Time Warner has already increased investment in TV shows, movies, sports and news by 7 percent since 2008, and intends to invest even more in content.
The media company will save $500 million annually starting soon, by consolidating business services like HR and IT, by moving parts of the company to areas of the U.S. that offer tax incentives, and possibly vacating the iconic Time Warner building in Columbus Circle in midtown Manhattan.
Time Warner currently has more than four million square feet of office space in Manhattan, the NYT reports. But cutting back on real estate alone could save $150 million annually.
The idea is to take money being spent on insignificant things out and put it into significant things which are programming, journalism and digital translations of our products,” CEO Jeff Bewkes told the Times. “How many data centers do we have, 40? We’re going to get down to five.” This could, of course, result in layoffs, though not, so far, on the content side.