By Jordan Horowitz

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]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

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]

 

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]

 

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]

 

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]

 

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]

 

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