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SIT-10:00 ClassPresented by: Philip Brady, Morgan Puleo, and
Katie Garvey
1923, Time, a weekly magazine, is founded 1969, Time’s bottom line is threatened by
television 1975, Time buys $7.5 million of satellite
time to distribute HBO programming 1980, Time begins to be seen as a cable
company ◦ Profits from video division exceed those from
magazines for the first time
2006, TWC buys Adelphia Communications 2009, TWC is spun-off by its parent
company, Time Warner◦ http://www.youtube.com/watch?feature=player_e
mbedded&v=-XPUmhrhRLI 2011, TWC buys NaviSite 2011, TWC buys Insight Communications for
$3 billion
1994, became first cable company to be honored with an Emmy Award◦ Engineering Award for Outstanding Achievement
in Technological Development 2001, Nationwide system upgrade to create
a hybrid coaxial cable network, resulting in development of new services
2002, Launched Video on Demand
TV Internet Phone
Bundles◦SignatureHome
Business Class Media Sales
Offers cable services for television and can be set up on multiple TV’s in the house
Has many appealing features that customers can include in their cable package, such as…
Whole House DVR◦ Lets you record a show in one
room and watch it in another room
3DTV◦ With its high definition, crisp
screen resolution, 3DTV delivers a just-like-being-there viewing experience
DVR Manager◦ Use your smartphone to
program your DVR Start Over
◦ Restart live shows from the beginning without setting your DVR
Look Back◦ Can go back three days in time
to watch shows you missed
Offers different internet plans with varying features and prices
Attracts customers with available features◦ WiFi on the go◦ Works to aid customer in deciding which plan will
suit their needs
Offers phone services to customers without requiring them to change their phone number◦ Not currently an innovative market◦ Competes with price and convenience for their
phone services
“TV, Internet and Phone — everything you need to stay up-to-date and connected, all from the same company, on one convenient bill and all for one low price.”
A premium package offered by TWC Presents itself as luxurious and personal Includes Digital TV, Wideband Internet and
Digital Home Phone with many features and customer service benefits
Offers similar products and services on a business scale
Caters to businesses of all sizes in addition to education and government organizations
Security is more of a stand out feature for business services
Time Warner Cable Media Local marketing partner Sells ad space on the TV (both its networks
and through the features of its cable services) and the web
Time Warner Cable is the second largest US cable company behind Comcast
Competes with all companies in the same industries, but mostly with other companies who offer bundled services
In 2006, TWC and Comcast purchased almost all of Adelphia’s assets. They divided up amounts of subscribers proportional to the assets they purchased.
TWC and Comcast cooperatively agreed to exchange some subscribers because of geographic regions
https://www.google.com/finance?client=ob&q=NYSE:TWC
A View of TWC’s stock price over the past few years; pretty consistent with the market
• Sudden Link: $102• DirectTV: $99• TWC: $98• Optimum Online: $75• Dish: $73• FiOS: $71
http://tv.about.com/od/cableandsatellitetv/a/tvprog_compare.htm
• Has become 2nd leading cable provider in the US (over 15 million users)
• Heavily focused on innovation: implements tactics for disruption through shifting the rules
• Actively promotes services protection (Recent White House Press Conference, Consumer Privacy Bill of Rights)
• Reaching out to provide services for businesses as well as commercial customers
• Potentially too much power in the market: recently acquired Insight Communications in February
• Still one of the most expensive providers in the market
• Ranked in the bottom 15 for customer service in the Temkin Customer Service Report
http://experiencematters.files.wordpress.com/2012/03/2012tlr_allrankings.png
Time Warner Cable has always been a company built on innovation. How do you see TWC dealing with “cord cutters” such as Netflix and Hulu as they lessen the demand for cable television?
What factors do you think contribute to Time Warner Cable’s strong position in the marketplace? What are some potential threats to the company’s success?
Do you think that the combination of high price and low service rating could potentially disrupt TWC’s enormous market share? Why or why not?