Time Warner Cable Loses 141,000 Video Subs in Fourth Quarter27 Jan, 2011 By: Erik Gruenwedel
Ongoing economic concerns contributed to Time Warner Cable Jan. 27 reporting a net loss of 141,000 residential video subscribers during the fourth quarter, ended Dec. 31.
Video subscribers include those opting for premium channels such as HBO and Showtime and transactional video-on-demand, among other features.
TWC ended the quarter with 12.2 million video subscribers, compared with nearly 12.4 million during the previous-year period. Overall subs increased 25,000 to 26.7 million due to increases in high-speed Internet and digital phone services.
Scuttlebutt has suggested increasing numbers of cable subscribers are downsizing their monthly bills in favor of lower-cost home entertainment options such as rental kiosks and Netflix streaming — a scenario disputed by media companies, cable operators and Netflix.
Regardless, TWC said operating income in the quarter increased more than 11% to $994 million from $891 million during the previous-year period, due in part to higher revenue (up nearly 6% to $4.8 billion) and subscription fees (up 4.6% to $4.5 billion).
Net income to shareholders was $392 million, up nearly 22% from $322 million last year.