Market Minute: Time Warner Enters Streaming Movie Business

Pedestrians walk past the Time Warner center building in New York, U.S., on Monday, Feb. 7, 2011. Photographer: Jin Lee/Bloomberg
Jin Lee/Bloomberg

Produced by Drew Trachtenberg

There's a big new player in online movies, and Best Buy is expanding its connection with a major phone maker.

Time Warner (TWX) is jumping into the business of streaming online video, focusing on its vast library of classic movie and TV shows. A subscription will cost $10 a month – about two dollars more than Netflix (NFLX) charges. Still, Time Warner could present a challenge to Netflix, Amazon (AMZN) and others.

Rival entertainment giant Walt Disney (DIS) is closing down its video game-making unit, LucasArts. Disney paid $4 billion in December to buy the parent company, Lucasfilm.

Best Buy (BBY) is planning to set aside prime space in its stores dedicated to mobile phones, cameras and other products made by Samsung. Samsung, which will soon roll out its Galaxy S4 phone, does not have its own retail stores. Best Buy is also planning to sell the Apple (AAPL) iPad3 at a 30 percent discount.

Facebook (FB) is expected to unveil a deal with smartphone maker HTC that will feature the social network site as a possible homepage on the Android phones. The aim is to prompt users to spend more time on Facebook, which will result in higher ad revenue.

The chief product officer at Lululemon (LULU) is taking the fall for the see-through yoga pants fiasco that forced the company to issue a major recall: Sheree Waterson is leaving the company. As you may recall, the material became too sheer when the wearer bent over. The recall is expected to cost the company as much as $67 million dollars.

And the KFC unit of Yum Brands (YUM) will soon allow customers to pre-pay for food by using a mobile wallet when they call in an order. The program will start in the U.K. and soon expand to the U.S. McDonald's (MCD) and Starbucks (SBUX) already offer similar programs.