Time Warner Cable Loses 130,000 Video Subs in Q228 Jul, 2011 By: Erik Gruenwedel
No. 2 cable operator continues industry trend of shedding video customers due to the economy and competing video services
Time Warner Cable July 28 reported a net loss of 130,000 video subscribers in the second quarter (ended June 30) — underscoring ongoing challenges multichannel video programming distributors face with retaining members in an era of rapidly evolving home entertainment options such as Netflix and rental kiosks.
The trend indicates that downsizing of the monthly cable bill continues from the first quarter. The number of cable video subscribers in Q1 dropped as much as 8% on an annual basis in the top 15 domestic markets as consumers transition to new delivery platforms and less expensive plans, according to SNL Kagan.
New York-based TWC said video subscription revenue, which includes pay-TV channels and transactional video-on-demand, declined just 0.1% to $2.676 billion from $2.678 billion during the previous-year period.
TWC lost 74,000 net customer “relationships,” which included 112,000 single-play and double-play subscribers. It gained 38,000 triple-play subscribers.
The cable operator, as with others and satellite, has resorted to bundling services such as video, broadband, high-speed Internet and telephone into cheaper packages in an effort to retain members.
“We've become less of a TV company than we were previously,” Time Warner Cable CEO Glenn Britt recently told The Wall Street Journal.
Indeed, the company reported second-quarter net income of $421 million, up 23% from $342 million during the previous-year period. Revenue increased to $4.9 billion from $4.7 billion last year.