Articles for Time Warner Cable

Time Warner Cable Preview: What’s on Deck Next Week

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Friday, January 20th, 2012 by Trefis Team

Time Warner Cable (NYSE:TWC) will be announcing its Q4 and full year 2011 results on upcoming Thursday, Jan 26 2012. The company lost about 321,000 pay-TV subscribers in first 9 months of 2011 with quarterly loss accelerating each quarter amounting to 126,000 in Q3 of 2011. This accelerating trend is usual and was seen last year as well. We expect quarterly loss to come down slightly in Q4 compared to Q3. The negative impact of these continued losses should be more than compensated by growth in ARPU and gain in broadband subscribers. Cable companies, including Comcast (NASDAQ:CMCSA) have long been suffering from pay-TV subscriber losses and have started to take steps to turn it around.

Our price estimate for Time Warner Cable stands at $29, implying a premium of about 15% to the market price.

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Time Warner Cable & MSG Networks Clash Over Sports Programming Fees

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Thursday, January 12th, 2012 by Trefis Team

At the beginning of the year, Time Warner Cable (NYSE:TWC) and MSG Networks squared off over its demand for a hike in its carriage fee for its programming. It appears that the issue still hasn’t been resolved and the two companies are still squabbling over this issue. 

MSG Networks is demanding a price hike of 53%, which is much larger than what Time Warner Cable is willing to pay. This affects about 2.8 million subscribers in New York and New Jersey, who are not able to watch some of their favorite games including the coverage of Knicks, Rangers, Sabres, Islanders and New Jersey Devils. Time Warner Cable’s rival Dish Network (NASDAQ:DISH) has been involved in such disputes as well, with big media companies such as Disney (NYSE:DIS). This puts Time Warner in a difficult spot as we outline below in that it will potentially incur much higher costs and face subscriber backlash if it tries to raise the prices for its programming.

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Time Warner Cable Sued For Patent Infringement, Should Investors Be Concerned?

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Wednesday, December 28th, 2011 by Trefis Team

Sprint (NYSE:S) has filed a lawsuit against Time Warner Cable (NYSE:TWC), Comcast (NASDAQ:CMCSA), Cable One and Cox Communications regarding patent infringement related to the transmission of voice over digital lines. The legal battle is nothing new for the communications sector, and several other companies such as Samsung, Apple (NASDAQ:AAPL), Dish Network (NASDAQ:DISH) and TiVo have been involved in patent lawsuits. While any intellectual property-related lawsuit makes for very negative press, we believe that even with a negative outcome in this legal battle the impact on Time Warner Cable’s value would be very low. Let’s examine this quickly below.

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Can Netflix Have a Positive Impact On Time Warner Cable?

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Thursday, December 8th, 2011 by Trefis Team

Netflix (NASDAQ:NFLX), Google’s (NASDAQ:GOOG) Youtube and others have made the Internet an important channel for media companies due to the popularity of video streaming services. Time Warner Cable (NYSE:TWC) and Comcast (NASDAQ:CMCSA) now face an obstacle on how to respond to this threat as more customers watch video online. There are two ways to handle this situation and gain from it: Gain more control over the content that is being watched on its broadband network or resort to a broadband pricing that will take advantage of how much one uses this channel. Several proponents of the latter option have recently mentioned this including Sanford C. Bernstein & Co.’s analyst Craig Moffet.  How will this impact Time Warner Cable?

Our price estimate for Time Warner Cable stands at $70.62, implying a premium of more than 15% to the market price.

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Time Warner Cable Updates: TV Bills To Rise, Enters Spectrum Deal With Verizon

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Wednesday, December 7th, 2011 by Trefis Team

Time Warner Cable (NYSE:TWC) has mentioned that it will be raising its pay-TV prices in early December. The company further mentioned that half customers will not see a pricing change in the bills, implying that the rate increases will be applicable to certain programming packages. This increase in rate is resultant of rising programming fee that the company is looking to pass on to its customers. This is a trend we expect to see among other pay-TV companies such as Comcast (NASDAQ:CMCSA) and DirecTV (NASDAQ:DTV).

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How Will Time Warner Cable Combat Cord Cutting?

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Thursday, November 10th, 2011 by Trefis Team

Over the past several years, digital cable subscription growth in the U.S. has been anemic. In 2011, subscription growth is expected to be less than one percent while it has been negative in previous years.  Time Warner Cable (NYSE:TWC), the second-largest U.S. cable operator behind Comcast (NASDAQ:CMCSA), is greatly affected by this slowing trend. Analysts and industry executives blame the slow growth over the last few years on the recession and high unemployment.

See Full Analysis for Time Warner Cable Here

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Time Warner Cable Q3 Preview: What We’re Watching Thursday

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Wednesday, October 26th, 2011 by Trefis Team

Time Warner Cable (NYSE:TWC) will report its Q3 2011 earnings this week. Being the first one among the major pay-TV and broadband service providers like Comcast (NASDAQ:CMCSA), DirecTV (NASDAQ:DTV) and Dish Network (NASDAQ:DISH) to release results, the company could give us a peek at the results for other players, especially regarding how the the weak economy is affecting pay customers. As far as Time Warner Cable is concerned, we believe that investors should look out for pay-TV subscriber losses and hints around company’s adaptability and responsiveness.

Our price estimate for Time Warner Cable stands at $70.60, which is roughly in line with the market price.

See our full analysis for Time Warner Cable
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Time Warner Cable Drags its Feet Rolling Out HBO Mobile App

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Monday, October 3rd, 2011 by Trefis Team

It is likely that the second largest cable service provider in the U.S., Time Warner Cable (NYSE:TWC), will introduce HBO Go app for its HBO subscribers soon. HBO Go represents HBO’s advancement in the streaming arena and allows HBO subscribers to stream TV shows and movies from HBO on their mobile devices without any additional cost. Other pay-TV service providers like Comcast (NASDAQ:CMCSA), Dish Network (NASDAQ:DISH), DirecTV (NASDAQ:DTV), AT&T (NYSE:T) and Verizon (NYSE:VZ) have already introduced this app and so the onus has been on Time Warner Cable to catch up to competitors.

We find it concerning that the company has been negotiating with HBO on the deal for past 5 months as this could indicate larger issues with firm.  Time Warner Cable had a disagreement with some other content companies in early 2011 over its attempt to stream some channels on its own app for iPad, and so the delay in introducing HBO Go casts addition doubts over the company’s ability to handle content relationships and willingness to adapt new new developments.

Time Warner Cable was also late entrant to the high-speed broadband Internet market with the launch of DOCSIS 3.0. The company needs to respond more quickly to changes, especially in today’s world when new products and services are flooding the  market each day.

Our price estimate for Time Warner Cable stands at $70.60, implying more than 10% premium to the market price.

See our complete analysis for Time Warner Cable’s stock.

Time Warner Cable Subsidizes Slingbox to Tap Streaming Trend

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Friday, August 26th, 2011 by Trefis Team

Time Warner Cable’s (NYSE:TWC) plan to subsidize the slingbox – a set-top box that allows control of video viewing from anywhere and via multiple devices makes financial sense. Clearly the motive is to capitalize on broadband and the ‘TV everywhere’ opportunity in order to better compete against others like Comcast (NASDAQ:CMCSA), AT&T (NYSE:T), Verizon (NYSE:VZ), DirecTV (NASDAQ:DTV) and Dish Network (NASDAQ:DISH). Below we substantiate this claim.

Our price estimate for Time Warner Cable stands at $73.60 and implies a premium of about 10% to the market price.

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Time Warner Cable’s Buys Additional Scale with Insight Deal

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Sunday, August 21st, 2011 by Trefis Team

After the acquisition of NewWave’s cable systems, Time Warner Cable (NYSE:TWC) has now agreed to acquire Insight Communications for $3 billion. While the company states that the Insight and NewWave deals will bring cost savings and synergistic benefits, the company is clearly willing to spend to gain scale and add subscribers. Time Warner competes with other pay-TV services from players like Comcast (NASDAQ:CMCSA), DirecTV (NASDAQ:DTV), AT&T (NYSE:T) and Verizon (NYSE:VZ) that are fighting for a bigger slice of the pay-TV and broadband pie.

Our price estimate for Time Warner Cable stands at $70.60 implies a premium of about 15% to the market price.

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