Everyone thinks of TV Everywhere as a mobile service, enabling pay TV subscribers to stream shows to Internet devices. But Time Warner CFO John Martin told the Citigroup Global Entertainment, Media and Telecommunications Conference that the initiative may have its biggest impact in the living room. TV Everywhere will create “an enormous amount of on-demand programming, and that could radically change the way people with Web-connected TV sets access their favorite shows. Time Warner has been promoting just such a shift based on the theory that it will help TV’s most popular channels and programs. It has signed TV Everywhere deals for its Turner channels — including TBS, TNT, and CNN — and for its HBO GO application. “HBO GO is now available to virtually everyone and Turner isn’t far behind,” Martin says. He adds that “a lot of progress is going to be made over the next 12 months” as viewers figure out what they can do with TV Everywhere. “This is all happening quickly. … We’re on the cusp of seeing the television viewing experience get dramatically better.”

There are still bumps along the way. Time Warner saw a slowdown in scatter market ad sales in 4Q; expectations of mid-single-digit growth ”may be aspirational.” But Martin is “cautiously optimistic” about the current quarter based on low cancellations, and ads for NBA games selling at “very attractive rates.” Home video sales also were weak at year end with 4Q results that “look more challenged” than 3Q. Time Warner expects help from the UltraViolet initiative, which makes it possible for DVD buyers to also access movies remotely. The company bought a website, Flixster, to serve as a gateway for consumers. ”The product is not where we want it to be, but someone has to take a leadership position,” Martin says.

He was much more upbeat about Time Warner’s movies, TV shows and channels. Although Warner Bros won’t have Harry Potter this year, it is “very optimistic” about The Dark Knight Rises, The Hobbit, Dark Shadows, and Gravity. The company also is “coming off a record year in TV” with successful sitcoms including Mike & Molly, Two Broke Girls, Chuck, and Fringe, and a new drama Person Of Interest. “That makes us feel good about the future there.”

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