Time Warner

With digital technology rapidly disrupting the home entertainment business, Time Warner Inc. Chief Executive Jeff Bewkes is preparing aggressive moves in video-on-demand and against Netflix.

Revenue from HBO and Turner Broadcasting rose 14% to $3.3 billion, helped by a 21% jump in advertising after the doldrums of the recession.

In a first-of-its-kind deal, Comcast and Time Warner moved forward with their vision of “TV Everywhere,” signing a new contract that covers the online streaming of channels like TNT, TBS, CNN and the Cartoon Network. The contract demonstrates that Internet rights for TV shows and channels are becoming increasingly important to distributors as they try to keep up with consumers’ changing habits.

“We have every distribution network and content company trying to create a uniform approach for this,” Time Warner CEO Jeff Bewkes said at the Consumer Electronics Show. “Let’s try to keep it simple. This is the best room in the world to develop the innovation to make this happen.”

Netflix, now the envy of the media world, had a lucrative contract with Starz that gave it cheap content. That deal is expiring, and rivals are gloating.

Time Warner, the media giant that owns Warner Bros., HBO, CNN and DC Comics says its third-quarter net income declined, but its adjusted earnings surpassed Wall Street’s expectations thanks to growing subscription and ad revenue in its networks business.