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    No Matter What Time Warner Says, Cord Cutting Is Happening

    By Rebecca Greenfield | The Atlantic Wire – Thu, Jan 26, 2012
    No Matter What Time Warner Says, Cord Cutting Is Happening

    Even after reporting an increase in high-speed data customers alongside a decrease in video subscribers, Time Warner still doesn't think that the Internet is replacing the traditional pay TV model. Along with its Q1 earnings report, the cable company said its high-speed data customers increased by 130,000, while it lost 129,000 more residential video subscribers. "Time Warner Cable said today that web-based video still isn't having a huge impact on its video subscribers, saying those services are 'not a substitute at this point,'" reported AdAge. But, the numbers don't exactly tell the same story. 

    RELATED: Time Warner Can Blame ESPN for Much of That Cord Cutting


    Time Warner cites very legitimate explanations for its lagging cable subscriptions, but neglects to mention the numbers in the context of rising Internet and streaming numbers. The company believes it's losing TV watchers to competition, like Dish and FiOs, and fewer new home starts. Fewer new home starts may have to do with fewer new homes in general. (Hey, recession.) But, at least some of those losses come from people like this blogger, who upon moving, saw Internet, sans pay-TV, as a better option. These people fall into what AdAge called the (scary for Time Warner) Cable Nevers. 

    They are graduating college, leaving the nest and have become comfortable finding their viewing choices online. They don't recognize networks - they know "shows." They like on-demand viewing. They like skipping commercials, too!

    As for competition, it's not the individual companies on the Internet presenting the scariest threat to Time Warner -- Netflix celebrated 600,000 subscribers yesterday, compared to Time Warner's 11.9 million -- it's their aggregate. None of the streaming services offer everything one can find on cable, mostly because cable companies and networks aren't letting that happen, as we've noted before. But, the Web as a whole has a lot, which isn't such a horrible thing for companies like Time Warner, as they still dole out the broadband that powers those Netflix binges. And people do seriously binge on Netflix. 

    RELATED: Netflix, Please Don't Go Cable


    Even as the company got defensive about the Internet, its executives must know a TV-less future may be coming for them. "At this point for Time Warner Cable, broadband is the main story, and video is secondary," Paul Sweeney, an analyst at Bloomberg Industries told AdAge. We still think plenty of obstacles stand in the way of a TV revolution, but Time Warner's in denial of the changing landscape. 

     

    26 comments

    • Just Some Dude
      Just Some Dude  •  4 mths ago
      If you want to keep customers, offer "a la carte" channels. Why do I have to pay for 100+ channels when I only watch about 30 of those?
    • Double J
      Double J  •  Plano, Texas  •  4 mths ago
      why cant a cable company just offer an "a la carte" style of programming? Each channel has a monthly price and leave it at that. throw on taxes and fees, then bam, there is your monthly bill. I have had cable all my life til recently when I decided to quit paying for it because I genuinely only watched 3 of the over 200 channels I had. I cannot justify spending for that anymore. I like the a la carte idea. Is that regulated to be prevented? Not even cash flow that way? I dont know...just always wondered.
      • B
        B 4 mths ago
        Totally agree but the government forces them to build packages to satisfy the few at the expense of the many. Nobody actually wants all of the foreign language channels except for the "few".
    • John
      John  •  Delaware, Ohio  •  4 mths ago
      Cut the cable about a year ago. Just have the high speed data. Put up a digital antenna for local channels. Roku box on each tv and an old laptop connected to my main tv (the latter allows me to stream anything thats out there) With that and a netfilx subscription I am set. would never go back to TW TV
    • The Loch Ness Monster
      The Loch Ness Monster  •  4 mths ago
      time warner are the biggest douchebag pieces of SHlT to walk the planet... after ebay.
    • Punslinger08
      Punslinger08  •  Appleton, Wisconsin  •  4 mths ago
      S'ok...The captain of the Titanic didn't really bthink the #$%$ thing could/would sink either!
    • Al
      Al  •  4 mths ago
      Well, they sure won't keep cable subscribers by forcing them into taking those bundle packages.
    • .
      .  •  4 mths ago
      With the new digital access, all you need is a decent antenna to have a fair number of channels. You can't beat free.
    • Pam
      Pam  •  4 mths ago
      We had one of those survey companies call us. Poor guy. Husband told him we haven't had TV in 20 years and why. I'm surprised survey companies haven't put us on the NO CALL list yet themselves. We live too far out of town for cable or antenna.
    • Tim
      Tim  •  Panama City Beach, Florida  •  4 mths ago
      If they want to keep customers dont jack the price up every 6 months. Offer high speed data and HD cable for about 75 a month and never change the price.
    • 2741
      2741  •  Los Angeles, California  •  4 mths ago
      I have direct tv is preety good but expensive
    • marcis ZZZ
      marcis ZZZ  •  4 mths ago
      once the NFL is on the internet, basic cable is gone for me. This really is because i hate charter though. I still like basic cable.
      • Agustin
        Agustin 4 mths ago
        It is on the internet (kind of). Playstation Network on their PS3 system has NFL Sunday Ticket, all games streamed to the PS3. Of course you have to pay for it.
    • seethepositive
      seethepositive  •  3 mths ago
      all cable companies have been promising for years to allow consumers to pick the channels they want but most of us have given up. i cut cable 2 years ago and have learned to watch other things.
    • Rick C
      Rick C  •  Coatesville, Pennsylvania  •  3 mths ago
      I cut the cord. Got local chanels for free by having broadband, then downloaded anything I couldn't get for free. If you do some research, the content is out there!
    • Skeptic
      Skeptic  •  4 mths ago
      Time Warner is not in trouble so long as wireless providers like Sprint are charging a fortune for their service. Only the wireless companies can make you cut cord, as cell phone companies did to the land line phone companies. That day will come, but not tomorrow.
    • .
      .  •  4 mths ago
      They're losing to satellite TV. I had DTV for years and switched to cable because of the lower cost. That was on a Monday and on Thursday I called to cancel and went back to DTV. It's that much better in all aspects.
    • Mike F
      Mike F  •  Princeton, New Jersey  •  4 mths ago
      Cable companies are in no danger. IF cable customers cancel and start streaming in large quantities, broadband caps will be instituted and rates raised to offset the cable losses. They've got the customers by the balls either way.
    • JohnG
      JohnG  •  4 mths ago
      I feel for you but to really get screwed on cable you should have Cox. (Aren't they well named?)
    • Cow
      Cow  •  Austin, Texas  •  4 mths ago
      Well, it isn't really "replacing" it for me. Sure, I watch hulu and netflix, but I've pretty much seen everything except the last few seasons of Dora the Explorer. I just do something else, I haven't really watched TV since they made it digital, since I don't want to pay $50 for the little converter box, or $70 a month for cable.
    • Mark
      Mark  •  4 mths ago
      Where I live you have to get the local cable company's service just to get internet. Not to mention the whole "division of bandwith for higher prices" in compairison to normal internet options. In total I'm paying about $80/month for internet and really poor cable.
    • nathan
      nathan  •  Columbia, Missouri  •  4 mths ago
      denial and greed two of the things mega corps are best at! and of course the 3rd being lies
      • B
        B 4 mths ago
        Your OWS site has internet connection?
     Post a comment
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