Time Warner Cable Loses 237,000 Video Subs Year-Over-Year30 Jul, 2015 By: Erik Gruenwedel
First- and second-quarter sub loss of 45,000 actually lowest since 2008
The hits keep coming for the nation’s third-largest pay-TV operator. Time Warner Cable July 30 reported a second-quarter (ended June 30) base of 10.7 million video subscribers, which was down 237,000 subs from a base of more than 11 million during the prior-year period.
TWC said it lost 45,000 video subs between the first and second fiscal quarters, which was the lowest drop since 2008. Indeed, the cabler lost 152,000 video subs during the same period a year ago.
Regardless, the decline in pay-TV subs underscores ongoing changes in home entertainment consumption by consumers. More people are accessing content directly from the Internet and less interested in the traditional channel bundle.
As a result, consolidation within the pay-TV industry continues following closing the recent $48.5 billion AT&T-DirecTV merger. TWC was acquired by Charter Communications in May for $55 billion. The deal must pass regulatory approval, a process the previous $45 billion Comcast-TWC proposed union didn’t achieve.
At stake: The nation’s high-speed Internet, upon which over-the-top video services such as Netflix, Amazon Prime Instant Video and Hulu Plus are delivered into homes.
While TWC continues to bleed video subs, it more than gains in broadband subscribers. It ended the period with 12.1 million broadband subs, which was up 747,000 subs from the prior-year period. The cabler added 172,000 broadband subs between the Q1 and Q2 compared with 67,000 a year ago.
“We achieved record Q2 subscriber results across nearly every category, setting us up for accelerating financial performance as we look forward to the next phase of our plan,” CEO Rob Marcus said in a statement.