Time Warner wants to make love, not war, based on execs’ comments this morning in a quarterly conference call with analysts. Turner Broadcasting CEO John Martin says he doesn’t get Dish Network Chairman Charlie Ergen’s “antagonistic and aggressive” trash talk yesterday about the Time Warner channels following the satellite company’s decision this month to drop CNN and other ad-supported services except TNT and TBS. “We were working hard to get a deal done,” Martin says. “We were supportive of a Dish effort and we found common ground on virtually all the major issues there.”

Similarly, HBO chief Richard Plepler threw a bucket of ice water on the popular fantasy that his plan to launch a direct-to-consumer online service represents an attack on the traditional pay TV bundle. He’s most interested in working with cable operators to persuade some 70M subscribers who don’t buy HBO to sign up, and then appeal to about 5M cable broadband-only customers.

Also in the call, CEO Jeff Bewkes and others provided a cautiously upbeat description of the TV ad market. Here’s the play-by-play of their call:

David Lieberman November 5, 20147:35 am

Hi everybody. The call’s finally underway after Time Warner’s broadcast dreamy New Age music to people waiting. Begins with the usual disclaimer about forward looking statements. 

David Lieberman November 5, 20147:37 am

Bewkes: Q3 was good but “more important, we’re executing our long-range plan to go after the large and growing opportunity we see in video content.”

David Lieberman November 5, 20147:39 am

Bewkes: We’ve been positioning ourselves to go after that big opportunity in video by streamlining our company, putting in a new generation of collaborative leaders, and executing a strategy that has not only served Time Warner’s shareholders well over the past couple of years but is also evolving to incorporate new opportunities outside the traditional ecosystem.

David Lieberman November 5, 20147:40 am

Time Warner spent $14B last year on programming and promotion, and more this year.

David Lieberman November 5, 20147:41 am

TNT is cable’s No. 1 prime time ad-supported network, and TBS was No. 2 in its demos.

David Lieberman November 5, 20147:41 am

NBA deal shows how Time Warner is “investing in distinctive programming that will serve us well for years to come.”

David Lieberman November 5, 20147:42 am

The Big Bang Theory and The Voice are the top scripted and non-scripted shows. Gotham and The Flash off to great starts. 

David Lieberman November 5, 20147:43 am

Warner Bros. will have 10 DC Entertainment films between 2016 and 2020, as well as Lego and World of Harry Potter movies.

David Lieberman November 5, 20147:46 am

Bewkes emphasizes that HBO’s streaming effort will support –not attack– the pay TV ecosystem. “We’ll be working very closely with our current distribution partners in that area. We think that’s a big opportunity.”

David Lieberman November 5, 20147:47 am

“We continue to see growth in the video universe and that’s why we’re convinced we can effectively pursue growth in both areas.”

David Lieberman November 5, 20147:48 am

CFO Howard Averill now up. 

David Lieberman November 5, 20147:49 am

Says TWX will see $450M annual savings over time from restructuring. 

David Lieberman November 5, 20147:51 am

Red meat for shareholders: Time Warner spent $1.6B  on share repurchases in Q3 and $4.9B year to date. With dividends, the company has returned $5.7B  so far this year.

David Lieberman November 5, 20147:53 am

Turner sub revenue will remain a key driver of growth. Domestic ad sales were flat, with upturn at CNN offsetting drops elsewhere. 

David Lieberman November 5, 20147:54 am

He’s upbeat about advertising: Says sales will be flat this quarter even though the company has fewer baseball playoff games, the dollar is strong, and Dish Network has dropped Turner channels (except TNT and TBS).

David Lieberman November 5, 20147:55 am

HBO domestic sub trends are “healthy.” Content revenues up from overseas sales, offset by lower domestic. Without restructuring charges, operating income would have been up in Q3. 

David Lieberman November 5, 20147:56 am

HBO is on track for another year of solid growth in operating income.

David Lieberman November 5, 20147:58 am

Warner Bros also looking good, despite –naturally  — difficult comparisons. 2015 will have the “strongest slate in the history of the company.”

David Lieberman November 5, 20147:59 am

In Q4 Warner Bros will have $100M restructuring charges and, again,  difficult comparisons in home video. Without the charges, WB would have a record year. 

David Lieberman November 5, 20148:02 am

David Lieberman November 5, 20148:02 am

If Time Warner can’t settle with Dish Network, the 2014 financial forecast will come in at lower end of the range. 

Now on to Q&A

David Lieberman November 5, 20148:06 am

Question about the programming that was scrapped at Turner, and included in its Q3 writedown. Division head John Martin says shows include The Mentalist and Tyler Perry shows including House of Payne

David Lieberman November 5, 20148:13 am

John Martin lashes back at Dish Chairman Charlie Ergen’s attacks yesterday on CNN and Turner channels. “We disagree with virtually everything he said as it relates the importance of our product… We were both disappointed in the very antagonistic and aggressive nature of his comments yesterday and were disappointed particularly given the fact that Dish had previously agreed to our networks’ rates and our carriage proposals weeks ago. We were working hard to get a deal done. We were supportive of a Dish OTT effort and we found common ground on virtually all the major issues there…

David Lieberman November 5, 20148:14 am

More from Martin on Dish: “While there clearly were more deal points to get done, they were not of the type of nature that would result in networks going dark.… To us it’s unclear exactly what the dispute with Dish is. We were told by them that we were taken down because we wouldn’t move an expiration date later in the year – it was expiration date for networks that aren’t even up yet.” Obviously TNT and TBS.

David Lieberman November 5, 20148:16 am

HBO’s Richard Plepler reiterates that his online effort isn’t a declaration of war on cable. “This is not binary.” He aims first to go after 70M pay TV homes that do not get HBO. In broadband “we think there’s 4 to 5 million that we can also get with our partners. I’ve talked to all of our distributors. We want to lean in with a new effort in the new year.… I see nothing but upside for us, for the consumer, and for the distributor.”

David Lieberman November 5, 20148:21 am

Martin: Turner will only stream select NBA games to mobile-only — just out of market matches not on TNT. 

David Lieberman November 5, 20148:22 am

Bewkes says distributors need to move on TV Everywhere, “Let’s everybody get out there and get it done.”

David Lieberman November 5, 20148:24 am

An ad question for Martin. Turner’s doing “really well” with the NBA. More broadly: “We’re doing fine in terms of pricing in the scatter market. There just isn’t the volume we’d like in an ideal world.”

David Lieberman November 5, 20148:26 am

Why is Turner interested in Dish’s streaming service? Martin: What’s  important for us would be to get our leading networks into those packages…If bundles get smaller, we would be able to protect and even expand….our overall appeal and consumers we can get in front of.

David Lieberman November 5, 20148:28 am

Martin: We’re going to own more of our originals. …That means Turner and Warner.

David Lieberman November 5, 20148:31 am

Bewkes envisions universal VOD: “Anything in the current season, you know it’s on demand, doesn’t matter what network you watching. That’s how we see the change in the definition of a television network.… Just watch HBO. It’s been doing that for years. Showtime does it too. You can see how powerful that is.”

David Lieberman November 5, 20148:35 am

Asked about NBCU chief Steve Burke’s comment that HBO will have trouble getting and handling online customers. “Steve called me personally to get some context to the comment and I think it was somewhat over reported.” HBO will work closely with distributors including Comcast.  They “have been terrific partners and will be terrific partners going forward…. We’re going to work very closely with them.”

David Lieberman November 5, 20148:36 am

And that’s it. Time Warner shares are up 2.3% so far — so no damage done, it seems. Thanks for joining us.