long-term arrangements that provide for annual service fee increases and marketing support. While fees to Home Box Office under affiliate agreements are generally based on the number of subscribers served by the affiliates, the relationship between subscriber totals and the amount of revenues earned depends on the specific terms of the applicable agreement, which may include basic and/or pay television subscriber thresholds, volume discounts and other performance-based discounts. Marketing and promotional activities intended to retain existing subscribers and acquire new subscribers may also impact revenue earned. In addition to offering HBO as part of their multichannel video subscription packages, some affiliates have created smaller bundled channel offerings that include a “light” subscription package (i.e., broadcast and/or select basic cable networks, broadband service and HBO).

In addition to viewing HBO and Cinemax programming on an HBO or Cinemax multiplex television channel, subscribers can also view HBO and Cinemax programming whenever they want through Home Box Office’s on demand services, HBO On Demand and Cinemax on Demand. Home Box Office also provides HBO and Cinemax subscribers with unlimited access to programming through its HBO GO and MAX GO streaming video-on-demand platforms. HBO GO and MAX GO enable HBO and Cinemax subscribers to watch programming whenever they want on a variety of digital platforms, including various mobile devices, gaming consoles and Internet streaming devices and connected televisions. The programming on HBO GO and MAX GO includes most seasons of HBO’s and Cinemax’s original series, as well as feature films, HBO mini-series and films, sports programming, documentaries, comedy and music specials, bonus features and behind-the-scenes extras.

Home Box Office plans to launch a “stand-alone” streaming service in the U.S. in 2015 to target homes that do not subscribe to HBO, including those homes that do not subscribe to a multichannel video service. Home Box Office plans to work with its current domestic affiliates and explore other distribution models for this service.

International Premium Pay and Basic Tier Television Services

Unique, country-specific HBO and Cinemax-branded premium pay and basic tier television services are distributed in more than 60 countries in Latin America, Asia and Europe by international affiliates that have contracted to receive and distribute Home Box Office’s programming to the affiliates’ customers who subscribe to the HBO and Cinemax services. In Asia and Europe (excluding the Netherlands), Home Box Office operates through consolidated, wholly-owned subsidiaries. In Latin America and the Netherlands, Home Box Office operates through unconsolidated joint ventures. Home Box Office had approximately 92 million international subscribers at December 31, 2014, including subscribers through Home Box Office’s unconsolidated joint ventures. Home Box Office transferred the operation and certain contracts of an HBO-branded basic tier television service in India to Turner effective January 2015. The service, which had approximately 15.8 million subscribers at December 31, 2014, will continue to use the HBO brand under Turner’s operation. As a result, the subscribers of this service will no longer be included as Home Box Office subscribers. HBO GO was available to HBO premium pay television subscribers in over 20 countries at December 31, 2014, and Home Box Office plans to make HBO GO available to HBO premium pay television subscribers in additional countries and territories in 2015. Home Box Office generates revenues from providing its programming to international affiliates. The terms of Home Box Office’s agreements with its international affiliates vary from country to country, and the amount of revenues attributable to such agreements can be based on a number of factors such as basic and/or pay television subscriber thresholds, performance-based or volume discounts, negotiated minimum guarantees or flat-fee arrangements.

Home Box Office also operates a direct-to-consumer on demand streaming service in the Nordic region.

Home Entertainment and Content Licensing

Home Box Office also generates revenues from the exploitation of its original programming through multiple other distribution outlets. Home Box Office’s original programming is sold via DVDs, Blu-ray Discs and EST in the U.S. and various international regions through a wide variety of digital storefronts. Significant home entertainment releases in 2014 included Game of Thrones: The Complete Third Season , True Detective: The Complete First Season and True Blood: The Complete Sixth Season, The Complete Seventh Season and The Complete Series . In 2014, Home Box Office also licensed for the first time some of its programming to the Amazon Prime SVOD service. Finally, Home Box Office has also licensed certain of its original programming, such as Curb Your Enthusiasm , Entourage and Sex and the City , as well as Everybody Loves Raymond , which was produced by Home Box Office but aired on broadcast television, to domestic basic cable networks and local television stations.

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Home Box Office also licenses both individual programs and packages of programs to television networks and SVOD services in over 150 countries, including arrangements under which it licenses programming to television networks that are branded as the “Home of HBO” in countries such as the U.K., Australia, France, Germany and Israel and as “HBO Canada” in Canada. In the fourth quarter of 2014, Home Box Office also entered into a license agreement, under which it will license for the first time beginning in 2015 some of its current original series and library content to an SVOD service in China.

WARNER BROS.

Warner Bros. is the largest television and film studio in the world based on total studio revenues as of December 31, 2014. Its businesses consist principally of the production, distribution and licensing of television programming and feature films and the distribution of digital and physical home entertainment products, as well as the production and distribution of videogames and consumer product and brand licensing.

In television, Warner Bros. has been the leading producer of primetime series for U.S. broadcast networks for 11 of the last 12 television seasons. For the 2014/2015 television season, Warner Bros. is producing over 60 television series in the U.S., including over 30 series for U.S. broadcast networks. In addition, Warner Bros. licenses its U.S. programming in over 175 countries at December 31, 2014 and is also focused on expanding its international television production business through its global network of wholly-owned local production companies in 16 international territories.

In film, Warner Bros. has been the #1 or #2 film studio in domestic box office receipts for 9 of the past 11 years and the #1 or #2 film studio in global box office receipts for 10 of the last 11 years. In 2014 Warner Bros.’ films generated over $4 billion at the global box office for the sixth year in a row. In October 2014, Warner Bros. announced an expansion of its film slate built around Warner Bros.’ strongest global franchises.

Warner Bros. is focusing on increasing the digital sales and rentals of its film and television content and is a leader in a variety of digital initiatives designed to make digital ownership more compelling for consumers, including UltraViolet. In addition, Warner Bros. has led the home entertainment industry in sales of DVDs and Blu-Ray Discs for 18 years. At December 31, 2014, Warner Bros.’ vast content library consists of more than 75,000 hours of programming, including over 7,000 feature films and 5,000 television programs comprised of tens of thousands of individual episodes.

Warner Bros. is focused on maximizing across all of its businesses the value of its portfolio of leading brands and characters. These brands include DC Entertainment’s brands (DC Comics, Vertigo and MAD Magazine) as well as the Looney Tunes and Hanna-Barbera brands. DC Comics’ characters include such iconic characters as Batman, the Flash, Green Arrow, Superman and Wonder Woman. Warner Bros.’ other characters include Harry Potter, Bugs Bunny, Scooby-Doo and Tom and Jerry, among many others. Warner Bros.’ television and film businesses also benefit from a shared infrastructure, including shared production, distribution, marketing and administrative functions and resources.

Warner Bros. has developed strong global franchise properties from its portfolio of brands and characters, including film franchises such as the Batman and Harry Potter series and The Hobbit and The Lord of the Rings trilogies, and it is focused on extending its existing global film franchises and expanding the brands and characters from its film franchises and its leading portfolio of brands and characters across all its businesses. For example, during the 2014-2015 television season, five series based on DC Entertainment characters (including Arrow , The Flash and Gotham ) are airing on broadcast television, and in 2014 Warner Bros. announced the release of at least 10 films based on the DC Entertainment universe of characters from 2016 through 2020. In addition, in 2014, Warner Bros. extended its successful LEGO relationship to feature films with the release of The LEGO Movie , the first of several planned LEGO-branded films, and it released the third LEGO Batman videogame, LEGO Batman 3: Beyond Gotham . Also in 2014, Warner Bros. announced the release of three films based on the world of Harry Potter from 2016 through 2020. Warner Bros. is also focused on creating new global film franchises.

Television

Warner Bros. is a leader in the television production and distribution business. Warner Bros. is focused on maintaining its leadership position in producing primetime series for the U.S. broadcast networks (including The CW broadcast network (“The CW”)) while expanding and diversifying its production slate across new buyers and genres. This includes increasing

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production for basic cable networks (including expanding its collaboration with Turner), premium pay television services (including HBO), and SVOD services. Warner Bros. also plans to expand its international local television production business by using its global network of wholly-owned local production companies in 16 international territories. Warner Bros. is actively collaborating with Turner as Turner and Warner Bros. move to significantly expand their global kids businesses and maximize the related consumer product opportunities. Warner Bros. is providing Turner with more animation programming based on Warner Bros.’ intellectual property (such as DC Entertainment and Looney Tunes) to obtain broader global exposure for existing franchises and develop a platform to launch new franchises.

Domestic Business

Warner Bros. produces and distributes its television programming for initial airing on broadcast and basic cable television networks, premium pay television and SVOD services and local television stations in the U.S. Warner Bros. also produces and distributes short-form live-action series and animated programming for initial viewing on digital platforms. Warner Bros.’ programming includes the following:

After the initial domestic airing, Warner Bros. licenses its television programming for subsequent airing on basic cable networks, local television stations and SVOD services and through other off-network distribution channels in the U.S. These licenses enable Warner Bros. to generate significant revenues from hit television series for years beyond their initial airing on television. For example, Warner Bros. has licensed local station and basic cable off-network rights to various series, including 2 Broke Girls , The Big Bang Theory , The Middle , Mike & Molly , Person of Interest and Two and a Half Men . Warner Bros. also has license agreements with an SVOD service for the exclusive SVOD rights to all episodes of Friends and to each season of Gotham following its initial airing on broadcast television. In addition, Warner Bros. has a licensing agreement with an SVOD service, which extends through the 2014/2015 season (and for the life of any series created during the 2014/2015 season), for the exclusive, out-of-season, domestic SVOD rights to all scripted primetime series produced for The CW.

Warner Bros. also licenses its feature films to broadcast and cable networks, SVOD services and premium pay television services (including HBO) starting approximately eight to eleven months following their theatrical release. During 2014, Warner Bros. licensed more than 1,000 feature films and over 3,500 hours of feature film programming to television networks, premium pay television services and SVOD services.

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International Business

Warner Bros. licenses rights to exhibit feature films and original television series in international territories through agreements with television networks, premium pay and basic tier television services, SVOD services, free video on demand services and other digital services. During 2014, Warner Bros. licensed thousands of hours of programming, dubbed or subtitled in more than 60 languages, to international distributors in more than 175 countries. In 2014, Warner Bros. entered into significant international SVOD arrangements in Canada, France, Germany and the Nordic region and a multi-territory SVOD arrangement for the series, Gotham .

As the worldwide demand for locally produced, local language programming increases, Warner Bros. is focused on expanding its international local production business. With its acquisition of the remaining ownership interests in the Shed Media Group and its acquisition of the non-U.S. operations of the Eyeworks Group, Warner Bros. has a global network of wholly-owned production companies in 16 international territories, which will allow Warner Bros. to develop programming specifically tailored for the audiences in these territories. Warner Bros. is also focusing on adapting international local programming into formats that can be produced by its local production companies in additional territories, including the U.S. For example, The Bachelor (a format owned by Warner Bros. that originated in the U.S.) is being adapted and produced in multiple international territories, including Australia, Germany, New Zealand, Sweden and Switzerland, and Date Night (a format owned by Warner Bros. that originated in the U.K.) is being adapted and produced in Belgium, the Netherlands and the U.S.

Television Business Revenues

The revenues generated by Warner Bros.’ television business consist of (1) fees for the initial broadcast of Warner Bros.’ television programming on U.S. broadcast and cable television networks and premium pay television and SVOD services, (2) fees for the airing or other distribution of its television programming after its initial broadcast in secondary U.S. distribution channels (such as basic cable networks, local television stations and SVOD services) and in international territories, (3) fees for the international distribution of Warner Bros.’ television programming for free-to-air television, basic tier and premium pay television services, SVOD services and free VOD and (4) revenues from the sale of the television programming of Warner Bros. and other companies in digital formats and on physical discs. Warner Bros.’ television programming also supports Warner Bros.’ key franchises, which helps generate consumer product revenues based on the programming for years beyond the initial airing of such programming on television.

Feature Films

Warner Bros. is a leader in the feature film business and produces feature films under its Warner Bros. and New Line Cinema banners. Warner Bros. also enters into arrangements with others to co-produce and co-finance feature films. Warner Bros. produces and distributes a wide-ranging slate of films, and it is focused on expanding its film slate, built around its strongest franchises with global appeal.

During 2014, Warner Bros. released 21 original feature films for distribution in the U.S., including Annabelle , Edge of Tomorrow ,  Godzilla ,  The Hobbit: The Battle of the Five Armies , The LEGO Movie and Tammy . Of the films released during 2014, five were released in 3D format, including Godzilla and The LEGO Movie , and five were formatted for viewing on IMAX screens, including Edge of Tomorrow and The Hobbit: The Battle of the Five Armies . In January 2015, Warner Bros. widely released American Sniper , and in February 2015, Warner Bros. released Jupiter Ascending. Warner Bros. plans to release an additional 21 films during 2015, including Entourage , Mad Max: Fury Road , Get Hard , Magic Mike XXL , Pan and San Andreas .

In October 2014, Warner Bros. announced the expansion of its feature film slate built around its strongest global franchises. Warner Bros.’ film slate of between 21 to 23 films per year will include at least 10 films based on the DC Entertainment universe of characters such as Aquaman , Batman v Superman: Dawn of Justice , The Flash , Green Lantern , Justice League Part One , Shazam , Suicide Squad and Wonder Woman , as well as three LEGO-branded films and three films in partnership with J.K. Rowling inspired by Harry Potter’s Hogwart’s textbook, Fantastic Beasts and Where to Find Them , that build on Warner Bros.’ successful Harry Potter film franchise.

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Internationally, Warner Bros. produces and distributes both English language as well as local language films for theatrical exhibition in more than 170 territories outside the U.S. Warner Bros. uses both day and date and a staggered release schedule for its international releases. In 2014, Warner Bros. released internationally 20 English-language films and 29 local-language films that it either produced itself or acquired from other companies.

After the theatrical exhibition of its feature films, Warner Bros. releases them both domestically and internationally for distribution in various time periods through a variety of distribution channels, including through EST and VOD, on DVD and Blu-ray Discs, to premium pay television services, broadcast and basic cable networks, SVOD services and other exhibitors such as airlines and hotels. Feature films are released for sale through EST and on DVDs and Blu-ray Discs approximately three to six months following their release in theaters, and the date for that release is influenced by seasonality, competitive conditions, film attributes and expected performance. After that, Warner Bros. licenses the feature films for domestic and international distribution to premium pay television services (including HBO and Cinemax), broadcast and basic cable networks, (including Turner’s cable networks) and SVOD and other digital services and, in most cases, other exhibitors such as airlines and hotels. Warner Bros. also licenses its recent theatrical releases for viewing online in the U.S. as described in “Home Entertainment” below.

Warner Bros. produces most of its films under co-financing arrangements, which give Warner Bros. a greater ability to manage the financial risks of its film slate and offset some of the significant costs involved in the production, marketing and distribution of feature films, particularly event films. In most cases, Warner Bros. maintains worldwide distribution rights for the films it co-finances with others. Warner Bros. has co-financing arrangements with Village Roadshow Pictures and RatPac-Dune Entertainment (“RatPac-Dune”). Under Warner Bros.’ multi-year agreement with RatPac-Dune, RatPac-Dune has agreed to co-finance as many as 75 of Warner Bros.’ films by contributing capital for and receiving equity in such films. Warner Bros. also monetizes its distribution and marketing operations by distributing films that are totally financed and produced by others, and it has an exclusive distribution arrangement with Alcon Entertainment.

Feature Film Business Revenues

The revenues generated by Warner Bros.’ feature film business primarily consist of (1) rental fees paid by theaters for the theatrical exhibition of feature films produced (or co-produced) and/or distributed by Warner Bros., (2) licensing fees paid by television networks, premium pay television services and SVOD services for the exhibition of feature films produced or co-produced by Warner Bros. and (3) revenues from the distribution of Warner Bros.’ and other companies’ feature films on physical discs and in digital formats.

Home Entertainment

Warner Bros. also generates revenues through the home entertainment distribution of its film and television content on DVDs and Blu-ray Discs and various digital formats. Warner Bros. continues to be a leader in the home entertainment industry, and its significant home entertainment releases during 2014 include Gravity , The Hobbit: The Desolation of Smaug and The LEGO Movie .

The home entertainment industry has been undergoing significant changes as it transitions from the physical distribution of film and television content via DVDs and Blu-ray Discs to the digital delivery of such content. In recent years, consumer spending on physical discs has declined as a result of several factors, including consumers shifting to subscription rental services and discount rental kiosks; increasing competition for consumer discretionary time and spending; and piracy. Consumer spending on the digital delivery of film and television content has been increasing in recent years, but that growth has not fully offset declines in consumer spending on physical discs.

In response to these dynamics, Warner Bros. has been focusing on increasing digital sales and rentals of its film and television content through more profitable channels such as EST and transactional VOD, and is a leader in a variety of digital initiatives designed to make digital ownership more compelling for consumers. Warner Bros. licenses its newly released feature films as well as films from its library and its television content for viewing digitally online and on mobile platforms in the U.S. and internationally to EST and transactional VOD services, such as Amazon, iTunes and Google Play. In the U.S. and most major international markets, Warner Bros.’ recent theatrical releases are generally released for sale in EST at least two weeks before their release on DVD, Blu-ray Disc and VOD.

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In addition, Warner Bros. participates in a variety of digital initiatives, including UltraViolet, the home entertainment industry standard that allows consumers who have purchased film and television content to access their content at any time by downloading or streaming it from the cloud to various devices supported by participating UltraViolet retailers, and the Disc to Digital service, which allows consumers to obtain digital copies of their previously purchased physical DVD and Blu-ray collections. In addition, Warner Bros.’ Flixster app is a video collection platform that enables consumers to watch and manage their UltraViolet film and television content on multiple digital platforms, including mobile devices, connected televisions and Internet streaming platforms.

Although consumer spending on physical discs has declined in recent years, the distribution of DVDs and Blu-ray Discs still generates significant revenues for Warner Bros. The DVDs and Blu-ray Discs it distributes contain its own feature films and television content, including library content, as well as content acquired from others. In the U.S. and other major territories, physical disc sales of new feature film releases include an Ultraviolet digital copy. Warner Bros. generally releases newly produced films on DVD and Blu-ray Disc to by-mail and kiosk rental services 28 days following their release to online and brick and mortar retailers. Warner Bros. also distributes content on DVDs and Blu-ray Discs for others, such as HBO, Turner, BBC, Paramount and Sesame Street in the U.S. and content producers outside the U.S.

Videogames

Warner Bros. develops, publishes and distributes videogames, including mobile and console games. Its videogames are based on intellectual property owned by Warner Bros. (including DC Entertainment) as well as other companies. In 2014, Warner Bros. released 11 videogames, including LEGO Batman 3: Beyond Gotham , The LEGO Movie Videogame and Middle Earth: Shadow of Mordor , and it plans to release 13 videogames in 2015. In recent years, Warner Bros.’ videogame releases have included multiple games based on DC Entertainment characters, Harry Potter , The Hobbit and The Lord of the Rings trilogies, LEGO and Mortal Kombat, and Warner Bros. is focused on increasing its monetization of its franchises in its videogames business in the future. Warner Bros. also licenses Warner Bros. and DC Entertainment properties for videogames to other companies. Warner Bros.’ videogames revenues consist of revenues from the development and distribution of the videogames of Warner Bros. and other companies.

OTHER TELEVISION NETWORK ASSETS

The Company also holds interests in companies that operate broadcast networks.

Central European Media Enterprises Ltd.

As of December 31, 2014, Time Warner held an approximate 49% voting interest and an approximate 75% economic interest in the equity interests of Central European Media Enterprises Ltd. (“CME”), a publicly-traded broadcasting company that operates leading television networks in Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia. Time Warner’s investment consists of (i) common stock, (ii) convertible preferred stock that has voting rights, (iii) convertible redeemable preferred shares that do not have voting rights and (iv) warrants to purchase common stock of CME. Time Warner accounts for its investment in CME’s common stock and convertible preferred stock under the equity method of accounting, and it accounts for its investment in CME’s convertible redeemable preferred shares under the cost method of accounting. Time Warner also guarantees or holds a significant portion of CME’s outstanding indebtedness and provides financing to CME under a revolving credit facility and term loan. See “Management’s Discussion and Analysis of Results of Operations and Financial Condition—Recent Developments” for additional information regarding Time Warner’s guarantees, the debt held by Time Warner and the credit facility and term loan provided by Time Warner.

The CW

The CW is a 50-50 joint venture between Warner Bros. and CBS Corporation. The CW’s 2014-2015 schedule includes a 5-night, 10-hour primetime lineup of advertising-supported original programming such as America’s Next Top Model , Arrow , Beauty and the Beast , The Flash , Heart of Dixie , iZombie , Jane the Virgin , The Originals , Reign , Supernatural and The Vampire Diaries , as well as a five-hour block of advertising-supported programming on Saturday mornings. In 2015, The CW’s Jane the Virgin won one Golden Globe Award. Advertising-supported full episodes of The CW’s original series are also available on cwtv.com . The CW programming is also available for streaming through Netflix and Hulu. The Company accounts for its investment in The CW under the equity method of accounting.

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COMPETITION

The Company’s businesses operate in highly competitive industries. Competition in these industries has intensified as leisure and entertainment options have proliferated and audience fragmentation has increased. The Company’s businesses compete for consumers’ entertainment and leisure time and spending with each other, as well as other forms of entertainment, including other television networks, premium pay television services, local over-the-air television stations, motion pictures, home entertainment products and services (including SVOD services), VOD services and videogames, as well as pirated content, websites providing social networking and user-generated content, online activities, print media, live events, radio broadcasts and other forms of news, information and entertainment.

The Company’s competitive position is greatly affected by the quality of, and public response to, its content. The Company’s businesses compete with other production companies and studios for the services of producers, directors, writers, actors and others and for the acquisition of literary properties. The Company’s television networks compete for programming with television networks, premium pay television services, local television stations and SVOD services, and competition for programming, particularly licensed and sports programming, is intense.

The Company faces competition for the licensing and distribution of its programming. As a producer and distributor of programming, the Company competes with other studios and television production groups, and independent producers to produce and sell programming. Many television networks have affiliated production companies from which they are increasingly obtaining their programming, which has reduced the demand for programming from non-affiliated production companies. The Company also faces competition from other television networks and premium pay television services for distribution and marketing of its television networks and premium pay and basic tier television services by affiliates.

The Company’s businesses face significant competition in other areas as well. For example, Company’s television networks and websites compete for advertising with networks, websites, print, radio, outdoor display and other media, and the Company’s businesses compete in their character and brand merchandising and other licensing activities with other licensors of characters and brands.

REGULATORY MATTERS

The Company’s businesses are subject to and affected by laws and regulations of U.S. federal, state and local governmental authorities as well as the laws and regulations of international countries and bodies such as the European Union (the “EU”), and these laws and regulations are subject to change. The following descriptions of significant U.S. federal, state, local and international laws, regulations, regulatory agency inquiries, rulemaking proceedings and other developments should be read in conjunction with the texts of the respective laws and regulations and other related materials.

Intellectual Property Laws

Time Warner is one of the world’s leading creators, owners and distributors of intellectual property. The Company’s vast intellectual property assets include copyrights in films, television programs, software, comic books and mobile apps; trademarks in names, logos and characters; patents or patent applications for inventions related to products and services; and licenses of intellectual property rights of various kinds. The Company derives value from these assets through its business activities.

To protect the Company’s assets, the Company relies on a combination of copyright, trademark, unfair competition, patent and trade secret laws and license agreements. The duration of the protection afforded to the Company’s intellectual property depends on the type of property, the laws and regulations of the relevant jurisdiction and the terms of its license agreements. With respect to the Company’s trademarks and trade names, trademark laws and rights are generally territorial in scope and limited to those countries where a mark has been registered or otherwise protected. While trademark registrations may generally be maintained in effect for as long as the mark is in use in the respective jurisdictions, there may be occasions where a mark or title is not registrable or protectable or cannot be used in a particular country. In addition, a trademark registration may be cancelled or invalidated if challenged by others based on certain use requirements or other limited grounds. In the U.S., the usual copyright term for authored works is the life of the author plus 70 years, and the copyright term for “works made for hire” is the shorter of 95 years from the first publication or 120 years from the date

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the work was created. The Company also relies on laws that prohibit the circumvention of technological protection measures and trafficking in circumvention devices. The extent of copyright protection and benefit from laws prohibiting the circumvention of technological protection measures vary in different countries.

Piracy, particularly of digital content, continues to present a threat to revenues from products and services based on intellectual property. The Company seeks to limit that threat through a combination of approaches, including working with cross-industry groups, trade associations and strategic partners to develop and implement technological solutions to control piracy, promoting legitimate market alternatives, applying technological protection measures, engaging in efforts to ensure effective and appropriately tailored legal remedies for infringement, enhancing public awareness of the meaning and value of intellectual property and promoting and advocating for appropriate legislative and policy initiatives both in the U.S. and internationally. The Company vigorously pursues appropriate avenues to protect its intellectual property, including sending takedown notices in appropriate circumstances and pursuing litigation and referrals to law enforcement against websites that distribute or facilitate the unauthorized distribution of the Company’s content. The volume of actions against websites dedicated to copyright theft is increasing internationally, and certain countries have implemented or are considering implementing programs or remedies designed to address and deter widespread infringement.

Outside the U.S., laws and regulations relating to intellectual property protection and the effective enforcement of these laws and regulations vary greatly from country to country and continue to evolve. Judicial, legislative and administrative developments are taking place in certain jurisdictions that may limit the ability of rights holders to exploit and enforce certain of their exclusive intellectual property rights outside the U.S. For example, in October 2011, the European Court of Justice held, in the context of satellite broadcasts of live soccer matches, that it was an unlawful restriction on competition for England’s Football Association Premier League to prohibit broadcasting licensees from distributing satellite decoder cards outside the territory for which the broadcasts were licensed for reception. As a result of that decision, in January 2014, the European Commission began an antitrust investigation of the cross-border provision of pay TV services, and is examining certain provisions in licensing agreements between a number of U.S. film studios, including Warner Bros., and several large European satellite pay TV broadcasters. The European Commission has stated that its investigation is focusing on contractual restrictions that prevent broadcasters in one country from selling subscriptions in response to unsolicited requests from viewers in other EU countries. In addition, in 2014, the European Commission announced that one of its priorities is the creation of a single digital market, which is intended to reduce the barriers to the unrestricted flow of online services and entertainment content across national borders. The European Commission also announced that it intends to propose legislation to modernize copyright laws to support a single digital market. It is not possible at this time to predict the impact that this investigation or potential legislation could have on the Company’s businesses.

Regulation Relating to Data Privacy, Data Security and Cybersecurity

The Company’s businesses are subject to laws and regulations governing data privacy, data security and cybersecurity. For example, in the U.S., the Company is subject to: (1) the Children’s Online Privacy Protection Act (“COPPA”), which affects certain of the Company’s websites, mobile apps and other online business activities and restricts the collection, maintenance and use of personal information regarding children; (2) the Privacy and Security Rules under the Health Insurance Portability and Accountability Act, which imposes privacy and security requirements on the Company’s health plans for its employees and on service providers under those plans; (3) the Video Privacy Protection Act, which restricts disclosure of video viewing information; (4) state statutes requiring notice to individuals when a data breach results in the unauthorized release of personally identifiable information; and (5) privacy and security rules imposed by the payment card industry, as well as regulations designed to protect against identity theft and fraud in connection with the collection of credit and debit card payments from consumers.

Moreover, new laws and regulations that could affect how the Company collects, uses and protects data have been adopted or are being considered in the U.S. and internationally. In the U.S., for example, the Federal Trade Commission (the “FTC”) issued a report on consumer privacy protection in March 2012 that sets forth best practices for businesses to build privacy protections into their products and provide consumers with greater control over the collection and use of their personal information. The FTC report also calls for the widespread adoption and strengthening of self-regulatory measures, such as a standard “Do Not Track” mechanism and a limitation on data tracking with respect to mobile devices. In addition, effective July 1, 2013, the FTC updated its regulations implementing COPPA by expanding the categories of data that are considered personal information, such as IP addresses, geolocation data and screen names. The FTC also updated the requirements for notice, parental consent, confidentiality and security in the regulations implementing COPPA.

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Following the Department of Commerce (the “DOC”) report on cybersecurity and the White House report on consumer privacy in 2012, the U.S. General Accounting Office issued a report in September 2013 encouraging Congress to consider strengthening the U.S. consumer privacy framework to reflect the effects of changes in technology and the increased market for consumer information. In 2014, Congress held hearings on privacy, data security and cybersecurity, and these hearings are expected to continue in 2015. Other activities in this area could include changes to the DOC’s Safe Harbor program, which offers a framework for companies to import personal information from the EU in compliance with the European Data Protection Directive (95/46/EC) (the “Directive), as well as the potential for new or expanded laws and regulations regarding information security, online and behavioral advertising, geolocation tracking, cloud computing and other forms of data collection, sharing and use. To the extent any of these developments results in the adoption of new laws or regulations, it could increase the Company’s compliance costs.

Several state legislatures have also adopted legislation that regulates how businesses operate online, including measures relating to privacy, data security and data breaches. For example, laws in numerous states require businesses to provide notice to customers whose personally identifiable information has been disclosed as a result of a data breach. In addition, California’s “Do Not Track” legislation requires websites (including mobile apps) that collect personal information about a person’s online activities to disclose how the site responds to “do not track” signals or other mechanisms that enable consumers to opt out of the collection of such information.

Foreign governments are also focusing on data privacy and security concerns. For example, a 2012 report by the European Commission proposed a comprehensive review of privacy protection in the EU. The regulation proposed in the report includes rules that broaden the definition of personal data, strengthen the rights of data subjects, enhance penalties for non-compliance and continue to restrict the transfer of personal data to countries outside the EU.

Regulation of Television Networks, Internet/Broadband Services, Programming and Advertising

The Company’s businesses are also subject to a number of laws and regulations relating to the distribution and licensing of television programming, the content of that programming, and advertising and marketing. In the U.S., cable networks and premium pay television services, either directly or indirectly through their distribution partners, are subject to various obligations under the Communications Act of 1934, as amended (the “Communications Act”), and related regulations issued by the Federal Communications Commission (the “FCC”). These obligations and regulations, among other things, require closed captioning of programming for the hearing impaired, limit the amount and content of commercial matter that may be shown during programming aimed primarily at an audience of children aged 12 and under, and require the identification of (or the maintenance of lists of) sponsors of political advertising.

In addition, in May 2014, the FCC proposed new “net neutrality” regulations based on Section 706 of the Telecommunications Act of 1996, that, subject to certain exceptions, would prohibit Internet Service Providers or ISPs from blocking lawful content, applications, services and devices as well as certain kinds of commercially unreasonable practices, including some discriminatory behavior. In November 2014, President Obama encouraged the FCC to base its “net neutrality” regulations on Title II of the Communications Act, thereby reclassifying consumer broadband service as a telecommunications service subject to potentially greater regulation. In February 2015, the FCC Chairman announced his proposal for “net neutrality” regulations. While the proposed regulations are not publicly available, they would reportedly subject ISPs to the requirements of Title II of the Communications Act, including imposing limitations on unjust and unreasonable practices and obligations regarding customer privacy and protections for people with disabilities and authorize the FCC to investigate and act on consumer complaints. In addition, the proposed regulations would reportedly prohibit ISPs from: (i) blocking access to legal content, applications or services or to devices that do not harm the network, (ii) impairing or degrading lawful Internet content and (iii) implementing paid prioritization or “fast lanes” for content or applications. ISPs would reportedly be allowed to engage in reasonable network management (other than paid prioritization), but only if the purpose of their actions is related to managing their network. The FCC is expected to act on this proposal at its open meeting scheduled for February 26, 2015; if adopted, the proposed regulations would then be made public and could be subject to legal challenge.

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From time to time, the FCC also conducts inquiries and rulemaking proceedings, which could lead to additional regulations that could have a material effect on the Company’s businesses. The FCC has also initiated the following proceedings:

Various other federal laws also contain provisions that place restrictions on violent and sexually explicit programming. Regulators, legislatures and policymakers have also become increasingly interested in laws and regulations intended to protect the interests of children by placing limitations on food and beverage marketing in media popular with children and teens.

In addition, in international territories, there are various laws and regulations relating to the distribution or licensing of television programming and other products. These include television licensing requirements relating to closed captioning of programming for the hearing impaired, descriptive audio versions for the visually impaired and mandatory local language dubbed and/or subtitled versions of programming, laws providing for minimum percentages of local content and maximum percentages of foreign content on television, local language advertising requirements, laws and regulations imposing pricing, exclusivity and importing restrictions, editorial control, translation or local editing requirements and other nationality-based restrictions. There are also a number of laws and regulations in these international territories relating to the nature of content and advertising and marketing efforts, including content codes and laws requiring government approval of certain content prior to exhibition, consumer protection laws (particularly those relating to advertisements and programming aimed at children) and laws restricting the amount of advertising permitted on television networks. For example, the EU Audio Visual Media Services directive, which allows EU member states to adopt more restrictive regimes and applies to all programs produced after December 2009, obligates broadcasters to notify viewers if an audiovisual program contains paid product placement, bans any form of product placement in children’s and news programming and prohibits product placement of tobacco products and prescription medication. The directive also imposes an obligation on EU member states and the

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European Commission to encourage broadcasters and channel providers to develop codes of conduct regarding advertising for foods high in fat, salt and sugar in or around children’s programming. Accordingly, in the U.K., the Office of Communications has restricted such television advertising, and other EU jurisdictions have required that nutritional information be included in food advertisements. Outside the EU, other governments are considering or have already implemented food advertising restrictions similar to those in the U.K., including in Australia, Brazil, Colombia, Chile, Mexico, Norway, Peru, Singapore and Uruguay. Finally, several governments, including in Argentina, Brazil, India, Mexico and Uruguay, have recently proposed, enacted or more strictly enforced regulations that limit the amount of advertising content that can be aired on television networks.

Regulation of the Distribution and Licensing of Feature Films

In countries outside the U.S., there are a variety of laws and regulations relating to the distribution or licensing of feature films for exhibition in theaters and on broadcast and cable networks. These include copyright laws and regulations, television licensing requirements similar to those applicable to made-for-television programming, trade and customs regulations, laws providing for minimum percentages of local content in theaters and on broadcast television and maximum percentages of foreign content on television and laws that limit increases in prices paid by distributors to content providers. In certain countries, other laws and regulations, some of which are under review by local government ministries, provide for limits on the number of foreign films that may be exhibited in such countries in a calendar year.

Marketing Regulation

The Company’s marketing and advertising sales activities are subject to regulation by the FTC and each of the states under general consumer protection statutes prohibiting unfair or deceptive acts or practices. Certain marketing activities are also subject to specific federal statutes and rules, such as COPPA.

FINANCIAL INFORMATION ABOUT SEGMENTS, GEOGRAPHIC AREAS AND BACKLOG

Financial and other information by segment and revenues by geographic area for each year in the three-year period ended December 31, 2014 are set forth in Note 15 to the Company’s consolidated financial statements, “Segment Information.” Information with respect to the Company’s backlog, representing future revenue not yet recorded from cash contracts for the worldwide licensing of theatrical and television product for premium pay television services, basic cable and network and syndicated television exhibition, at December 31, 2014 and December 31, 2013, is set forth in Note 16 to the Company’s consolidated financial statements, “Commitments and Contingencies — Commitments — Programming Licensing Backlog.”