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