Perhaps it’s the telcos’ entry into the pay-TV market, the growing availability of TV shows and movies online, or the lame economy, but Time Warner Cable reported a decline in the number of pay-TV subscribers for the quarter.
In its first quarter since being spun out of Time Warner, it reported growth in its broadband and wireline phone subscriptions but has run into a brick wall when it comes to growth in its pay-TV operations.
It added 120,000 residential high-speed Internet subscriptions and 2,000 commercial high-speed Internet subscriptions. Revenue from broadband increased 7.5%.
It, as other cablecos are doing, is taking wireline phone subscriptions away from telcos. In the quarter, it added 75,000 residential phone subscriptions and 9,000 commercial phone subscriptions.
As a result of growth in broadband and wireline phone subscriptions, its total subscription revenue increased 4.2%.
However, it lost 105,000 pay-TV (video) subscribers during the quarter. It increased its average revenue per pay-TV subscriber, which gave it a 1.6% increase in revenue from pay-TV subscriptions.
Its total customer relationships for the quarter fell by 55,000, reflecting the decline in basic video subscribers, but it added 157,000 revenue generating units.