Time Warner's Triple Play Package: The Multi-Bidder Contest For Time Warner Cable
Chris DeMuth Jr. • 16 Comments
Chris DeMuth Jr. • 16 Comments
Jan. 29, 2015, 8:52 AM
- Time Warner Cable's (NYSE:TWC) earnings miss today comes as it continued to bleed off residential video customers, while business services revenues and ad revenues made up highlights of its revenue growth. Operating income up 4.5%.
- Subscriber breakdowns: Residential video customers net loss of 38K; Residential high-speed data net adds of 168K; residential voice net adds of 295K; residential triple play net adds of 273K. Total customer relationship net adds of 67K.
- Residential services revenue up on increased high-speed data revenue, offset by declines in video and voice.
- Business services revenue up mainly on high-speed data and voice customers as well as cell tower backhaul.
- No full-year guidance offered, given where TWC is with the ongoing Comcast (NASDAQ:CMCSA) buyout.
- Q4 results
Jan. 29, 2015, 6:05 AM
- Time Warner Cable (NYSE:TWC): Q4 EPS of $2.03 misses by $0.06.
- Revenue of $5.79B (+3.8% Y/Y) misses by $20M.
Jan. 28, 2015, 8:41 AM
- Liberty Media (NASDAQ:LMCA) CEO Greg Maffei says that the government will likely approve the giant media merger deals on the table -- Comcast (NASDAQ:CMCSA) with Time Warner Cable (NYSE:TWC), and AT&T (NYSE:T) with DirecTV (NASDAQ:DTV) -- but the key issue will be what the firms are forced to give up.
- "My bet would be that all those deals get done," Maffei tells CNBC. "What is the set of regulations or restrictions around them and what the acquiring companies have to agree to, that'll be the rub."
- Liberty's interest in Charter Communications (NASDAQ:CHTR) is on his mind: "Charter has been an acquirer, is going to continue to be an acquirer" -- and Charter will have room to make buys if Comcast ends up swallowing TWC.
- Previously: Comcast-Time Warner Cable merger review clock running again (Jan. 13 2015)
- Previously: DirecTV hiking prices ahead of AT&T deal's closing (Dec. 29 2014)
Jan. 15, 2015, 12:40 PM
- Barry Diller says there's no stretch left on pay-TV pricing as he dissects the influence of Amazon Prime (NASDAQ:AMZN) in the industry.
- He warns on the Prime model where adding subscribers for the company dwarfs concerns on viewership and advertising.
- By the sound of it, Diller isn't recommended staying long cable stocks (CMCSA, TWC, CHTR, CVC) or positive on programmers (SNI, CBS, AMCX, FOXA, VIA, VIAB, MSG, DIS) set to renegotiate carriage deals.
- CNBC interview (video)
- Previously: Woody Allen to direct series for Amazon Studios (Jan. 13)
- Previously: Amazon added over 10M new Prime users during holiday season (Dec. 26, 2014)
Jan. 14, 2015, 4:08 AM
- Building on his previous call for the FCC to regulate broadband service as a utility, President Obama will push the FCC today to overturn state laws that prevent cities from building their own broadband networks.
- The centerpiece of the initiative is a call for the FCC to pre-empt laws in 19 states that can prevent cities and localities from building their own high-speed broadband networks.
- FCC Chairman Tom Wheeler has already indicated that he is strongly considering the move.
- Related Tickers: CMCSA, T, VZ, TWC, NFLX, CTL, CHTR, FTR, ELNK
Jan. 13, 2015, 1:56 PM
- The regulatory meter is running again on the merger between Time Warner Cable (TWC +0.7%) and Comcast (CMCSA +0.8%).
- The FCC paused the review to catch up on 7K pages of documents it hadn't accounted for previously.
- A lengthy review of the TWC-CMCSA deal puts the combined company at a slight disadvantage when it re-enters a changed pay-TV landscape.
Jan. 6, 2015, 6:50 AM
- Time Warner Cable (NYSE:TWC) will report Q4 results on Jan. 29 before the market opens.
- The conference call is scheduled to begin at 8.30 a.m. ET.
- Consensus view is EPS of $2.09 on revenues of $5.81B.
Dec. 31, 2014, 8:42 AM
- Streaming: Sony (NYSE:SNE), HBO (NYSE:TWX), CBS (NYSE:CBS), and Dish Networks (NASDAQ:DISH) are set to unveil streaming products in 2015. The theory of the companies that the skinny bundles will draw in more cord-cutters and cord-nevers than they will cannibalize current pay-TV subscribers will be put to the test. The rush of streaming options could help or hurt Netflix (NASDAQ:NFLX) depending upon which analysis an investor leans on.
- Theater traffic rebound: Exhibitors (CNK, RGC, AMC, CKEC, IMAX) and movie studios (LGF, VIA, VIAB, DIS, FOXA, CMCSA, TWX) maintain that the decline in theater attendance in 2014 (-6%) was due to a slate of films light on blockbusters. A bounce is forecast for 2015 with high-profile films such as Avengers: The Age of Ultron, The Hunger Games: Mockingjay Part 2, Fifty Shades of Grey, Jurassic World, Spectre (James Bond), and Mission Impossible 5 all set to premiere - along with the reboot of the Star Wars franchise in December. Capex spending on theater upgrades could also help boost in-theater spending and average ticket price for exhibitors.
- Mergers: If regulators allow the Comcast-Time Warner Cable (NYSE:TWC) and AT&T-DirecTV (NASDAQ:DTV) mergers to sail through it could clear a path for other media combinations, note analysts. Potential buyers include Alibaba (NYSE:BABA), Wanda Group, Softbank (OTCPK:SFTBY), and a TWX-rebuffed 21st Century Fox (NASDAQ:FOXA). Content producers which could be targets include Starz (NASDAQ:STRZA), Lions Gate (NYSE:LGF), DreamWorks Animation (NASDAQ:DWA), AMC Networks (NASDAQ:AMCX), and Scripps Networks (NYSE:SNI). A split-up Madison Square Garden (NASDAQ:MSG) could also be enticing.
Dec. 23, 2014, 1:52 AM
- The FCC is again pausing its review of the proposed $45B merger of Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC), citing delays in getting documents from the latter.
- Imposing an informal 180-day countdown for the review, the FCC is determining whether combining the cable companies is in the public interest.
- Time Warner Cable has promised to produce the missing documents, but the agency is pausing the review at day 104 until Jan. 12, saying it needs extra time to study new submissions.
Dec. 17, 2014, 11:32 AM
- Dish Network (DISH +0.6%) says Netflix might be integrated into the company's upcoming streaming subscription product and be part of its search functions.
- The OTT programming package from the satellite company is set to include Disney Channel, Disney XD, ESPN, ABC, A&E, History, Lifetime, H2, HGTV, DIY Network, Food Network, Cooking Channel, and Travel Channel among other networks. Netflix access will require authentication.
- What to watch: Media analysts think other online TV ventures will face more pressure to include Netflix (NFLX +3.6%) after Dish made its move. There could also be an impact on pay-TV operators (CHTR, CVC, TWC, CMCSA, DTV) if Netflix gets insides their boxes to cut into VOD revenue.
- Previously: Dish Network brings Netflix into the box
Nov. 13, 2014, 8:46 PM
- Sony's (NYSE:SNE) new online TV package will price at $60 to $70 per month, estimates Re/code.
- It's a level that is twice what Dish Network (NASDAQ:DISH) plans to charge for a slimmer package, although one that includes ESPN.
- Programming on the Sony streaming service will feature shows from CBS, Discovery Communications, Fox, NBC, Scripps Networks, and Viacom.
- The pitch from the Japanese media giant is that cord-cutters will be drawn in by the captivating way of accessing the content through gaming consoles. A cutting-edge discovery and recommendations service for users is also highlighted by execs.
- Regulatory watch: Potential rule changes from the FCC could level the playing field for the new streamers as they work out their content deals.
- What to watch: A fragmented pay-TV landscape could benefit content producers (DISCA, CBS, FOXA, DIS, LGF, TWX, AMCX) in the short-term as competition heats up, while creating a pricing headache for cable/satellite/telco players (CMCSA, CVC, CHTR, DISH, T, DTV, VZ, TWC).
- The Netflix factor: Many media analysts consider Netflix (NASDAQ:NFLX) an add-on for consumers - instead of an either/or decision with online TV.
Nov. 13, 2014, 3:12 AM
- Comcast (NASDAQ:CMCSA) is pushing "full steam ahead" with its acquisition of Time Warner Cable (NYSE:TWC), despite the regulatory review process and looming regulation governing net neutrality.
- Comcast expected the deal to be completed “sometime in the first quarter and we still believe that today,” says CEO Brian Roberts.
- Roberts reiterated that Comcast opposes the proposals to classify broadband providers as utilities, which would endanger the company's plans to spend tens of billions of dollars to upgrade its networks.
Oct. 30, 2014, 7:46 AM
- Time Warner Cable (NYSE:TWC) reports residential video revenue fell 4% Y/Y to $2.497B in Q3.
- Residential high-speed data revenue +10.9% to $1.62B.
- Programming and content costs +9.6% to $1.326B.
- Average monthly programming costs per residential video subscriber +11.1% to $38.96.
- High-speed data net additions +108K to 11.51M.
- Total customer relationships -18K Q/Q to 14.457M. Triple play customers -24K over the quarter.
Oct. 30, 2014, 6:04 AM
- Time Warner Cable (NYSE:TWC): Q3 EPS of $1.86 misses by $0.05.
- Revenue of $5.71B (+3.4% Y/Y) misses by $40M.
Oct. 29, 2014, 1:22 PM
- A bid by Aereo to be defined as a cable provider gained support from the FCC with a new proposal out this week which was described in a blog post written by Chairman Tom Wheeler.
- The agency supports "open access" for consumers to high-speed broadband delivery and the right of over-the-top firms to offer programming owned by pay-TV providers and broadcasters.
- In essence, the FCC thinks the bundled pay-TV model should be broken so that consumers will not be forced to pay for channels they never watch.
- What to watch: Though Aero isn't likely to be the ultimate pay-TV disrupter without the deep pockets to license content, the position of the FCC opens the door for other Internet video players to emerge and chips away at the bundled channels model.
- Related stocks: DISH, DTV, CMCSA, CHTR, CVC, TWC, VZ, T, NFLX.
Oct. 24, 2014, 12:49 PM
- The current share prices of Time Warner Cable (TWC +2.1%) and Comcast (CMCSA +2.2%) indicate the market is rating the odds of an approved merger by the FCC and DOJ at 75%, according to commentary from media analyst Craig Moffett.
- Earlier this week, Dish Networks joined some pay-TV peers in slamming the deal in communications with regulators.
- Execs with Comcast exuded confidence on the merger during the firm's earnings conference call yesterday.
Time Warner Cable, Inc. provides video, high-speed data and voice services in the United States. It operates through the following segments: Residential Services, Business Services, and Other Operations segments. The Residential Services segment consist of video, high-speed data and voice... More
Industry: CATV Systems
Country: United States
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