Time Warner Cable losing basic, premium subscribers
July 29th, 2009, 9:04 am · 14 Comments · posted by Tamara Chuang, a.k.a. The Gadgetress
Time Warner CableOur favorite cable TV company released its second-quarter earnings report this morning and its CEO is pleased.
A look at the numbers
http://gadgetress.freedomblogging.co...7/twc2q09a.jpg
Time Warner Cable continued to make more money, netting income of $316 million in the three months, ending June 30. In the same time last year, it made $277 million. Sales also grew 4 percent, or $176 billion, to $4.5 billion in the three months.
Nearly every segment of Time Warner grew subscriptions were up 6 percent to $4.3 billion, video revenues grew 3 percent to $2.7 billion, Internet revenues were up 9 percent to $1.1 billion, and digital phone revenues were up 19 percent to $471 million.
The only areas that declined were basic and premium video subscribers and advertising, which was down a hefty 25 percent to $174 million. (And no wonder! One premium channel is $15 a month. And if you order all five premiums, that adds $53 to your monthly bill.)
If you're scowling at this report because your cable bill went up this year, Time Warner said that its costs have risen, too. Video programming expenses, which include the per-subscriber fees paid to TV networks for the right to broadcast their channels, jumped 7 percent to $1 billion.
Time Warner Cable's customer count, as of June 2009That brings us to the number of subscribers: It had 14,652,000 million, as of June 30, 2009. That's down 11,000 from March's 14,663,000 subscribers.
Those who remain with the company continue to switch services around perhaps tempted by a offer to bundle? Many are jumping to Time Warner's triple-play bundles, which is going for $99 a month right now. That includes TV, Internet and phone service. Triple-play customers numbered 3.3 million, up 90,000 new customers during the quarter. The number of customers who order just one or just two cable services declined.
Phone subscribers were also up to 4 million, Internet subscribers were up to 8.8 million. But overall video customers were down to 13 million. Click chart on right to enlarge details.
Based on its penetration rates, Time Warner is losing its hold on customers. The penetration rate or the number of households who order service in communities where it's available - is shrinking. Its video penetration rate dropped to 48.4 percent by June, down slightly from the 48.7 percent in March. Two years ago, that number was above 50 percent.
This compares to the inroads TV service rivals like Verizon FiOS and AT&T U-verse have made into Time Warner territory. While much smaller, FiOS and U-verse penetration rates continue to increase. FiOS TV, for example, was up to 24.6 percent penetration in its communities in June, compared to 19.7 percent a year earlier (see Average Verizon FiOS bill is $135; TV service still growing).
With competition heating up, Time Warner is looking into other areas to grow, such as wireless phones and web TV content. Reuters reminds us that the company joined Comcast Corp. and Clearwire Corp. last year in a 4G wireless partnership. Also, the company previously said it would be testing a TV Everywhere, allowing customers to watch cable TV shows on the Web.
Comments:
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July 31, 2009 at 2:17 pm
My beef with TW is that they don't understand TV Guide OnScreen, also known as Guide Plus+.
My DVR became almost useless last year when TW quit passing through the analog TVGOS signal. This was somewhat to be expected with the digital switchover, but many cable systems are converting digital TVGOS to analog TVGOS for their customers. Not TW.
In January we bought a Sony HDTV with digital TVGOS and that worked for a while, but toward the end of May the digital TVGOS went away, too.
Contacting TW about this is hopeless. They have no clue what TVGOS is, and don't understand why anyone would care since they have their own TV listings service. Not that it's usable by my TV or DVR.
Macrovision (now Rovi) used to provide a page for users to complain about cable systems that weren't carrying TVGOS, but they don't even bother any more. They just say We have confirmed with your cable provider that you should receive TV Guide/Guide Plus+ listings after the digital transition. If you are not receiving listings or if your listings discontinue, please contact your cable provider for more information.
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Tamara Chuang, a.k.a. The Gadgetress says:
July 31, 2009 at 2:25 pm
Doug I don't know much about TV Guide's feature either. BUT this may help. Another reader had what I think is the same issue and somehow he resolved it. He, too, has a Sony and Time Warner Cable. Anyway, he said he redetected the stations using an antenna instead of his Time Warner basic cable feed (w/out any cable box). He told me: The next day the TV went through a software update (detected somehow through the RF antenna). Then the TV rebooted/restarted, completed the software update. Then the TV guide function (embedded in the TV) was available and functioning. Neither Sony nor Time Warner could adequately explain why neither of these functions worked through Time Warner. The Sony Rep said the TV Guide function had been giving a lot of trouble and should be updated in about a month. Anyway, maybe that will help? Good luck.
wthitc says:
July 29, 2009 at 8:54 pm
Screw a bunch of TW. So their cost went up did they even try to negotiate with the networks. Of course not because they are in collusion with the networks to rip us all off so they can post a profit and the CEO can be pleased. The CEO obviously has not listened to the complaints from his subscribers about poor customer service and high pricing. Is he pleased with that also??
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urbutt says:
July 29, 2009 at 3:26 pm
i was on hold for over an hr.
my bill went from 51.46 to 80.22.
you SERIOUS????!!! im sure they're not getting charged that much more.
i hate TIME WARNER CABLE!!!!!!
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OC Tax payer says:
July 29, 2009 at 3:18 pm
I can believe it!
$65 for crap basic cable!
I wish my landlady would let me put up my dish!
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Tamara Chuang, a.k.a. The Gadgetress says:
July 29, 2009 at 3:30 pm
Hey OC Tax payer (hey, that's me too!) I've mentioned this before and it may help you: Apartment owners are required by law to allow outside antennas to improve TV reception but only if it's on a renter's private balcony or patio area. Here's the FCC's recap page: FCC's Over-the-Air Reception Devices Rule, see 47 C.F.R. Section 1.4000, which prohibits restrictions that impair a person's ability to install, maintain, or use an antenna There are exceptions, of course. But if you have questions or need more info, call the FCC: 888-CALLFCC (toll free) or (202) 418-7096.
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OC Tax payer says:
July 30, 2009 at 8:50 am
Tamara Chuang, a.k.a. The Gadgetress
Thanks again for the info however my apartment has no balcony or patio or anything I can put a dish on without attaching it to the building and my windows are facing east (so I cant have the dish inside)
So I am stuck
Its even worse for the disabled and low income seniors who only have rabbit ears on analog TV
Now with Digital they get one or two channels if they are lucky
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Bobomo says:
July 29, 2009 at 2:19 pm
Why can't I turn to my boss and say my costs have gone up, I'm passing them on to you? Because there's competition in the labor market, but not in the de-regulated' cable market. Interesting.
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Patty says:
July 29, 2009 at 1:46 pm
Time Warner sells/gives/trades your home address and UNlisted phone # to Whitepages,com
When I called to talk to someone about this invasion of privacy, I only got to email someone in India, never could get a phone #, name of a supervisor or anyone that I could talk to. period. If you call the local office they refer you to a website, hence the emails to India. There was a good reason for me to have an unlisted phone #, now that person whom I didn't want to have it, not only has my phone # but my address also. I only had a phone with them (their package deal) for a month before they gave my #. to the white pages. In one of the emails I was told I don't know how your information got from here to there !
DON'T USE TIME WARNER PHONE PLAN IF YOU WANT AN UNLISTED PHONE # TO STAY PRIVATE.
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Tamara Chuang, a.k.a. The Gadgetress says:
July 29, 2009 at 1:51 pm
That reminds me of a recent LA Times column on unlisted numbers. Time Warner, like many other telephone companies, charges a recurring fee to keep the info unlisted. If you've been paying that fee and your information is still public, let me know and I'll try to look into it.
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DREY says:
July 29, 2009 at 1:00 pm
Their service is horrible. Not only do they keep sending us the bill in SPANISH, but refuse to send one in english!!! BYE BYE Time Warner!!! or should I sayHasta LaVista ? @@
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