Time Warner Cable Loses 129,000 Video Subs26 Jan, 2012 By: Erik Gruenwedel
Time Warner Cable Jan. 26 said it lost 129,000 video subscribers in the fourth quarter (ended Dec. 31) — underscoring ongoing effects of the economy and competing video entertainment alternatives.
Indeed, the No. 2 cable operator lost 453,000 video subscribers in 2011, including 128,000 video subs in the third quarter, 130,000 subs in Q2 and 66,000 subs in the first quarter.
TWC said quarterly residential video revenues were essentially flat at $2.6 billion, as price increases and a greater percentage of subscribers bought higher-priced tiers of service, as well as due to increased revenues from equipment rentals and DVR service. Revenue was offset by lower sales of premium channels such as HBO and Showtime, among others.
Video revenue growth for the full year of 2011 also was impacted by lower transactional video-on-demand revenue. Video programming expenses grew primarily due to contractual rate increases and increased retransmission consent expense.
TWC ended the quarter and fiscal year with 11.89 million video subscribers, compared with 11.93 million subs in 2010.
Regardless, TWC net income for the fourth quarter increased 43% to $564 million on revenue of $4.9 billion, compared with net income of $393 million and revenue of $4.8 billion a year before. For the full year, net income increased nearly 27% to $1.7 billion from $1.3 billion.
“[The] results demonstrate the continued strength of our business amidst rapid change in technology and the consumer marketplace,” CEO Glenn Britt said in a statement.