Time Warner Cable Points the Finger for Loss of Video Customers LA Times
Time Warner Cable is naming names as it tries to explain why its subscriber base suffered a hefty dropoff during the third quarter. The Los Angeles Times reports that the company lost 306,000 video customers in the period, blaming the loss largely on its drawn-out battle with CBS and the blackout of CBS stations.
The company also lost 24,000 high-speed data customers and 128,000 voice customers. Time Warner Cable tempered its revenue forecasts for 2013 because of the loss of customers.
"The CBS dispute apparently took a much larger toll than anyone would have imagined," media analyst Craig Moffett said. He described the results as "horrible."
Still, Time Warner Cable Chief Executive Glenn Britt said the blackout made sense in the long run. "We do think we are better off with CBS than we would have been if we had not had this fight," Britt said, according to the story.
Moffett, meanwhile, warned that cable operators should realize the battle left Time Warner Cable "badly damaged even for having fought the fight." He wrote: "If you thought the scales were tipped in programmers’ favor before, now you know that it is worse than you imagined."