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CNBC Exclusive: CNBC Transcript: Time Warner Chairman & CEO Jeff Bewkes Speaks with CNBC's David Faber Today

WHEN: Today, Tuesday, December 9th

WHERE: CNBC's "Power Lunch"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Time Warner Chairman & CEO Jeff Bewkes on CNBC's "Power Lunch" today. Following is a link to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000337784.

All references must be sourced to CNBC.

TYLER MATHISEN: MARKETS BOUNCING BACK JUST A BIT. MEAN TIME, TIME WARNER CHAIRMAN AND CEO JEFF BEWKES HASN'T GIVEN ANY INTERVIEWS SINCE FENDING OFF RUPERT MURDOCH'S ATTEMPT TO BUY TIME WARNER UNTIL NOW THAT IS. HE'S LIVE WITH DAVID FABER. HI DAVID.

DAVID FABER: GOOD AFTERNOON, TYLER. AND A RAINY ONE AT THAT. AS YOU SAID, WE ARE AT UBS 42nd ANNUAL MEDIA CONFERENCE. AND JEFFREY BEWKES IS JOINING US. THE CHAIRMAN AND CEO OF TIME WARNER. AND I'VE NOT SPOKEN TO YOU IN A WHILE.

JEFFREY BEWKES: NO.

FABER: NOR HAS ANYBODY ELSE ON TV AT LEAST.

BEWKES: RIGHT. IT IS GOOD TO BE HERE.

FABER: THANK YOU. SINCE THE BIG FIGHT. I'M NOT GOING TO DWELL ON IT, BUT I AM CURIOUS. A LOT OF PEOPLE THOUGHT RUPERT MURDOCH, YOU KNOW, HE NEVER LOSES. NEVER LOSES. WERE YOU SURPRISED AT HOW QUICKLY YOU WERE ABLE TO DISPATCH FOX AND THEIR UNSOLICITED BID?

BEWKES: YEAH, BUT WE HAVE A GOOD – IT'S FUNNY, BECAUSE OUR TWO COMPANIES ARE ACTUALLY VERY SIMILAR IN TERMS OF WHAT WE DO. AND I HAVE GREAT RESPECT FOR THEM. AND SO I THINK IT BECAME CLEAR AS WE WENT ALONG – BECAUSE WE'RE A FAIRLY SIMILAR SIZE, THAT WE PROBABLY WOULD BE BETTER OFF INDEPENDENT. CERTAINLY WHAT WE SAID AND I THINK EVENTS HAVE SHOWN THAT. AND I THINK THE FOX TEAM CAME TO THAT CONCLUSION AS THEY LOOKED AT HOW THIS DEVELOPED. YOU KNOW, AS IT STARTED OUT, WE WERE UNDERVALUED AND THAT MAY HAVE LED TO THE WHOLE SITUATION.

FABER: IT MAY HAVE.

BEWKES: YEAH.

FABER: SINCE THEN, OF COURSE, THE STOCK WENT UP ON THE BID, CAME BACK AND NOW HAS ACTUALLY REGAINED VIRTUALLY ALL THAT LOST GROUND.

BEWKES: YEAH.

FABER: BECAUSE OF YOUR PLAN, YOUR INTRODUCTION OF EARNINGS PER SHARE, GOALS AND ESTIMATES AND A NUMBER OF OTHER THINGS YOU'VE ARTICULATED, 6 BUCKS A SHARE IN '16, AND 8 DOLLARS A SHARE IN '18. I CAN DO SIMPLE MATH. PUT A MULTIPLE ON THAT, BUT HOW CAN YOU BE CONFIDENT THAT YOU ARE GOING TO EARN $8 A SHARE IN 2018?

BEWKES: WELL, THAT'S WHAT WE WERE EXPLAINING TO OUR INVESTORS WHEN WE HAD A BIG DAY LAST MONTH. IF YOU PUT THROUGH THE ELEMENTS, WE'VE BEEN ON THAT KIND OF AN ARC, YOU KNOW. OVER THE LAST FOUR OR FIVE YEARS WE HAVE BEEN GROWING THE COMPANY AT ABOUT 25% A YEAR. COMPOUND EARNINGS PER SHARE GROWTH. THIS SET OF NUMBERS, GOING TO 6 BUCKS IN TWO YEARS AND DOUBLING THE EARNINGS IN 2018, IS ACTUALLY NOT EVEN AS HIGH OF A GROWTH RATE AS WHAT WE'VE BEEN DOING. SO I THINK SOME OF IT COMES FROM OUR INVESTORS KNOWING HERE'S HOW WE FUNCTION AND THE PATH WE'RE ON. THE BIGGEST ELEMENT OF IT IS AFFILIATE AND SUBSCRIBER SUPPORT FOR OUR NETWORKS – THAT IS MOST OF THE BUSINESS. AND THEN IF YOU GET OVER – AND THOSE ARE VERY GOOD TRENDS. ALL OVER THE WORLD, EVERYBODY, PEOPLE WATCHING THIS SHOW, ARE WATCHING MORE VIDEO, THEY ARE LIKING IT MORE, AND THE BIG NEWS IS THEY'RE GETTING IT ON DEMAND. SO NOW THEY CAN GET FABER INTERVIEWING SOMEBODY WHEN THEY DON'T HAVE TO DO IT WHEN YOU'RE ON, THEY CAN DO IT WHENEVER THEY WANT.

FABER: THEY DON'T HAVE TO WAIT. BUT YOU RELY ON WHAT HAS BEEN AN EXTRAORDINARILY SUCCESSFUL PRODUCT NAMELY THE BUNDLE AS WE CALL IT.

BEWKES: YEAH.

FABER: OVER 100 MILLION PEOPLE. YOU HAVE TO BELIEVE THAT THAT IS GOING TO CONTINUE TO BE THE DOMINANT FORCE IN THE ECOSYSTEM IN WHICH YOU COMPETE.

BEWKES: WELL I THINK IT WILL BE, BUT THAT DOESN'T MEAN THAT YOU CAN'T HAVE PEOPLE BUYING A HBO OR A NETFLIX OUTSIDE THE BUNDLE. BUT LETS GO BACK TO THE BUNDLE. THE BUNDLE IS BASICALLY THE 100 PLUS CHANNELS OF TV THAT EVERYBODY LOVES. LET'S NOT FORGET, THIS IS ONE OF THE MOST SUCCESSFUL PRODUCTS IN HISTORY. 90% OF THE HOMES IN AMERICA THEY HAVE THAT BUNDLE, THEY'RE WATCHING IT MORE AND MORE. AND THE BIG NEWS IS THAT YOUR FAVORITE CHANNEL IS ABOUT TO BE ON DEMAND. SO IF YOU MISSED THE SHOW LAST WEEK ON NBC, IF YOU MISSED IT ON WHATEVER YOUR NETWORK IS, YOU ARE GOING TO BE ABLE TO WATCH IT WHEN YOU WANT. WHAT THAT IS DOING IS IT IS LEADING TO BETTER TV SHOWS BECAUSE THE PEOPLE THAT WRITE THOSE SHOWS KNOW THAT THEY CAN MAKE A MUCH MORE COMPLICATED STORY OVER A LONGER PERIOD OF TIME AND THAT MEANS THAT EVERYBODY'S LOVE AFFAIR WITH THEIR FAVORITE NETWORK, OR THEIR FAVORITE SHOW IS JUST GOING TO CONTINUE AND IT WILL BE ON THEIR iPAD, NOT JUST THEIR TELEVISION.

FABER: RIGHT. AND WE ARE ALL BENEFITTING FROM THIS GREAT TIME IN TV. I WON'T ARGUE THAT POINT WITH YOU, ALTHOUGH I DO WONDER THE COMPETITION AMONGST YOU AND NETFLIX – SPOKE TO CHRIS ALBRECHT EARLIER, YOUR OLD COLLEAGUE, AT STARZ, NOT TO MENTION SO MANY OTHERS FOR THIS PROGRAMMING, ISN'T IT GOING TO HAVE THE SAME EFFECT PERHAPS THAT WE'VE SEEN IN SPORTS WHERE YOU GUYS ARE JUST GOING TO PAY A LOT MORE THAN YOU MAY ANTICIPATE RIGHT NOW?

BEWKES: NO, BECAUSE THE DEMAND FOR A PROGRAM, A GOOD SERIES IS GOING UP. WE'RE THE MOST OF THAT. WE'RE THE BIGGEST PRODUCER AT WARNER, TURNER AND HBO OF THAT. SO THAT IS ACTUALLY A DRIVER FOR US. BUT IT'S NOT LIKE SPORTS. IT'S NOT A LIMITED SUPPLY. IF YOU LOOK AT THE NUMBER OF GREAT TV SERIES THAT ARE OUT THERE, THERE ARE TWICE AS MANY AS THERE WERE FIVE YEARS AGO.

FABER: SO THEY CAN JUST KEEP MAKING MORE OF IT.

BEWKES: MAKE MORE, MAKE IT BETTER.

FABER: HBO. YOU MENTIONED OF COURSE YOUR ALL-DAY MEETING NOT THAT LONG AGO WHERE YOU INTRODUCED SOME TARGETS. YOU ALSO AT LEAST GAVE US A TASTE OF THIS IDEA OF HBO GOING OUTSIDE OF THE BUNDLE SO TO SPEAK, ALTHOUGH NOT A LOT OF DETAILS BEHIND IT.

BEWKES: YEAH.

FABER: FIRST OFF, WHEN ARE WE GOING TO GET SOME DETAILS FROM YOU GUYS ON WHAT IT ACTUALLY MEANT IN TERMS OF WHO YOU ARE GOING TO PARTNER WITH – YOU SAID YOUR EXISTING PARTNERS AND POTENTIALLY NEW PARTNERS – AND WHAT IS IT GOING TO LOOK LIKE WHEN WE DO GET THOSE DETAILS?

BEWKES: REMEMBER THAT OLD TV PHRASE STAY TUNED? THIS YEAR YOU ARE GOING TO GET ALL OF THAT.

FABER: WE'LL KNOW THIS YEAR? THIS IS 2014.

BEWKES: THIS YEAR 2015. NEXT YEAR. SO WE ARE GOING TO BE DOING THAT NEXT YEAR. WHAT YOU ARE GOING TO SEE YOU CAN ALREADY SEE. IT'S HBO GO. FOR THOSE OF YOU THAT ARE HBO SUBS – THAT IS A THIRD OF THE COUNTRY. GO HOME, YOU CAN WATCH ON YOUR TELEVISION YOUR FAVORITE SHOW. IT IS GOING TO BE LIKE THAT FOR EVERYBODY. AND THE LOGISTICS OF HOW TAKE – BECAUSE THERE ARE SOME PEOPLE THAT HAVE BROADBAND ONLY. THEY DON'T –

FABER: ABOUT 10 MILLION HOMES IN THIS COUNTRY.

BEWKES: YEAH AND HALF OF THOSE HAVE ALREADY GOT A SUBSCRIPTION SERVICE THAT THEY HAVE. WE THINK THEY NEED TO HAVE A SHOT AT HBO. AND WE'LL EITHER DO THAT WITH SOME PARTNERS. OUR FIRST CHOICE IS OUR EXISTING CABLE AND TELEPHONE AND SATELLITE DISTRIBUTORS. BECAUSE A LOT OF THEM HAVE BROADBAND PACKAGES WHERE THEY OFFER AN HBO OR STARZ ON TOP. SO I THINK THAT'S THE FIRST ANSWER.

FABER: AND WHEN I TALKED TO JOHN MALONE A COUPLE WEEKS AGO, WHO YOU KNOW, HAS A PRETTY GOOD OPINION ON THESE THINGS, HE SAYS HEY, THOSE GUYS MEANING YOU HAVE TO BE VERY CAREFUL THEY DON'T ALIENATE THEIR TRADITIONAL DISTRIBUTION AND CREATE AN EVEN BIGGER PROBLEM. BECAUSE RIGHT NOW HBO IS VERY PROFITABLE. THE QUESTION IS DO YOU REALLY WANT TO WALK AWAY FROM THAT PROFITABILITY AND ROLL THE DICE ON A DIFFERENT BUSINESS MODEL. THOSE ARE HIS WORDS.

BEWKES: NO, NO, NO, NO. JOHN I RESPECT HIM, AND HE'S A CABLE OPERATOR.

FABER: YES HE IS.

BEWKES: AND THAT'S GREAT. AND WE'VE ALWAYS WORKED CLOSELY WITH ALL OF OUR DISTRIBUTORS. WE ARE NOT GOING TO ALIENATE OUR DISTRIBUTORS. WE ARE GOING TO HELP AND GIVE THEM MORE PRODUCTS TO SELL ANYWAY THEY WANT TO SELL. OUR FIRST FOCUS IS ON THE VIDEO TV BUNDLE. SOME OF THE BEST DISTRIBUTORS ARE SELLING 50% MORE OF THESE BIGGER PACKAGES THAN THE OTHERS. THOSE FAMILIES AND HOUSEHOLDS, THEY OUGHT TO HAVE AN OFFER LIKE THAT. AND THEY OUGHT TO HAVE IT FROM THOSE DISTRIBUTORS. SO WE THINK THAT IS THE ANSWER.

FABER: RIGHT. WELL, YOU'RE FRUSTRATED WITH SOME OF THEM AND HAPPY WITH OTHERS. I MEAN, YOU SAID IN THE MEETING, IT IS PUZZLING WHY THE INDUSTRY ISN'T ATTRACTING YOUNG PEOPLE. YOU SEEM TO BE AT LEAST SAYING, COME ON GUYS HELP US OUT.

BEWKES: YEAH. WELL I AM SAYING THAT. HELP US OUT. HELP THEM OUT. BECAUSE THEY HAVE THE PROGRAMMING. IT DOESN'T COST MORE TO MAKE IT AVAILABLE, BUT LET'S MAKE IT AVAILABLE THE WAY THAT YOUNG PEOPLE WHO ARE FASTER WITH CONNECTED DEVICES CAN REALLY ENJOY IT. LET'S NOT MAKE IT HARD TO SIGN ON, LET'S NOT MAKE IT HARD TO FIND THE PROGRAMMING YOU'RE LOOKING FOR. THOSE ARE SIMPLE THINGS. THEY DON'T COST MONEY. WE ARE NOT CHARGING FOR THAT.

FABER: ALRIGHT. WE HAVE TO LEAVE IT THERE. WE'RE DONE. BEFORE WE EVEN STARTED.

BEWKES: THANK YOU. IT WAS GREAT. IT'S ALL GETTING BETTER.

FABER: THANKS. JEFF BEWKES, CHAIRMAN AND CEO TIME WARNER.

BEWKES: THANKS, DAVID.

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