Time Warner Inc. (NYSE: TWX) is making all sorts of moves to cut costs here and there on a selective basis. The media conglomerate plans to consolidate its movie studios by absorbing New Line Cinema into Time Warner Entertainment.

The move will cut costs and increase profitability, as well as give New Line access to Time Warner's international and digital distribution contracts. If you have been following the transition, this is the first formal unit consolidation restructuring by new CEO Jeff Bewkes in an attempt to boost Time Warner's profitability and ultimately the share price.

New Line has distributed blockbusters such as The Lord of the Rings and has Sex and the City: The Movie and The Hobbit set for release. This move will cause some Hollywood pain initially, but ultimately the need for multiple studios under a company that already is a conglomerate seems unnecessary. New Line will still operate somewhat differently, but as more of a subsidiary.

Time Warner stock was down 16 cents in mid-morning trading to $15.86 in a very weak stock market. The 52-week range is $14.64 to $21.97.

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"I will take the Ring," he said, "though I do not know the way."
-- Frodo Baggins, The Fellowship of the Ring

"There is no good and evil, there is only power, and those too weak to seek it."
-- Voldemort, Harry Potter and the Philosopher's Stone

In the late 1920s, J.R.R. Tolkien started writing a fantastical story about magical creatures known as hobbits, elves, and dwarves, in a made up world he called Middle Earth, for the benefit of his children. The work he completed, The Hobbit, became the prelude to one of the great literary masterpieces of all time -- The Lord of the Rings trilogy. Some 70 years later, J.K. Rowling started writing a fantastical story about a different set of magical creatures known as witches and wizards, in a not so made up world called England, for the benefit of her daughter. That book, Harry Potter and the Philosopher's Stone (Harry Potter and the Sorcerer's Stone here in the States), and the six books that followed in the series, have made Rowling the wealthiest woman in the world.

The authors share many similarities. Both are British, use initials in place of their first names, are famous for one major literary contribution (although Rowling, having the benefit of still being alive, will have many years to change that), and have had cinematic empires based on their works.