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Cable Technology Feature Article

November 01, 2011

Time Warner to Increase Video Subscription Fees by 4.29 Percent

By Erin Harrison, Executive Editor, Strategic Initiatives

Just a few days after the company announced its net income in the third quarter dropped by about 1 percent to $356 million, Time Warner (News - Alert) Cable is starting to notify its Northeast customers that it will raise their fees by more than four percent, according to media reports.

The cable company said it will increase its video subscription fees by about 4.29 percent in December.  However, only half of the company’s Northeast subscribers will actually have to pay the higher fee.

About half of the company’s subscribers in the Northeast won’t see rate increases since they have promotional bundle packages, spokesman Justin Venech told FierceCable.  ”For those not in these packages, the 4.29 percent increase affects only the cable charges and not charges for Internet, phone or security,” he added.

The increased subscription fees reflect higher programming costs, according to Venech, who added that Time Warner is “investing in new advanced products such as its Look Back and Start Over features for digital cable subscribers, and an app the company has developed for Apple’s (News - Alert) iPad,”  FierceCable reported.

On Oct. 27, Time Warner Cable also said that 3Q revenues of $4.9 billion were 3.7 percent higher than the amount the company earned in the third quarter of 2010, TMCnet’s Ed Silverstein reported.

In a company statement, it was additionally reported that 3Q 2011 revenue from residential services edged up 2.0 percent to $4.3 billion, when compared to the same time period in 2010.

“We posted steady financial progress in the third quarter, powered by residential broadband and business services, and we’re pleased with the stronger subscriber results in August and September,” Time Warner Cable CEO Glenn Britt said. “We continue to focus our efforts on maximizing our growth opportunities.”

Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TMCnet, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Carrie Schmelkin