The No. 2 cable company is seeing the “best subscriber performance in the residential side that we’ve had in a 5 year period,” with total relationships up by 75,000 in the first two months of this year, CFO Artie Minson told the Morgan Stanley Technology, Media & Telecom Conference today. But all of the increases are in broadband, phone and business services: Residential video subscriptions are down by about 50,000 so far. The company lost 217,000 in the last three months of 2013 to end the year with 11.4M. Still, the exec says there’s a silver lining with net additions over the last four weeks. “As we head into March we’re excited about the positive momentum.” Minson warned that the current quarter may be “the low point of the year” for revenue growth in comparison with the same periods in 2013. While the company works to promote its $45.2B sale to Comcast, Time Warner Cable is going “full steam ahead on all of [its product enhancement] initiatives.” TWC hopes to win back market share by hitting customers with “more modest rate increases” after a period when “we were getting too much of the revenue growth from the rate side.” Minson says he’s not concerned about the growing talk about an online pay TV service, possibly including one from Dish Network with programming rights it just secured from Disney. “I’m not sure it is a business unless you’re in for some other reason” he says noting that Intel “got to the edge of the cliff and decided they didn’t want to jump into the business.” Dish’s deal with Disney is “interesting,” and could open the way for a “more narrow, personalized service….if you can find a way to not cannibalize yourself.” He says that TWC is open to the possibility of making Netflix available via the cable set top box “over time,” assuming there was no conflict with programming and other rights.
Time Warner Cable Exec Says Sub Trends Are Improving, But Video Still Falls
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