Time Warner Cable Ups Video Sub Loss2 Aug, 2012 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 reported a net loss of 169,000 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.
TWC, which ended the period with nearly 12.3 million video subs, lost 130,000 video subs during the previous-year period. It had nearly 12.5 million video subs during the same period last year.
The cable operator, like others, makes up for the video sub loss through sub gains in high-speed Internet (59,000) and telephone (45,000) services.
New York-based TWC said video subscription revenue, which includes pay-TV channels and transactional video-on-demand, increased 1% to $2.79 billion from $2.67 billion during the previous-year period.
Video programming expenses grew 5.9% to $1.2 billion due to contractual rate increases, the acquisition of Insight Communications, and by an organic decline in video subscribers. Average monthly video programming costs per video sub increased 3.7% year-over-year to$30.92 for the second quarter of 2012.