Time Warner Cable Loses Video Subscribers Adds Internet

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From The Original Article:
The No. 2 U.S. cable television operator dropped 65,000 basic video customers during the first quarter, but it is hardly alone. The entire cable industry faces competition for video customers from phone and satellite providers, not to mention Internet-based upstarts such as Netflix and Hulu.

Time Warner Cable has responded by expanding its presence in other areas, particularly high-speed Internet, where it added a better-than-expected 189,000 customers. Most analysts figured it would add closer to 125,000 to 165,000. Subscribers additions to its phone service also slipped by expectations at 84,000.

Chief executive Glenn Britt said its high-speed Internet service "is quickly becoming the anchor product in the eyes of consumers," and noted the service now has more than 10 million subscribers.

In light of those sorts of numbers, analysts and investors appeared to accept the loss of more video customers, particularly in the small number of cases when customers are dropping TV subscriptions to watch video over the Web, known as cord cutting.

Craig Moffett, an analyst with Bernstein Research, said in a note that "investors have grown more comfortable with the view that cable is, first and foremost, an infrastructure play, and that its broadband business will serve as a near perfect hedge against" cord-cutting.
Read More: Time Warner Cable earnings, revenue up - chicagotribune.com
 
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