Time Warner Cable Loses 129,000 Video Subs in Q431 Jan, 2013 By: Erik Gruenwedel
No. 2 cable operator lost 532,000 video subs in 2012
Time Warner Cable Jan. 31 said it lost 129,000 residential video subscribers in the fourth quarter (ended Dec. 31) — continuing an ongoing trend among cable operators as economics and competitive pressure from subscription video-on-demand services affect consumer behavior.
The nation’s No. 2 cable operator in 2012 jettisoned 532,000 video subscribers to end the year with 12 million subs, offset in part by increases in high-speed Internet and telecommunications subs.
Residential video revenue also decreased by declines in transactional video-on-demand and premium network revenue, partially offset by price increases, a greater percentage of subscribers purchasing higher-priced tiers of service and increased revenue from equipment rentals.
Net income in the quarter declined about 10% to $513 million from $564 in the previous-year period. Operating costs increased as a result of expenses associated with the acquisition of Insight Communications and rollout of the Los Angeles regional sports networks.
Indeed, the network, called SportsNet LA, earlier this month announced it had secured exclusive broadcasts rights to the Los Angeles Dodgers, beginning in 2014, in a 20-year deal worth reportedly up to $8 billion.
TWC last year secured 20-year broadcast rights to the Los Angeles Lakers and Los Angeles Galaxy for a reported $2 billion.