Profile: Time Warner Cable Inc (TWC.N)
20 Dec 2013
Time Warner Cable Inc. (TWC), incorporated on March 21, 2003, is a provider of video, high-speed data and voice services in the United States with systems located in five geographic areas: New York State, the Carolinas, Ohio, Southern California and Texas. As of December 31, 2011, TWC served approximately 14.5 million customers who subscribed to one or more of its three primary services, totaling approximately 27.1 million primary service units. The Company offers its residential and business services customers video, high-speed data and voice services over its broadband cable systems. On November 1, 2011, TWC completed a acquisition of certain NewWave Communications (NewWave) cable systems in Kentucky and western Tennessee. On April 21, 2011, TWC acquired NaviSite, Inc. (NaviSite). During the year ended December 31, 2011, it completed two acquisitions of cable systems in Texas and Ohio serving subscribers representing a total of 26,000 primary service units. In February 2012, the Company acquired Insight Communications Company, Inc.
TWC’s business services also include networking and transport services, including cell tower backhaul services and, through its wholly owned subsidiary, NaviSite, Inc. (NaviSite), managed and outsourced information technology (IT) solutions and cloud services. It also sells advertising to a range of national, regional and local customers. TWC markets its services separately and in bundled packages of multiple services and features. As of December 31, 2011, 60.4% of the Company’s customers subscribed to two or more of its primary services, including 26.5% of its customers.
TWC offers a range of residential video services to give customers access to any content that it offers. As of December 31, 2011, the Company served approximately 11.9 million residential video subscribers. TWC offers various tiers and packages of residential video programming and music services ranging from a basic service tier with approximately 15 channels to a set of digital packages with over 400 channels. It offers specialty tiers of genre-based programming, such as the Family Choice Tier, Time Warner Cable Movie Pass and Time Warner Cable Sports Pass, as well as packages, such as El Paquetazo, with English and Spanish-language channels. TWC’s residential video subscribers may also purchase premium channels, such as HBO, Showtime, Starz and Cinemax.
TWC offers residential video subscribers, on average, approximately 140 high definition (HD) channels, including the broadcast networks, national cable networks, premium channels and regional sports networks, as well as a selection of video on demand (VOD) programming in HD. During 2011, TWC also began to offer select programming in a three-dimensional (3D) format. TWC provides a range of advanced services, such as VOD, digital video recorder (DVR) and Start Over and Look Back services that provide residential video subscribers. Its VOD service provides residential video subscribers with free access to a selection of movies, programming from broadcast and cable networks, music videos, local programming and other content. Its VOD service also offers a selection of featured movies and special events on a pay-per-view basis.
TWC offers equipment with DVR functionality that enables residential video subscribers to pause and/or rewind live television programs and record programs for future viewing. Subscribers pay an additional monthly fee for TWC’s DVR service. As of December 31, 2011, 51.8%, or approximately 4.7 million, of the Company’s residential and business services digital video subscribers subscribed to its DVR service. It also offers Whole House DVR, a multi-room DVR service, which allows a program recorded on a DVR to be watched on any connected television. In addition, it offers remote DVR management, which provides customers with the ability to view television listings and program their DVRs through a computer or alternative device, such as a smartphone or tablet.
TWC offers Start Over, which enables digital video subscribers using a TWC-provided set-top box to restart select in progress programs directly from the relevant channel and Look Back, which extends the window for viewing a program to 72 hours after it has aired. Start Over and Look Back are available in the Company’s service areas. During 2011, TWC launched the TWC TV application for the iPad and it also has similar application for the iPhone. Both apps enable video subscribers to watch live cable channels on their iPad or iPhone on their premises and to use their device as a remote control with the ability to search program listings by title, impose parental controls and change television channels on compatible TWC set-top boxes. TWC enables video subscribers to watch certain content wherever they are connected to the Internet. TWC offers online access to ESPN, ESPN2, ESPN3, ESPNU and ESPN Buzzer Beater to customers who subscribe to a video tier, that includes ESPN, and it offers TWC Sports Pass video subscribers online access to the Big Ten Network and Speed2. TWC also began offering access to HBO GO and Max GO to customers who subscribe to those video services.
High-speed Data Services
TWC’s high-speed data services provide residential services customers with Internet. As of December 31, 2011, the Company served approximately 10 million residential high-speed data subscribers. Utilizing DOCSIS 3.0 technology, TWC offers Wideband and Extreme to subscribers in the majority of its service areas. Wideband, TWC’s highest speed tier, offers subscribers speeds of up to 50 megabits per second downstream and up to five megabits per second upstream. TWC also offers Turbo, Standard, Basic and Lite tiers in all of its service areas. Turbo offers subscribers speeds of up to 20 megabits per second downstream and up to two megabits per second upstream. It provides Turbo and Standard subscribers with PowerBoost at no additional charge.
TWC’s residential high-speed data service provides communication tools and personalized services, including e-mail, personal computer security, parental controls and online radio, without any additional charge. The Roadrunner.com portal provides access to content and media from local, national and international providers and topic-specific channels, including entertainment, dating, games, news, sports, travel, music, movie listings, shopping, ticketing and coupon sites. In addition to TWC’s high-speed data service, most of its cable systems offers the Earthlink high-speed data service. The wireless fidelity (WiFi) network is available to TWC high-speed data subscribers.
TWC’s residential voice service, Digital Home Phone, offers residential services customers unlimited local and long distance calling throughout the United States, Canada and Puerto Rico, together with a range of calling features, including call waiting, call forwarding, caller identification (ID) and distinctive ring, for a fixed monthly fee. The Company also offers a number of plan options that are designed to for customers’ particular needs, including local-only, unlimited in-state and international calling plans. As of December 31, 2011, it served approximately 4.5 million residential voice subscribers. It also provides a free Web portal, VoiceZone, which allows voice subscribers to customize their service features, set up caller ID on personal computer (PC) and block unwanted calls.
The Company competes with AT&T Inc., Verizon Communications Inc., DirecTV Group Inc., DISH Network Corporation, Frontier Communications Corporation, Cincinnati Bell, Inc., CenturyLink, Inc., Hulu.com, Apple Inc., Netflix Inc., YouTube, Vonage, Skype, magicJack and Google Voice.
Time Warner Cable Inc
60 Columbus Circle
NEW YORK NY 10023
Company Web Links
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