Time Warner Cable

Posted on November 1, 2013 by Jordan Horowitz

By Jordan Horowitz

Time Warner Cable Logo [1]

Time Warner Cable Inc.
60 Columbus Circle
New York, NY 10023 USA
(212)-364-8200
www.timewarnercable.com
[2]

About

Time Warner Cable is a dominant provider of video, high- speed data and voice services in the United States. Through the years, its technical innovation through the use of fiber optics has helped establish itself as a leader in the cable industry. Time Warner Cable was the first cable company to be recognized with an Emmy Award and has been honored with eight Technology and Engineering Emmys. In 2007, Time Warner Cable became a public company and two years later an independent one as it separated from Time Warner Inc. [3]

Today, Time Warner Cable is the second largest cable provider in the nation, serving in 29 states. Its quality services have built its strong sectors of its company including the residential services, Time Warner Cable Business Class and Time Warner Cable Media. For the consumer’s home, Time Warner Cable offers television, Internet and phone services and IntelligentHome, which is a home security and energy management system. [4] Time Warner Cable Business Class offers Internet, network, cloud, television and voice services for all types of businesses. [5] Time Warner Cable Media is the advertising sales section of the company, which focuses on helping marketers and agencies with affordable and targeted marketing strategies and solutions. [6]

Glenn A Britt: Chairman & Chief Executive Officer [7]

Robert D. Marcus: President & Chief Operating Officer [8]

Ellen M. East: Executive Vice President & Chief Communications Officer [10]

Arthur T Minson, Jr.: Executive Vice President & Chief Financial Officer [9]

Last month, Glenn Britt, the Chief Executive Officer of Time Warner Cable for the past 12 years, announced he is receiving treatment for cancer and will work until his retirement, which was planned for the end of this year. Current Chief Operating Officer, Robert Marcus will be taking over both of his positions as Chairman and CEO. [11]

Arthur Minson will be speaking at the Morgan Stanley Technology, Media and Telecoms Conference, which is held in Spain, this month. [12]

Financials/ Recent Developments

Time Warner Cable Inc. (TWC) Stock Chart Over The Past Five Years [17]

A few weeks ago, Time Warner Cable reported its 2013 third quarter results, which ended on September 30^th. Regarding financials for this quarter, Time Warner Cable’s total revenue of 5.5 billion grew 2.9% from its 5.3 billion last year (9/30/2012). [13] Its share price today is 121.53 and has been trending steadily upward, along with its whole sector, for the last five years. [14] The company took a hit with subscriber activity this quarter as customer relationships dropped from 15.2 million (9/30/2012) to 15.1 (9/30/2013). In addition, residential video subscribers and residential voice subscribers decreased from 12.1 million (9/30/2012) to 11.4 (9/30/2013) and from 4.9 million (9/30/2012) to 4.8 million (9/30/2013), respectively. In contrast, residential high- speed data subscribers increased from 10.8 million (9/30/2012) to 11.1 million (9/30/2013). [15] [16]

[20]

Time Warner Cable began this fall closing a retransmission contract deal with CBS. This agreement finally ended the month long blackout, during which three million Time Warner Cable subscribers did not have access to CBS programming. The blackout affected major markets such as Los Angeles and New York and Time Warner Cable was eager to meet a deal as the NFL season was rapidly approaching. [18] This vastly dragged out dispute greatly contributed, this past third quarter, to the company’s steepest quarterly loss of television subscribers in its history. At an attempt to stop its loss of customers, Time Warner Cable dispersed credits to its subscribers of Showtime, CBS’ premium cable channel, ultimately losing around $15 million. [19]

[23]

Time Warner Cable has been working and succeeding to reach a larger number of business customers. Third quarter reports displayed business services revenue increased 20.5% from 493 million (9/30/2013) to 594 million (9/30/2013). [16] Last month, Time Warner Cable came into an agreement to buy DukeNet Communications. This deal with Duke Energy Corporation and Alinda Capital Partners, who currently own DukeNet, is planned to close in the first quarter of next year costing Time Warner Cable $600 million. [21] DukeNet Communications is a fiber optic network company reaching seven states in the Southeast of the country, as they are centered in Charlotte, NC. This is key for Time Warner Cable’s business customer base growth, as DukeNet offers data and high capacity bandwidth services to customers including wireless carriers, data centers, enterprises and government affiliates. [22]

TWC’s Wifi Finder app helps locate the nearest hotspot. [25]

As well as its DukeNet deal, Time Warner Cable has been making huge progress in the Charlotte region. Making a multimillion-dollar investment in a public WiFi network back in 2012, the Charlotte network has grown from its original 200 hotspots to 1,700 today. These hotspots allow people to have a great Internet connection outside of their home in various places throughout the city. Time Warner Cable Internet subscribers have free access and non-subscribers can use the hotspots on a pay-as-you-go basis. The project has a big future as Time Warner Cable is working on implementing its hotspot network in New York City, Austin, Kansas City, Hawaii and Southern California. With a strong focus on its business customers, Time Warner Cable will soon be able to efficiently keep people connected outside the office and home. [24]

[28]

Time Warner Cable has recently made a deal with Univision Communications Inc. that will positively influence its reach to the Hispanic America community. The renewal of their previous agreement had expanded the variety of Hispanic networks and content for Time Warner Cable subscribers. Univision is allowing Time Warner Cable to be one of the first distributors to provide its new cable network, El Ray. As an English language network, El Ray targets adolescents and plans on having diverse entertainment content ranging from television series to movies and sports. [26] Also, customers will now have access to other new networks including, Univision Deportes, FOROtv and tlNovelas. The deal further entails a multiplatform distribution plan, where Time Warner Cable subscribers will be able to receive content through VOD and digital platforms. Univision’s UVideos and Univision Deportes digital properties will now also be available for Time Warner Cable customers. [27]

[31]

[32]

Along with Univision, A+E Networks and Sprout have also recently renewed their distribution agreements with Time Warner Cable. As a multi-platform deal between A+E and Time Warner Cable, customers will be provided with A+E’s diverse networks and will have authenticated access to their corresponding apps. In addition to receiving networks such as A&E, Lifetime, and HISTORY, “TV Everywhere” content for Time Warner Cable’s out of home platforms and VOD content will be offered. [29] Regarding Time Warner Cable’s deal with Sprout, they are expanding the distribution of Sprout beyond New York and Los Angeles to many other markets throughout the country to increase its reach to 60 million homes. Sprout is the first all day and night preschool network with interactive programming offering a great experience to children and their parents. [30]

References

[1] Time Warner Cable Logo
[2] Time Warner Cable Contact
[3] About Time Warner Cable
[4] Time Warner Cable Residential
[5] Time Warner Cable Business Class
[6] Time Warner Cable Media
[7] About Glenn Britt
[8] About Robert Marcus
[9] About Arthur Minson, Jr.
[10] About Ellen East
[11] CEO Transition
[12] Minson At Conference
[13] Revenue Growth
[14] Share Price
[15] 2013 Third Quarter Reports
[16] 2012 Third Quarter Reports
[17] TWC Stock Chart
[18] CBS Blackout
[19] TWC’s Loss of Subscribers
[20] CBS/NFL Logo
[21] DukeNet Deal
[22] About DukeNet
[23] TWC/ DukeNet Logo
[24] Charlotte Hotspots
[25] Wifi Finder Logo
[26] About El Ray Network
[27] TWC/ Univision Deal
[28] Univision Logo
[29] TWC/ Univision Deal
[30] TWC/ Sprout Deal
[31] A+E Networks Logo
[32] Sprout Logo

Time Warner Cable

Posted on October 28, 2013 by Timothy Wright

By Tim Wright

-Time Warner Cable Logo. Image Courtesy “Lazy Tech Guys” [17]

Time Warner Cable, Inc.

1 Time Warner Center
New York, NY 10019-8016
212-484-8000

About the Company

Time Warner Cable, Inc. is a media company providing cable, phone, and Internet services to 29 states and over 15 million customers. These services are provided in different packages with arrangements of the cable, phone, and Internet services in different price tiers. Time Warner Cable, Inc. provides its services to both homes and institutions [1].

Cable
Time Warner Cable, Inc. distributes a number of television plans and packages, spanning from basic with 20 channels to digital with over 200 channels. Certain packages offer Digital Video Recording services and pay subscription services such as HBO. Pricing varies for the packages depending on the number of channels and services [2].

Internet
Time Warner Cable, Inc. offers Internet services that span from 2Mbps to 50Mbps, allowing a range of basic Internet usage to plans that can accommodate large homes with multiple Internet-ready devices [3].

Phone
Time Warner Cable, Inc. offers a number of voice packages. An unlimited domestic plan is offered for a monthly rate, as well as basic and premium international plans [4].

Key Executives [5]

-Glenn A. Britt
Courtesy of Time Warner Cable [18].

Glenn A. Britt
Chairman & CEO

-Robert D. Marcus
Courtesty of Time Warner Cable [19].

Robert D. Marcus
President & COO

Arthur T. Minson, Jr.
Courtesy of Time Warner Cable [20].

Arthur T. Minson, Jr.
Executive VP & CFO

Competitors

Time Warner Cable, Inc.’s primary competitors in the cable industry are AT&T, Inc., Comcast Corporation, and Dish Network Corporation. Competition became a serious issue for Time Warner Cable after it lost over 300,000 subscribers during the month long CBS blackout [6].

Ownership History

The 1968 founding of the American Television and Communications (ATC) set the foregrounds for Time Warner Cable, Inc. In 1989, Time Inc. and Warner Cable merged to become Time Warner, Inc. In 1992, a merger between ATC and Warner Cable was announced, creating Time Warner Cable. In 2009, Time Warner Cable and Time Warner, Inc. separated. NewWave Communications and Insight Communications were acquired by Time Warner Cable, Inc. in 2011 and 2012, respectively [7].

Financials

2013 has been a successful year for Time Warner Cable. Stock prices fell in February and March, going as low as $84.75 but have remained steadily above $100.00 since the end of July. A noticeable valley in stock prices occurred between August and September, when Time Warner Cable had its conflict with CBS, prompting a large loss in subscribers. Stock prices saw an increase in early October and have remained consistent throughout November, showing a rebound from the discrepancy [8].

Quarterly data has ranged from $5.5 Billion to $5.6 Billion in 2013, and current stocks suggest this trend will continue in the fourth quarter. This forecast means a total revenue of roughly $22 Billion in 2013, showing on par results with the 2012 revenue of $21.3 Billion and surpassing the 2011 revenue of $19.7 Billion, marking a successful year for Time Warner Cable [9]. However, due to the CBS conflict, Time Warner Cable is now expecting only a 3-3.5% increase in revenue for 2013 as opposed to the initially projected 4-5% [10].

In The News

The CBS and Time Warner Discrepancy

CBS ad concerning Time Warner blackout. Image Courtesy CNN Money [21]

The retransmission agreement between CBS and Time Warner Cable, Inc. ended in June of 2013, and the failure to reach a new agreement after numerous deadline delays resulted in the station being blacked out in eight markets across the United States on August 2nd [11]. CBS was seeking more compensation from Time Warner Cable due to the high ratings of its programming. An agreement was reached and CBS was reinstated in the markets on September 2nd, 2013. The beginning of the regular NFL season caused urgency in reaching an agreement, as both sides wanted to reap advertising benefits [11]. Over the course of the blackout, Time Warner Cable lost over 300,000 subscribers, and also had to compensate pay-subscribers for different CBS owned stations, including Showtime [10].

Increasing Internet Speeds

Time Warner Cable router. Image courtesy Hot Hardware. [22]

Following the problematic CBS blackout, customers in the New York, Los Angeles, and Hawaii markets will have their Internet speeds increased. Those with the Ultimate Internet package will have speed doubled from 50 to 100Mbps through the rest of the year, while other markets will receive the increased speed throughout 2014. The baseline Internet offering will also be doubled in speed, while maintaining its $14.99 price. Customers with the existing baseline Internet package will receive the speed increases throughout 2014. Time Warner Cable hopes to appease its remaining customers and bring back customers who cancelled their subscriptions with these speed increases [12].

IntelligentHome Service Expands

Intelligent Home display. Image courtesy Time Warner Cable. [24]

IntelligentHome display. Image courtesy Time Warner Cable [23].

Time Warner Cable’s 2011 project, IntelligentHome, finalized its national implementation in November. The service allows for electronic control of several aspects of the home, including lights, temperature, and security. A central, outlet connected device acts as the main control and mobile applications can be used to access IntelligentHome, allowing control from outside of the home. The $99.99 installation and monthly fees below $40 are looking to revolutionize home security and efficiency. Time Warner Cable entering into the emerging home automation market and creating all encompassing deals with Internet and cable can result in a brand makeover [13].

Al Jazeera Distribution

Al Jazeera America logo. Image courtesy American Thinker [24].

News source Al Jazeera America announced a distribution deal with Time Warner Cable in late October. The channel initially launched in New York City and Los Angeles, as these are seen as key markets. Al Jazeera America will be fully implemented in all of Time Warner Cable’s Markets by March of 2014. Time Warner Cable viewed adding Al Jazeera America as an opportunity to replace Current TV, which was pulling in lackluster ratings. The channel is currently attracting fewer than 25,000 viewers at any given time, but Time Warner Cable and Al Jazeera America are hopeful that it will follow a similar ratings trajectory of other news stations such as Fox News and MSNBC [14].

Samsung Galaxy Tablet Partnership

Time Warner Cable and Samsung Galaxy Promotion. Image Courtesy Multi Channel [25].

With the 2013 holiday season approaching, Time Warner Cable has entered into a partnership with Samsung, offering new and old customers an opportunity to get a Samsung Galaxy Tablet. By selecting or upgrading to particular cable and Internet packages, customers will receive a complementary tablet. Samsung and Time Warner Cable are seeking a mutually beneficial relationship; Time Warner Cable is hoping to get more customers and upgrades by attaching the desired tablet to its packages, while Samsung is looking to be competitive with Apple in the tablet market. Time Warner Cable is also looking to promote the idea of watching television on a tablet, whether inside or outside of the home through these packages, so tablets will come with the Time Warner Cable application already installed [15].

Streaming Deal With Discovery

Discovery Channel Logo. Image courtesy of Hollywood Reporter [26].

Time Warner Cable made an agreement with Discovery Communications that involves streaming the content of its numerous channels across new platforms including smartphones and tablets. This may be implemented through Time Warner Cable’s official mobile application, or Discovery may potentially be launching its own applications. Comcast entered a similar agreement with Discovery Communications, but solely with Discovery Channel, opening an opportunity for Time Warner Cable to gain a wider market than one of its major competitors. The recent announcement from Nielsen that portable views will start to be accounted for in ratings was an extra incentive for both parties [16].

Sources

1. Time Warner Cable: About Time Warner Cable

2. Time Warner Cable: Digital Cable

3. Time Warner Cable: Internet

4. Time Warner Cable: Phone

5. Time Warner Cable: Executives

6. Hoovers: Competition

7. Time Warner Cable: Ownership History

8. Yahoo Finance: Stocks

9. Yahoo Finance: Income Statement

10. Reuters: Subscription Loss & Income Forecast

11. USA Today: CBS Blackout Ends

12. Uber Gizmo: Increasing Internet Speeds

13. PC Mag: IntelligentHome Implementation

14. NY Times: Al Jazeera Distribution

15. Next iPhone News: Samsung Galaxy Deal

16. Wall Street Journal: Discovery Distribution Deal

Image Sources

17. Lazy Tech Guys – Time Warner Cable

18. Time Warner Cable – Glenn A. Britt

19. Time Warner Cable – Robert D. Marcus

20. Time Warner Cable – Arthur T. Minson, Jr.

21. CNN Money – Time Warner Ad

22. Hot Hardware – Time Warner Cable Router

23. Time Warner Cable – IntelligentHome Display

24. American Thinker – Al Jazeera Logo

25. Multi Channel – Time Warner Cable and Samsung Galaxy Deal

26. Hollywood Reporter – Discover Channel Logo

AMC Networks

Posted on October 27, 2013 by Garrett Braddock

By Garrett Braddock

AMC Networks Logo

AMC Networks Inc.

11 Penn Plaza

New York City, New York, USA

(212) 324-8500

http://www.amcnetworks.com/

About AMC Networks [1}:

AMC Networks is an entertainment company based in New York that owns a multitude of popular channels including AMC, IFC, WE tv, and the Sundance Channel. Their flagship channel, AMC, boasts the impressive feats of having the most

The various properties owned by AMC Networks

watched drama series in cable history with, The Walking Dead, and also stands as the only cable network to win an Emmy for “Outstanding Drama Series” four years in a row. AMC Networks also owns the film company IFC films and the highly regarded IFC center, a movie theater in New York City.

Key People at AMC Networks [2]: (All images curtesy of AMC Networks)

Charles Dolan– Executive Chairman

Joshua Sapan–President and Chief Executive Officer

Edward A Carroll— Chief Operating Officer

Finances in Fall 2013:

AMC Networks enjoyed a financially beneficial third quarter here in Fall 2013. The Wall Street Journal reports that the networks earnings were up by 59% from last year, a rise that is sure to make investors very happy people. This growth can be

Past Year Stocks for AMC Networks. Courtesy of Seeking Alpha

contributed to a high demand from advertisers to be placed on their channels. The Journal states, “The growth was driven by a 36% rise in advertising revenue to $146 million, helped by a strong demand for original programming.”[3]

News Stories from Fall 2013:

-Harmonious Deals with Chellomedia

Logo courtesy of Chellomedia

One of the major moves that AMC Networks made this fall was the purchasing of Chellomedia, which is an international content division of Liberty Global, an acquisition that cost around $1.04 billion. Chellomedia focuses on operating digital and broadband channels across Europe and Latin America, a spread that will broadly widen the amount of viewers AMC could reach. It is estimated that Chellomedia reaches around 400 million viewers in 138 countries. This acquisition means that AMC will be able to access various netoworks in the aforementioned countries and have a much wider, international market for their already popular programs. Of the deal, Josh Sapan said, “This acquisition allows us to secure a large, global platform on which to distribute our increasingly successful original programming through a collection of strong, well-established and well managed assets worldwide.”[4] One criticism of this deal is that it makes AMC less likely to be bought out by a larger company, a move which some investors may have been expecting. Previously, it was thought that AMC may be the target of larger cable network companies New Corp or CBS Corp, but this acquisition seems to prove that AMC is still looking to expand before looking for potential buyers.[5] Overall, the acquisition of Chellomedia, likely to officially go through in early 2014, will broaden the reaches of AMC Networks, expand their global market, and allow them to become much less dependent on success in the US market.[6]

-Breaking Bad? More like Breaking Records!!

Promotion for beginning of fifth and final season of Breaking Bad. Courtesy of AMC

Throughout its airing, Breaking Bad has become one of the most highly regarded and well-liked shows on television. The show tells the story of a high-school chemistry teacher who is diagnosed with cancer and decides to secure financial security for his family by cooking and selling meth. The show has garnered both viewer and critical acclaim, and won “Outstanding Drama Series” at this years Emmy awards, after being nominated for the past 3. AMC saw record numbers for Breaking Bad almost every episode of the last season, with those numbers peaking on its final episode, “FiNaLe” where the average viewership was 10.3 million according to Nielsen. When it comes to the important adults 18-49 demographic, Breaking Bad achieved a 5.4 rating, reaching about 6.7 million people.[7] This impressive finale ranks third in cable series finales, finishing behind only The Sopranos and Sex and the City.

An interesting article on Slate discussed how Nielsen began ranking television shows on the number of people tweeting about them, and how that reflects on Breaking Bad. It was estimated that 9.3 million people tweeted about, or viewed tweets about Breaking Bad during its penultimate episode. This is an important statistic because it displays how many people are actively engaged in the show, a fact many advertisers would love to know so they can more intelligently places their advertisements. [8]

-Ratings Spring Back To Life With The Walking Dead

Another one of AMC Network’s hugely successful series, The Walking Dead, comes again from their flagship channel, and has been racking up huge ratings with every episode. This show follows a group of survivors during the zombie apocalypse and chronicles their

Main promotion for The Walking Dead. Courtesy of AMC

harrowing tale. The show has seen growing success over its first 3 seasons, with ratings and viewer numbers reaching record-breaking heights during the premiere of the fourth season. TVbythenumbers reports that 16.1 million people tuned in for the premiere with 10.4 million being of the adult 18-49 demographic.[9] The Walking Dead has become the #1 show on television across both cable and broadcast networks. Even compared to Sunday Night Football, The Walking Dead is 23 percent bigger than the perennial broadcast telecast.[10] These ratings and numbers have either stayed the same or grown with each passing episode. On the heels of such success, AMC Networks announced on October 29^th that it has renewed The Walking Dead for a fifth season, in which they are likely to have continued success.[11]

-The Sundance Channel Brings a New Kind of Zombie to Life[12]

This fall The Sundance Channel premiered The Returned, a French hit, and one of the

Photo showing premise of The Returned: the reconnecting of those once thought to be dead

channel’s first forays into scripted TV series. The series tells the stories of people who come back to life exactly as they were before they died. The show, based on the French film, They Came Back, was a critical hit in France before being picked up by The Sundance Channel. The show is quietly doing very well for the channel, considering the small audience and fact that the show is subtitled to English. As mentioned earlier, The Returned has received critical acclaim, being lauded for its beautiful cinematography and emotionally believable characters.[13] Despite only having eight total episodes, the show has an impressive 92/100 score on metacritic.[14]

-Low Winter Sun: Maybe Sinking a Bit too Low?

Another AMC show to be grabbing headlines this fall was crime-drama Low Winter Sun. This show tells the story of a cop in Detroit who believes his girlfriend was murdered by another detective. Despite airing after the widely watched Breaking Bad, this show has

Promotion for Low Winter Sun. Courtesy of AMC.

never gotten the viewer attention AMC Networks was hoping for. Low Winter Sun has received mixed reviews, with many leaning towards the negative side, citing the show’s pace and darkness as its main adverse aspects.[15] The show has even drawn criticism from one of its stars, James Ransone. Ransone said of the show, “It wasn’t a good show…” and “If it doesn’t get canceled, I’ll be goddamn shocked…the ratings were terrible.”[16] AMC Networks has yet to decide if the show will be renewed for a second season, but the decision is likely to come by early December.

Sources:

Principles & Practices

Website by the students of TRF235

Category Archives: Cable/Satellite Companies

Time Warner Cable

Time Warner Cable

Time Warner Cable, Inc.

AMC Networks

About AMC Networks [1}: