Time Warner Inc, the owner of cable channels TNT, TBS Cartoon Network – said ratings for its “key” domestic entertainment networks have dropped more than anticipated. That decrease will hurt the networks ad revenue heading into 2016.
The company’s shares were sent plunging by 10% on Wednesday.
Officials at Time Warner said they are now evaluating how long they should retain rights to their content before shows end up on third-party streaming services such as Netflix.
Time Warner, which also owns ad-free HBO and news channel CNN, also cut its 2016 adjusted profit forecast. Because of a strong dollar the company said it would not meet itss 2018 earnings forecast of $8 per share.
The company says it plans to provide more on-demand content to fight back against a shifting digital marketplace.