Time Warner Cable
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| Time Warner Cable, Inc. | |
 |
|
| Type | Public (NYSE: TWC) |
|---|---|
| Founded | 1989 |
| Headquarters | Stamford, Conn. Charlotte, N.C. Herndon, V.A. |
| Key people | Glenn A. Britt, Chairman and CEO |
| Industry | Communications |
| Products | Digital Cable Road Runner (ISP) High-Speed Internet Digital Phone Telecommunications Time Warner Cable Media Sales Cable Advertising NY1 News Local News Station RNews Local News Station Capital News 9 Local News Station News 10 Now Local News Station News 14 Carolina Local News Stations News 8 Austin Local News Station Metro Sports Local Sports Station MetroWeather Local Weather Station Time Warner Sports 26 Local Sports Station |
| Revenue |  $9.498 Billion (2005) |
| Employees | 84,900 |
| Slogan | The Power Of You |
| Website | Time Warner Cable |
Time Warner Cable (NYSE: TWC) is an American national cable television company that operates in 27 states and has 31 operating divisions. Its corporate headquarters are located in Stamford, Connecticut, and has other corporate offices in Charlotte, North Carolina; Herndon, Virginia; and Denver, Colorado[1]. Time Warner owns a majority of voting shares in the company, thus controlling it.
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[edit] History
Time Warner Cable was formed in 1989 through the merger of Time Inc.'s cable television company, American Television and Communications Corp., and Warner Cable, a division of Warner Communications. It also includes the remnants of the defunct QUBE interactive TV service. In 1995, the company launched the Southern Tier On-Line Community, a cable modem service now known as Road Runner.
[edit] Acquisition of Adelphia
On July 31, 2006, Time Warner Cable and Comcast completed a deal to purchase practically all of Adelphia's assets for $17 billion [1]. Time Warner Cable will gain 3.3 million of Adelphia's subscribers, a 29 percent increase, while Comcast will gain almost 1.7 million subscribers. Time Warner Inc. is giving Adelphia stockholders 16% stock of Time Warner Cable, and Adelphia is required to sell at least one-third of the Time Warner Cable stock it received within three months of the offering. This action took the company public effective February 13, 2007, and the company begun trading on the New York Stock Exchange on March 1, 2007.[2]
In addition to Adelphia's coverage being divided up, Time Warner Cable and Comcast have also agreed to exchange some of their own subscribers in order to consolidate key regions. An example of this is the Los Angeles market, which was mostly covered by Comcast and Adelphia, is now under Time Warner Cable. Philadelphia, previously was split between Time Warner and Comcast, with the majority of cable subscribers belonging to Comcast. During the first quarter of 2007, any Time Warner subscribers in Philadelphia will be switched to Comcast. Similarly, the Houston area, which was under Time Warner, will be under Comcast [3]. The change in the Houston market needed FCC approval as of January 2007. The change in management occurred in February 2007, although the system is still using the "Time Warner Cable" name for the time being.
On December 6 2006, Time Warner Cable executives announced to employees that it will close the Advanced Products Customer Care (APCC) center in Coudersport, PA. This close came on February 5, 2007. The APCC was acquired in the Adelphia purchase and employed 500 people.
[edit] Advance/Newhouse and Time Warner
Some of the regional cable system clusters operated by Time Warner Cable are owned by the Time Warner Entertainment - Advance/Newhouse Partnership (TWEAN). In 2002, Advance/Newhouse Communications, unhappy with some of the operating policies of Time Warner Cable in the AOL Time Warner era, forced a restructuring of the TWEAN partnership such that Advance/Newhouse would actively manage and operate a portion of the jointly owned cable systems equal to their percentage of equity. Under this arrangement, Advance/Newhouse enjoys the proceeds of their actively managed systems rather than simply a percentage of the partnerships total earnings. The majority of the affected systems are in the Tampa and Orlando markets under the Bright House Networks brand.
The value of this deal is that it allows Advance/Newhouse to more directly control their cable investments without having to completely unravel the TWEAN partnership, which does bring some benefits via Time Warner's development and purchasing clout.
[edit] Sprint Nextel Venture
In late 2005, TWC and several other cable companies formed a venture with Sprint Nextel. This caused TWC customers to receive a full suite of products, linking in-home and out-of-home entertainment, information, and communications services. All of this was included in the new "Quadruple Play", similar to the Triple Play but an addition of new services through Sprint Nextel.
[edit] Start Over
Start Over allows customers to jump to the beginning of a program in progress without any preplanning or in-home recording devices and is available to digital cable subscribers at no additional charge. It was first launched to customers in South Carolina in November 2005.
[edit] Carriage controversies
[edit] Local stations
- On December 31, 2006 Time Warner was scheduled to drop stations owned by the Sinclair Broadcast Group in markets TWC inherited from Adelphia. Examples of such stations are WVAH and WCHS in Charleston, West Virginia.[4]. TWC eventually came to an agreement to extend the carriage.
- On December 15, 2006, KAYU-TV, the Fox affiliate serving eastern Washington and the Idaho panhandle, was pulled from TWC subscribers in those areas. The reason given was that KAYU had not been "negotiating in good faith" for permission to carry the channel; KAYU pulled its own signal and wants reverse compensation for its carriage. Time Warner fears that such an agreement will result in higher cable bills for its subscribers. Station officials are providing free rabbit-ear antennas to access the signal. [5]
- On October 15, 2006, just hours before TWC was to drop WSAZ-TV in Huntington, West Virginia, station management and TWC came to an agreement. The key was that TWC agreed to add the new MyNetworkTV affiliate, which WSAZ carries on a digital subchannel. If no agreement was reached, WSAZ, the local NBC affiliate, would have been dropped on December 8.
- On October 4, 2006, TWC reached a new carriage agreement with Fox Television Stations Group-owned stations KDFW and KDFI, respective affiliates of FOX and MyNetworkTV in the Dallas/Fort Worth Metroplex. Before that, a message was scrolling on a leased access channel saying, "Please be advised that pending progress of ongoing negotiations, Time Warner may be forced to discontinue carriage of KDFW and KDFI. While we remain hopeful that further negotiations are being made to keep KDFW and KDFI programming in the lineup, we're letting customers know in advance of this issue." Had the stations been pulled as threatened, most Dallas Cowboys games would have been unavailable to TWC subscribers.
- When The CW (which is half-owned by Time Warner) launched on September 18, 2006, a number of TWC systems did not carry the digital subchannels that the CW uses as affiliates in some areas. Among the stations whose subchannels are not carried on TWC are WCBD (DT2), Charleston, South Carolina; KVIA (DT2), El Paso, Texas; WLIO (DT2), Lima, Ohio; and KESQ (DT2), Palm Springs, California.
- On May 12, 2000, ABC network owned and operated stations were unavailable to TWC subscribers for 19 hours. The pullout, in a middle of a "sweeps" period, came because TWC could not agree with ABC's parent company, the Walt Disney Company, on whether to carry some specialty channels, like ESPN Classic and SoapNet. Those tuning in to stations like WABC in New York City or KABC in Los Angeles instead saw this static message, "Disney is taking ABC away from you." Thousands of people bought antennas from Radio Shack and other stores to view ABC programs, and KABC-AM in L.A. carried the audio feed of Who Wants to Be a Millionaire, then the network's highest-rated program. Amidst huge public outcry, and threats of Congressional action, TWC and ABC reached a new deal to put the ABC stations back on the systems.
[edit] Cable/on demand channels
- On August 1, 2006, Time Warner Cable removed the NFL Network from its lineup in areas it gained from its deal with Comcast to jointly purchase bankrupt cable company Adelphia's assets and to swap certain areas it served with areas Comcast served. Adelphia had carried the National Football League's 24-hour network on a digital tier, however, Time Warner Cable claims that the NFL now insists on making it into a premium channel on its systems.[6] As a result, NFL Network lost millions of cable households just as it is beginning a new contract to air eight regular-season games a year. On August 3, 2006, the FCC ordered Time Warner Cable to reinstate the NFL Network on those systems from which it had removed the channel, upholding the complaint that they had failed to comply with the required 30 day notice period required to be given to customers, before removing a channel.[7] After considering its options, Time Warner Cable restored the channel at midnight on August 4, 2006, with an onscreen notice warning the viewers the channel would be removed in 30 days. Time Warner Cable issued a petition to the FCC in an attempt to reverse the decision citing "severe, immediate and irreparable harm" to Time Warner Cable and its customers, and threatening legal action if the FCC did not reach a decision by 10am on August 7, 2006. On that day, the FCC responded to Time Warner Cable's petition by upholding the Commission's initial ruling that the NFL Network remain on the air for the required period. After two extensions of the deadline, TWC finally pulled the plug on September 15, 2006. "We will continue to negotiate and remain hopeful that an agreement will be reached that is beneficial to all", the network said in a statement that flashed on the screen in place of NFL Network. TWC did agree to carry a free preview from December 24 to December 30, primarily so that local viewers could watch the Rutgers Scarlet Knights play in the Texas Bowl, but no longterm agreement has been reached.
- On November 1, 2006, Starz! On Demand became available to some TWC subscribers. This came as a result of settlement of a long running dispute over its carriage. Starz! required this to be free to their subscribers, however, Time Warner Cable insisted on packaging all Premium On Demand channels in a separate tier which would require an additional monthly fee for Starz subscribers. The channel is still not available in the "Capital Region" around Albany, New York, among other places.
- In another on-demand development, TWC had to modify "Dodgers on Demand", a joint venture with the Los Angeles Dodgers, on its systems in the Los Angeles area. In September of 2006, Major League Baseball ordered TWC to remove the service, saying that MLB Advanced Media has rights to all interactive content taken from its games. TWC and the Dodgers responded by removing most highlights, excluding those from the team's 2006 Division Series loss to the New York Mets, which came from a newscast on KCBS.
[edit] Channels
- Free On Demand - free on demand programming.
- Multichannel Premiums - 38 channels, includes HBO, Cinemax, Showtime, TMC, Starz, and Encore
- Sports inDemand
- NBA League Pass - sports (basketball) package.
- NHL Center Ice - sports (hockey) package.
- MLS Direct Kick - sports (soccer) package.
- ESPN Full Court - sports package
- ESPN GamePlan - sports package
- HDTV
- HDXtra - HDTV package
- International Programming - international channels
- DTV en Español - DTV in Spanish
[edit] Cable Clusters
- Info as of 12/31/05. More than 75% of the company's customers are in systems of 300,000 subscribers or more.
These numbers do not reflect the addition of 3.5 million Adelphia customers as of August 1, 2006.
- Alabama Cluster
- Alabama - Dothan
- California Cluster (700,000 customers)
- California - Desert Cities, Los Angeles, San Diego
- The Carolinas Cluster (1.763 million customers)
- North Carolina - Charlotte, Raleigh, Greensboro, and Wilmington
- South Carolina - Columbia, Florence, Summerville, and Myrtle Beach.
- Florida Cluster
- Florida - Lake City/Live Oak (Merging with Comcast) and St. Augustine/Palatka
- Hawaii Cluster (401,000 customers) (Operating as Oceanic Time Warner Cable)
- Louisiana Cluster
- Louisiana - Monroe, Shreveport (trading with Comcast for the Dallas market area.
- Mississippi Cluster
- Mississippi - Jackson
- New England Cluster
- Maine - Portland
- New Hampshire - Berlin, Keene
- New York Cluster
- New Jersey - Bergen County, Hudson County
- New York - Albany, Binghamton, Buffalo, Delaware County, Greene County, Mount Vernon, New York City (Manhattan, Queens, Staten Island, most of western Brooklyn), Orange County, Poughkeepsie, Rochester, Sullivan County, Syracuse, Ulster County
- Massachusetts - Pittsfield, Orange, Athol
- Pennsylvania - West Philadelphia, Erie County
- Ohio Cluster (1.476 million customers)
- Ohio - Akron, Cincinnati, Cleveland, Columbus, Dayton, and Youngstown.
- Oklahoma Cluster
- Texas Cluster (2,076,000)
- Texas - Austin, Beaumont/Port Arthur, Corpus Christi, Dallas (Beginning Late 2006 from Comcast), El Paso, Harlingen, Houston, Killeen/Temple, Laredo, Rio Grande Valley, San Antonio, and Waco
- West Virginia Cluster
- West Virginia - Clarksburg
- Wisconsin Cluster (566,000 customers)
[edit] Divisions
Time Warner Cable's 52 Divisions, from Time Warner's 2006 Corporate Profile and from official website.
- Oceanic Time Warner Cable (Hawaii)
- Time Warner Cable Alabama
- Time Warner Cable Albany
- Time Warner Cable Austin
- Time Warner Cable Barstow
- Time Warner Cable Binghamton
- Time Warner Cable Charlotte
- Time Warner Cable Cincinnati +
- Time Warner Cable Clarksburg
- Time Warner Cable Dayton/Miami Valley +
- Time Warner Cable Desert Cities
- Time Warner Cable Eastern Carolina (Wilmington)
- Time Warner Cable Erie
- Time Warner Cable Fort Benning
- Time Warner Cable Greensboro
- Time Warner Cable Houma (Merging with Comcast)
- Time Warner Cable Houston (former joint venture with Comcast, becoming a Comcast property)
- Time Warner Cable Hudson Valley
- Time Warner Cable Jackson, MS/Monroe, LA
- Time Warner Cable Kansas City
- Time Warner Cable Lake City/Live Oak (Merging with Comcast)
- Time Warner Cable Los Angeles
- Time Warner Cable Mid-South (Memphis, TN, AR, and MS)
- Time Warner Cable Mid-Ohio (Columbus)
- Time Warner Cable Minnesota (Now Comcast)
- Time Warner Cable Myrtle Beach
- Time Warner Cable National (non-clustered systems)
- Time Warner Cable Nebraska (Lincoln)
- Time Warner Cable New England (Portland, ME and Berlin and Keene, NH)
- Time Warner Cable New York and New Jersey
- Time Warner Cable North Texas (Dallas) (formerly Comcast)
- Time Warner Cable Northeast Ohio (Akron)
- Time Warner Cable Northeastern Wisconsin (Green Bay)
- Time Warner Cable Raleigh
- Time Warner Cable Rochester
- Time Warner Cable San Antonio
- Time Warner Cable San Diego
- Time Warner Cable Shreveport (Merging with Comcast)
- Time Warner Cable South Carolina (Columbia)
- Time Warner Cable Southeastern Wisconsin (Milwaukee)
- Time Warner Cable Southern California
- Time Warner Cable Southern Tier New York
- Time Warner Cable Southwest (El Paso, Wichita Falls, Corpus Christi, Laredo, Border Corridor, Golden Triangle, Kerrville, Rio Grande Valley, and South Central)
- Time Warner Cable Southwest Florida
- Time Warner Cable Southwest Ohio (Miami Valley & Cincinnati)
- Time Warner Cable St. Augustine/Palatka
- Time Warner Cable St. John
- Time Warner Cable Syracuse
- Time Warner Cable Terre Haute
- Time Warner Cable Western New York (Buffalo)
+ In August 2006, Time Warner Cable merged Dayton & Cincinnati into "Southwest Ohio" and moved much of the former Dayton customers in Northwest Ohio north of a line running from Mercer & Auglaize counties to the Mid-Ohio (Columbus) division.
[edit] Statistics
As of August 1, 2006, there were 14.5 million basic cable subscribers, 5.6 million Digital cable subscribers, 5.2 million Road Runner residential subscribers, 1.7 million DVR subscribers, and 1.4 million Digital Phone subscribers.
[edit] References
- ^ Company Highlights. Time Warner Cable. Retrieved on March 13, 2007.
[edit] External links
- Official Website
- Time Warner Cable Media Sales
- Time Warner press release regarding Advance/Newhouse restructuring
- Time Warner press release regarding Start Over
- Time Warner press release regarding Adelphia acquisition
Categories: Companies listed on the New York Stock Exchange | Time Warner Cable | Time Warner | 1989 establishments | Cable television companies of the United States | Media companies | Media companies of the United States | Entertainment companies | Entertainment companies of the United States | Companies based in North Carolina | Companies based in Connecticut
